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Herbicide applications for weed control are one of the major costs of producing agricultural crops in developed countries. However, published economic analyses of herbicide application have not been common and many of those published have been narrowly focused. In this study a biologically realistic response model is developed and estimated for Ryegrass (Lolium rigidurn) control in wheat crops by application of a post-emergent herbicide, Hoegrass. The model is applied in deterministic economic analyses using two alternative frameworks: the commonly used economic threshold approach and the less common approach of selecting economically optimal herbicide dosages. Three types of threshold are developed: one based on weed density, one based on crop yield and a multidimensional threshold. The optimal rate approach is shown to be economically superior to any of the threshold criteria. The effects of changing levels of several vari- ables on herbicide dosage and threshold values are investigated. It is shown that risk aversion is not a necessary condition for risk to affect herbicide decision making. In some circumstances, risk neutral decision makers may be more responsive to risk than are risk averse decision makers. Contrary to most statements in the literature, it is shown that application of herbicides does
The Australian Journal of Agricultural Resource Economics – Wiley
Published: Apr 1, 1992
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