DOCUMENT RESUME

ED 416 143 SO 027 928

AUTHOR Welch, Mary A., Ed.

TITLE The Cost of Keeping Up Appearances.INSTITUTION Purdue Univ., West Lafayette, IN. School of Agriculture.

PUB DATE 1996-00-00NOTE 23p.; For other booklets in this series, see SO 027 918-929.

Some colored pages and graphs may not reproduce well.AVAILABLE FROM School of Agriculture, Office of Academic Programs, Purdue

University, 1140 Agricultural Administration Building, WestLafayette, IN 47907-1140.

PUB TYPE Collected Works - Serials (022) -- Guides Non-Classroom

(055)

JOURNAL CIT Economic Issues for Food, Agriculture, and NaturalResources; n11 Spr-Sum 1996

EDRS PRICE MF01/PC01 Plus Postage.DESCRIPTORS *Agriculture; Conservation (Environment); *Economics;

Environment; Environmental Education; Food; Landscaping;*Natural Resources; *Ornamental Horticulture; SecondaryEducation; Social Studies; *Technology

ABSTRACTThis issue focuses on the costs of keeping up appearances by

landscaping the environment. Although insects can be a threat to planthealth, much of the injury they cause will only threaten plant appearance.The study comes from a survey of two groups, landscape specialists andhomeowners, who were asked to identify which plants in a photograph seriesthey would consider damaged and which they would want their landscapemanagement company to treat. Six photographs of a widely-used shrub, commonly

known as a burning bush, were prepared with varying discoloration and damageranging from uninjured to half stippled white. The survey revealed thatlandscape specialists have the same general tolerance for plant injuries astheir clientele. The possible value and application of this research tocommercial business is explored, along with a description of a model of theintegrated pest management (IPM) plan. The decision making model for use ofthe IPM is explained. A student quiz concludes the booklet. (EH)

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About the cover:Dr. Cliff Sadof.evaluating a pest problem.

ECONOMIC ISSUES for Food, Agriculture arrd Natural Resources ispublished by the Office-of Academic Programs, Mary A. Welch, editbr.Spring / Summer 1996, No. 11

is

The lost of Keeping UpAppearances

A LESSON IN DECISION MAKING.....GroWing plants for beautifying the

landScape is big business. As a customersearches for the "greenest," "reddest," or"plumpest" produce in the supermarket,gardeners are seeking healthy-looking plantsin a garden center to beautify their yards.Given a choice, most customers will purchase.the fullest,Stfongest and healthiest-lookingplants. Although insects can be a threat toplant health, much of the injury they causewill only threaten plant appearance. Gardencenter owners and nursery plant producersneed to know the amount of cosmetic injurythat is acceptable to potential customers sothey can set the objectives for their pestmanagement programs.

The presence of insects and disease'on aplant can affect purchase decisions because ofthe detection of pests themselves or theireffects on plant appearance. Consumers arenot likely to purchase plants crawling withpests because of their inherent fear of insectsand disease. More astute gardeners may alsobe thinking about how introductions of these

'pests to their yards may call for futurepesticide use. Increased aversion to pesticideswill cause many customers to demand pest-freePlants. Pest-induced changes in plant-appearance (e.g., defoliation) affect thedecision to purchase a plant in ways that aremuch different from the presence of the-pestitself. Consumer perception of plantappearance is subjective and based on personaltastes. Because garden centers can readilyremove conspicuous insects,- managers areinterested in knowing how changes in plantappearance alone affect their purchasingdecisions.

Clifford Sadof, professor in the Departmentof Entomology at Purdue University, has

43

studied changes in plant appearance causedby pests.

Sadof is interested in how much plant"injury landscapers and gardeners are willing totolerate. The results of his work c\,ould be usedto help growers Set management targets whileallowing them to use the minimum amount ofpesticides.

