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TABLE 1: U.S. and World Market Conventional Pesticide Sales at

Basic Producer Level, 1988 Estimates.

U.S. ket. U.S. % of

(§ Million) @ (§ Million) @) World Mkt
Herbicides 2,770 56% 7,700 42% 368
Insecticides 1,200 243 6,100 33% 20%
Fungicides 580 12% 3,500 19% 17%
other 420 8% 1,200 6% 35%
Total 4,970 100% “18,500 100% 27%

Note: U.S. market is sales for domestic use only, net of imports

and exports.

Source: EPA estimates based on NACA annual surveys and other sources.



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TABLE 11: Number of Certified Applicators in the United States,
1988 Estimates(1).

EPA Region Private (2) Commercial (3)

I 7,797 7,529

Ir 19,377 —— 31,995

UI 52,344 18,268

wv 248,582 40,724

v 147,784 41,739 es
vI 227,187 28,895 ~
VII 144,707 23,053

VIII 63,367 14,073

Ix 31,483 21,012

x 50,292 26,787

U. S.(4) 992,920 254,074

Source: EPA staff estimates.
(1) -The following page presents a map of EPA regions.
(2) Private refers primarily to individual farmers.
(3) Commercial refers to professional pesticide applicators.

(4) These estimates reflect some double counting, as some
applicators are certified in_more than one state.

16



TABLE 5: ‘Importance of Conventional Pesticide Expenditures to U.S. Farmers,

1988 Estimates.

($ bil) (%)
Farm Pesticide Expenditures (1) 5.1 3.9
Total Farm Production Expenditures (2) 132.0 100.0

(1) Excludes wood preservatives, disinfectants, and sulfur.
(2) USDA, 1989.

Source: USDA and EPA staff estimates.



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EPA

Regional Offices

Las

Regions
4—Alabama
10 — Alaska
9 —Arizona
6 —Arkansas
9 —California
8 —Colorado
1 —Connecticut
3 — Delaware
3—D.c.
4 —Florida
4—Georgia
9 —Hawail
10 —Idaho
& —Illinols
§ —Indlana
7 —lowa
7 —Kansas
4 —Kentucky
6 —Louisiana .

Regions
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3 — Maryland
1 — Massachusetts
§ —Michigan
8 —Minnesota
4—Mississipp!
7 —Missoun
8 —Montana
7 —Nebraska
9 —Nevada
1 —New Hampshire
2 —New Jersey
6 —New Mexico
2 —New York
4 —North Carolina
8 —North Dakota
§ —Ohlo
6 Oklahoma
10 —Oregon

Regions
3 —Pennsyivania
1 —Rhode Island
4 —South Carolina
8 —South Dakota
4—Tennesses
6 —Texas
6 —Utah
1—Vermont
3 —Virginia
10 —Washington
3 — West Virginia
5 —Wisconsin
8 —Wyoming
9 —American Samoa
9 —Guam
2 — Puerto Rico
2 —Virgin Islands



TABLE 4: Extended U.S. Annual Pesticide Consumption, 1988 Estimates.

Type

Billion Pounds A.I.

Conventional Pesticides
Wood. Preservatives
Disinfectants
Sulfur

Total

1.1
2.0
0.4
0.2

2.7

Source: EPA staff estimates.



PESTICIDE INDUSTRY SALES AND USAGE:
1988 MARKET ESTIMATES

ECONOMIC ANALYSIS BRANCH
BIOLOGICAL AND ECONOMIC ANALYSIS DIVISION
OFFICE OF PESTICIDE PROGRAMS

HEADQUARTERS LIBRARY
ENVIRONMENTAL PROTECTION AGENCY

WASHINGTON, D.C. 20460



TABLE 7: U.S. Pesticide Production and User Sectors—-Key Profile Parameters, 1988. (1)
(Approximate Values)

Basic Production Marketing User
Level Level Level
30 Major Basic 3,300 Formators 0.8-1.0 M. Farms
Producers
100 Other Producers 29,000 Distributors 90,000,000 Households

& Establishments
a 40,000 Commercial Pest
Control Firms

1,200 Active Ingredients 37,000 Formulated Products (Several Other Industry/

Registered Registered at Fed- million) Government Users
eral Level
850 Active Ingredients
in Production
200 Leading Active 200 Firms Registering
Ingredients in Pesticides per Year _
Procuction

11 New Active Ingre-
dients/Calender Year

11,000 Employment

1988 Market Estimates:

(bil lbs) (bil lbs) (bil $)
U.S. Production 1.43 Domestic Usage 1.13 Value of U.S. 7.38
U.S. Exports 0.45 Purchases
U.S. Imports 0.15
U.S. Supply 1.13 (%) (%)
Agricultural Share 75% Agricultural Share 69%
{bil $) Ind/Com/Govt Share 18% Ind/Com/Govt Share 16%
Value of Sales 4.97 Home/Garden Share 7% Home/Garden Share 15%

Source: EPA staff estimates.
(1) Estimates for registered active ingredients and products varied little from 1987 ma

to 1988. However, due to FIFRA ’88, some of the above figures will change
significantly in 1989.

