California is the nation’s greatest agricultural producer. In 2006, California’s gross value of agriculture production was more than $38.3 billion, almost double the value of production for the second most important agriculture state, Texas. The agricultural sector is a fundamental segment of any economy because it not only contributes substantially to the general economy and employment of the region, but it is additionally linked to almost all other sectors in the economy (i.e., manufacturing, retail trade, and accommodation and food service) as a source of inputs. Damage to crops by birds and rodents can reduce total crop yield and increase pest control costs. This ultimately reduces the production output of the agricultural sector and all other linked sectors and could potentially have significant total economic impacts. One method to estimate the total impact to the California economy of a decrease in agricultural yields and increase in pest control costs as a result of bird and rodent damage is an input-output (IO) model. To capture the sub-regional effects of economic changes, IO modeling is done at the county level. For the initial phases of this project, a deductive process was used to systematically rank California counties according to gross value agricultural production, value of production of targeted crops, and concentration of targeted crops. This process was used to identify the 10 leading agricultural counties, out of California’s 58, that will be processed for IO modeling to measure economic impact of bird and rodent damage on employment and revenue in each of these counties.

Invasive feral swine combine a number of characteristics (e.g., high mobility, high fecundity, destructive behavior, reservoir of diseases, etc.) that make them one of the most serious wildlife threats to American agriculture. Additionally, feral swine are susceptible to foot-and-mouth disease (FMD) infection and could play a significant role in spreading and maintaining FMD if it was introduced to the U.S. Outbreaks of FMD also have devastating economic impacts and cause the loss of billions of dollars to the agricultural economy. Problems associated with spread and control would be exacerbated if FMD was contracted and spread by feral swine, threatening the 4.3 million head of cattle and 3.1 million head of domestic hogs in Missouri. This study uses a bioeconomic modeling framework to estimate the direct and indirect economic impacts of FMD being transmitted from feral swine to Missouri’s livestock. It is predicted that if FMD occurred in feral swine in Missouri, the disease outbreak would last 45 days, resulting in 18,658 head of livestock being destroyed, and would cost the state a minimum of $7.5 million.

Mexican gray wolves were reintroduced into New Mexico and Arizona in 1998. When wolves kill a producing cow, ranchers in the region are eligible to receive an indemnity payment equal to the market value of the lost animal. We developed a model that allows estimation of the present value of the revenue stream that a cow or herd provides and find that if a producing cow is killed, the decrease in the present value of the rancher’s revenue stream is about $1,230. Mean indemnity payments are currently $1,000, implying ranchers are not being sufficiently compensated.