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Title: Florida's Citrus Canker Eradication Program (CCEP): benefit-cost analysis
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Title: Florida's Citrus Canker Eradication Program (CCEP): benefit-cost analysis
Physical Description: Book
Creator: Zansler, Marisa L.
Publisher: Department of Food and Resource Economics, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida
Publication Date: 2005
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Funding: Florida Historical Agriculture and Rural Life
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Bibliographic ID: UF00067308
Volume ID: VID00001
Source Institution: Marston Science Library, George A. Smathers Libraries, University of Florida
Holding Location: Florida Agricultural Experiment Station, Florida Cooperative Extension Service, Florida Department of Agriculture and Consumer Services, and the Engineering and Industrial Experiment Station; Institute for Food and Agricultural Services (IFAS), University of Florida
Rights Management: All rights reserved by the source institution and holding location.

Table of Contents
    Title Page
        Page 1
    Estimation of the benefits of the CCEP
        Page 2
        Page 3 The Decision to retain or discard the CCEP continued
    The effect of stop-and-go on the efficiency of the CCEP
        Page 4
    Conclusions
        Page 5
        Page 6 References
    Tables
        Page 7
        Page 8
        Page 9
Full Text





UNIVERSITY OF

4 FLORIDA


IFAS EXTENSION


Florida's Citrus Canker Eradication Program (CCEP):

Benefit-Cost Analysis1


Marisa L. Zansler, Thomas H. Spreen and Ronald P. Muraro2


Rapid expansion and integration of international
trade, increased tourism, and changes in methods of
production in recent decades have increased the
likelihood of the introduction of invasive species to
U.S. (United States) agriculture. Invasive species can
have adverse environmental and/or economic impacts
when introduced into a region. Economic impacts
include marketing, production, and trade implications.


One such invasive species imposing adverse
economic impacts to the Florida citrus industry is a
bacterial disease known as citrus canker (caused by
Xanthomonas axanopodis pv. citri). Citrus canker
causes lesions on the leaves, stems, and fruit of citrus
trees. The disease adversely affects the proportion of
fruit intended for the fresh market, serves to weaken
citrus trees, and leads to a reduction in yields and
higher costs of production.

The Citrus Canker Eradication Program (CCEP)
was implemented in the mid-1990s in an attempt to
establish guidelines for averting the spread of the


disease. Currently there is no biological or chemical
cure for citrus canker. All infected trees and citrus
trees within a radius of 1900 feet of an infected tree
must be eradicated (1900-foot rule). On-site
decontamination of grove workers, field equipment,
and packinghouses is also mandatory.

The current effort to eradicate citrus canker from
the industry, the CCEP, has been mired in
controversy associated with public opinion and legal
action. A benefit-cost analysis was conducted to
determine whether the CCEP is, indeed, a useful
policy tool in combating the economic ramifications
associated with citrus canker.

In this paper, an economic analysis of the CCEP
on the Florida citrus industry is conducted through
employment of a benefit-cost analysis of retaining
the current policy. A benefit-cost analysis of the
CCEP in Florida is developed using the predicted
values of the benefits and the costs associated with
the policy. The actual expenditures of implementation
to-date are weighed against the estimated loss of


1. This is EDIS document FE531, a publication of the Department of Food and Resource Economics, Florida Cooperative Extension Service, Institute of Food
and Agricultural Sciences, University of Florida, Gainesville, FL. Published March 2005. Please visit the EDIS website at http://edis.ifas.ufl.edu.
Note: This one of a series on the economic impacts of citrus canker on Florida's citrus industry. The series is available at:
http://edis.ifas.ufl.edu/TOPIC_CCEP.
2. Marisa L. Zansler, Economist, Policy Analysis and Development, USDA/APHIS, Washington, D.C.; Thomas H. Spreen, Professor and Chair, Department
of Food and Resource Economics, University of Florida, Gainesville, FL; and Ronald P. Muraro, Professor and Extension Economist, Department of Food
and Resource Economics, Citrus Research and Education Center, Lake Alfred, FL, Florida Cooperative Extension Service, Institute of Food and
Agricultural Sciences, University of Florida, Gainesville, FL.