MOTE: Injury = leaf disfigurement or destruction

Damage = economic loss

To study this question, Sadof and a graduatestudent, Curt Alexander, prepared a series of sixphotographs of a widely-Used shrub, commonlyknown as 'a burning bush. This-ornamentalplant N often used in landscaping._ During long,hot dry months_itcari become infested withspider mites. The spider mites pierce the Surfaceof the leaf and suck up the juicethat bubblesfrom the puncture. This injures, the leaf andcauses'the pierced area to become stippled withwhite flecks. ;

When infesfations are.high and gountreated,- significant portions of the plantbecome discolored. This may be the first timesome casual observers notice the injury. A ..clOser look will show hOW individual leaveshave been discolored. Any number ofpotential customers are likely.to disagree onthe amount of discoloration that makes'aplant unattractive. They each have their ownconcept of.what an attractive plant looks like.

The photographs.prepared by Sadof andAlexander represented drangeOfdiscoloration from uninjured to half stippled.white. This was based on the averagediscoloration of a randoM sample of 25 leavestaken from each plant. AS it was importantfor people to react to the discoloration of theleaves, not the Obvious presence of mites,webs, an indication of the most serious

'damage, were not -visible in any of the,photographs.

Two groups (landscape specialists andhomeowners) were asked to identify the plantsin the photographs they considereddamaged, as

,well as those they would want their landscapemanagement company to treat. The photo-graphs represented discoloration of each planton a scale of 1 - 6 with 1 representing nodiscoloration and 6 being half discolored. '

RESULTS

This survey revealed that landscapespecialists have the same general tolerance forplant injuries as their clientele. More thanhalf the respondents from both the providersand recipients of landscape managementservices considered a plant with adiscoloration ranking of 3.4 to be damaged.This represents approximately 5-10 percentleaf discoloration as seen in Figures 1 and 2.

100

80

E 60

40

41 20o.

Wanting to Treat Plant

1 1.4 2.4 2.6 3.4 3.8Average Discoloration Rank

Recognition of Plant Damage

13 client1:1 industry

client40 industry

1 1.4 2 4 2 6 3.4 3.8Average Discoloration Rank

Figure 1

Figure 2

5

Also, the same level of injury causedlandscapers and clients to want a plant to betreated.

Interestingly, there was quite a bit Ofvariation in the responses of people to pestinjury. About ten perCent of the respondentswanted the uninjured plant to be treated eventhough fewer than five percent of themviewed the' plant as damaged. At the otherend of the spectrum, about ten percent of theclients and landscapers did not want a plant tobe. treated even though all respondentsthought the plant was damaged. Sadof'simpression of thiS difference is that clients andlandscapers at either extreme are respondingto their views about using pesticides and -notlooking closely at the conditions of the plant.

Sadof suggests that landscapers recognizethe diversity of opinion among their clientsand meet With them to set acceptable goals.

What Value and Application WouldThis Have to a CommercialBusiness?

As the public becoMes more and'more-sensitive to environmental issues of safe waterand food, more producers of plant materials,are looking"for ways to reduce the amount of .

pesticides they. use. Integrated pestmanagement (IPM) is such a plan. It restricts

.TestiCide applications to occasions when thenumber of pests, present threatens the value-ofthe crop..

'In the past, Many growers used a "spray bythe calendar" routine. Whether or not insectswere present, spraying wa's done.tO ensure thatpe'sts did not attack valuable, cash crops. Thepurpose-of an1PM,program is to minimiiedamage of a saleable product so .that it isacceptable to the potential customer. Forexample, on crops.such as melons orcucumbers without an IPM program, a growermay spray 10 to 12 times a season at a cost of

.$100-120 per acre. An IPM program mayreduce the cost to $50-60 per acre by cuttingthe number of sprays in half. The savings onone spray can pay for the program.

Participants of IPM programs have behind-the-scenes support, with the likes of Sadof.Sadof meets regularly with participants of hisIPM program to help them learn more aboutthe insects that affect their plants and how tocontrol them. By participating in Sadof'strainings, nursery managers can eventuallybecome local experts. This knowledge canadd value to their businesses, as growers lookto them for advice on when to applypesticides.

How Does an IPM Decision ModelWork and How Is It Calculated?

To Spray or Not to SprayHow are decisions made about applying

pest controls to ornamental plants?Remember to consider what we know aboutthe attitude of customers and whether we areworking with professionals, owners orpotential owners of landscape plants.

