Cost/benefit analysis of a sorghum hybrid resistant to sorghum midge (Diptera: Cecidomyiidae)
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The economic benefits resulting from the use of sorghum cultivars resistant to sorghum midge, Stenodiplosis sorghicola (Coquillett), were compared with the research and development costs. In 1984 dollars, the cost to develop the technology was approximately $2,720,000. For each dollar invested in research and development of a sorghum midge-resistant sorghum hybrid, the value of benefits to increased crop yields from the use of the resistant hybrid ranged from $24.2 at a 5% discount rate (the interest rate used to determine the present value of annual benefits and/or costs collected over time) when no insecticide was used to $2.7 at a 20% discount rate when insecticide was applied five times. The average value of benefits to increased crop yields at zero, three, and five insecticide applications at discount rates of 5, 10, 15, and 20% was $9.9 for each dollar spent to develop the technology. The intangible benefits that accrue to society as a result of the development and use of insect-resistant sorghum were not estimated. Important benefits from the development and deployment of sorghum midge-resistant sorghums include reduced crop production costs and greater yield, as well as enhanced sustainability of the sorghum production system and the conservation of natural and biological resources.
author list (cited authors)
Ervin, R. T., Khalema, T. M., Peterson, G. C., & Teetes, G. L.