Economic Impact of Discontinuing Aldrin Use in Corn Production

Herman W. Delvo

No 327166, Miscellaneous Publications from United States Department of Agriculture, Economic Research Service

Abstract: Restricting the use of the insecticide aldrin in corn production will affect farmers' production costs. The effect of these higher production costs on producers' gross and net income and their impact on consumers' food costs depends on assumptions made. In analyzing the economic impact of replacing aldrin with nonorganochlorine insecticides, two general conditions were evaluated. These conditions were (1) holding corn acreage constant and allowing corn price to rise (because of reduced output) and (2) bringing additional land into corn production to maintain corn output and hold corn price constant. For each condition two assumptions were made regarding alternative insecticides to replace aldrin. These were (1) alternative insecticides would be used to control corn rootworms, wireworms, and cutworms and (2) no insecticides would be used to control wireworms and cutworms but alternative insecticides would be used to control corn rootworms. Without bringing additional land into production, corn producers' gross income and consumers' costs would have increased $24.8 million when alternative insecticides were used and $83.2 million when alternative insecticides were not used to replace aldrin. But those farmers using aldrin in 1971 would have had added costs of $31.5 million when alternative insecticides were used and $54.5 million when alternative insecticides were not used to replace aldrin. Bringing additional land into corn production to maintain output and price would have increased producers' costs $25.9 million when alternative insecticides were used and $31.5 million when alternative insecticides were not used to replace aldrin in 1971.

Keywords: Crop Production/Industries; Production Economics; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 25
Date: 1974-06
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:uersmp:327166

DOI: 10.22004/ag.econ.327166

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