A Cost–Benefit Analysis of Novel IPM-Based Approaches to Onion Thrips Management in US Dry Bulb Onions

Abstract

Onion thrips, Thrips tabaci (Lindeman), is a major pest of dry bulb onion throughout the US and across the world. Yield and quality damage from thrips feeding and the expense of insecticides used for thrips management have jeopardized profitable and sustainable onion production. To improve approaches to thrips management, researchers in multiple US onion-producing regions developed novel, integrated pest management (IPM)-based strategies employing threshold-based insecticide treatments and reduced fertilization practices. The purpose of this study was to estimate the benefits from public investment in research to develop IPM-based onion thrips management techniques using a cost–benefit analysis. Benefits were extended over a 20-year timespan and were measured by reduced insecticide and fertilizer costs. The estimated net present value of benefits from improved pest management tactics will depend on the adoption and use of novel approaches to management. Using a scenario that assumes a maximum adoption rate of 58%, the estimated net present value of the research is $15.91 million, the benefit–cost ratio is 4.00, and the internal rate of return is 32%. Assuming a scenario with a maximum adoption rate of 29%, the estimated net present value of the research is $8.3 million, the benefit–cost ratio is 3.34, and the internal rate of return is 24%. Even when estimated assuming conservative adoption scenarios, results indicate a healthy return on investment in research to develop and refine new approaches to manage onion thrips and optimize dry bulb onion production.

Keywords

• innovative onion management
• economic impact of onion research
• ROI agricultural research
• action thresholds
• fertilizer reduction