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Economic Effects of Banning Soil Fumigants

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  • Barse, Joseph R.
  • Ferguson, Walter
  • Seem, Robert

Abstract

Producers who formerly used fumigants to control soil-borne pests would be worse off by $100-$200 million per year, despite higher prices, if soil fumigants were banned for citrus fruit, potatoes, tomatoes, tobacco, and a few other crops, because crop output would decline sharply. Producers who did not use fumigants would be better off by $480-$800 million per year because of higher product prices received. Consumers would pay $3.0-$5.1 billion more annually in the short run. Average annual consumer prices would rise 53 percent for fresh tomatoes, 11 percent for potatoes, a percent for canned tomatoes, and 4 percent for cigarettes. Loss of fumigants would have no effect on prices of cotton products, citrus fruit, or frozen juice. This report estimates the economic effects on producers and consumers of certain crops if the use of all soil fumigants were lost because of EPA cancellation, suspension, or manufacturer withdrawal.

Suggested Citation

  • Barse, Joseph R. & Ferguson, Walter & Seem, Robert, 1988. "Economic Effects of Banning Soil Fumigants," Agricultural Economic Reports 308065, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerser:308065
    DOI: 10.22004/ag.econ.308065
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    References listed on IDEAS

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    1. George, P.S. & King, Gordon A., 1971. "Consumer Demand for Food Commodities in the United States with Projections for 1980," Monographs, University of California, Davis, Giannini Foundation, number 11936, December.
    2. Huang, Kuo S., 1985. "U.S. Demand for Food: A Complete System of Price and Income Effects," Technical Bulletins 157014, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Liang, Chyi-Lyi (Kathleen) & Lovejoy, Stephen B. & Lee, John G., 1998. ""Green Taxes": Impacts On National Income, Social Welfare, And Environmental Quality," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20870, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Ferguson, Walter & Padula, Armand, 1994. "Economic Effects of Banning Methyl Bromide for Soil Fumigation," Agricultural Economic Reports 308281, United States Department of Agriculture, Economic Research Service.
    3. Schaub, John R., 1991. "Pesticides: How Safe and How Much?," Food Review/ National Food Review, United States Department of Agriculture, Economic Research Service, vol. 14(2), April.

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