Estimating the Productivity of Agricultural Pesticides

J. C. Headley

American Journal of Agricultural Economics, 1968, vol. 50, issue 1, 13-23

Abstract: The controversy surrounding the use of agricultural pesticides has resulted in the examination of pest control technology and a need for estimates of the costs and benefits of pesticides. Estimates of the productivity of expenditures for agricultural pesticides are made from an aggregate production function analysis for 1963. The results indicate that chemical pesticides are a highly productive input, comparable to commercial fertilizer, and that the marginal value product of pesticides exceeds marginal factor cost by a considerable amount. These results are consistent with increasing sales volumes of pesticides and fertilizer nationally. Use of values determined through the market system to estimate benefits are a necessary part of evaluating chemical pest control. Up to the present time, no systematic effort has been made to estimate separately the productivity of pesticides. The findings point to a need for better data on the response of crops and livestock to pest control as well as a need for data on the external effects of chemical pesticides. Considerably more analysis and information are required to evaluate pesticide technology and to form good national policy in this area.

Date: 1968
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