ESTIMATING THE ECONOMIC IMPACT OF A CROP DISEASE: THE CASE OF FUSARIUM HEAD BLIGHT IN U.S. WHEAT AND BARLEY

Abstract

Plant diseases, particularly those affecting major agricultural crops, can have serious economic consequences, both for agricultural producers and for the regional economy. Since 1993, the spring grain producing area in the upper Midwest region of the United States has experienced a prolonged outbreak of Fusarium head blight (FHB), commonly known as scab, a fungus disease that affects wheat, barley, and other small grains. The purpose of this paper is to estimate the direct and secondary economic impacts of FHB infestations of wheat and barley during the period 1998-2000. The findings indicate that scab continues to be a major problem for U.S. wheat and barley producers. The cumulative direct economic losses from FHB in hard red spring (HRS) wheat, soft red winter (SRW) wheat, durum wheat, and barley is estimated at $870 million from 1998 through 2000. The combined direct and secondary economic losses for all the crops were estimated at $2.7 billion. Two states, North Dakota and Minnesota, account for about 55 percent of the total dollar losses.