IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Economic Impact of Fusarium Head Blight in Malting Barley: Blending Margins and Firm-Level Risk

  • Nganje, William E.
  • Johnson, D. Demcey
Registered author(s):

    FHB and DON present significant challenges to producers, grain elevators, and the brewing industry. Yield reductions and price discounts incurred by producers in North Dakota, Minnesota, and South Dakota averaged about $45.3 million annually during the years 1998 through 2000. Losses are more substantial when secondary economic impacts are considered. For every $1 of scab losses incurred by the producer, $2 in losses are incurred in other areas of rural and state economies. One way of mitigating these losses is to blend barley with DON and barley without DON. Results from the grain blending model show a sharp decline of DON discounts and losses after blending. The average discount fell from $0.57/bu to $0.17/bu in 1998, $0.48/bu to $0.14/bu in 1999, and $0.38/bu to $0.15/bu in 2000. However, producers may not benefit from blending margins (gains from improved quality less blending costs) because these margins are the primary source of revenue for grain elevators. It should also be noted that the aggregate costs of DON to grain handlers are difficult to estimate because DON is subject to an unusual amount of measurement uncertainty, and penalties for excess DON pose an unusual level of risk.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://purl.umn.edu/45723
    Download Restriction: no

    Article provided by Canadian Agricultural Economics Society in its journal CAFRI: Current Agriculture, Food and Resource Issues.

    Volume (Year): (2003)
    Issue (Month): 04 ()
    Pages:

    as
    in new window

    Handle: RePEc:ags:cafric:45723
    Contact details of provider: Web page: http://caes.usask.ca/papers/cafri/index.php

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Johnson, D. Demcey & Flaskerud, George K. & Taylor, Richard D. & Satyanarayana, Vidyashankara, 1998. "Economic Impacts Of Fusarium Head Blight In Wheat," Agricultural Economics Reports 23437, North Dakota State University, Department of Agribusiness and Applied Economics.
    2. Nganje, William E. & Johnson, D. Demcey & Wilson, William W. & Leistritz, F. Larry & Bangsund, Dean A. & Tiapo, Napoleon M., 2001. "Economic Impacts Of Fusarium Head Blight In Wheat And Barley: 1998-2000," Agribusiness & Applied Economics Report 23515, North Dakota State University, Department of Agribusiness and Applied Economics.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ags:cafric:45723. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.