Source: OKLAHOMA STATE UNIVERSITY submitted to
ECONOMICS OF INTEGRATED PEST MANAGEMENT FOR STORED PRODUCTS AND FOOD PROCESSING FACILITIES
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
TERMINATED
Funding Source
Reporting Frequency
Annual
Accession No.
0217627
Grant No.
(N/A)
Project No.
OKL02720
Proposal No.
(N/A)
Multistate No.
(N/A)
Program Code
(N/A)
Project Start Date
Jun 1, 2009
Project End Date
Sep 30, 2014
Grant Year
(N/A)
Project Director
Adam, B.
Recipient Organization
OKLAHOMA STATE UNIVERSITY
(N/A)
STILLWATER,OK 74078
Performing Department
Agri Economics
Non Technical Summary
Two major trends in the food industry are in conflict. On the one hand, consumers are increasingly demanding safer products. On the other hand, consumers also demand wholesome products, free of insects and other pests. Because of food safety, worker safety, and environmental concerns, many of the pesticides currently used to control pests in stored products such as grain are being either phased out or significantly restricted by regulations. The intent of the proposed research is to improve the ability of the grain marketing system to respond to increased pesticide regulations and to consumer demands for wholesome, insect-free foods by 1) estimating costs and risks associated with chemical-based and IPM pest-control strategies in stored grain facilities; 2) identifying economically optimal insect-management strategies for grain storage managers under alternative situations; 3) describing the structural, operational, and other insect-related characteristics of various types of grain and food processing facilities; and 4) estimating costs and risks associated with chemical-based and IPM pest-control strategies in grain and food processing facilities.
Animal Health Component
(N/A)
Research Effort Categories
Basic
(N/A)
Applied
(N/A)
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
21615403010100%
Knowledge Area
216 - Integrated Pest Management Systems;

Subject Of Investigation
1540 - Hard red winter wheat;

Field Of Science
3010 - Economics;
Goals / Objectives
The general objective of the proposed research is to improve the ability of the grain marketing system to respond to increased pesticide regulations and to consumer demands for wholesome, insect-free foods. The specific objectives are: (1) Estimate costs and risks associated with chemical-based and IPM pest-control strategies in stored grain facilities, (2) Identify economically optimal insect-management strategies for grain storage managers under alternative situations. (3) Describe the structural, operational, and other insect-related characteristics of various types of grain and food processing facilities. (4) Estimate costs and risks associated with chemical-based and IPM pest-control strategies in grain and food processing facilities
Project Methods
In a previous Hatch project, costs of IPM and chemical-based strategies were estimated using a partial-budgeting approach. These costs were considered in four categories: chemicals, labor, management, electricity, and equipment. Costs from this model and adaptations will be used to evaluate costs of insect control approaches. A second set of models will be used to predict insect growth under various environmental conditions and treatments. Flinn et al. (2004) and Flinn et al. (2007) describe an artificial intelligence insect growth simulator that will allow simulation of various pest management practices and their effect on insect populations. This model has been updated as new entomological data have become available (e.g. Flinn, Hagstrum, and Muir 1997), so the entomological basis for the proposed simulations is more than adequate. Second, economic risks associated with IPM and chemical-based strategies will be measured. Sources of risk considered are sampling risk, risk of inadequate insect control, and risk of pesticide residue leading to rejection by buyer. Sampling risk is the risk that sampling will fail to detect insects, and economic damage will result from failure to control them. It includes the risk that sampling will lead to overestimates of insect numbers, resulting in costly, unnecessary treatments, and the risk that sampling at point of sale will overestimate the number of insects in the population, causing economic loss to the seller. Inadequate insect control may result from improper choice of treatments, ineffective treatments (for example, fumigation of a leaky storage facility), treatment rendered ineffective by environmental conditions, or from insect resistance. Failure to control insects could result in insect-damaged kernels (IDK) and or other degradation, a grading designation of "infested," or simply rejection by a buyer. Detectible pesticide residue may result from failure of an applied pesticide to dissipate sufficiently, perhaps because of unfavorable environmental conditions or application too soon before sale, or from over-application of the pesticide. All of these likely will cause economic loss. Distributions for each relevant variable affecting costs and benefits for the firm will be estimated, and draws from these distributions will be used to estimate distributions of costs and benefits. These distributions will be evaluated using several approaches, including mean-variance, stochastic dominance, and value-at-risk (Value-at-risk measures could be used to answer the question, for example, "With 5% probability, what is the maximum loss the firm would incur using strategy y" Similar procedures will be used to accomplish Objective 2, except that individual sources of cost within the broad categories outlined above are likely greater in number and type than for grain storage firms because of the greater complexity of food processing firms. Also, field data will be more difficult to obtain because of the likely reluctance of food processing firms to allow observation of their practices and facilities. Cooperators on this project have established contacts that may provide representative observations and data.

