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An Economic Analysis of Producers' Decisions Regarding Insect Control in Stored Grain
Author(s) -
Anderson Kelline,
Schurle Bryan,
Reed Carl,
Pedersen John
Publication year - 1990
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/12.1.23
Subject(s) - dominance (genetics) , stochastic dominance , malathion , business , toxicology , agricultural science , agricultural economics , agricultural engineering , economics , statistics , biology , mathematics , agronomy , engineering , pesticide , biochemistry , gene
Abstract The quantity of grain in storage has been exceptionally high through much of the early 1980s. As a result, the effect of insect activity on quality of grain that is stored for long periods of time has become a major concern. The purpose of this study was to analyze producer choices regarding treatments for control of insects in stored grain. A second degree stochastic dominance criterion was used to compare three treatments. In more than 80% of the comparisons, a protectant (malathion) was in the efficient set, which means that it could be selected by a risk‐averse individual. In over 65% of the comparisons, a minimum treatment was in the efficient set. Treatment by fumigating was selected to remain in the efficient set in only 34% of the comparisons. Data from this study (before the implementation of the May 1988 regulations of the Federal Grain Inspection Service regarding insect infestation and insect‐damaged kernels) suggest that elevator discounts were not consistent nor large enough to encourage farmers to incur large costs for controlling insects.