The Cost of Red Imported Fire Ant Infestation: The Case of the Texas Cattle Industry

Abstract

The spatial economic impacts of the red imported fire ant (RIFA) on the Texas cattle industry were estimated using regression analysis. Data from a survey of Texas cattle producers were used in conjunction with Agricultural Census data to estimate economis impacts statewide, and on a per county and per acre basis. The statewide economic impacts on the cattle industry were estimated to be approximately $255 million annually. A 95% confidence interval was also calculated, having a lower bound of $28 million and an upper bound of $573 million. Estimates were also calculated for each county to evaluate the spatial properties of RIFA impacts. Per county estimates highlight those counties with relatively large damages associated with RIFA. Per acre damages highlight "hot spots" of RIFA infestation within the state.