The Institute of Food and Agricultural Sciences (IFAS) is an Equal Employment Opportunity Affirmative Action Employer authorized to provide
research, educational information and other services only to individuals and institutions that function without regard to race, creed, color, religion,
age, disability, sex, sexual orientation, marital status, national origin, political opinions or affiliations. For information on obtaining other extension
publications, contact your county Cooperative Extension Service office. Florida Cooperative Extension Service / Institute of Food and Agricultural
Sciences / University of Florida / Larry R. Arrington, Interim Dean


FE531






Florida's Citrus Canker Eradication Program (CCEP): Benefit-Cost Analysis 2


revenue and the cost savings associated with an
industry with pervasive citrus canker in an attempt to
assess the net benefits of the policy.

Florida is the largest producer of citrus in the
United States, accounting for approximately 77
percent of total production each year. Florida is also
the largest producer of grapefruit on the world
market, and shares a majority of the world's orange
juice market with Brazil. Events affecting the Florida
citrus industry jeopardize its position in the world
market.

Estimation of the benefits associated with the
CCEP includes an assessment of the processed
orange juice market, the fresh and processed
grapefruit market, and the specialty citrus market, and
an analysis of increased costs of production if citrus
canker were to become endemic to Florida.
Estimation of the costs associated with the CCEP
includes expenditures on compensation to producers
for eradicated groves, expenditures on compensation
to homeowners for eradicated trees, expenditures on
citrus canker research, and legal costs.

Estimation of the Benefits of the
CCEP

The benefits of CCEP are estimated under the
assumption that, without CCEP, citrus canker would
become endemic in Florida. Economic impacts are
based on the expert opinion of scientists who have
studied the horticultural effects of canker on citrus
trees grown outside of the United States. The likely
marketing impacts on the fresh fruit industry can be
estimated from experiences in other countries, such
as Argentina where citrus canker is endemic.

The perceived benefit of the CCEP is avoiding
the following consequences associated with an
endemic citrus canker situation:

Increased costs of production. The industry
would face an increase in the cost of production
resulting from increased copper bactericide
spraying to mitigate the effect of citrus canker on
tree productivity and fruit appearance, and the
cost of establishing windbreaks for certain
varieties to slow the spread and reduce disease
infection.


Decline in yields. Citrus canker can weaken the
vitality of a tree, leading to a reduction in per
acre yields due to increased fruit drop. The
establishment of windbreaks reduces tree density
per acre, thus reducing per acre yields. Lower
packout rates, the effect of citrus canker on
external fruit appearance, would substantially
reduce the proportion of fruit suitable for the
fresh market. The impact of citrus canker on
packout has not been documented in published
research. Experience in other countries, however,
suggests that endemic citrus canker would have a
strong negative effect on the external appearance
of fruit and, thereby, result in substantially lower
packout. In this paper, it is assumed that
packouts would be reduced by one-third. For
example, historical packout rates for fresh
grapefruit sent to the domestic market have been
approximately 60 percent (Brown, Spreen, and
Muraro, 1999). Under this assumption, endemic
citrus canker would result in a one-third decrease
to a packout rate of 40 percent.

Loss of market access. Florida fresh fruit
shippers would lose market access to other citrus
growing regions, including Texas, California,
and Western Europe.

Quantifying the benefits of the CCEP requires a
multi-faceted approach, including analysis of both
the fresh and processed citrus markets. In the market
models, prices and quantities reported by the Florida
Agricultural Statistics Service (FASS) and the Citrus
Administrative Committee (CAC) are used as
reference points for spatial equilibrium mathematical
programming models. These models are calibrated to
replicate the 1999-2000 marketing year.

The Decision to Retain or Discard the
CCEP

Considering the controversy surrounding the
CCEP, should Florida abandon the program and
choose to live with citrus canker in the absence of
any biological or chemical methods effective in
eliminating the disease from the citrus industry? The
main argument hinges on whether the CCEP will
prove to be beneficial in the long run for the citrus
industry. One of the arguments posed by opponents






Florida's Citrus Canker Eradication Program (CCEP): Benefit-Cost Analysis 3


of the CCEP was the contention that the industry
would not incur losses of a sufficient magnitude to
outweigh the costs of the CCEP. The question then
becomes whether or not to discard the CCEP. If the
CCEP were abandoned, it is assumed that citrus
canker would become endemic to the citrus industry
in Florida. Avoiding revenue losses and additional
production costs associated with endemic citrus
canker are benefits of the current policy. Actual
expenditures by federal and state agencies of
implementing the CCEP are the costs associated with
the current policy. These expenditures include outlays
for eradication, research, grower compensation, and
legal fees.

