AMVAC Chemical Company
The California Department of Pesticide Regulation (DPR) initiated an investigation of the pre-emergent herbicide DCPA (Dacthal) related to potential degradants leaching into groundwater. ERA Economics was engaged by AMVAC Chemical Company to establish the value that Dacthal provides to California growers and linked agribusiness industries through an economic benefits analysis.
ERA developed an economic analysis of the direct, indirect, and risk value of Dacthal to California growers and linked agribusinesses. A qualitative assessment of the impacts on local labor supply and disadvantaged communities was concurrently developed. The analysis leveraged ERA’s economic models, including stochastic farm budgets, and data. An extensive survey of growers and industry experts was conducted and used to establish the cost and efficacy of alternative herbicides, as well as establish alternative farming practices if access to DCPA was limited or restricted. The additional cost of each alternative crop product was quantified, including impacts to crop quality and labor and machinery costs, and used to assess the potential effect on market supply of selected California crops, and associated price and production impacts.
Economic benefits were described under current and historical conditions for major crops in California. ERA Economics worked with a broader technical team of experts, including providing testimony at an August 29, 2018 hearing before the California DPR.