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Soybean aphid, Aphis glycines Matsumura, is a major invasive pest that has caused substantial yield loss and increased insecticide use in the United States since its discovery in 2000. Using the economic surplus approach, we estimate the economic benefits of U.S. research and outreach for integrated pest management (IPM) of soybean aphid. We calculate ex ante net benefits from adoption of an IPM economic threshold (ET). The ET triggers insecticide application only if the value of predicted yield damage from pest scouting is expected to exceed the cost of pest control. Our research finds that gradual adoption of an ET for soybean aphid management will generate a projected economic net benefit of $1.3 billion, for an internal rate of return of 124%, over the 15 yr since soybean aphid IPM research began in 2003. Lower and upper bound sensitivity analysis brackets the estimated net benefit to U.S. consumers and soybean, Glycine max (L.) Merr., growers in the range of $0.6 to $2.6 billion in 2005 dollars. If a 10% rate of return is attributed to IPM applied research and outreach on soybean aphid, that would leave nearly $800 million to compensate prior activities that contribute to the development and adoption of IPM.

Returns to Integrated Pest Management Research and Outreach for Soybean Aphid