Progress 06/01/09 to 09/30/14

Outputs
Target Audience: Food processing and grain storage facilities, particularly those storing and/or processing wheat or rice, and other scientists conducting research on insect control in stored products and processing facilities. Food supply chain participants, government regulators, and others who want to increase efficiency of the food supply chain and the quality and safety of food. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Three M.S. students completed master’s theses in these or related projects. How have the results been disseminated to communities of interest? M.D. Buser, B.D. Adam, T.J. Bowser, B.E. Mayfield, J.P. Thomas, P.G. Crandall, and S.C. Ricke. 2013. “Concept of a Stakeholder-Driven Whole-Chain Traceability System for Beef Cattle.” Poster presented at the Oklahoma section of American Society for Agricultural and Biological Engineers, Stillwater, OK, February 22. Adam, Brian D., Michael D. Buser, Blayne Mayfield, Johnson Thomas, Ashwin Kumar, Krishna Palepu, Phil Crandall, and Steve Ricke. 2014. “Whole-Chain Traceability in Beef Production – Information Sharing from Farm to Fork and Back Again.” Invited Presentation at the Southern Animal Health Association/National Association of State Meat and Food Inspection Directors - Eastern Region Meeting in Oklahoma City, Oklahoma, June 3. Niu, Li, Brian D. Adam, James F. Campbell, and Frank Arthur. 2014. “Economics of Integrated Pest Management in Rice Processing Facilities.” Selected Presentation at 35th Meeting of the Rice Technical Working Group, February 18-21, New Orleans, LA. Adam, Brian D., Michael D. Buser, Blayne Mayfield, Johnson Thomas, Ashwin Kumar, Krishna Palepu, Phil Crandall, and Steve Ricke. 2014. “Whole-Chain Traceability in Beef Production – Demonstrating the Technology.” Invited Presentation at the International Production and Processing Expo, AMI Education and Professional Development, Atlanta, GA, January 28. (Evaluation: Overall Session Content 5/5, Content applicable to my organization or job 4/5, Speaker 5/5). What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Optimal Insect Control in Grain Storage Research by B.D. Adam and Suling Duan (graduate student), along with Frank Arthur and James Campbell (USDA/ARS) on the topic “Optimal insect control for grain storage in warm climates: Can chemicals ever be avoided?” Elevator managers in the Southern and Central Plains have been reluctant to switch from routine fumigation to sampling-based IPM to control insects in stored wheat. Research earlier in this and a previous project suggested that their reluctance is justified: under typical conditions the insects grow enough in the warm climate that fumigation is almost always necessary: sampling adds unnecessary expense. This study, though, better models actual weather variability faced by managers by simulating over a much longer data series. This makes sampling-based IPM relatively more economical since greater variability increases the likelihood fumigation will not be necessary in any particular year. This result holds, though, only if insect immigration rates into the bins are low, a condition that may or may not be under the control of managers. IPM Methods in Processing Facilities Research by B.D. Adam and Li Niu (graduate student), along with Frank Arthur, James Campbell, and Paul Flinn (USDA/ARS) on the topic “A GIS Approach to Measuring Economic Costs of Integrated Pest Management Tools in Rice Processing Facilities.” Methyl bromide is a commonly used fumigant for controlling insects in food processing facilities. However, it has been designated as an ozone depleter and is becoming less available and more costly. Integrated pest management (IPM) is an alternative, and may additionally reduce insecticide resistance, improve worker safety, and reduce environmental concerns and consumer concerns about pesticide residuals. However, little is known about the costs and efficacy of IPM in food processing facilities. We consider several IPM approaches and measure both the treatment costs as well as the costs of failing to control insects for each approach. The work on evaluating a proposed processing plant for converting poultry litter to energy and commercially saleable fertilizer using a real options approach was a starting point to learn the methodology that will be used in estimating the dollar value of risk in evaluating alternative insect control strategies for food processing facilities. Food processing facilities face a high cost if they fail to control insects, but a relatively low probability of incurring those costs. In their operating context, a real options approach can provide a method for appropriately measuring the risks of insect infestation under alternative treatment approaches. Traceability in the Food Supply Chain Research by B.D. Adam and Candi Ge (graduate student), along with Michael Buser (Biosystems & Ag Engineering), Blayne Mayfield and Johnson Thomas (Computer Science), and Steve Ricke and Phil Crandall (Food Science, U. of Arkansas) on the topic “Advancement of a whole-chain, stakeholder driven traceability system for agricultural commodities: beef cattle pilot demonstration.” - The traceability system developed under this project, although developed in pilot form for the beef cattle supply chain, is designed for use with multiple food commodities. This system permits confidential data entry and transmission through the entire food supply chain, providing enhanced food safety, value-added opportunities for producers, feedback from consumers to producers that can enhance product quality, and improved supply chain management, which could improve quality of the food along with reduced cost. This will directly address the project goal “Estimate costs and risks associated with chemical-based and IPM pest-control strategies in food processing facilities.”

Publications

  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Crandall, Philip G., Corliss A. OBryan, Dinesh Babu, Nathan Jarvis, Mike L. Davis, Michael Buser, Brian Adam, John Marcy, and Steven C. Ricke. 2013. Whole-chain traceability, is it possible to trace your hamburger to a particular steer, a U. S. perspective? Meat Science. 95(2):137-44.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: M.D. Buser, B.D. Adam, T.J. Bowser, B.E. Mayfield, J.P. Thomas, P.G. Crandall, and S.C. Ricke. 2013. Concept of a Stakeholder-Driven Whole-Chain Traceability System for Beef Cattle. Poster presented at the Oklahoma section of American Society for Agricultural and Biological Engineers, Stillwater, OK, February 22.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2014 Citation: Adam, Brian D., Michael D. Buser, Blayne Mayfield, Johnson Thomas, Ashwin Kumar, Krishna Palepu, Phil Crandall, and Steve Ricke. 2014. Whole-Chain Traceability in Beef Production  Information Sharing from Farm to Fork and Back Again. Invited Presentation at the Southern Animal Health Association/National Association of State Meat and Food Inspection Directors - Eastern Region Meeting in Oklahoma City, Oklahoma, June 3.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2014 Citation: Niu, Li, Brian D. Adam, James F. Campbell, and Frank Arthur. 2014. Economics of Integrated Pest Management in Rice Processing Facilities. Selected Presentation at 35th Meeting of the Rice Technical Working Group, February 18-21, New Orleans, LA.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2014 Citation: Adam, Brian D., Michael D. Buser, Blayne Mayfield, Johnson Thomas, Ashwin Kumar, Krishna Palepu, Phil Crandall, and Steve Ricke. 2014. Whole-Chain Traceability in Beef Production  Demonstrating the Technology. Invited Presentation at the International Production and Processing Expo, AMI Education and Professional Development, Atlanta, GA, January 28. (Evaluation: Overall Session Content 5/5, Content applicable to my organization or job 4/5, Speaker 5/5).
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Gautam, S. G., G. P. Opit, K. L. Giles, and B. Adam. 2013. Weight losses and germination failure caused by psocids in different wheat varieties. J. Economic Entomology 106(1):491-498.
  • Type: Theses/Dissertations Status: Published Year Published: 2014 Citation: Walker, Jeremy. 2014. Valuing a Proposed Poultry Litter-to-Energy Processing Plant Using Real Options. M.S. Thesis, Oklahoma State University.
  • Type: Theses/Dissertations Status: Published Year Published: 2014 Citation: Duan, Suling. 2014. Insect Control under Uncertainty: Economical Strategies That Are Robust to Varying Weather Conditions and Insect Immigration Rates. M.S. Thesis, Oklahoma State University.
  • Type: Theses/Dissertations Status: Published Year Published: 2014 Citation: Ge, Candi. 2014. The Value of a Whole-Chain Traceability System in Transmitting Genetic Information about Beef Tenderness. M.S. Thesis, Oklahoma State University.


