Abstract

In many developing countries, incentives for pesticide use often conflict with efforts to ensure the rational and safe use of agrochemicals. This paper analyzes agricultural credit requirements that obligate farmers to use large inputs of pesticides. It discusses the rationale and background for these kinds of agrochemical incentives and gives specific examples of quantities of chemicals required from bank guidelines in Central America. It is argued that this policy is inappropriate for the interests of both farmers and the wider public, for several reasons, which are summarized. Policy changes, such as eliminating the requirements for chemicals and establishing incentives for Integrated Pest Management, are suggested in the final part of the article