The use of pesticides has its rationale in the extent to which they protect agricultural output. Put another way, the benefit of pesticide use is defined and measured by the value of the output that would otherwise be lost if pesticides were not used, or not used in current quantities. Pesticides are not free resources - a price is paid for their use. The question is, is the price paid by farmers the 'real' or 'true' price? The answer to this question is in two parts.