Progress 10/01/12 to 09/30/13

Outputs
Target Audience: Food processing and grain storage facilities, particularly those storing and/or processing wheat or rice, and other scientists conducting research on insect control in stored products and processing facilities Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Two M.S. students are completing master’s theses in these projects. How have the results been disseminated to communities of interest? Niu, Li, Brian D. Adam, James F. Campbell, and Frank H. Arthur. “A GIS Approach to Measuring Economic Costs of Integrated Pest Management Tools in Rice Processing Facilities.” Selected Paper at the AAEA Annual Meeting in Washington, DC, August 4-6, 2013. Available at http://purl.umn.edu/150456. John T. Mann, II, Brian D. Adam, and Frank H. Arthur. “Stored Grain Insect Control Costs in Varying Climates and Levels of Insect’s Phosphine Resistance.” Selected Paper at the AAEA Annual Meeting in Washington, DC, August 4-6, 2013. Available at http://purl.umn.edu/150631. What do you plan to do during the next reporting period to accomplish the goals? Entomologists on the project are collecting data that will enable us to more precisely estimate costs of each treatment option. They are also modifying insect growth models (and insects’ responsiveness to treatment methods). Together those will allow our models to give more precise estimates of insect control costs from alternative treatment methods, and thus to give better recommendations. Thus, during this next reporting period we will be updating our models with the new data from the entomologists so that we can estimate costs more accurately and give more accurate recommendations. Impact Statement Optimal Insect Control in Grain Storage Change in knowledge Preliminary results of the research on optimal insect control in warm climates indicates that under normal rates of insect immigration into storage bins, one treatment is always necessary in OKC, representing the Southern Plains. The cost of the optimal strategy is the cost of one fumigation. One fumigation controls insect growth sufficiently that no insect-damaged kernels (idk) discounts or live insect discounts result. This result holds over the 29-year period as long as the one fumigation occurs within a 130-day window ranging from August to January. The robustness of the results across application dates for calendar-based fumigation may partly explain why many elevator managers have followed this approach. A second preliminary result is that in Wichita, representing the Central Plains, if insect immigration rate can be reduced to a low level, fumigation is almost never necessary. These two results are obtained using only one year of weather data. A third result, different from previous results because of the more complete consideration of weather variability, is that in OKC, representing the Southern Plains, under low immigration rates, there are many years in which fumigation is not necessary, even when grain is stored for the full 10 months and even though temperatures and humidity are higher. Change in actions Results suggest that a sampling-based IPM approach, such as that recommended by entomologists at USDA-ARS in which current weather information is combined with insect sampling and an expert system for predicting insect growth, can be an economically attractive alternative to calendar-based fumigation if an elevator manager can reduce insect immigration rates, perhaps by careful sanitation and sealing of storage structures. An extension component of this project is currently being arranged for late 2014 or 2015 to present key results to industry practitioners. Summary Impact Statement ? Sampling-based IPM can be economically effective in certain conditions in partially replacing fumigation in controlling insects in stored grain facilities IPM Methods in in Processing Facilities Change in knowledge Models are being developed to predict insect growth in different locations within a processing facility. This will facilitate analysis to determine economic effectiveness of alternatives to whole-plant fumigation in order to control insects. Change in actions None to report at this stage. An extension component of this project is currently being arranged for 2015 to present key results to industry practitioners. Insect Resistance to Phosphine by Stored Product Insects Change in knowledge Insect resistance to phosphine, the primary fumigant used to combat stored grain pests, is a major problem in many countries such as Australia, Brazil, China and India. The development of resistance in these countries is believed to have resulted from poor fumigation practices over time. Inadequate insect exposure to phosphine made multiple treatments necessary, allowing pests to develop resistance. As the levels of resistance increase, the frequency, concentration, and/or duration of fumigation must also increase. Additionally, the problem of pest resistance developing has been compounded by the Montreal Protocol which mandated that methyl bromide be phased out. For many uses, phosphine has been the only economically available alternative. Although concerns about phosphine-resistant pests have been primarily focused on Australia, Brazil, China, India and a number of other developing nations, recently, phosphine resistance has been detected in the US. Stored grain managers in the U.S. can learn from the experience gained in countries currently combating phosphine resistance by adopting some of the available IPM tools. In order to determine whether IPM is cost effective, however, a model that includes the costs associated with increased pest resistance to phosphine is needed. It is hypothesized that accounting for resistance costs will increase the economic attractiveness of IPM approaches relative to conventional fumigation approaches. The preliminary results of the phosphine resistance study indicate that, in general, achieving higher levels of fumigation effectiveness will result in lower cost relative to moderate and low fumigation effectiveness. However, the type of lesser grain borer (LGB) resistance driving costs will be different depending on fumigation effectiveness. Use of sampling-based IPM can slow development of LGB resistance if it reduces the need for fumigation, which may be difficult in geographical areas with weather conditions favorable to insect growth. This indicates that IPM can help reduce develop of resistance, but the amount it helps depends on several factors. This research adds to the knowledge that is necessary to economically control grain-damaging insects in the presence of insecticide resistance. This will help reduce costs of losing grain due to insect damage. Change in actions If subsequent research results are consistent with the findings reported here, grain storage managers have increased incentive to conduct more intensive sampling programs to identify insect problems earlier. Concurrently, they should intensify efforts to implement non-phosphine methods of insect control that they can use to reduce the use of phosphine in order to extend its useful life in their storage facilities. Summary Impact Statement Integrated Pest Management strategies can be an economically effective approach under certain conditions to reduce, but not eliminate, growth of insect resistance to phosphine fumigants in stored grain facilities

