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Economic Benefits from Grain Sorghum Variety Improvement in the United States
Editor(s): Billy R. Wiseman; James A. Webster
Chapter Author(s): B. R. Eddleman, C. C. Chang, B. A. McCarl
Print Publication Date: 1999
Abstract

The economic benefits from research investments to develop biotype E greenbug [Schizaphis graminum (Rondani)]-resistant sorghums and food quality sorghums were estimated as changes in consumer and producer economic welfare and government program payments stemming from the technologies. Differences in yields and chemical plus application costs for the greenbug-resistant varieties versus older nonresistant varieties, and differences in yields and hog feeding efficiency rates (lb feed/lb gain) for food quality varieties versus the tropical-adapted and temperate-adapted red sorghum varieties were used as measures of the technology changes. A $389 million annual net economic benefit to the U.S. society resulted from the greenbug-resistant sorghum research under the 1989 farm program provisions. Without farm programs the estimated net economic benefit from the research would have been $113 million annually. Food quality sorghum variety research would result in net economic benefits to the U.S. society of $183 million annually under 1989 farm program provisions, and $91 million annually without farm programs. Total investment was $8.54 million for the greenbug-resistant variety improvement program and $7.18 million for development of food quality sorghums. The annual rate of return from the resistant variety research investment was 48.2% under 1989 farm program provisions and 33.4% without farm programs. The food quality sorghum research investment would return 41.7% annually under 1989 farm program provisions, and 33.5% annually without farm programs.

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