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Economic Impact of Globodera Pallida on the Idaho Economy

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Abstract

Globodera pallida, Pale cyst nematode (PCN), has become a major problem for the U.S. potato industry as a whole and the Idaho potato industry in particular. PCN is estimated to have reduced the amount of lands in potato production by just over 1233 ha in 2016 in Idaho. This study estimates the economic impact of PCN on the Idaho economy by using a customized Input-Output Model. PCN was found to have significant negative impacts on total agricultural output in affected areas that can only be partially mitigated by the substitution of alternative crops in the affected areas. Including indirect and induced effects, the economic impact of PCN on the Idaho economy in 2016 was calculated to be $30.38 million in economic output. These losses were only partially mitigated by an increase of $4.83 million in total output from producing other rotational crops in the affected area. However, the net impact of the PCN infestation on output of the Idaho economy was estimated to be a loss of $25.56 million. Globodera pallida, el nematodo de quiste pálido (PCN), se ha vuelto un problema importante para la industria de la papa de los EUA en general, y en particular para la industria de la papa de Idaho. Se estima que el PCN ha reducido la cantidad de tierras en la producción de papas justo por encima de 1233 hectáreas en 2016 en Idaho. Este estudio estima el impacto económico del PCN en la economía de Idaho mediante el uso de un modelo diseñado de ingreso-egreso. Se encontró que el PCN tiene impactos negativos significativos en la producción agrícola total en las áreas afectadas que solo pueden ser parcialmente mitigados mediante la substitución con cultivos alternativos en dichas áreas. Incluyendo los efectos indirectos e inducidos, el impacto económico del PCN en la economía de Idaho en 2016 se calculó en $ 30.38 millones en la producción económica. Estas pérdidas se mitigaron solo parcialmente con un aumento de $ 4.83 millones en producción total mediante la producción de otros cultivos en rotación en el área afectada. No obstante, el impacto neto de la infestación del PCN en la producción de la economía de Idaho se estimó en una pérdida de $ 25.56 millones.

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Notes

  1. Social account of total aggregate demand is given by:

    $$ Z+C+I+G+E\equiv X $$

    where, Z is intermediate demand, C is household demand, I is private investment demand (household investment demand), G is public investment and government spending, E is exports. yi=I+G+E

  2. Social account of total aggregate supply is given by:

    $$ Z+L+K+T+M\equiv X $$

    Where, Z is intermediate input supply, L, K, and T are value-added from labor, private capital, and public capital paid as indirect business taxes, respectively. M is the imports used in production. v=L+K+T

  3. Potato revenues were subtracted from the total crop revenue data from IMPLAN to generate the “other crop farming (except potato)” revenues. Other major crops grown in the region include wheat, barley, and alfalfa.

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Correspondence to Philip Watson.

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Koirala, S., Watson, P., McIntosh, C.S. et al. Economic Impact of Globodera Pallida on the Idaho Economy. Am. J. Potato Res. 97, 214–220 (2020). https://doi.org/10.1007/s12230-020-09768-2

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  • DOI: https://doi.org/10.1007/s12230-020-09768-2

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