Analyzing growers’ pest management decisions in the U.S. ornamental horticulture industry

Abstract

An increasing number of retailers in the U.S. have required labels indicating the use of controversial neonicotinoid insecticides in plant production. Recent research shows that banning neonicotinoids decreased yield, increased production cost and pest resistance. Using a nationwide survey, we analyze production practices in the ornamental horticulture industry with an emphasis on the use of neonicotinoid insecticides. We are interested in investigating how U.S. ornamental plant growers who use neonicotinoids in their production practices may be different from those who do not use them, and the factors that would affect growers’ adoption of non-neonicotinoid insecticides. A reduced-form decision model is empirically estimated using a sample of 166 growers. Results reveal discrepancies in firm and production characteristics between neonicotinoids users and non-users. Type of operation and anticipated cost changes are found to be strong indicators of pest control adoption decisions. Specifically, growers with open field are more likely to adopt non-neonicotinoids practices. Growers anticipating larger increases in labor factor input or labor cost are less likely to switch to non-neonicotinoids practices, indicating growers become reserved when environmentally friendly pest management practices have the potential to increase labor input factor and associated cost, and as a result, lead to lower revenues and profitability.