The Classic Decision-Making Model maybe used by a producer of a crop such assoybeans which is valued for its weight orbulk. The model is referred to as an EIL ;(economic injury level) where

EIL = C/VIDEIL = number of injury equivalents perproduction unit (e.g., insects per acre, all ofwhich live to attain their full injurypotential),C = cost of the managementactivity per unit of production (e.g., $ peracre), V = market value (utility per unit of .

production (e.g. $ per pound or bushels), I -injury units per insect per production unit(e.g., proportion defoliated / insect per acre)],and D = damage per unit injury e.g., (poundsor bushel reduction per acre) / proportiondefoliated). This type of model can be used

87

because the producer can measure the resultsby weighing the crop. The producer has noeconomic stake in the beauty.of the plant, justin its yield. Pest management actions dretaken to prevent insects from exceeding theEIL density.

USING BREAK-EVEN POINT TO MAKE A DECISION: The ElLissimply a decision-making tool to determine the break-even pointin a management situation, This is the point where the cost oftaking an action is balanced against the loss resulting from nottaking an action.

For example, consider the following situation: The cost ofapplying a pesticide is $10 per acre. This gives- C a value of $10.When the expected market value of the crop harvested from oneacre. is $1000, V = 100.0.. If an average insect can consume 0.01percent of the leaves, I = 0.0001. Finally if each percent of leaveslost reduces yield by 1%, D = 0.0.

The denominator of the equation (VID) represents the potentialgain from controlling each insect. In this case it is $1000 X 0.0001bulk volume X .01 unit of volOme lost per insect, or $0.001 lost perinsect (one tenth of a cent per bug). The EIL is simply the numberof insects it takes to equal the cost of applying a control to an acreof plants, C ($10), is 10,000 insects per acre.

In reality, a soybean farmer has little idea how much of the cropwill be worth at harvest. He or she is also unsure about the weatherand how it will influence the volume of crop yield; or the ability ofpests to increase their numbers. Much of agricultural researchinvolves developing techniques to help farmers make an educatedguess based on the potential yield, price, and pest abundance.

In contrast to a soybean grOwer, Cropsproduced by the nursery industry are.valitedfor objective qualities such as size and number,as well as subjective qualities like plantappearance: Nursery managers use a decision;

. making Model that is.referred to as a HybridModel EIL because it combines'subjective andobjective 'measures of crop quality.

EIL = C/VIDKwhere C = the cost of control (e.g. dollars perplant), V = economic value"of undamagedgoOd ($ per plant),.I a proportion of injury perunit of pest density (discoloration or

.9

defoliation, pest per plant), D = proportion ofconsumers perceiving damage per unit of pestinjury ($ lost in sales per unit of injury perplant), \ancl-K .= effectiv-eness of control., Thekey difference using the hybrid model is thatthe aesthetic qualitylof the plant is theprimary consideration when calculating thevalue (V) and damage (D) coefficients forplants of a given size. e

'In laridscapes, neither the classic or thehybrid model is appropriate for evaluation.Here, a third model called an aesthetic injurymodel is used because it only takes intoaccount the level of injury that is acceptableto a consumer. The photographic survey ofburning bush`injury determined that mosthomeowners and landscapers wanted a controlmeasure'to be taken when only 10 percent ofthe leaves were discolored. As the damageapproaches this 10 percent threshold,groundskeepers are told by their clients toJUST DO IT!!

In 1991, Sadof implemented au IPMprogram on Purdue University's campus thatreduced pesticide use on campus trees andshrubs by more than 50 percent. It changedPurdue's landscape management philosophyfrOm one of pest prevention to one of problemprevention. Sadof used his 10 percentthreshold to develop a rule- of thumb formaintance personnel. involved in the IPMprogram. He also.developed and testedPurdue Landscape IPM software, nowavailable to the public, which manages plantinspection records and generates reportsdesigned to facilitate management efforts andcomply with EPA requirements for pesticiderecord keeping.

