On Assessing Some of the Net Effects of IPM

The potential costs and benefits, private and external, of a shift to Integrated Pest Management (IPM) are considered. A method is developed to estimate the private net returns of IPM in particular farm situations. This method is then applied to compare the financial characteristics of IPM and conventional systems in apple and grain legume production in Victoria. A key finding is that in a 'typical year' of a 'typical operation' the annual net returns of a shift to IPM, in both crops, could be positive. Externalities associated with IPM may be positive or negative depending on the circumstances.