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Economic Impacts of the U. S. Soybean Aphid Infestation: A Multi-Regional Competitive Dynamic Analysis

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  • Kim, C. S.
  • Schaible, Glenn
  • Garrett, Lynn
  • Lubowski, Ruben
  • Lee, Donna
Abstract
We estimated the economic benefits resulting from controlling soybean aphid infestation by using a multi-regional competitive dynamic equilibrium model. Results indicate that the reduction of soybean production resulting from a soybean aphid infestation is largely absorbed by reducing soybean exports, due to the higher price elasticity of export demand compared to domestic demand. Producer benefits resulting from controlling soybean aphids would increase by between $949 million and $1.623 billion in ten years under various scenarios. Results also suggest that it is economically more efficient to control soybean aphids when the rate of intrinsic growth is relatively lower, the supply price elasticity of soybean acreage is relatively more elastic, and insecticide treatment costs per acre are lower. However, if the discovery of the gene Rag-1 (TF04048) leads to new cultivars that withstand the soybean aphid, our estimates will overestimate the actual damages. Even so, our analysis demonstrates that it is critical to control soybean aphids early in their infestation cycle to avoid a rapid increase in damages.

Suggested Citation

  • Kim, C. S. & Schaible, Glenn & Garrett, Lynn & Lubowski, Ruben & Lee, Donna, 2008. "Economic Impacts of the U. S. Soybean Aphid Infestation: A Multi-Regional Competitive Dynamic Analysis," Agricultural and Resource Economics Review, Cambridge University Press, vol. 37(2), pages 227-242, October.
    • Handle: RePEc:cup:agrerw:v:37:y:2008:i:02:p:227-242_00
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    References listed on IDEAS

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    1. Torre Ugarte, Daniel de la & Sanford, Scott & Skinner, Robert A. & Westcott, Paul C. & Lin, William W., 2000. "Supply Response Under The 1996 Farm Act And Implications For The U.S. Field Crops Sector," Technical Bulletins 33568, United States Department of Agriculture, Economic Research Service.
    2. Ray Huffaker & Kevin Cooper, 1995. "Plant Succession as a Natural Range Restoration Factor in Private Livestock Enterprises," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 901-913.
    3. Lee, Donna J. & Kim, C.S. & Schaible, Glenn D., 2006. "Estimating the Cost of Invasive Species on U.S. Agriculture: The U.S. Soybean Market," 2006 Annual meeting, July 23-26, Long Beach, CA 21113, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Kim, C.S. & Lee, Donna J. & Schaible, Glenn D. & Vasavada, Utpal, 2007. "Multiregional Invasive Species Management: Theory and an Application to Florida's Exotic Plants," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 39(Special), pages 1-14, October.
    5. Kim, C.S. & Lubowski, Ruben N. & Lewandrowski, Jan & Eiswerth, Mark E., 2006. "Prevention or Control: Optimal Government Policies for Invasive Species Management," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(1), pages 1-12, April.
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    9. William H. Meyers & S. Devadoss & Michael D. Helmar, 1991. "World Soybean Trade Model: Specification, Estimation, and Validation, The," Center for Agricultural and Rural Development (CARD) Publications 91-tr23, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    10. Michael D. Helmar & S. Devadoss & William H. Meyers, 1991. "World Feed-Grains Trade Model: Specification, Estimation, and Validation, The," Center for Agricultural and Rural Development (CARD) Publications 91-tr18, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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    1. Hopper, Keith R., 2023. "Modeling the effects of plant resistance, herbivore virulence, and parasitism, on the population dynamics of aphids and parasitoids in wheat and soybean in different climates," Ecological Modelling, Elsevier, vol. 481(C).
    2. C. S. Kim & Glenn D. Schaible & Jan Lewandrowski & Utpal Vasavada, 2010. "Managing Invasive Species in the Presence of Endogenous Technological Change with Uncertainty," Risk Analysis, John Wiley & Sons, vol. 30(2), pages 250-260, February.

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