Pyrethroid Working Group
The California Department of Pesticide Regulation (DPR) initiated a review of the efficacy and safety of pyrethroid insecticides. ERA Economics was engaged to prepare an economic assessment of the benefits that pyrethroids provide to growers, ancillary businesses, and farm workers in California. The purpose of the study was to develop data and economic information regarding the importance, use, and economic benefits of pyrethroid insecticides.
ERA Economics prepared an economic benefits analysis of the value of pyrethroid insecticides for major California crops. The analysis combined detailed geospatial data on crop production and pyrethroid use rates with a series of farm financial and economic market models. A survey of PCAs, growers, and industry processionals was conducted to cross-reference results of a literature review, which was used to establish the efficacy and cost of alternative insecticides. The economic framework was used to quantify the direct economic benefits to growers in terms of net revenue, value added, and income. Results of the direct benefit analysis were linked to a regional input-output economic model to quantify multiplier benefits in terms of regional jobs, tax base, and economic activity.
The analysis found that pyrethroids are an essential tool for integrated pest management, providing substantial economic benefits to producers and ancillary businesses, which would increase over time. ERA presented study findings at a meeting with DPR staff, prepared a detailed technical report, and a shorter executive summary document targeted to a more general audience. The study successful in providing an understanding of the value of pyrethroid insecticides as part of a broader IPM system, the cost of alternative insecticides, and the potential economic cost (e.g., crop damage, additional labor, and loss of market share) if growers lose access to these products.