A Cost Benefit Analysis of IPM Decision Support Tools for Potato Psyllids in Idaho, Oregon, and Washington

Abstract

2011 reports of Zebra Chip in major potato growing regions of Idaho, Oregon, and Washington resulted in calendar-based psyllid management programs. With the goal of improving the sustainability and profitability of potato production systems, researchers developed disease risk maps to support informed decision-making regarding timing and necessity of psyllid targeted spray applications. The benefits of investment in the decision support system are estimated using a cost benefit analysis. Benefits are estimated to span 16 years and are measured by reduced psyllid control costs. The estimated net present value of benefits from the decision support system will depend on adoption and use of the disease risk maps. Using a scenario that assumes a maximum adoption rate of 46%, the estimated net present value of the tool is $5.2 million, the benefit cost ratio is 1.63, and the internal rate of return is 8%. Assuming a scenario with a maximum adoption rate of 78%, the estimated net present value of the tool is $8.6 million, the benefit cost ratio is 2.69, and the internal rate of return is 14%.