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The Microeconomic Impact of IPM Adoption: Theory and Application

Published online by Cambridge University Press:  15 September 2016

Jorge Fernandez-Cornejo
Jorge Fernandez-Cornejo*
Affiliation:
The Economic Research Service, U.S. Department of Agriculture
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Abstract

This paper develops a methodology to calculate the impact of integrated pest management (IPM) on pesticide use, yields, and farm profits. The methodology is applied to the IPM adoption among fresh market tomato producers in eight states. The method is of general applicability. It accounts for self-selectivity and simultaneity, and the pesticide demand and yield equations are theoretically consistent with a profit function. The results support the notion that fresh market tomato growers who adopt IPM for insects and diseases apply significantly less insecticides and fungicides, respectively, than do those who do not adopt IPM; IPM adoption has an insignificant effect on yields and a small effect on profits.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 25 , Issue 2 , October 1996 , pp. 149 - 160
Copyright
Copyright © 1996 Northeastern Agricultural and Resource Economics Association 

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