Pesticide use has contributed to the impressive productivity growth in U.S. agriculture; however, it has caused increasing concerns about associated health and environmental risks. Consequently, statutory changes and new initiatives have been proposed by the Clinton Administration and the Congress in order to minimize risks through reduction in pesticide use (Kuchler et al.). Similarly, many European countries have implemented programs and set national goals to reduce fertilizer and pesticide use (Szmedra). Several approaches could be considered to reduce pesticide use. Regulations have been enacted to ban or restrict the use of certain pesticides.' Quantity restrictions can reduce pesticide use, but their implementation may encounter severe enforcement difficulty. Government programs can be changed to remove economic incentives that increase pesticide use, an approach being adopted in Europe (Szmedra). Under the Food, Agriculture, Conservation, and Trade Act of 1990, farmers have the flexibility to plant up to 25 percent of their base acreage to other program or specified crops without losing their future base acreage. This cropping flexibility can potentially reduce pesticide use, especially when corn base acres are planted with less chemical-intensive crops, such as soybeans. Taxes (subsidy) can be levied (provided) to internalize the external cost associated with pesticide use, and hence reduce pesticide use.2 Alternatively, the government can subsidize farmers to adopt less pesticide-intensive production practices. For example, Special Project 53 under the Agricultural Conservation Program (administered by the Agricultural Stabilization and Conservation Service, United States Department of Agriculture) provides cost sharing for adopting integrated crop management practices that are intended to reduce farm chemical use (Osborn et al.). A better understanding of the factors influencing pesticide use is essential in examining various options for reducing pesticide use. An array of pest management methods are practiced by farmers, resulting in a diverse pattern of pesticide use. What production practices currently in use can effectively reduce pesticide use? Do farmers enrolled in commodity programs use more chemicals than other farmers? What are the demand elasticities with Biing-Hwan Lin, Harold Taylor, Herman Delvo, and Len Bull are Agricultural Economists with the United States Department of Agriculture, Economic Research Service. The insightful comments of anonymous reviewers and the editor substantially improved the quality and content of the paper. The views expressed are the authors and do not necessarily represent policies or views of the United States Department of Agriculture or the Economic Research Service.