Impacts
What was accomplished under these goals? The general objective of the research under this project is to improve the ability of the grain marketing system to respond to increased pesticide regulations and to consumer demands for wholesome, insect-free foods. The specific objectives are: Estimate costs and risks associated with chemical-based and IPM pest-control strategies in stored grain facilities, and Estimate costs and risks associated with chemical-based and IPM pest-control strategies in food processing facilities Optimal Insect Control in Grain Storage Research by B.D. Adam and Suling Duan (graduate student), along with Frank Arthur and James Campbell (USDA/ARS) on the topic “Optimal insect control for grain storage in warm climates: Can chemicals ever be avoided?” Elevator managers in the Southern and Central Plains have been reluctant to switch from routine fumigation to sampling-based IPM to control insects in stored wheat. Research earlier in this and a previous project suggested that their reluctance is justified: under typical conditions the insects grow enough in the warm climate that fumigation is almost always necessary: sampling adds unnecessary expense. This study, though, better models actual weather variability faced by managers by simulating over a much longer data series. This makes sampling-based IPM relatively more economical since greater variability increases the likelihood fumigation will not be necessary in any particular year. This result holds, though, only if insect immigration rates into the bins are low, a condition that may or may not be under the control of managers. IPM Methods in Processing Facilities Research by B.D. Adam and Li Niu (graduate student), along with Frank Arthur, James Campbell, and Paul Flinn (USDA/ARS) on the topic “A GIS Approach to Measuring Economic Costs of Integrated Pest Management Tools in Rice Processing Facilities.” Methyl bromide is a commonly used fumigant for controlling insects in food processing facilities. However, it has been designated as an ozone depleter and is becoming less available and more costly. Integrated pest management (IPM) is an alternative, and may additionally reduce insecticide resistance, improve worker safety, and reduce environmental concerns and consumer concerns about pesticide residuals. However, little is known about the costs and efficacy of IPM in food processing facilities. Here, we consider several IPM approaches and measure both the treatment costs as well as the costs of failing to control insects for each approach. Insect Resistance to Phosphine by Stored Product Insects Research by John Mann, B.D. Adam, and Frank Arthur (USDA/ARS) on the topic: “The Economics of Resistance to Phosphine by Stored Product Insects.” The primary motivation for this study is that recently resistance by Rhyzopertha dominica – Lesser Grain Borer (LGB) – to phosphine in stored grain has been detected in parts of the US. Significant economic damage from LGB resistance to phosphine has already occurred in countries such as Australia and Brazil. Currently there are no economical alternatives to phosphine as a fumigant against stored grain pests. The overall objective of this study was to determine how the costs of alternative strategies to control LGB in stored grain are affected by LGB resistance. Three possibilities for LGB population dynamics based on genetic research, and three grain management strategies (calendar-based fumigation, sampling-based IPM, and aeration-based IPM) were considered. When costs associated with LGB resistance were incorporated, simulation results suggested that in Oklahoma, where the weather is considered favorable to LGB growth, sampling-based IPM would only be cost-effective if the development of LGB can be slowed to considerably less than what occurs under calendar-based fumigation, perhaps through effective aeration. In Kansas, where the weather is cooler, sampling-based IPM would be more likely to be cost-effective. Additionally, aeration-based IPM would be the most cost-effective strategy since LGB growth could be suppressed sufficiently that fumigation would seldom be necessary. Although these results only reflect the case of “low” immigration, they justify further research into the application of different IPM technologies and the impact of such technologies on LGB resistance and the corresponding costs from changes in resistance. For grain managers, one symptom of increased insect resistance is the need for increased frequency of fumigation.Ironically, one of the implications of the model is that if fumigations are done well so that effectiveness is high, symptoms of increasing insect resistance may be initially over looked. In warmer climates where sampling-based IPM is relatively more expensive, grain managers may be unaware of current levels of resistance. If the development of LGB resistance is on the threshold, continuing to use current strategies may lead to significant economic loss. Once past this threshold, the options for grain managers to make alternative strategy decisions are further reduced. The main challenge is to extend the useful life of phosphine by developing and adopting strategies that can reduce insect exposure to the fumigant.

Publications

  • Type: Book Chapters Status: Published Year Published: 2012 Citation: Book Chapters: Adam, Brian D. and Corinne Alexander. 2012. Economics of IPM Decisions. Ch. 28 in "Stored Product Protection," edited by David W. Hagstrum, Thomas W. Phillips and Gerrit Cuperus. Available at http://www.ksre.ksu.edu/bookstore/pubs/S156.pdf. Kenkel, Phil, and Brian Adam. 2012. Economics of Commodity Grading and Segregation. Ch. 29 in "Stored Product Protection," edited by David W. Hagstrum, Thomas W. Phillips and Gerrit Cuperus. Available at http://www.ksre.ksu.edu/bookstore/pubs/S156.pdf. Conference Papers/Presentations: Niu, Li, Brian D. Adam, James F. Campbell, and Frank H. Arthur. A GIS Approach to Measuring Economic Costs of Integrated Pest Management Tools in Rice Processing Facilities. Selected Paper at the AAEA Annual Meeting in Washington, DC, August 4-6, 2013. Available at http://purl.umn.edu/150456. John T. Mann, II, Brian D. Adam, and Frank H. Arthur. Stored Grain Insect Control Costs in Varying Climates and Levels of Insects Phosphine Resistance. Selected Paper at the AAEA Annual Meeting in Washington, DC, August 4-6, 2013. Available at http://purl.umn.edu/150631. Theses/Dissertations: Mann, II, John Thomas. 2012. Innovation across Sub-Disciplines of Agricultural Economics: The Cost of Insect Resistance to Pesticide in Stored Grain, The Demand for College Courses, and Measures of Schumpeterian Activity. Ph.D. Dissertation, Oklahoma State University.


