Estimating the economic costs and benefits of pesticide use in apples

Commercial apple production in the UK is intensive in terms of artificial inputs, with high levels of fertiliser and pesticides applied to maintain yields and farm profitability. However, in recent years there has been increasing concern about the effects of such inputs on the environment and human health, and alternative means of production, ranging from low input systems to organic and biodynamic agriculture, have been proposed. If production systems became less intensive, it may be assumed that such negative effects would be reduced. However, if growers are currently maximising profits, any change to a new system is likely to result in lower incomes to growers and reduced economic welfare for society as a whole. Thus a key issue is the costs which would be incurred if growers were to move to less intensive systems. This paper investigates the costs to both growers and society of such changes using data relating to Cox's Orange Pippin which is the dominant apple variety in the UK. Scenarios are constructed for ''current commercial practice'', ''integrated cropping systems'' and ''no pesticide''. On the basis of these, aggregate estimates are made of the benefits to the use of varying levels of pesticide in apple production.