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Abstract

Removing corn and soybean pesticides with alleged environmental and safety risks from the market could increase U.S. agricultural production costs, crop prices, farm incomes, and consumer expenditures, causing farmers to gain and consumers to lose. Banning all triazines, acetanilides, soil insecticides, or seed treatments would have the largest effects. This report uses an econometric-simulation model, incorporating relatively new developments in welfare economics, to analyze the economic implications of potential bans of corn and soybean insecticides, nematicides, fungicides, and herbicides through cost and yield assessments. Banning an individual corn or soybean pesticide would not significantly affect crop production, but banning all pesticides used for an important pest problem would have substantial effects. This study also demonstrates the interdependence among pesticide regulatory decisions.

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