Progress 10/01/11 to 09/30/12

Outputs
OUTPUTS: Activities: Investigated economics of IPM methods in stored rice, and investigated economics of alternatives to use of methyl bromide in food processing facilities. As part of three ongoing funded projects to investigate economics of alternatives to methyl bromide for insect control in food processing facilities, we have developed the first phase of economic models to measure costs and benefits of aerosol and other integrated pest management tools relative to conventional fumigation. We are also investigating the efficacy and costs of closed loop fumigation in alternative grain storage settings. We built an economic model to determine the effects on insect control costs of lesser grain borer (LGB) developing resistance to phosphine fumigations, and to determine if costs of insect control, including costs of insects developing resistance, is affected by increased use of an integrated pest management approach. The economic model estimates the cost of controlling LGB in stored wheat under alternative specifications of phosphine resistance and insect population dynamics. Following results of Schlipalius et al. (2008), LGB resistance assumed to be the result of two different alleles, each at two levels, which leads to five possible phenotypes (susceptible LGB, plus four different levels of resistance, including weak 1, weak2, moderate, and strong resistance. One consideration made in this study is that differences in fumigation effectiveness may affect which of the five phenotypes dominates the population and, therefore, has the strongest impact on costs. Investigated feasibility of using RFID devices to track grain into a grain elevator, and software to manage the RFID-generated information for traceability. As part of an ongoing Andersons Research Grant, we continued investigating the feasibility of using Radio Frequency Identification (RFID) devices to track grain into a grain elevator, evaluating patent-pending, commercially available Supply Chain Information Management System (SCIMS) to manage the RFID-generated information for traceability, and developing an interface between RFID information-gathering capabilities and the SCIMS. Dissemination Adam, Brian D., and Mike Buser. "Whole-Chain Traceability - Information Sharing from Farm to Fork and Back Again." Invited Keynote Presentation at 2012 Arkansas Association for Food Protection Conference, Fayetteville, AR, September 11-12, 2012. PARTICIPANTS: Individuals Jeremy Walker, Li Niu, Suling Duan, Candi Ge, and Bruk Seyoum (graduate assistants), and Lianfan Su, and John Mann (former graduate assistants), OSU Dept. of Agricultural Economics Collaborators and contacts John Mann, co-author (post-doctoral fellow at Michigan State University and former graduate assistant, Oklahoma State University) Carol Jones, co-PI on traceability grant (faculty in OSU Biosystems & Ag Engineering Dept.) David Biros, co-PI on traceability grant (faculty in OSU Management Science & Information Systems Dept.) David Sikolia (graduate assistant in OSU Management Science & Information Systems Dept.) Frank Arthur, co-PI on rice projects and on Methyl Bromide alternatives project (researcher at USDA-CGAHR, Manhattan, KS) James Campbell, co-PI on rice projects and on Methyl Bromide alternatives project (researcher at USDA-CGAHR, Manhattan, KS) Phillips, Tom, co-PI on IPM project for mites on ham and cheese (professor at Kansas State University) Schilling, Wes, co-PI on IPM project for mites on ham and cheese (professor at Mississippi State University) Tanja McKay, co-PI on rice projects (professor at Arkansas State U.) Yubin Yang, co-PI on rice projects (researcher at USDA/Texas A&M-Beaumont) L.T. Wilson, co-PI on rice projects (researcher at USDA/Texas A&M-Beaumont) Eugene Reagan, co-PI on rice projects (researcher, LSU Entomology Dept.) Jean Francois Muellenet, co-PI on rice projects (researcher and head, U of Arkansas Food Science Dept.) Zhu, Subramanyam, Jenson - co-PIs on Methyl Bromide alternatives project (KSU Entomology and Grain Science Depts.) TARGET AUDIENCES: 1) Other researchers in grain quality, grain storage, and integrated pest management, including economists, entomologists, and agricultural engineers 2) Industry PROJECT MODIFICATIONS: None

Impacts
IPM Methods in Stored Rice and in Processing Facilities The preliminary results of the phosphine resistance study indicate that, in general, achieving higher levels of fumigation effectiveness will result in lower cost relative to moderate and low fumigation effectiveness. However, the type of lesser grain borer (LGB) resistance driving costs will be different depending on fumigation effectiveness. Use of sampling-based IPM can slow development of LGB resistance if it reduces the need for fumigation, which may be difficult in geographical areas with weather conditions favorable to insect growth. RFID Devices to Track Grain We have successfully tested an active RFID reader on a truck reading information from a passive RFID device installed at the edge of a wheat field. We have gathered baseline information on several performance measures, such as time required to enter load data into PathTracer and time of truck on scale without RFID technology. These will be compared to similar measures using the RFID technology to automate data entry into a grain management system (SCIMS). Development and testing of an automated interface between RFID devices and the SCIMS is in process. Measures of potential efficiency gains are being developed and evaluated. Awarded Grants and Contracts 10/1/11-9/30/12 "Establishing a national institute for whole chain traceability and food safety," Oklahoma State University Planning Grant for Establishing an Interdisciplinary Program, 8/31/2012-8/31/2013, $38,650, Co-PDs M. Buser and Adam, with PIs: Cartmell, Naile, Sitton (Agricultural Education Communications and Leadership), Chung, Holcomb, Peel (Agricultural Economics), Jaroni, Muriana (Animal Science), Fletcher, Ma (Entomology and Plant Pathology), Bowser, Frazier, Jones, Mao, Weckler, Wang (Biosystems and Agricultural Engineering), Brandenberger (Horticulture and Landscape Architecture), Mayfield, Thomas (Computer Science), Hoff (Molecular Biology & Molecular Genetics), Caniglia, Long (Sociology), Ingalls, Liu, Kamath, Bukkapatnam (Industrial Engineering), Snider (Center for Veterinary Health Sciences). "Encouraging Small Farms to Adopt Produce Traceability Technology Through Creation of Brand Value, with Top 10 Produce," USDA-NIFA-SBIR, 6/1/2012-12/31/2012, with no-cost extension until 12/31/2013, $100,000. PIs Bailey, Adam, and Chung. "Evaluation of Methyl Bromide Alternatives for Their Efficacy at Controlling Pests of Dry Cured Ham and Aged Cheese Products." USDA-NIFA, 10/1/2011-9/30/2013, $500,000 ($60,228 to OSU) with Mississippi State University and Kansas State University. PIs Schilling, Phillips, and Adam.

