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The microbial insecticide Bt is a concentrated formulation bacterium that kills the caterpillar stage of moths and butterflies. The active ingredients are spores and toxic crystals produced by the naturally occurring bacteria, Bacillus thuringiensis.
If you want to use a natural product to kill bagworms, consider spraying the bags with Bacillus thuringiensis var. kurstaki. Bt is an organism that feeds on insect larvae. It does not kill beneficial insects, and is not toxic to humans or pets.