The annual benefits of the CCEP are outlined in
Table 1. The primary estimated benefits of the CCEP
are decreasing revenue losses associated with reduced
yields while increasing market access and cost
savings. Eradication means avoiding additional costs
associated with establishing windbreaks and
additional copper spray at pre-bloom and petal fall.
Specialty fruit, it is estimated, actually experiences a
net gain in revenue associated with endemic citrus
canker because of the significant increase in fresh
on-tree prices associated with decreased shipments of
certain varieties to the fresh market. The net gain
reduces the benefits associated with the CCEP by
$44.5 million.

Estimated benefits of the CCEP associated with
avoidance of revenue loss include the processed
orange market, the fresh and processed grapefruit
markets, and the specialty citrus fruit market. Total
avoided revenue loss is estimated to be $84.9 million
annually. The estimated benefits of the CCEP
associated with cost savings are the additional costs
incurred to producers in the processed orange market,
field run processed grapefruit, packinghouse
grapefruit, and specialty fruit production in an
endemic citrus canker industry. Total cost savings
associated with the CCEP are estimated at $169.2
million (EDIS FE532).

Actual expenditures of the CCEP are outlined in
Table 2. These are the actual costs incurred via policy
implementation to-date, including the legal
expenditures resulting from challenges to the
program. The total cost of the eradication program as


of June of 2004 is estimated at $477 million,
including the decontamination compliance
procedures, inspection fees, destruction of infected
and/or exposed trees, and compensation for lost trees
to homeowners. Both the State of Florida and the
United States Department of Agriculture (USDA)
have incurred these costs. The Florida budget for
fiscal year 2004-05 recommends $44 million to
continue citrus canker eradication efforts. It is not
known if the USDA will continue to contribute to
eradication efforts after its initial $25 million
investment. Expenditures to compensate growers for
destroyed trees were appropriated in 2000, and
expenditures for production losses were appropriated
in 2001. Compensation to producers for lost
production on eradicated groves due to citrus canker
infection or exposure was approximately $76.8
million for fiscal years 2000 and 2001. This value is
based on estimates provided by the USDA's Animal
and Plant Health Inspection Service (APHIS).
Payment to producers is split evenly over the two
years. Compensation to producers for lost production
on eradicated groves due to citrus canker infection or
exposure was approximately $28.4 million for fiscal
years 2003 and 2004. Payments of $11.8 million and
$16.6 million were paid out in 2003 and 2004,
respectively. Although they represent activity
throughout the study, the legal expenses were
incurred in 2000, and research expenditures granted
by the federal government were incurred in 2001.

If the eradication program were allowed to
proceed without any further legal interruption, the
remainder of the infected or exposed trees should
have been cleared by the end of 2005 (DPI, 2004).
The procedures outlined in the CCEP require that the
sentinel surveys continue for an additional two years
after the last positive citrus canker find. Under these
circumstances, it is expected that the eradication
program will continue on until January of 2008
(Florida E-Budget, 2004). The costs of the program
are not expected to exceed $22.8 million (Florida
E-Budget, 2004). The estimated benefit-cost analysis
of proceeding with the CCEP, assuming a discount
rate often percent, is depicted in Table 3. The results
indicate that the net benefits of the CCEP, measured
as the net present value of revenue loss avoidance
and cost savings less the net present value of the costs
of the CCEP, are positive, suggesting that Florida






Florida's Citrus Canker Eradication Program (CCEP): Benefit-Cost Analysis 4


should retain the eradication program. The infinite
discounted net benefits of the CCEP are estimated
using a geometric series as follows:




S = Ro 1

r

where R0 is the benefit associated with the CCEP,
which is comprised of annual revenue loss and cost
savings associated with an endemic citrus canker
industry, and r is the discount rate. The estimation is
then adjusted to reflect the beginning period it
appears in the analysis, which is 2008. The benefit of
the CCEP associated with the period after its
completion is approximately $891 million. The
discounted net benefits of the CCEP over time are
roughly $2.3 billion.

A sensitivity analysis of the discount rate used in
the benefit-cost analysis of the CCEP is outlined in
Table 4. The results indicate that positive net benefits
are associated with the eradication program at various
discount rates, suggesting that assumptions used to
assess the policy are not marginal. Discounted net
benefits increase by nearly $2.5 billion to $4.7 billion
at a discount rate of five percent. Discounted net
benefits decrease by $792.5 million to approximately
$1.5 billion at a higher discount rate of 15 percent.

