Farm-Level Evaluation of Agricultural and Environmental Policies with an Integrated Modeling System

Concern is growing throughout the United States about environmental and health risks associated with the use of agricultural chemicals. In response to these concerns, public policies designed to alter farming practices and the use of agricultural chemicals are being proposed and implemented. In addition, existing U.S. agricultural policies directed at price stabilization and income support are being reviewed for interdependencies with environmental measures. This paper provides a farm-level analysis of the interrelationships between the current U.S. commodity program for corn and selected environmentally motivated policies for controlling the use of corn rootworm insecticides. An integrated modeling system is employed that includes economic and biological components. The farm modeled is for opportunities for coordinating agricultural commodity and environmental policies. Policy adjustments are identified that can reduce corn rootworm insecticide use, improving the quality of the environment and limiting health risk, while only modestly affecting certainly equivalent farm income.