Prior to IPM, pesticides were applied toplants odthe Purdue campus at specific timesof the year as part of a pest-prevention,program. Now pesticides are used only inareas where pests have been detected andassessed as a threat. As a result of IPM, the

,

WHAT IS THE VALUE OF A MATURAL EMEMY (ME) WHEM

OBSERVED?Another consideration a grounds manager should be alert to is

the presence of natural enemies (NE) that eat pests. When enoughNE are present among pests on an infested plant, the problem maybe controlled without pesticide applications. FOr example, if aphidsare present on an ornamental crabapple in a landscape, and ladybeetles appear, these, natural enemies of the aphids will consumemost of the population on the trees within the next 2 4 weekswithout spraying.

landscape managers are more skilled and theCost of maintaining a beautiful campus has-been reducecrsignificantly.' ,

Figures 3 and 4 illustrate an evaluation ,

1.technique whereby an arboriSt (a caretaker ofthe landscape) can determine the actionrequired by examining the plant-qualitYandthe. agent (pest) severity of a tree.

Figure 3

10

Figure 4

Researchers like Sadof'Srudy science which,has application to a problem. This type ofresearch is usually referred to as "appliedresearch." Agricultural Research ProgramS(ARP) and the Cooperative Extension

- Service (CES) are intergal functions of theland-grant system of Purdue University. Theprimary mission of ARP isto researchproblems that face the taxpayers of Indiana.

I

Order form for free reprints ofECONOMIC ISSUES for Food, Agriculture

and Natural Resources

If you wish to review and/or use this series in your classroom, completeand return this order form. These reprints are available to you free ofcharge, compliments of the Office of Academic Programs, School ofAgriculture, Purdue University.

No. 11 The Cost of Keeping Up Appearances Spring /Summer 1996

This issue discusses the development of an integrated pest managementprogram developed at Purdue University for landscape professionalswhich allows pesticide materials to be applied only when the beauty ofthe landscape is endangered. Students will study the use of the Break-Even Point to illustrate making such a decision.

No. 10 Export AdvantageAdding Value to Indiana's ExportsFall 1995

United States' agricultural exports are shifting from bulk grain and mealcommodities to high-value fresh or frozen meat and poultry products.Find out what is causing this shift, what well-established and new worldmarkets are emerging, and what this means for the food processingindustry in the United States.

quantity

No. 9 Food Processing and MarketingNew Directions, NewOpportunities Spring 1995

Through a joint effort of economic analysis and technology, the dyingtomato processing industry in the Midwest, which had lost a majorcomparative advantage to California, was revitalized. Discover how theprocess of aseptic processing allowed the tomato industry to greatlyincrease its economies of scale and become the most competitive in theworld.quantity

No. 8 Using Economics and Genetics to Produce Leaner PorkSpring 1994

A careful study of swine genetics and efficiency of production factors hashelped producers select breeding stock to provide leaner meat withoutincreasing production cost. This issue helps students understand theconcept of net present value.

quantity

No. 7 Strategic Marketing for Agribusiness Winter 1993

By understanding the marketing planning process and the economics ofconsumer buying decisions, managers of food and agricultural businessescan make better decisions to help their businesses become moreprofitable. In a case study format, this issue helps students understandthe concept of demand elasticity.

quantity

No. 6 Economic Development for CommunitiesWinter 1992

Explore with students how successful economic development in acommunity involves an effort to export products and services to othercommunities, states, or nations and thus import dollars to thecommunity.

quantity

No. 5 Agricultural Chemical and Fertilizer Storage RulesCostsand Benefits of Insuring Cleaner Water for Indiana Fall1991

Better understand costs of complying with regulations to ensurecontainment of chemical spills in relation to environmental costs. Theconcept of a public good is illustrated in this issue.

quantity

No. 4 Economic Effects of Technological Advances in AgricultureFall 1990

A better understanding of agricultural economic concepts helpsAmericans become better food buyers, be more knowledgeable aboutfood values, and appreciate their relatively cheap, high-quality foodsupply. Study how the use of biotechnology has microeconomicimplications for the animal industries and consumers. Supply anddemand curves illustrate the determination of the pork price, andquantities produced and consumed as a result of one biotechnicaldevelopment in the swine industry.

quantity

No. 3 International Trade in a Global EnvironmentSpring 1990

Many factors affecting U.S. trade are beyond our control. However, theUnited States and its citizens do control macro economic policy, tradepolicy and domestic farm policy. Market, command and traditionaleconomies, opportunity cost, along with other trade concepts includingGATT (General Agreements on Trade and Tariffs), are discussed.

quantity

No. 2 Commodities TradingAn Essential Economic Tool Fall/Winter 1989-90

This issue discusses the use of commodities trading (futures contracts andoptions) as an important economic tool to benefit both buyers andsellers in today's agricultural and natural resources marketingenvironment.