In addition to conducting a sensitivity analysis
on the discount rate, this study allows for a sensitivity
analysis on the predicted values of the benefit-cost
analysis. The predicted values of this study are
evaluated allowing for a 25 percent margin of error in
estimation. The estimated benefits and costs are
evaluated in Table 5 across a range of 0.75, 1.00, and
1.25. The estimation is based on a discount value of
ten percent.

The results of the sensitivity analysis indicate
how the discounted net benefits of the CCEP vary if
costs and benefits range from 25 percent lower to 25
percent higher than the original estimation. If the
predicted value of annual benefits of the CCEP were
actually 25 percent lower and the predicted value of
annual costs of the CCEP were actually 25 percent


greater, the discounted net benefit of the CCEP
would still exceed the estimated CCEP costs,
yielding a net benefit of $1.5 billion. On the other
end of the spectrum, if the predicted value of annual
benefits of the CCEP were actually 25 percent greater
and the predicted value of annual costs of the CCEP
were actually 25 percent less than estimated, the
discounted net benefit of the CCEP would be $3
billion.

The estimated costs associated with the CCEP
were assessed using the actual reported expenditures.
The focus of the sensitivity analysis relies on the
assumptions used to obtain the predicted benefits of
the model. It is more likely that the predicted benefits
in this analysis are undervalued. Recall that the
assessment of predicted benefits of the CCEP relied
on estimated changes in revenue and costs savings.
Estimated benefits of the CCEP do not include
situations where producers lose access such as with
export packinghouses in which they grow, harvest,
pack, and ship most of their fruit to foreign markets.
It also does not include changes in the labor market
resulting from less fruit available for harvest.

In addition, the predicted benefits in this analysis
do not account for changes in demand associated with
consumer perception of the risk that citrus canker
may pose to their health. Although citrus canker will
not adversely affect human health, the mere image of
consuming a product that is visually unappealing may
have an effect on the demand for Florida citrus.

The Effect of Stop-and-Go on the
Efficiency of the CCEP

The analysis of the previous section includes the
sunk costs of legal fees associated with the legal
challenges to the CCEP. As suggested elsewhere in
this document, the events surrounding the necessity
of legal fees (i.e., injunctions placed on tree
eradication, the so-called "stop-and-go" routine)
contributed to additional years of the program.
During the periods in which eradication was halted,
sentinel surveys were suspended. It is unknown,
precisely, how much the disease spread during this
period. It is known, however, that early in 2000, state
officials adopted an aggressive eradication campaign
designed to mitigate the spread of the disease based






Florida's Citrus Canker Eradication Program (CCEP): Benefit-Cost Analysis 5


on the 1900-foot rule (APHIS, 2003). By October of
2000, contractors hired to destroy trees within
infected areas were cutting as many as 5,000 trees
per day in Miami-Dade and Broward Counties. At
that time, Deputy Commissioner of Agriculture Craig
Meyer fully anticipated containment of the disease by
late January of 2001 (Crawford, 2000). Around the
same time, legal action began a process that came to
be known as the "stop-and-go" approach to
eradication.

A benefit-cost analysis of the CCEP is
conducted under the assumption that eradication
efforts would have been successful by the end of
2000. It is assumed that the benefits of the program
remain unchanged since they are independent of
legal actions associated with the program. Table 5
lists the yearly expenditures on the CCEP without the
"stop-and-go" approach to eradication. The total
cost of the eradication program through fiscal year
2002 is estimated to be $322 million, including the
decontamination compliance procedures, inspection
fees, destruction of infected and/or exposed trees, and
compensation for lost trees to homeowners. Since
expenditures on grower compensation for destroyed
trees and lost production were appropriated in 2000
and 2001 for eradicated groves due to citrus canker
infection or exposure in earlier years, the
appropriated $76.8 million is still split evenly over
2000 and 2001. It is assumed that research
expenditures, funded by the federal government, are
still incurred in 2001 for this study. The procedures
outlined in the CCEP would still require the
continuation of sentinel surveys for an additional two
years after the last positive citrus canker find. Under
these circumstances, it is estimated that the
eradication program would last until January of 2003
(Florida's E-Budget, 2004). The costs of the program
are not expected to exceed $22.8 million per year
(Florida's E-Budget, 2004).

In Table 6, the estimated benefit-cost analysis of
proceeding with the CCEP in the absence of the
"stop-and-go" approach to eradication is depicted
assuming a discount rate often percent. Discounted
net benefits increase by more than $216 million over
time (from $2.256 billion to $2.472 billion).
Discounted costs associated with the CCEP decline
by 45 percent (from $367 million to $200 million).