Publications

  • Gautam S. G., G. P. Opit, K. L. Giles, and B. Adam. 2012. "Weight losses and germination failure caused by psocids in different wheat varieties." J. Economic Entomology (In Press).
  • Siaplay, Mounir, Brian D. Adam, B. Wade Brorsen, and Kim Anderson. 2012. "Using Basis, Futures Price, and Futures Price Spread as Barometers for Storage Decisions." International Journal of Economics and Finance, 4(5):15-24.
  • Adam, Brian D. and Corinne Alexander. 2012. "Economics of IPM Decisions." Ch. 28 in "Stored Product Protection," edited by David W. Hagstrum, Thomas W. Phillips and Gerrit Cuperus. Available at http://www.ksre.ksu.edu/bookstore/pubs/S156.pdf.
  • Kenkel, Phil, and Brian Adam. 2012. "Economics of Commodity Grading and Segregation." Ch. 29 in "Stored Product Protection," a web publication and scheduled for print publication in 2012, edited by David W. Hagstrum, Thomas W. Phillips and Gerrit Cuperus. Available at http://www.ksre.ksu.edu/bookstore/pubs/S156.pdf.


Progress 10/01/10 to 09/30/11

Outputs
OUTPUTS: Activities: Conducted and analyzed experiments on consumer perceptions of and willingness to pay for rice of varying qualities, stored under IPM and non-IPM storage methods Investigated economics of IPM methods in stored rice. Investigated economics of alternatives to use of methyl bromide in food processing facilities Investigated feasibility of using RFID devices to track grain into a grain elevator, and software to manage the RFID-generated information for traceability. Events Presentations of Results of Grant-Funded Project for Rice Millers at Workshops in Crowley, Louisiana, Beaumont, Texas, and Jonesboro, Arkansas, May 9-13, 2011. Services - Consulting Top 10 Produce/Small Business Innovation Research (SBIR) - "Encouraging Small Farms to Adopt Produce Traceability Technology Through Creation of Brand Value." 2010-2011. Dissemination Mann, John, Brian D. Adam, and Frank Arthur. "How Does Insect Resistance to Phosphine Affect Insect Control Costs in Stored Grain" Presentation at the 2011 AAEA & NAREA Joint Annual Meeting in Pittsburgh, PA, July 24-26. Su, Lianfan, Brian Adam, Jayson Lusk, and Frank Arthur. 2011. "A Comparison of Auction and Choice Experiment - An Application to Consumer Willingness to Pay for Rice with Improved Storage Management." Selected for presentation at the 2011 AAEA & NAREA Joint Annual Meeting in Pittsburgh, PA, July 24-26. Mann, John, Brian D. Adam, and Frank Arthur. 2011. "Applying Genetic Research to Measure Economic Costs of Insect Resistance to Phosphine." Selected for presentation at the 2011 CAES-WAEA Joint Annual Meeting in Banff Centre, Alberta, Canada, June 29-31. Adam, Brian D. "The Economics of Insect Control in Stored Rice." Presentations of Results of Grant-Funded Project for Rice Millers at Workshops in Crowley, Louisiana, Beaumont, Texas, and Jonesboro, Arkansas, May 9-13, 2011. PARTICIPANTS: Individuals Lianfan Su, Jeremy Walker, Li Niu, John Mann, and Suling Duan (graduate assistants, OSU Dept. of Agricultural Economics) Collaborators and contacts Carol Jones, co-PI on traceability grant (faculty in OSU Biosystems & Ag Engineering Dept.) David Biros, co-PI on traceability grant (faculty in OSU Management Science & Information Systems Dept.) David Sikolia (graduate assistant in OSU Management Science & Information Systems Dept.) Frank Arthur, co-PI on rice projects and on Methyl Bromide alternatives project (researcher at USDA-CGAHR, Manhattan, KS) James Campbell, co-PI on rice projects and on Methyl Bromide alternatives project (researcher at USDA-CGAHR, Manhattan, KS) Tanja McKay, co-PI on rice projects (professor at Arkansas State U.) Yubin Yang, co-PI on rice projects (researcher at USDA/Texas A&M-Beaumont) L.T. Wilson, co-PI on rice projects (researcher at USDA/Texas A&M-Beaumont) Eugene Reagan, co-PI on rice projects (researcher, LSU Entomology Dept.) Jean Francois Muellenet, co-PI on rice projects (researcher and head, U of Arkansas Food Science Dept.) Zhu, Subramanyam, Jenson - co-PIs on Methyl Bromide alternatives project (KSU Entomology and Grain Science Depts.) TARGET AUDIENCES: 1) Other researchers in grain quality, grain storage, and integrated pest management, including economists, entomologists, and agricultural engineers 2) Industry PROJECT MODIFICATIONS: No Changes

Impacts
Change in knowledge - We measured value to consumers (willingness to pay) of rice with higher quality and superior insect control. Results indicate that consumers' evaluation of rice quality is subjective and varies across consumers. They are willing to pay more for rice they like better, but since different consumers prefer different qualities of rice, they are not necessarily willing to pay more for rice that is of higher quality based solely on objective standards. However, if consumers are informed that a particular sample of rice is of higher quality as determined by an objective standard, they are willing to pay more for that rice. Consumers were willing to pay more for rice that was managed in storage using IPM methods than for rice that was managed using more traditional insect control methods, when the two approaches resulted in rice of similar quality. Change in actions - Participants at rice workshops in Texas, Louisiana, and Arkansas indicated that they learned useful information and would implement some of the recommendations presented in the workshop.

