Economic Benefits of Fungicide Use in Corn.

Agribusinesses have been advocating the use of fungicides in corn to mitigate diseases and to improve plant health. There has been increased interest in applying fungicides to corn in recent years. This study used experimental data to examine the economic benefits of applying fungicide to corn.

Net return over fungicide and application costs were computed for fungicides used in trials that were conducted from 2008 to 2014 at the experiment station in West Lafayette, Indiana. Yield, timing of fungicide application, and disease ratings were collected for each fungicide trial. Fungicide and application costs were assumed to be $30 per acre in 2014. USDA input price indices were used to estimate fungicide and application costs for previous years.

First and second-degree stochastic dominance, and stochastic dominance with respect to a function were used to compare net returns between treatments. Average yield and gross revenue were approximately 4 bushels and $17 per acre higher for the fungicide application alternative than they were for the no fungicide application alternative. The difference in yields ranged from less than 1 bushel in 2010 and 2014 to 10 bushels per acre in 2013. The difference in gross revenue ranged from $2 per acre in 2010 and 2014 to $45 per acre in 2013. Despite improving yield and gross revenue, average net return over fungicide and application costs was $12 lower for the fungicide application alternative. The difference in net return per acre ranged from -$28 in 2014 to $15 in 2013.

Both alternatives (fungicide application and no fungicide application) were part of the first-degree stochastic dominance set. For slightly risk averse, moderately risk averse, and strongly risk averse preferences, the no fungicide application alternative was preferred to the fungicide application alternative.