If agricultural output results from non-separable multiproduct technologies, environmental
regulation can change the set of possible output combinations. This will be important
when regulation affects the quality composition of a crop. As a result, market and
welfare changes have to be assessed in technology-related markets. We present a model
that serves to estimate the economic impacts in such instances and use it in the
assessment of pesticide regulation in the U.S. apple industry. Impacts for four pesticide
cancellation scenarios are assessed. It is shown that changes in the quality of a
crop lead to significant market reallocation effects.