An economic analysis of soybean integrated pest management

The type ofpest management strategy a farmer chooses is influenced by the amount of risk associated with alternative strategies. This paper examines the attractiveness Of alternative pest management strategies used on a representative Virginia soybean farm. Probability distfibutions of net revenue associated with alternative pest control options are simulated and then compared using generalized stochastic dominance criteria. Results suggest risk-averse and, in some cases, risk-preferring farmers would prefer strategies which incorporate an integrated pest management approach to pest control rather than one which relies completely on chemical pest control. Key words: pest control, stochastic dominance, uncertainty. Widespread attention has been given in recent years to an integrated pest management (IPM) approach to pest control. This approach em-phasizes making pest control decisions with increased information and the integration of biological, cultural, and chemical control methods. It often results in decreased use of pesticides (Osteen, Bradley, and Moffitt). While the initial Ÿ for development of IPM was in par ta concern about spillover effects of pesticide use (human, wildlife and livestock health effects, increasing pest resis-tance, and demise of nontarget species), the extent hat farmers have adopted IPM thus far is related more to perceived private economic benefits. Incomplete information is available on the level of IPM use, but adoption appears to vary widely by region and crop. For exam