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The Effect of Label Information on U.S. Farmers’ Herbicide Choices

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  • Hasing, Tomas
  • Carpio, Carlos E.
  • Willis, David B.
  • Sydorovych, Olha
  • Marra, Michele C.

Abstract

This paper analyzes the effect of labeling information on U.S. farmers’ herbicide choices. Herbicide choices reported by U.S. soybean farmers are used to estimate farmer preferences for different herbicide attributes using a mixed logit model. Our results indicate that statements displayed on pesticide labels regarding risks to human health and the environment are important components in herbicide selection. We find that farmers are willing to pay an average of $27 per acre to avoid using an herbicide labeled with the word “Warning†and $38 per acre to avoid using an herbicide labeled with the word “Danger.â€

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Bibliographic Info

Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

Volume (Year): 41 (2012)
Issue (Month): 2 (August)
Pages:

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Handle: RePEc:ags:arerjl:132530

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Related research

Keywords: mixed logit model; WTP to avoid human and environmental risk; Agribusiness; Agricultural and Food Policy; Demand and Price Analysis; Environmental Economics and Policy; Health Economics and Policy; Production Economics;

References

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  1. David Hensher & Nina Shore & Kenneth Train, 2005. "Households’ Willingness to Pay for Water Service Attributes," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 32(4), pages 509-531, December.
  2. Lohr, Luanne & Park, Timothy A. & Wetzstein, Michael E., 1997. "Voluntary Economic And Environmental Risk Tradeoffs In Crop Protection Decisions," Faculty Series 16654, University of Georgia, Department of Agricultural and Applied Economics.
  3. Golan, Elise H. & Kuchler, Fred & Mitchell, Lorraine, 2000. "Economics Of Food Labeling," Agricultural Economics Reports 34069, United States Department of Agriculture, Economic Research Service.
  4. Chiara M. Travisi & Peter Nijkamp & Raymond J. G. M. Florax, 2004. "A Meta-Analysis of the Willingness to Pay for Reductions in Pesticide Risk Exposure," Working Papers 2004.101, Fondazione Eni Enrico Mattei.
  5. Carpio, Carlos E. & Sydorovych, Olha & Marra, Michele C., 2007. "Relative Importance of Environmental Attributes Using Logistic Regression," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34846, Southern Agricultural Economics Association.
  6. Owens, Nicole N. & Swinton, Scott M. & van Ravenswaay, Eileen O., 1998. "Farmer Willingness To Pay For Herbicide Safety Characteristics," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20942, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  7. Dan Rigby & Mike Burton, 2006. "Modeling Disinterest and Dislike: A Bounded Bayesian Mixed Logit Model of the UK Market for GM Food," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 33(4), pages 485-509, 04.
  8. David Hensher & William Greene, 2003. "The Mixed Logit model: The state of practice," Transportation, Springer, vol. 30(2), pages 133-176, May.
  9. Bryan J. Hubbell & Gerald A. Carlson, 1998. "Effects of Insecticide Attributes on Within-Season Insecticide Product and Rate Choices: The Case of U.S. Apple Growers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 382-396.
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