George W. Norton

Evaluating Returns to Agricultural Research: A Review

This paper reviews and compares the most common approaches used to evaluate public agricultural research investment. Ex post studies fall into two major groups: (a) consumer and producer surplus analyses, estimating average rates of return to research, and (b) production function analyses, estimating marginal rates of return to research. Ex ante studies fall into four groups: (a) those using scoring models to rank research activities, (b) those employing benefit-cost analysis to establish rates of return to research, (c) those using simulation models, and (d) those using mathematical programming to select an optimal mix of research activities.

Economic Analysis of Environmental Benefits of Integrated Pest Management

Public support for integrated pest management (IPM) is derived in part from concerns over food safety and the environment, yet few studies have assessed the economic value of health and environmental benefits of IPM. An approach is suggested for such an assessment and applied to the Virginia peanut IPM program. Effects of IPM on environmental risks posed by pesticides are assessed and societys willingness to pay to reduce those risks is estimated. The annual environmental benefits of the peanut IPM program are estimated at

Peanut Research and Poverty Reduction: Impacts of Variety Improvement to Control Peanut Viruses in Uganda

844,000. The estimates of pesticide risks and willingness to pay can be applied elsewhere in economic assessments of IPM.

Participatory research in integrated pest management: Lessons from the IPM CRSP

A procedure is developed and applied for predicting ex ante impacts of agricultural research on aggregate poverty, using as an example the poverty-reducing impact of peanut research in Uganda. Market-level information on economic surplus changes is combined with a procedure for allocating income changes to individual households. Characteristics of farmers that affect their likelihood of technology adoption are used to create a technology adoption profile. Associated changes in poverty resulting from adoption are computed using poverty indices. Predicted income changes at the household level are aggregated to the market level and reconciled with calculations of economic surplus changes.

Potential Benefits of Agricultural Research and Extension in Peru

Integrated pest management has emerged as an important means of managing agricultural pests. Since the mid-1980s, the emphasis in IPM has shifted toward biologically-intensive and participatory research and extension approaches. Finding better means for solving pest problems is high on the agenda for most farmers, and farmers often have significant pest management knowledge and interest in IPM experimentation. This paper describes an approach to participatory IPM research that is being implemented by the IPM Collaborative Research Support Program (IPM CSRP). The approach emphasizes on-farm research with an extrapolation domain beyond the single farm, and in some cases beyond the local region or country. It considers many factors beyond the farm and research station that influence the generation and adoption of IPM technologies and strategies. It emphasizes linkages among farmers, scientists, consumers, bankers, marketers/processors, and policy makers in IPM research priority setting, conduct, and evaluation. The interdisciplinary approach described in the paper is illustrated with a case study from the Philippines. Lessons and conclusions draw on its recent application in other sites as well.

Effectiveness of Integrated Pest Management Dissemination Techniques: A Case Study of Potato Farmers in Carchi, Ecuador

The benefits of agricultural research and extension are examined in an ex ante consumer-producer surplus framework for five commodities in Peru. The effects of demand shifts over time and government pricing policies on research and extension benefits are considered. Data for the analysis include the results of research and extension questionnaires administered at seven sites in Peru. The projected rates of return to research and extension indicate substantial returns to public investments.

What is the Value of Agricultural Economics Research

Potato farmers in Ecuador rely on chemical inputs to manage pests and optimize yields. Integrated pest management techniques lower production costs, reduce pesticide exposure, and improve long-term agricultural sustainability. Public extension does not, however, exist in Ecuador, and cost-effective means of communicating complex messages to producers are needed. We analyze cost-effectiveness of alternative dissemination methods, including farmer field schools (FFS), field days, pamphlets, and word-of-mouth transmission. Field days and pamphlets have strong impacts on adoption, especially considering their low costs. FFS are effective, but expensive. Evidence also indicates significant diffusion from FFS to non-FFS farmers, indicating high complementarity across methods.

An Economic Analysis of Soybean Integrated Pest Management

Methods are presented for evaluating the economic benefits of agricultural economics research (AER). Decision theory and economic surplus analysis are used to evaluate returns to five representative types of AER. Benefits stem from effects of AER on economic efficiency through reduced uncertainty about optimal resource allocation or improved institutional design.

Fertilizers and other farm chemicals

The type ofpest management strategy a farmer chooses is influenced by the amount of risk associated with alternative strategies. This paper examines the attractiveness of alternative pest management strategies used on a representative Virginia soybean farm. Probability distfibutions of net revenue associated with alternative pest control options are simulated and then compared using generalized stochastic dominance criteria. Results suggest risk-averse and, in some cases, risk-preferring farmers would prefer strategies which incorporate an integrated pest management approach to pest control rather than one which relies completely on chemical pest control.

Sources of Growth in French Agriculture

Demand for fertilizer in developing countries has expanded at a rapid rate over the past forty years. The relative scarcity of agricultural land has been a major underlying cause of this expansion in demand. More proximate causes include the development of complementary Green Revolution technologies - high yielding, fertilizer responsive seed varieties and expansion of irrigation or better water control within irrigated systems. At the same time, real fertilizer prices have declined over time, driven by technical change in fertilizer production. Expansion of fertilizer consumption has been particularly high in many Asian countries, and particularly low in much of Sub-Saharan Africa, where infrastructural and institutional constraints have restricted use. Pesticide use has also expanded in developing countries, albeit in more localized circumstances. Relative scarcity of agricultural labor has been one cause of increased herbicide demand. Disease pressure and the availability of disease-resistant cultivars have influenced insecticide and fungicide demand. Integrated pest management (IPM), over the past 20 years, and genetically modified crops, over the past five to ten years, are new technologies that have the potential to curb the growth in pesticide use. Price policies, environmental policies, and related investments in agricultural research and development, infrastructural expansion, or education all influence the markets for fertilizer and other farm chemicals in developing countries. One major policy issue is how to reduce or eliminate fertilizer subsidies at the same time that measures are taken to increase demand in areas such as Sub-Saharan Africa where fertilizer use is below the social optimum. At the same time, in intensive agricultural systems where agricultural chemical use is high, resource degradation and human health risks from pesticide use compromise productivity growth. In areas of both high and low use of chemical inputs, meeting the production and environmental challenges of the future will require increasing reliance on knowledge-intensive technology.