November 1, 2001

Scab Cost Grain Producers $870 million

Fusarium head blight, commonly known as scab, continues to be a costly disease for wheat and barley producers, creating direct losses of $870 million in the 1998-2000 period, according to a study by the Department of Agribusiness and Applied Economics at North Dakota State University.

"To put the losses in perspective," says William Nganje, one of the authors of the study, "the three-year combined losses of $870 million would exceed the value of all barley and oats production in the United States in both 1999 and 2000."

Of the nine states included in the study, North Dakota suffered the greatest impact with direct losses of $356 million from 1998 to 2000. Minnesota followed with $122 million in direct losses. Losses in South Dakota totaled $60 million for the period. Other states with large losses were Ohio at $102 million and Illinois with $66 million, both producers of soft red winter wheat.

Direct economic losses in the tri-state region of North Dakota, Minnesota and South Dakota accounted for almost 62 percent of all scab impacts for the period.

Direct losses to producers also rippled into the larger economy in the form of lost business activity and resulting employment losses. The total economic impact from Fusarium head blight is estimated at about $2.6 billion. Total impact in North Dakota was over $1.095 billion, almost 41 percent of the total cost. North Dakota and Minnesota combined accounted for nearly 55 percent of the total economic impact.

While producers suffered substantial losses from scab during the study period, revenue loss for wheat actually declined compared to estimates from 1993 to 1997, probably because of introduction of resistant varieties in North Dakota and Minnesota. Barley producers continued to suffer significant losses.

"Scab is till a major economic problem, whether measured in relative terms to other crop sales or by overall direct and secondary economic impact," Nganje says.

Scab occurs in many regions of the northern Great Plains that are not only reliant on agriculture but predominantly dependent on small grain production, he says. Also, income losses from scab are occurring during periods of depressed farm prices and low net farm income.

For a copy of the report, "Economic Impacts of Fusarium Head Blight in Wheat and Barley: 1998-2000," contact Carol Jensen, Department of Agribusiness and Applied Economics, P.O. Box 5636, Fargo, ND 58105, phone (701) 231-7441, Fax (701) 231-7400, e-mail cjensen@ndsuext.nodak.edu . It is also available on the World Wide Web at: http://agecon.lib.umn.edu/.

###

Source: William Nganje, (701) 231-7459, wnganje@ndsuext.nodak.edu
Editor: Gary Moran, (701) 231-7865, gmoran@ndsuext.nodak.edu