Publications

  • Adam, Brian D. and Corinne Alexander. 2011. "Economics of IPM Decisions." Ch. 28 in "Stored Product Protection," a web publication and scheduled for print publication in 2012, edited edited by David W. Hagstrum, Thomas W. Phillips and Gerrit Cuperus. Available at http://www.entomology.ksu.edu/doc4901.ashx.
  • Kenkel, Phil, and Brian Adam. 2011. "Economics of Commodity Grading and Segregation." Ch. 29 in "Stored Product Protection," a web publication and scheduled for print publication in 2012, edited edited by David W. Hagstrum, Thomas W. Phillips and Gerrit Cuperus. Available at http://www.entomology.ksu.edu/doc4839.ashx.


Progress 10/01/09 to 09/30/10

Outputs
OUTPUTS: Activities: Costs of fumigating a food processing/warehouse facility using methyl bromide and sulfuryl fluoride (ProFume(registered)) were compared using an economic-engineering approach. The two fumigants were also compared for fumigating cocoa beans. Conducted and analyzed experiments on consumer perceptions of and willingness to pay for rice of varying qualities, stored under IPM and non-IPM storage methods Investigated feasibility of using RFID devices to track grain into a grain elevator, and software to manage the RFID-generated information for traceability. Evaluated effect on producer revenues of alternative specifications for length of buffer zones separating GMO from non-GMO crops in coastal Kenya. Measured effect of biofuel mandates on hay markets in Oklahoma. Events: Acheampong, Kwame, Michael Dicks, and Brian D. Adam. "The Impact of Biofuel Mandates and Switchgrass Production on Hay Markets." Presented at 2010 NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management, St. Louis, Missouri, April 19-20, 2010. Published in Proceedings. Available at http://www.farmdoc.illinois.edu/nccc134/conf_2010/pdf/confp05-10.pdf. Practical results of work evaluating economics of closed loop fumigation and economics of insect management in stored grain were presented at several elevator manager training and certification workshops. Adam, Brian D. "Economics of Closed Loop Fumigation," and "Grain Blending and Traceability." Presentations at the 2010 Grain Elevator Manager Workshops, Weatherford, Enid, and Shawnee, Oklahoma, March 23 and April 6, 2010. Adam, Brian D. "Economics of Insect Management in Stored Grain," "Economics of Closed Loop Fumigation," and "Grain Blending and Traceability." Presentations as part of OSU Training Workshop for MidKan Cooperative Association in Moundridge, Kansas, March 2-3, 2010. Services - Consulting Top 10 Produce/Small Business Innovation Research (SBIR) - "Encouraging Small Farms to Adopt Produce Traceability Technology Through Creation of Brand Value." 2010-2011. Production Specialties, Inc. - Feasibility Analysis of Energy Processing Facility - 2003-2010 Products Dissemination Presentations to elevator managers and employees in Kansas and Oklahoma at Elevator Training Workshops (see above in Events), using results of previous research and research identified above in Activities. Presented results of work on effects of biofuel mandates on Oklahoma hay markets at professional/industry conference as part of regional research project (NCCC-134). Presented results of work on buffer zones for GMO crops at Southern Ag Econ Assoc. meeting. PARTICIPANTS: Lianfan Su, John Mann, Kwame Acheampong (graduate assistants), Jeff Vitale, Mike Dicks (AGEC), Carol Jones (BAE), Edmond Bonjour, Jim Criswell (ENTO), David Biros (MSIS), Frank Arthur, Paul Flinn, James Campbell, Yubin Yang, L.T. Wilson (USDA), Eugene Reagan (LSU), Jean Francois Muellenet (U of Ark), Tom Phillips, Zhu, Subramanyam, Jenson (KSU), Hugo de Groote (CIMMYT) TARGET AUDIENCES: 1) Other researchers in grain quality, grain storage, and integrated pest management, including economists, entomologists, and agricultural engineers 2) Industry PROJECT MODIFICATIONS: No Changes

Impacts
Change in actions - Employees at Mid-Kan Coop and Oklahoma grain elevators indicated that they would implement some of the recommendations presented in the workshop. Costs of fumigating a food processing/warehouse facility using methyl bromide and sulfuryl fluoride(ProFume(registered)) were compared using an economic-engineering approach. The two fumigants were also compared for fumigating cocoa beans. Results showed sulfuryl fluoride is economically feasible for cocoa beans, and that it is economically feasible for some, but not all, applications in food processing facilities and warehouses. An internet search indicates that from 2007 to present the results of this paper have been cited numerous times by grain and pest management industry representatives. Several are cited below. One tangible result of this report is that NPMA amended its request for Critical Use Exemption (CUE) for use of methyl bromide (a designated "ozone depleter") in fumigation of cocoa beans, because the study showed that ProFume was an economical alternative to methyl bromide. The study also showed, that ProFume was not yet an economical alternative to methyl bromide for use in processing facilities, so NPMA renewed its request for CUE for use methyl bromide in those facilities. Foreign Affairs Officer. Office of Environmental Policy, U.S. Dept. of State. "Methyl Bromide Critical Use Renomination for Post-harvest Use Treatment by National Pest Management Association." USA CUN09 Post Harvest National Pest Management Assoc. Methyl Bromide Critical Use Renomination Nomination for Structures, Commodities or Objects. Excerpt: "There is a major change to this 2010 nomination from NPMA. An economic study found that sulfuryl fluoride is economically feasible for cocoa beans (Adam 2007). Therefore NPMA has not requested methyl bromide for use on cocoa beans for 2010, and is hoping to have all the cocoa beans transitioned to sulfuryl fluoride by 2009. Sulfuryl fluoride is not always economically feasible in all food processing facilities (Adam 2007), therefore, that portion of [N]PMA's request remains." Bookout, Anne (Royal Fumigation). "Final Update on Commercial Use of ProFume on Cocoa Beans." Annual International Research Conference on Methyl Bromide Alternatives and Emissions Reductions (MBAO). 2007. Change in knowledge - We measured value to consumers (willingness to pay) of rice with higher quality and superior insect control. Preliminary results indicate that consumers' evaluation of rice quality is subjective and varies across consumers. They are willing to pay more for rice they like better, but since different consumers prefer different qualities of rice, they are not necessarily willing to pay more for rice that is of higher quality based solely on objective standards. However, if consumers are informed that a particular sample of rice is of higher quality as determined by an objective standard, they are willing to pay more for that rice. Consumers were willing to pay more for rice that was managed in storage using IPM methods than for rice that was managed using more traditional insect control methods, when the two approaches resulted in rice of similar quality.

