The objective of this study is to develop useful economic estimates of the impact of potential restricted-use policies for antimicrobial agents used in swine production as growth promotants. By using a model similar to that used by Wohlgenant, the economic impacts of banning antimicrobials in swine production are measured by the changes in producers’ and consumers’ surplus. It was found that a ban on the use of antimicrobial agents as growth promotants for swine would be costly, totaling $242.5 million annually, with swine producers bearing $153.5 million of the cost in the short run. In the long run, the loss borne by consumers would likely be larger than the
loss borne by producers. Based on a 30-year planning horizon and a 4% discount rate, the net present value of these increased costs would be $3.2 billion.
You must be logged in to post a comment.