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Abstract

Using an augmented profit function framework designed to account for externalities related to chemical use in agriculture, this paper explains the chemical use choices of farmers in an urban fringe farming environment. It further estimates empirical logit models of reduced insecticide, fungicide, herbicide, and fertilizer usage. Results suggest that farmers who perceive their regulatory environment to be strict, who have experienced right-to-farm conflicts, and who have farms larger in size are more likely to reduce their chemical use over time, vis-à-vis other farmers. The results also suggest the importance of other farm structural and business climate factors in determining chemical use reduction choices.

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