Publications

  • Tumusiime, Emmanuel, Hugo De Groote, Jeffrey Vitale and Brian Adam. 2010. The Cost of Coexistence between Bt Maize and Open-Pollinated Maize Varieties in Lowland Coastal Kenya. AgBioForum, 13(3): 208-221
  • Adam, B. D., M. Siaplay, P. W. Flinn, B. W. Brorsen, and T. W. Phillips. 2010. "Factors Influencing Economic Profitability of Sampling-Based Integrated Pest Management in Stored Grain" Journal of Stored Products Research 46 (2010):186-196. Accessible at http://dx.doi.org/10.1016/j.jspr.2010.04.004
  • Adam, B.D., Edmond Bonjour, and Jim Criswell. "Cost Comparison of Methyl Bromide and Sulfuryl Fluoride (ProFume(registered))for Fumigating Food Processing Facilities, Warehouses, and Cocoa Beans." In: Carvalho, O.M, Fields, P.G., Adler, C.S., Arthur, F.H., Athanassiou, C.G., Campbell, J.F., Fleurat-Lessard, F., Flinn, P.W., Hodges, R.J., Isikber, A.A. Navarro, S., Noyes, R.T., Riudavets, J., Sinha, K.K., Thorpe, G.R., Timlick, B.H., Trematerra, P., White, N.D.G. (Eds), Proceedings of the Tenth International Working Conference on Stored Product Protection, 27 June-2 July 2010, Estoril, Portugal, Julius-Kuhn-Archiv, Berlin, Germany, pp.314-321.


Progress 10/01/08 to 09/30/09

Outputs
OUTPUTS: Adam, Brian D. (Moderator). "Unintended Consequences of US Farm, Environmental, and Energy Policies: Ethical Implications." Organized Symposium at the 2009 AAEA Annual Meetings in Milwaukee, Wisconsin, July 27, 2009. Organized by Mike Wohlgenant and Joseph Burke, with presentations by Mike Wohlgenant, Joseph Burke, Wylin Dassie Wilson, and Norbert Wilson. PARTICIPANTS: John Mann, Ph.D. student - investigating pest resistance to phosphine fumigants Lianfan Su, Ph.D. student - investigating costs of insect-control strategies, and benefits to consumers of increased quality of rice William Barela, M.S. student - investigated costs of insect-control strategies Partner Organizations Arkansas State University - Jonesboro U. of Arkansas - Fayetteville Kansas State University Louisiana State University Purdue University Texas A&M University - Beaumont USDA/ARS - Manhattan, KS Collaborators and contacts Edmond Bonjour, entomologist - practical aspects of grain management and insect control Dr. Wade Brorsen, agricultural economist - quantitative and theoretical aspects of analysis Dr. Jim Criswell, entomologist - regulatory aspects of integrated pest management Dr. Carol Jones, agricultural engineer - engineering aspects of grain management Dr. George Opit, entomologist - methods of insect control TARGET AUDIENCES: Other researchers in grain quality, grain storage, and integrated pest management, including economists, entomologists, and agricultural engineers Industry and academic participants in NC-213, a Regional Research project Grain elevator management personnel and insect control company personnel PROJECT MODIFICATIONS: N/A

Impacts
Although consumers and food processors express desires for reduced pesticide use in the food chain, agribusiness managers will not adopt Integrated Pest Management (IPM) practices voluntarily unless their cost and effectiveness compare favorably with conventional chemical-based practices. As part of an interdisciplinary team of scientists from Oklahoma State University, USDA-ARS in Manhattan, Kansas, and Kansas State University (including researchers and extension personnel in Grain Science, Entomology, Agricultural Engineering, and Agricultural Economics), economic analysis comparing costs, benefits, and risks of IPM vs. conventional pest management practices was conducted to determine if IPM is cost-effective for stored grain and grain processing functions, as well as to identify ways for more economical implementation of IPM techniques. Previous results showed that insufficient control of insects is a significant cost, especially if insect problems are undetected. Also, sampling adds unnecessary cost in some situations where it does not change the treatment. These results are important because they help explain why some elevator managers are reluctant to adopt IPM techniques. IPM may become more economical if the cost of sampling can be reduced, or its effectiveness increased. Work completed during this reporting period used more realistic insect growth and immigration parameters, weather conditions, and effects of treatment methods. Results indicated that if insect immigration can be reduced by a factor of 10 (through sealing of openings in grain bins and cleanliness, for example), or if a particular year or location has lower temperatures and/or humidity, an IPM approach likely would be economical. Initial work also suggests that because of its correlation with time required for seasonal cooling, harvest-time temperature of grain going into storage is an important factor determining economic viability of an IPM approach. A publication completed as part of this project (accepted for publication after this reporting period) showed that under standard environmental conditions and other standardized assumptions, sampling-based fumigation is not economical. However, it showed that sampling-based fumigation may be more economical than conventional calendar-based fumigation if insect immigration rates into at least some bins can be reduced to a low level and grain is stored fewer days, or if sampling cost can be reduced relative to fumigation cost.

Publications

  • No publications reported this period