quantity

No. 1 Value AddedAdding Economic Value in the FoodIndustry Spring 1989 (first in the series)

The concept of value added is discussed using the pork product, sausage,to add value by making frozen pizzas. Questions discussed include jobscreated by value added processes and using value added to calculateGross Domestic Product.

quantity

From: Name

School

Address

City, State, Zip

Mail form to: Mary A. WelchPurdue UniversitySchool of Agriculture1140 AGADWest Lafayette IN 47907-1140

Fax number:Phone number:

(317) 494-8477(317) 494-8470

The CES provides trained Extensioneducator's throe ghout the state who educateinterested people through seminars andworkshops, using the results of this research.In this effort, research and education go handin hand to provide a continued iinprovementfor quality of life in Indiana.

Sadof works with the nursery landscapeindustry to identify problems and provideadvice. Problems like determining levels ofacceptable plant injury are investigated in his 'research program. Results are translated tothe industry in trade journals and in meetings:The next generation of industry professionalslearn about his research when they take hisclass on ornamental insect pests.

"MT:;:::: There are widespread career opportunities for profes-sionalsin the pest mangcment and plant materials area's to research,analyze, manage, and communicate information about the food,agricultural resource system. Let Purdue's School of Agricultureshow you how.

SUMMARY

With increased awareness and concern forthe environment and the need.for businessesto always try and maximize their profits,management changes are required.

Applied research at Purdue University isconducted through the Agricultural ResearchPrograms and communicated to the industryby the COopetative Extension Service.Studies like those developed by Professor.CliffordsSadof have resulted-in ways to helpmeet these new goals of landscapers andgarden center managers through thedevelopment of the Integrated pestmanageMent (IPM) approach.

Agrower must decide the optimal time tospray, for insects.'-However, the evaluation ofthe pest problem is assessed differently. Thisarticle discusses two types of evaluation as wellas describes a third method th t is moresuitable for a landscape mana er or'anarborist. Such a person is hired to assess the'beauty of the grounds rather thhn,theindividual'plant's marketability. (the fOlp of agarden center manager) or the yield of a crop.(d soybean grower).

. Integrated pest management (IPM) is aprogram which allows the arborist to evaluatethe situation and decide when to spray, basedon thecondition of the plant. This programreduces the number of sprays in a seasonwhich accorriplihes both goalssavesproduction cost as well as reduces pesticideuse.

Sadoi and his colleagues, who are workingJo bring their research to growers, believe thatIPM is a total educational process. As growers

, become more knowledgable, there may be' savings that can be passed along to constmers.

12

Cliff Sadof

Cliff Sadof is an associate professor ofentomology at Purdue University. Currently,he is responsible for developing strategies forManaging plants with fewer insecticides. Hehas recently developed software that can beused to help landscape and nursery managersmaximize the use of biological control. Hisresearch investigates how aesthetic standardsof consumers drives pest managment in theornamental industry. In addition, he contin-ues to study how ornamental qualities ofplants, such as leaf variegation, affect theirsusceptibility to pests. Recently*, he has beenworking on methods to improve oppottunitiesfor biological control of insects in the land-scape.

A native of New Jersey, Cliff attendedRutgers University, where he received tiis B.S.in Horticulture in 1980, and an M.S. inEntomology in 1982. After working as astatistician ,in the agrichemical division ofFMC corporation, Cliff returned to graduateschool at the University of Maryland where hereceived his Ph.D. in 1990.

The technical and professional assistanceprovided by Professor Sadof for thispublication is greatly appreciated.

1 13

14

Quiz

1. What does IPM stand for in this text?A. International Pest ManagementB. iintegrated Pest ManagementC. Integrated Program ManagementD. All of the above'

2. Why haVe IPM programs been developedfOr ornamental plants?A_ . To save money for growers and

landscape managers.B. To get rid of all insects regardless

of cost.C. To encourage environmental measures.D. To maintain plant health.E. A, C and D are correct

3. How is-evaluation of insect controldifferent for soybeans than for crabappletrees for landscapeg.

The yield for soybeans can be measuredin pounds on a scale.

