2. Topic: Economic consideration of IPM
By,
Harish J
AG/PG/0020/19
M.Sc. (Agriculture)
2nd Year Plant Pathology
Presentation on
RANI LAKSHMI BAI CENTRALAGRICULTURAL UNIVERSITY
COLLEGE OF AGRICULTURE
JHANSI, UTTAR PRADESH-284003
To,
Dr.Usha and Dr. Maimom Soniya
Department of Entomology
College of Agriculture

3. Integrated Pest Management (IPM)
It is an approach to making pest control decisions with increased information and the use of
multiple tactics to manage pest populations in an economically efficient and ecologically sound
manner.
The IPM concept emphasizes the integration of pest suppression technologies such as biological
control
• Using beneficial organisms against pest organisms.
• Cultural control: using rotations and cultivations to reduce pest problems
• Legal control : abiding by state and federal regulations that prevent the spread of pest
organisms
• Chemical control: pesticides

4. • The economic effects of IPM are realized both by individual farmers, ranchers, and homeowners
• IPM programs can influence pest control costs, the level and variability of producer income, and
the health of pesticide applicators.
• The programs also can affect food safety and water quality for human and wildlife and the long-
run sustainability of agricultural systems.
• Farm-level evaluation of IPM benefits and costs is one of generally lower pesticide use,
production cost, and risk, and higher net returns to producers.
• Because pesticide costs are a relatively small proportion of total production cost.

5. MAJOR ECONOMIC CONSIDERATIONS IN IPM
Distributional Concerns
Locus of Comparative Advantage
Induced Impacts
Spillover Impacts
Markets for Agricultural Inputs
Quality and Grading
Research and Development
Risk Management
Farm Level Decision-Making
Farmer Spillovers
Diversification of Pest Controls

6. Distributional Concerns
Pest management situations often may be correlated with factor like
1) managerial ability,
2) quality and quantity of land,
3) production system,
4) location,
5) farm capitalization.

7. Induced Impacts
• The incidence of pests can radically alter economic activity within the
agricultural production sector.
• The production sector obviously interacts with other sectors within an economy.
• The impact on these sectors also potentially can alter the interregional terms of
trade.

8. Locus of Comparative Advantage
• The location and incidence of pest problems are not regionally uniform.
• The development of pest management strategies or policies would seem to influence the regional
distribution of production and factor usage either quantitatively or qualitatively.
• Management actions would then haveimplications for the ability of regions to compete against one
another’
• By altering the interregional distribution of welfare, income, and resource usage as well as the
location.

9. Spill over Impacts
• The use of pest management strategies leads to many results other than the management of pests.
• For policy-making, impacts must be identified, quantified, and valued.
• These spillovers may be either undesirable or desirable.
• Some important types of spillovers are:
• Effects on non-target species such as humans, non-target insects,animals, and plants.
• Changes in the farm production function, both short and long run,stemming from IPM strategy use.
• Shifts in pest resistance and/or prevalent population.
• Adjustments in farm resource use and product mix.

10. Markets for Agricultural Inputs
• An important consideration for IPM studies is the effect on
agricultural input markets of an IPM action.
• Agriculture consumes at least four inputs: land, labor, capital, and
water.
• Active competition with the non-agricultural sector, Each of these
inputs clearly has alternative uses.
• Changes in demand for these inputs should be examined in terms
of the inputs' alternative usages and in terms of prices.

11. Quality and Grading
• Many dimensions of quality are pest related.
• One economic issue here involves whether grading systems,
quarantines, marketing orders are socially desirable considering the
trade-offs between quality and spillovers created by IPM strategy use

12. Research and Development
• IPM method development clearly requires investment.
• It is difficult for any individual to fully capture the value of an IPM strategy.
• Many IPM methods became public goods.
• Some techniques would spread from individual to individual without adverse impacts upon
availability to others.
• major issue arises involving the interactions of regulatory and development activities

13. Farm Level Decision-Making
• For an IPM strategy to be successful, the farm level decision making process and adaption are very
important.
• Adoption will occur because a strategy ranks highest within a possible set of actions.
• The issues involved are
1. What dimensions of the farmers' perceived welfare are affected by IPM strategies?
2. How are these dimensions valued by farmers in choosing the strategy to employ?
3. how may an IPM strategy be efficiently imposed, if desired?

14. Farm Level Decision-Making
• For an IPM strategy to be successful, the farm level decision making process and adaption are
very important.
• Adoption will occur because a strategy ranks highest within a possible set of actions.
• The issues involved are
1. What dimensions of the farmers' perceived welfare are affected by IPM strategies?
2. How are these dimensions valued by farmers in choosing the strategy to employ?
3. How may an IPM strategy be efficiently imposed, if desired?

15. Risk Management
• Farmers behave in different ways under exposure to risk.
• The prophylactic use of pesticides is potentially a risk-reducing strategy compared to some other
types of methods.
• The issues involved here are
1.what is the long- and shortrun exposure to risk under an IPM strategy?
2. what will be the expected farmer response?
Economic issues also can be developed involving the potential for interjecting risk-reducing factors
into the pesticide arena as either a substitute or a complement to improved techniques.

16. Pest Intervention and Information
• One possible approach to restricting the use of "overused" pesticides is to substitute information-gathering activities for
pesticide use.
• It helps in using pesticides only when necessary.
• The issues are
1. How does one find out the relative incidence of pests and the likelihood of an outbreak in an economic fashion?
2.How does one know, given an incidence and likelihood of an outbreak, when to intervene and with what method?
3.Since pest populations often include several pests and/or predators, how should predators and pests be considered in
management practices?

17. Farmer Spillovers
• The majority of farmers user integrated pest management
• With chemical controls, problems have occurred when mobile pests or treatments have
drifted,affecting adjacent farmers.
• Farmers applying pesticides, therefore, face benefits and costs associated with their pesticide
expenditures that differ in many cases from society's total benefits and costs.
• Spillovers also occur with chemical pest controls.
• when a farmer's long run production is altered by the action of such things as residues retained in the
soil, predator-secondary pest infestations, or resistance development.
• Spillover issues in terms of pollution, environmental degradation, etc.,
• Issues: What relation exists between the benefits and costs a farmer receives, and the full benefits
and costs of pest treatments?
• how can the true cost/value of the use of an IPM strategy be reflected on the' farm decision maker?

18. Diversification of Pest Controls
• Pest controls exhibit different characteristics regarding kill efficiency,
resistance development, toxicity to various pests, and performance variability.
• Diversification of pest controls may be required or used to mitigate spillover
impacts, and/or to treat multiple pests simultaneously.

19. • Evaluating the effects of IPM on profitability, production and income risk, pesticide applicator safety, and
other potential private benefits and costs can provide information to individuals that may help them
decide if they should adopt particular IPM practices.
• Economic evaluation of IPM can be helpful to policymakers trying to decide if additional funding is needed
for public IPM programs
• To evaluate social benefits, assessments are needed of consumer benefits and of many non-priced
environmental benefits in addition to effects on producer profit and risk.

20. METHODS FOR ECONOMIC EVALUATION OF IPM
A wide variety of methods have been used for economic evaluations of IPM
techniques and programs.
1. Farm-level analysis of IPM Programs.
2. Analysis of Aggregate Economic and Environmental Impacts.
3. Evaluating IPM Effects on Aggregate Income.
4. Valuing Environmental Benefits.
5. Optimal Use of Pest Management Practices.