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Insecticide Use and Crop Rotation under Risk: Rootworm Control in Corn

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  • William F. Lazarus
  • Earl R. Swanson

Abstract

The economic threshold concept is extended to a combination of two pest controls, insecticide and crop rotation, in a corn-soybean farm model. Effect of risk attitudes on the optimal combination of controls is explored, using a stochastic simulation with random crop prices, yields, and rootworn damage. Crop insurance may cause a risk-averse farmer to adopt a riskier cropping program. Reduced risk aversion causes the farmer to specialize in the more profitable corn crop. The insecticide and rotation thresholds both increase with reduced risk aversion. Depending on pest densities on individual fields, insecticide use may increase or decrease.

Suggested Citation

  • William F. Lazarus & Earl R. Swanson, 1983. "Insecticide Use and Crop Rotation under Risk: Rootworm Control in Corn," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(4), pages 738-747.
    • Handle: RePEc:oup:ajagec:v:65:y:1983:i:4:p:738-747.
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    File URL: http://hdl.handle.net/10.2307/1240462
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    Citations

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    Cited by:

    1. Lichtenberg, Erik & Zilberman, David & Archibald, Sandra O., 1990. "Economics and Pesticides," Working Papers 197750, University of Maryland, Department of Agricultural and Resource Economics.
    2. Regmi, Anita, 1990. "The value of information in integrated pest management of corn rootworm and European corn borer in Minnesota," Faculty and Alumni Dissertations 307267, University of Minnesota, Department of Applied Economics.
    3. Regev, Uri, 1990. "The Impact of Risk on Pest Management Strategies," 1990 Annual meeting, August 5-8, Vancouver, Canada 270735, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Adamson, David, 2010. "Climate change, Irrigation and Pests: Examining Heliothis in the Murray Darling Basin," Risk and Sustainable Management Group Working Papers 149879, University of Queensland, School of Economics.
    5. McDonald, Tia Michelle & Keating, Ariel Ruth & Fausti, Scott W. & Li, Jing & Lundgren, Jonathan G. & Catangui, Mike, 2010. "Insecticide Use and Crop Selection: A South Dakota Case Study," Economics Staff Papers 91991, South Dakota State University, Department of Economics.
    6. Osteen, Craig D. & Szmedra, Philip I., 1989. "Agricultural Pesticide Use Trends and Policy Issues," Agricultural Economic Reports 308081, United States Department of Agriculture, Economic Research Service.
    7. Schoney, R. A., 1990. "An Analysis of Wheat Supply Response Under Risk and Uncertainty," Working Papers 244030, Agriculture and Agri-Food Canada.
    8. Carlson, Gerald A. & Shui, Shangnan, 1991. "Farm Programs And Pesticide Demand," 1991 Annual Meeting, August 4-7, Manhattan, Kansas 271369, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Wetzstein, Michael E. & Szmedra, Philip I. & Musser, Wesley N. & Chou, Charlene C.J., . "Optimal Agricultural Pest Management With Multiple Species," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 14(1), pages 1-7.
    10. Carlson, Gerald A., 1984. "Risk Reducing Inputs Related to Agricultural Pests," Regional Research Projects >1984: S-180 Annual Meeting, March 25-28, 1984, New Orleans, Louisiana 307236, Regional Research Projects > S-180: An Economic Analysis of Risk Management Strategies for Agricultural Production Firms.

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