B. The crabapples can be counted.C. ,The yield of crabapple trees must be

measured by a survey of consumerattitudes about plant appearance.

D. An aesthetic value is calculated by thesoybean grower.

E. A and C are trueF. All of the above are true

4. What is the primary function of theCooperative Extension Service at PurdueUniversity? ,

A. To make results of applied researchavailable to any interested citizens ofIndiana. ,

B. To educate growers in Indiana about- only the most dangerous pests for crops

and ornamental plants.C. To provide grade school children

information for insect collections.D. To sponsor "Bug Bowl" in April.E. 'A and B are Correct

I 9

5. "spray by the calendar" isA. An integral feature of the IPM program

developed by Professor Sadof.B. An outdated way of organizing spray .

schedules.C. Is a very accurate way to control most

pests on soybeans.D. All of the above are true

6. "EIL" in the "classic" decision-makingmodel refers \toA. Equal insect levelB. Economic Injury LevelC. Insects per acre, all of which live to

attain their full injury potentialD. B and C are both correctE. No value in this equation

7. If I = 0.0001 of a tree's leaves are consumedby each insect, how many insects areneeded to consume ten percent or (0.10) ofthe tree's leaves? Remember this is the"rule of thumb" Aesthetic injury level(AIE).A. 100 insectsB. 10,000 insectsC. 1,000 insectsD. 10 insectsE. None of the above are true

8. Why is the "classic" model not appropriatefor evaluating ornamental plants in agarden center?A. Ornamental plants are sold for

beautifying, not producing a cash valueof,its yielded fruit.

B. Damage to appearance on anornamental must be considered inevaluating the value (V) and damage(D)

C. Only 10 peicent yield in a cash cropcan be tolerated by the grower.

D. Both A and B are correct

2C 15

9. Why is neither the "classic" or the "hybrid"model appropriate when evaluating plantsin a landscape setting?A. The Only, consideration of a grounds

keeper it that-there are no insects onplants inspeCted. .

B. The plants are no longer managed fortheir saleable value. ,

C. The grounds keeper only cares ifsomeone considers the plant ugly.

D. All of the above are trueE. B and C are are correct

10. What is responsible for Sadof's impression:"ResPondants are expressing their viewsabout using pesticides and not lookingcarefully at the condition of the plant."A. Some respondents wanted no spray

applied even though the plant wasv clearly injured.

B. Some of the respondents wanted aplant 4Nayed even though there wasless than one percent injured.

C. The response to extreme levels ofinjury in the survey.

'D. All of the above-are true

AnSwersi 1-B; 2-E; 3-E; 4 ./k; 5-B; 6-D; 7-C;8-D; 9-E; 10-D

Solution steps to #7

1. acceptable level = amount of injury perinsect X the number of insects`of injury(AIL)

2. 1d X = number of insects ,

3. diVide both`sides of the equation.by 0.0001

4. 0.10 0.000.1x0.0001 0.0001

x = low

16

Reminders from the Office of Academic ProgramsMultiple reprints of ECONOMIC: ISSUES for Food, Agriculture CO'

Natural Resources are available from Mary A. Welch.

The Cost of Keeping Up Appearances, Spring 1996, No. 11

AddingValue to Indiana's Commodities, Fall 1995, No. 10

Food Processing and Marketing, New DirectionsNew Opportunities,Spring, 1995, No. 9

Using Economics and Genetics to Produce Leaner Pork, Spring 1994,No. 8

Strategic Marketing for Agribusiness, Winter 1993, No. 7

Economic Development for Communities, Winter, 1992, No. 6

Agricultural Chemical and Fertilizer Storage RulesCost and Benefitsof Insuring Cleaner Water for Indiana, Fall 1991, No. 5

Economic Effects of Technological Advances in Agriculture, Fall 1990,No. 4

International Trade in d Global Environment, Spring 1990, No. 3

Commodities Tradingan Essential Economic Tool, Fall/Winter1989-90, No. 2

Value-Added in the Food Industry, Spring 1989, No. 1

Return the order form in center of publication.or call for FREEreprints of this and previous ECONOMIC ISSUES for Food,Agriculture and Natural Resources.

The Office of Academic Programs is happy to arrange personal visitsfor students interested in the School of Agriculture. Call us toschedule a visit.

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