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The Economic Impact of Lygus Hesperus in California Strawberry Production

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The Economic Impact of Lygus Hesperus in California Strawberry Production ENTOMOLOGY The Economic Impact of Lygus hesperus in California Strawberry Production Principal Investigator Dr. Timothy A. Delbridge Agribusiness Department California Polytechnic State University 1 Grand Avenue San Luis Obispo, CA 805-756-5020 [email protected] Collaborator Dr. Peter Shearer Cal Poly Strawberry Center 1 Grand Avenue San Luis Obispo, CA SUMMARY The lygus bug (Lygus hesperus) is a damaging insect pest in the California strawberry industry. The insect damages the immature fruit on which it feeds, causing the berry to become misshapen and unmarketable. Lygus bug populations fluctuate over the course of the strawberry growing season and vary based on environmental conditions and other factors, causing yield losses in all major production areas in California. Although lygus bug has been a focus of strawberry pest management programs for many years, there have been no rigorous analyses of the pest’s economic impact on the California strawberry industry. This study conducts such an analysis, combining estimates of revenue losses with the costs of chemical and mechanical pest management activities targeting lygus bug, and accounting for market price responses to depressed fruit supply. We estimate average losses by week for each of the three major strawberry production regions in California and report a total economic impact estimate for the state. We estimate that lygus bug causes more than $100 million of economic losses to the California strawberry industry annually. 99 2018 RESEARCH PROJECTS INTRODUCTION The California strawberry industry produces approximately $3 billion in farmgate sales annually, representing roughly 90% of the total US production (USDA-NASS, 2018). As the consumption of strawberries in the US has increased over the last several decades, advances in breeding and supply chain efficiencies have led to greater concentration of production in California. Despite the success of the California strawberry industry, growers face significant challenges in the form of pest and disease pressure amidst a tightening regulatory environment. The lygus bug, also known as the Western tarnished plant bug (L. hesperus), feeds on developing strawberries and makes the fruit unsuitable for the fresh market, is the most significant insect pest of California strawberries. Control of lygus bug is difficult for several reasons. Several pesticides have either been removed from use through regulation (Anonymous, 2006), are no longer effective because of insecticide resistance (Dara, 2016), or are disruptive to integrated pest management (IPM) programs (Joseph and Bolda, 2016). While it is widely understood that lygus bug negatively impacts California strawberry growers through reduced yields and increased pest management expenses, there has yet to be a rigorous study aimed at estimating the economic cost of lygus on this industry, as a whole. In the absence of reliable damage estimates, it is difficult to justify investment in research and development efforts to better control lygus, and policy makers may not be able to accurately weigh the costs and benefits of pesticide allowances for products targeting lygus bugs. This paper estimates the industry-wide damages caused by lygus bug and explores the regional distribution of these damages across the main strawberry growing areas in California. We estimate the aggregate costs of mechanical and chemical lygus bug-control efforts, the losses resulting from lost yields and the indirect, positive, effects on strawberry prices that follow from supply reductions when lygus bug damage becomes significant. The goal of this paper is to provide a better understanding of the severity of the lygus bug problem and serve as a basis for future study into cost effective chemical and mechanical control methods for the strawberry industry. While there are no existing studies that focus on the economic damages of the lygus bug in California strawberry production, this paper adds to an extensive literature on the economic impacts of insect pests, technological innovations and policy changes on agricultural commodity producers. Goodhue et al., (2011) analyzed the potential revenue losses and pest control costs related to spotted wing drosophila (Drosophila suzukii). Taking a similar approach, as we do here, the authors found that the costs of control were far outweighed by the potential revenue lost to fruit damage. As federal regulations regarding the use of methyl bromide were set to be phased in for California strawberry producers, Carter et al., (2005) estimated the economic losses that were likely to accrue to the industry as a whole. They found that total production was likely to fall significantly but that it would be offset by increased prices for strawberries. The degree to which increased prices would mitigate the revenue impacts of lost production varied by production region and the potential for international competition. Fournier, Ellsworth and Barkley, (2007) focused on the damages caused by lygus bugs, though in the case of Arizona cotton production. These authors constructed loss estimates based on state-level pesticide use data and surveys of Pest Control Advisors’ (PCA) perceptions of losses due to lygus bug. This paper uses a combination of analytical tools used in the aforementioned studies to provide a comprehensive assessment of the economic impact of the lygus bug on the California strawberry industry. We use several years of weekly lygus population data from commercial strawberry operations in the three major growing regions of California and field level data on actual pesticide applications. Weekly market price and production volume data allow for estimation of the region-specific price response and an assessment of the regional disparities in lygus damages. 100 CALIFORNIA STRAWBERRY COMMISSION ANNUAL PRODUCTION RESEARCH REPORT ENTOMOLOGY The paper proceeds as follows: first, we describe the method by which we estimate the net revenue lost to lygus damage in the California strawberry industry, second, we outline the process and data sets used to tabulate industry wide chemical and mechanical lygus-control costs, third, we present the economic impact results and, finally, we close with a discussion of the suggested next steps for researchers and growers within the California strawberry industry. MATERIALS AND METHODS Lygus bugs feed on strawberry achenes and fruit causing fruit cat-facing damage, which is a general term for misshapen fruit, which renders fresh berries unmarketable. Although there is little up-to-date information on rates of yield loss to L. hesperus among strawberries in California, previous studies in other regions and other lygus species give some idea of the scale of the problem. In an early study, Schaefers (1980) found that when left untreated, Lygus lineolaris in NY caused damage to up to 81% of the total berries in an experimental trial, but damaged 5% or less when treated with insecticides that were available at the time. These estimates were based on a model of fruit damage as a quadratic function of densities of lygus nymphs per blossom cluster. In an experiment in Quebec, Mailloux and Bostanian (1988) introduced L. lineolaris to strawberry plots at different densities and evaluated rates of cat-facing. The authors also found that the percentage of injured berries has a non-linear relationship with the number of nymphs per blossom cluster, the marginal fruit damage decreasing as lygus densities increase. European studies have found results similar to those in the North American studies. Labanowska (2007), evaluated Lygus rugulipennis populations and fruit damage sampled from 20 cultivars over the course of three years in Poland and found damage rates that were variable, but were as high as 40% for some cultivars when not treating with insecticides. Jay, Cross, and Burgess (2004), estimated lower damage rates of L. rugulipennis and concluded that two bugs in a 40 plant beat sample would result in an average of 1% fruit damage. No recent studies have directly focused on the yield response to lygus bug populations in California strawberries, but Thomas et al., (2014) estimated a simple linear relationship between densities of total lygus bug (adults and nymphs) and rates of cat-faced fruit as part of a larger study, and estimated that growers in California could be losing 10 to 20% of fruit to lygus damage. Estimating Yield-loss Percentage The largest individual component of the economic damages caused by lygus on the California strawberry industry is the direct loss of unmarketable fruit. To estimate the annual percentage of fruit damaged we use five years of lygus sampling data collected by the California Strawberry Commission (CSC) from 2012 to 2016, and a subset of that dataset from 2013 that includes examination and categorization of unmarketable fruit. Throughout the five-year period of data collection, lygus bug populations were sampled weekly via beatbox method at commercial strawberry farms in Oxnard, Santa Maria, and Salinas/Watsonville. A total of 53 farms were sampled over this period, though not all farms and not all regions were sampled in each year. Table 1 presents the summary information on the number of farms from each production district sampled in each year. Each observation used in this analysis reflects the average number of small nymphs, large nymphs, and adults collected across a minimum of five samples of 20 plants each. The rows from which samples were taken were varied each week to achieve a more complete representation
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