Valuing the Changes in Herbicide Risks Resulting from Adoption of Roundup Ready Soybeans by U.S. Farmers: A Revealed-Preference Approach

Abstract

A revealed-preference-based approach is proposed for valuation of the environmental and human impacts of pesticides. It is assumed that farmers reveal their willingness to pay for improved pesticide safety by selecting a specific product out of the set of available alternatives based on their costs, effectiveness, and safety. The approach is applied to estimate the welfare impact of changed patterns of herbicide use on Roundup Ready soybeans. The results indicate that farmers associate positive values with safety improvements. The aggregate welfare impact of the reduced risk for the U.S. soybean farmers was estimated to be $90.3 million in 2001.

Value of neonicotinoid seed treatments to US soybean farmers

“…These items included: protecting yield; cost; family and worker safety; protecting beneficial insects; saving time and labour; public safety; protecting wildlife; crop marketability; convenience; improving crop health; reducing equipment wear and tear; simplicity; flexibility; reducing scouting; having consistent insect control; having long‐lasting insect control; improving crop stand; being able to plant early; replant and other product guarantees. These factors were selected for the survey on the basis of important sources of non‐monetary benefits identified in previous research . Additional factors not identified in previous research but considered potentially important in this case included: improving crop stand; improving plant health; replant or other product guarantees; crop marketability; protecting beneficial insects.…”

Pesticides and Health: A Review of Evidence on Health Effects, Valuation of Risks, and Benefit-Cost Analysis

“…It could also be argued that they are well informed, and therefore make wellinformed decision on their optimal risk exposure without any need for additional government intervention. Indeed, the only study conducted in these countries used RP data to examine farmers' preferences for reduced pesticide use with a positive impact on both health and the environment (Sydorovych and Michele, 2008). The studies on farmers in the developing world focused on the health effects (Atreya et al, 2012;Garming and Waibel, 2009;Khan, 2009;Palis et al, 2006), with one exception that elicited WTP for a more efficient pesticide (Al-Hassan et al, 2010).…”

Changes in Herbicide Use after Adoption of HR Canola in Western Canada

“…The study assumed that the highest application rate was used in all instances, which created the potential for an overestimation of active ingredient application, thus underestimating the decline in usage and the net overall benefit. Sydorovych and Marra (2008) estimated that the aggregate welfare impact from the reduced risk of herbicides in 2001 for U.S. soybean farmers was US$90 million. This estimate is based on three valuations of risk: reduced acute health risk, reduced chronic health risk, and reduced surface water runoff.…”