The Economic Impact of Hop Stunt Viroid and Certified Clean Planting Materials

Abstract

Hop stunt viroid (HSVd) is one of the most important pathogens impacting hop production worldwide. It reduces yields, stunts growth, and is easily transmissible. HSVd can cause significant yield losses upward of 62% depending on the hop variety. This study uses a net present value (NPV) approach over a 6-year production cycle of one acre of hops to examine the potential economic impact of HSVd on aroma and alpha hop varieties. The estimated economic impact of HSVd ranges from about $432 (for a 1% yield reduction) to $26,795 (for a 62% yield reduction) per acre. Using the NPV approach the study then analyzes potential economic benefits of using certified disease-free planting stock as a strategy to mitigate the risk of HSVd infection. If expected yield losses of aroma and alpha hops exceed 6% and 7%, respectively, then the NPV of investing in certified clean planting stock is greater than that of the infected hops over the 6-year production cycle. Complete removal and replanting of an entire acre of aroma and alpha hops with certified clean planting stock is economically beneficial once expected yield losses exceed 35% and 36%, respectively. These findings are valuable for giving hop producers information to devise profit-maximizing planting strategies and to create incentives for extended usage of certified clean planting materials.