10



TABLE 6: Comparison of the Cost of EPA Data Requirements Relative to
Conventional Pesticide User Expenditures in U.S.
1987 Estimates (1)

$ Million Percent
Pesticide User Expenditures 6,850 100.0
Total Pesticide R&J) Expenditures 682 10.0
EPA Registration-Related R&D 173 2.5

Expenditures

Source: EPA staff estimates, based on Agricultural Statistics, 1986
(USDA), the NACA survey (1987), and other sources.

(1) Re-estimated for 1987 based on data from NACA member fimms only.
R&D figures for 1988 are not available.



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HIGHLIGHTS OF REPO!
{table no. in parenthesis)

- U.S. vesticide sa.2s -epresent about one quarter of the world market
(1).

- Anmual U.S. pesticide user expenditures totalled approximately $7.4
billion in 1988 (2).

- Agriculture accounts for over two-thirds of pesticide user expenditures
and roughly three-fourti ; of the quantity used anmually (2 & 3).

- Herbicides are the l: ding type of pesticides, in terms of both user
expenditures and volume: used (2 & 3).

- About 1.1 billion pa ds active ingredient of conventional pesticides
are used in the U.S. (4).

- Total U.S. pesticide .sage in 1988 approached 2.7 billion pounds of
active ingredient. (This figure includes wood preservatives,
disinfectants, and sulfur.) (4)

- Farmers’ expenditures on pesticides represent slightly less than 4% of
total farm production e> venditures (5).

- Total pesticide R & [ expenditures represent in the neighborhood of 10%
of pesticide expenditures by user commmnity (6).

- The two most widely 1 sed pesticides by volume are alachlor and atrazine
(9).

- There were 11 new active ingredients registered under FIFRA in calender
1988 (10).

- There are about 1.2 r/llion certified pesticide applicators in the U.S.
(11).



TABLE 9: Annual Usage Estimates of the Largest Agricultural Pesticides in u.s. 1
(approximate values, 1987)

Pesticide Usage in Million Pounds
Active Ingredient

Alachlor 75 - 100
Atrazine 75 - 100
2,4-D 52 - 67
Butylate 44- 58
Metolachior 45 - 55
Trifluralin 30 - 35
Cyanazine 20 - 25
Carbaryl 12 - 25
Malathion 15 - 20
Metribuzin 13 - 17
Maneb/Mancozeb (4 - 6 / 8 - 12) 12- 18
Glyphosate 10 - 15
captan 9-11
Chlorpyrifos 7- 11
Methyl Parathion 2 5- 10

Source: EPA staff estimates based on a variety of sources.

- )

1 the estimates represent all usage of the active ingredient
*, including noncrop usage.

2 The estimate does not include the estimated 4 -7 mil. pounds of
ethal parathion usage.

13



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INTRODUCTION

This report provides an overview of the pesticide industry for 1988.
It contains a series of tables with estimates of U.S. and world pesticide
markets for 1988. The following page presents a number of highlights of
this year’s report.

Economists with the Economic Analysis Branch (FAB) have prepared
similar studies in previous years. With the exception of Tables 10 and 11,
the figures presented are only approximate values, since available data do
not support precise projections. In addition to 1988 estimates, this
report includes two new tables which review the pesticide market from 1979
to 1988. Drawn from previous EAB reports, Tables 12 and 13 offer a look at
the U.S. pesticide market, in terms of total annual pesticide volume and
user expenditures. Two accompanying graphs complement these new tables.

OVERVIEW

Overall pesticide industry sales have been relatively stable during
recent years. The agricultural share of pesticide usage (see Table 8)
appears to have stabilized and may even decline in the coming years after
increasing steadily throughout the 1960’s and 1970’s. A number of factors
contribute to this trend: lower application rates due to the introduction
of more potent pesticides, more efficient use of pesticides, and lower farm
commodity prices. It is not unusual to see maximm application rates for
new agricultural pesticides equal to one t> two ounces per acre, whereas
application rates for older pesticides often reach several pounds per acre.
This trend is particularly pronounced in the insecticide market and to a
lesser degree in the market for herbicides. Also, the efficiency of
pesticide use has improved as a result of more and better certification
programs, more widespread use of integrated pest management programs, and
the pesticide producers’ provision of better information to farmers.
Increased interest in Low Input Sustainable Agriculture (LISA) will
probably tend to further reduce the quantity of pesticides used in future.
Finally, low commodity prices over the past few years have lessened
farmers’ willingness to apply pesticides.

If you have questions regarding this report or need further
information, please contact this office. Feel free to contact Jeff Doidge,
Economist, at (703) 557-0837 or Arnold Aspelin, Chief of the Eccnamic
Analysis Branch, at (703) 557-7600.





TABLE 8: United States Conventional Pesticide Usage, Total and Estimated
Agricultural Sector Share for 1964-1988

Year Total U.S. Agricultural Agricultural
Sector Sector
Share
—Million Ibs. AI-———— —Percent—

540 59
610 55

680 51
735 52
835 : 56
775 55

Note: Excludes wood preservatives, disinfectants, and sulfur.

Source: EPA staff estimates.



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