Abstract
The economic threshold concept is extended to a combination of two pest controls, insecticide and crop rotation, in a com-soybean farm model. Effect of risk attitudes on the optimal combination of controls is explored, using a stochastic simulation with random crop prices, yields, and rootwonn damage. Crop insurance may cause a risk-averse fanner to adopt a riskier cropping program. Reduced risk aversion causes the farmer to specialize in the more profitable com crop. The insecticide and rotation thresholds both increase with reduced risk aversion. Depending on pest densities on individual fields, insecticide use may increase or decrease.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 738-747 |
| Number of pages | 10 |
| Journal | American Journal of Agricultural Economics |
| Volume | 65 |
| Issue number | 4 |
| DOIs | |
| State | Published - Nov 1983 |
Keywords
- Corn rootworm
- Crop insurance
- Economic threshold
- Integrated pest management
- Risk