Conclusion

The results of the benefit-cost analysis clearly
suggest that benefits of the CCEP outweigh the costs
of the program, thereby recommending that the
program continue. The total net benefits of the
program in the long run are estimated to be $2.3
billion. The discounted net benefits of the program
proved to be even more persuasive of the
effectiveness of the CCEP without the
"stop-and-go" approach to eradication. If the
CCEP had been allowed to continue without
interruption from the beginning, the total net benefits
of the program in the long run would have been $2.5
billion.

If the CCEP were repudiated, citrus canker
would become endemic to the industry. The industry
would not only face the loss of net benefits associated
with the program, but the entire structure of the
industry would be changed forever.

Results of this analysis suggest that swift action
is the best policy if citrus canker were somehow
reintroduced into Florida in the future. If another
breakout should occur after Florida has been certified
canker-free, the best policy would be immediate
eradication according to the 1900-foot rule. It is best
to eradicate as quickly as possible to minimize the
costs to Florida, the federal government, and the
citrus industry. In addition, the need to eradicate
residential trees, if any, would be minimal in the
future.

The effects of the 2004 hurricane season add a
new unknown in the CCEP economic analysis, since
the citrus canker bacteria disease is spread by
rain-driven wind. Results for the economic analysis
were developed in June of 2004 before Hurricanes
Charley, Francis, and Jeanne passed through Florida.
Continuation of the CCEP beyond 2008 would
require a new study to estimate the economic impact
of the additional costs of the CCEP along with the
losses incurred by Florida's citrus industry.

References

Animal and Plant Health Inspection Service
(APHIS). 2003. Citrus Canker. Washington DC:






Florida's Citrus Canker Eradication Program (CCEP): Benefit-Cost Analysis 6


United States Department of Agriculture. Available
online at
http://www.aphis.usda.gov/ppq/ep/citruscanker.

Muraro, R.P., F.M. Roka, and T.H. Spreen. 2001.
Grower Costs of Having Citrus Canker in Florida.
Electronic Data Information Source (EDIS) FE286.
Department of Food and Resource Economics,
UF/IFAS, University of Florida, Gainesville, FL
(June).

Zansler, M.L. 2004. The Economic Impacts to an
Industry Associated with an Invasive Species: The
Case of Citrus Canker in Florida. Ph.D. dissertation,
Department of Food and Resource Economics,
University of Florida, Gainesville, FL (August).

Zansler M.L., T.H. Spreen, and R.P. Muraro.
2005. Florida's Citrus Canker Eradication Program
(CCEP): Summary of Annual Costs and Benefits.
Electronic Data Information Source (EDIS) FE532.
Department of Food and Resource Economics,
UF/IFAS, University of Florida, Gainesville, FL
(February).







Florida's Citrus Canker Eradication Program (CCEP): Benefit-Cost Analysis 7


Table 1. Estimated annual benefits associated with the CCEP.a


Citrus Market Estimated Annual Revenue Losses

On-Tree Revenue F.O.B. Revenue
----------------- $1,000---------

Processed Oranges ($20,437) ($35,120)

Red and White Seedless Grapefruit ($13,228) ($71,510)
Fresh and Processed Specialty Citrus Fruit $44,490 $10,856

Net Estimated Annual Revenue Gains (Loss) $10,825 ($95,774)

Total Annual Estimated Revenue Losses $84,949


Estimated Annual Additional Costs of Production

----- $1,000 -----

Processed Oranges $14,357
Red and White Seedless Grapefruit $72,688

Fresh and Processed Specialty Citrus Fruit $82,201

Estimated Annual Benefit of CCEP Associated Cost Savings $169,246

aCitrus Canker Eradication Program (CCEP).



Table 2. Yearly expenditures associated with the CCEP.a


Year Producer Program Costs Citrus Canker Legal Total Cost of
Compensation of Eradication Research Funding Expenditures CCEP

-------------------------------------------------- $1,000 ----------------------------------------------------

1996 -- 3,080 -- 3,080
1997 -- 6,808 -- 6,808
1998 -- 13,836 -- 13,836
1999 -- 42,596 -- 42,596
2000 38,400 128,219 -- 5,200 171,819
2001 38,400 94,540 4,750 -- 137,690
2002 -- 79,856 -- 79,856
2003 11,800 68,699 -- 80,499
2004 16,598 39,718 -- 56,316
2005 -- 44,000 -- 44,000
2006 -- 22,800 -- 22,800
2007 -- 22,800 -- 22,800

aCitrus Canker Eradication Program (CCEP).







