CHAPTER II. ECONOMIC CONSIDERATIONS 
Economic Effects 
Losses in agricultural production have two kinds of economic effects = 
(1) increased cost of production, and (2) reduced quantity and quality 
of products available to the consumer. Because of the depredations 
caused by insects and diseases, crop yields are reduced, and more lmd 
and labor must be used to provide our requirements. Furthermore, pro- 
Guction costs are higher. From another viewpoint, consumer needs could 
be more fully satisfied and better nutrition proviced with the same 
resources and expenditures if the causes of loss were not present, 
The possibility of profitably reducing or eliminating losses in agri-~ 
cultural production are influenced by technological developments. Tech- 
nological improvements may affect costs of control or they may influence 
the value of the products. The discovery of more effective or lower 
cost insecticides and fungicides, for example, may make possible larger 
production of higher quality goods with little or no increase in cost 
to the farmer, or it may make possible the same production with the use 
of fewer resources and at a lower cost. Similarly, the discovery of 
new or improved uses for products may increase their total value with 
little or no change in resources used or in production costs. Regard= 
less of whether costs of production are reduced or the value of the 
products is increased, these discoveries and their application result 
in economic gains for the consuming public and generally for farmers. 
Some methods of reducing or eliminating losses may require little or 
no additional operating cost. For example, while development of a new 
and valuable insecticide or fungicide may originally require substantial 
funds for research, the new pesticide may be no more expensive to manu=- 
facture and apply than those previously used. 
Other losses may be much more difficult to reduce or eliminate. For 
example, it may be impossible to find ways of completely eliminating 
losses to crops caused by some insects and diseases. And even if it 
were possible, the cost of control might be high in relation to the 
additional quantity or improved quality of the crop. Similarly, it 
may be extremely difficult to find economic uses for all byproducts 
and materials which presently have little or no value, Methods might 
be developed for utilizing them, but costs of orocessing and manufacture 
might be very high in relation to their final value. 
Classification of Losses 
It is apparent that losses vary greatly in their causes and effects. 
A useful classification is as follows: 
