Abstract
This paper presents an evaluation of the benefits and economic return on investment from the agricultural utilisation research programme of the US Department of Agriculture over a 31-year period from 1939 to 1970. Annual benefits were based on net value added which reflects the cost savings or value added by new products and processes. Data on annual costs and net benefits were compared using three different methods of aggregation and three levels of investment cost. Economic returns from the programme were very high, with benefit-cost ratios ranging from a low of 5 or 6 to a high of 25 or 30, depending upon the procedures and discount rates used. Annual benefits have averaged over $500 million in recent years and have increased at a compounded annual rate of 19·7% a year between 1939 and 1970. Internal rates of return on investment ranged from 65 to 195%, depending upon the cost base used.
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