Florida's Citrus Canker Eradication Program (CCEP): Benefit-Cost Analysis 8


Table 3. Benefit-cost analysis of the CCEPa (assuming a discount factor of 10 percent).


Year Avoidance of Annual Discount Discounted Discounted Discounted Cumulative
Annual Revenue Costs Factor Benefits Costs Net Discounted
Loss and Cost (10%) Benefits Net Benefits
Savings (Benefits)

------------------------------------------ $1,000--------------------------------------

1996 254,195 3,080 0.9091 231,086 2,800 228,286 228,286

1997 254,195 6,808 0.8264 210,079 5,626 204,452 432,738
1998 254,195 13,836 0.7513 190,980 10,395 180,585 613,324
1999 254,195 42,596 0.6830 173,619 29,094 144,525 757,849
2000 254,195 171,819 0.6209 157,835 106,686 51,149 808,998
2001 254,195 137,690 0.5645 143,486 77,722 65,764 874,762
2002 254,195 79,856 0.5132 130,442 40,979 89,463 964,225
2003 254,195 80,499 0.4665 118,584 37,553 81,030 1,045,256
2004 254,195 56,316 0.4241 107,803 23,883 83,920 1,129,176
2005 254,195 44,000 0.3855 98,003 16,964 81,039 1,210,215
2006 254,195 22,800 0.3505 89,094 7,991 81,103 1,291,317
2007 254,195 22,800 0.3186 80,994 7,265 73,730 1,365,047
2008 890,938 890,938 2,255,985
Totals 2,622,944 366,959 2,255,985
aCitrus Canker Eradication Program (CCEP).



Table 4. Analyzing CCEP benefits.


A. Benefit-cost sensitivity analysis of CCEP,a B. Sensitivity analysis results of varying predicted benefits and
assuming discount factors of 5%, 10%, and 15% costs on the discounted net benefit of CCEPa

Discount Discounted Change in CCEP Predicted Net Benefits ($Millions)
Factor Net Benefits Discounted Net
Benefits 75% 100% 125%

10% $2,255,985 -- CCEP 75% 1,692 2,348 3,003
Predicted
5% $4,731,392 $2,475,407 Net Costs 100% 1,600 2,256 2,912

15% $1,463,532 -$792,453 ($Miions) 125% 1,508 2,164 2,820

aCitrus Canker Eradication Program (CCEP).







Florida's Citrus Canker Eradication Program (CCEP): Benefit-Cost Analysis 9


Table 5. Yearly expenditures associated with the CCEPa without "stop-and-go" approach to eradication.


Year Producer Program Costs Citrus Canker Legal Total Cost of
Compensation of Eradication Research Expenditures CCEP
Funding
---------------------------------------------------$1,000--- -- -------------------------

1996 -- 3,080 -- 3,080
1997 -- 6,808 -- 6,808
1998 -- 13,836 -- 13,836
1999 -- 42,596 -- 42,596
2000 38,400 128,219 -- 166,619
2001 38,400 22,800 4,750 65,950
2002 -- 22,800 -- 22,800

aCitrus Canker Eradicaiton Program (CCEP).


Table 6. Benefit-cost analysis of the CCEPa (assuming successful completion in January of 2003).


Year Avoidance of Annual Annual Discount Discounted Discounted Discounted Cumulative
Revenue Loss and Costs Factor Benefits Costs Net Discounted
Cost Savings (10%) Benefits Net Benefits
(Benefits)

------------------------------------------------------------$1,000 -------------------

1996 254,195 3,080 0.9091 231,086 2,800 228,286 228,286

1997 254,195 6,808 0.8264 210,079 5,626 204,452 432,738

1998 254,195 13,836 0.7513 190,980 10,395 180,585 613,324

1999 254,195 42,596 0.6830 173,619 29,094 144,525 757,849

2000 254,195 166,619 0.6209 157,835 103,457 54,378 812,226

2001 254,195 65,950 0.5645 143,486 37,227 106,259 918,486

2002 254,195 22,800 0.5132 130,442 11,700 118,742 1,037,228

2003 1,434,865 0 1,434,865 2,472,093
Totals 2,672,392 200,300 2,472,093

aCitrus Canker Eradication Program (CCEP).




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