Source: Saskatchewan Agriculture and Food
Conventional wisdom on crop development research just got another boost. A new study sponsored by the Western Grains Research Foundation (WGRF) confirms that research delivers great value to the industry, especially when it focuses on wheat and barley.
“The study that was conducted gave us the results we expected, as we expected to find a positive rate of return on research investment,” says Hartley Furtan, a professor with the Department of Agricultural Economics at the University of Saskatchewan.
More specifically, the study aimed to determine the return on investment to farmers who support variety development through the Wheat and Barley Check-off Fund, which is administered by the WGRF.
The study found that every dollar invested in wheat development returns a minimum of $4 to the farmer, and every dollar invested in barley returns a minimum of $12.
“The barley figure is higher,” explains Furtan, “because there is less barley research. These studies are useful for governments and producers, because they get to see what the value is for the money they spend.
“The reality,” he goes on, “is that spending on research is a good long-term investment, which is a good rationale for federal and provincial governments to invest more money in crop development research.”
Furtan emphasizes that people should know that the study found strong positive returns for barley research and wheat research on the prairies, and that the numbers are pretty much in line with the international numbers that other people report. It supports the view that agriculture research continues to be a good investment.
A private firm, TESCO Consulting LTD. of Regina, conducted the study in conjunction with Furtan and fellow University of Saskatchewan agricultural economists Richard Gray and Alper Guzel.
For more information, contact:
Hartley Furtan
Department of Agricultural Economics
University of Saskatchewan
(306) 966-4032
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