Location: Aerial Application Technology Research
Project Number: 3091-22000-037-012-S
Project Type: Non-Assistance Cooperative Agreement
Start Date: May 1, 2021
End Date: Apr 30, 2022
The general objective of this study is to expand the economic analysis and estimate the total economic value of the agricultural aerial application industry in the United States. This model will aid decision-making for aerial applicators, regulators, and legislators with the aim of quantifying the value of the industry to the U.S. economy considering multiple stages of the agricultural value channel. Specific objectives this phase of the project are as follows. (1) Develop an economic model and estimate the value of aerial application industry in the United States at different levels of the agricultural value channel such as farmers, processors (primary and secondary), and functional participants (such as transportation, storage). (2) Estimate the value of agricultural aerial application industry in the United States considering aforementioned market participants delineated by different states of the United States.
The cooperator will use data provided by the National Agricultural Aviation Association (NAAA) and the USDA Economic Research Service to develop an economic model using cutting-edge econometric tools to estimate the value of the aerial application industry to the United States economy delineated by different crops/forestry products and states, for different stages of the agricultural value channel. Once developed, the economic model will be shared with regulators, legislators and the aerial application industry so that these entities may understand the economic benefit of the aerial application industry to the U.S. economy and its importance to our national food and fiber security.