Source: USDA/ERS submitted to NRP
AGRICULTURAL RESEARCH & DEVELOPMENT
Sponsoring Institution
Economic Research Service/USDA
Project Status
REVISED
Funding Source
Reporting Frequency
Annual
Accession No.
0406440
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Jan 1, 2002
Project End Date
Sep 1, 2004
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
USDA/ERS
1800 M STREET NW
WASHINGTON,DC 20036
Performing Department
ECONOMIC RESEARCH SERVICE
Non Technical Summary
Examines trends in research funding and direction, both public and private;use of various funding instruments; key factors affecting R&D, such as intellectual property rights.
Animal Health Component
100%
Research Effort Categories
Basic
(N/A)
Applied
100%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
90271103010100%
Goals / Objectives
Agricultural R&D has profound implications for agricultural production. The impressive productivity gains of the agricultural sector rest on years of R&D efforts. Public sector research is a powerful tool to promote various missions of USDA, thus the level and direction of public R&D have important implications for agriculture. A key trend is the lack of growth in public research funds, compared with continuous growth in private R&D. Thus, we empirically evaluate research funding, both public and private. Issues to be examined include the trends in research direction, the use of various funding instruments, and key factors affecting R&D, such as intellectual property rights. Research also identifies and measures the importance of factors promoting private sector contributions to agricultural R&D, including expanded technological opportunities, strengthened intellectual property, collaboration with the public sector, and globalization of markets. Results are expected to guide policy makers in the design of and resource allocation for R&D activities. A related objective is assessing the future of plant breeding. Resources for public plant breeding, which have been declining, are a particular concern. Research is needed on the US capacity to use plant breeding to address concerns about safe and abundant food, environment and resource conservation, and national security.
Project Methods
To maintain data on R&D funding and direction, and assess legislation effecting public agricultural R&D. This work will be used to provide economic analysis of agricultural R&D and its implications for agriculture. Such analyses will be designed to aid the decision making process at USDA and other public research institutions. More detailed analysis of the factors surrounding plant breeding is also underway.

Progress 10/01/07 to 09/30/08

Outputs
One methodological journal article was completed comparing different methods of estimating agricultural research lag lengths in the UK. Draft reports were completed on trends in US public agricultural research funding and on methods of evaluating research impact, with a case study focus on USDA's Agricultural Research Service. Data and analysis for a masters thesis on US expenditures on maintenance research was completed through a coop agreement with Virginia Tech. A major project was initiated to update infomation on private agricultural R&D investment in the US and globally. The study of the UK found that rates of return (ROR) to R&D using the lags determined by the data differ considerably from those obtained by imposing lag shapes. These comparisons show that the rates of return to public R&D are sensitive to the lag shape as well as its length and that the omission of other technology variables, such as mechanical and chemical patents pertaining to agriculture and farm size can bias the ROR.

Impacts
Project findings were used in ERS analysis of the Research Title to the Farm Bill. Also, a workshop on the project on the evaluation of ARS research stimulated interaction among 1) ARS research managers; 2) economists (both from within and outside ERS) working on economic evaluation of research; 3) professionals who specialize in Federal research evaluation, both economic and non-economic; 4) experts from outside the US.

Publications

  • Fuglie, Keith O., and Paul W. Heisey, 2008, "Agricultural Research Sustains Productivity Growth and Earns High Returns", Amber Waves, Vol. 6, Issue 1, U.S. Department of Agriculture, February, pp. 6
  • Heisey, P., King, J., Day-Rubenstein, K., Bucks, Dale, Welsh, Rick, Assessing the Benefits of Agricultural Research Service (ARS) R&D Within an Economic Framework, Conference Organized by ERS, Washington, DC, March 10, 2008.
  • Colin Thirtle, Jenifer Piesse, David Schimmelpfennig, 2008, "MODELLING THE LENGTH AND SHAPE OF THE R&D LAG: AN APPLICATION TO UK AGRICULTURAL PRODUCTIVITY", Agricultural Economics, Vol. 39, Issue 1, pp.


Progress 10/01/05 to 09/30/06

Outputs
One draft report on trends in public agricultural research funding has been completed. Public research funding at the state level has grown more than at the Federal level, and in recent years what growth has occurred at the state level is due particularly to increases in non-USDA Federal agency investment and in non-Federal sources such as industry agreements and product sales. Despite the contention that competitive grants can be used to stimulate more fundamental research, public research expenditures in recent years have shifted somewhat towards applied research, even in some areas funded through competitive grants. The analysis of benefit assessment for ARS research has completed 85 percent of its literature review and conducted interviews with other Federal agencies. An ARS co-principal investigator has been identified and case study selection is underway.

Impacts
Project output has been used as the basis of the section concerning the Research Title for the Farm Bill-related theme paper prepared for the Office of the Chief Economist. It has also been used for a briefing to the REE Undersecretary concerning alternative research funding instruments, and for a staff analysis on the same subject prepared for the Senate Agriculture Committee.

Publications

  • Naseem, A., Oehmke, J.O., Schimmelpfennig, D., 2005, "Does plant variety intellectual property protection improve farm productivity? Evidence from cotton varieties", AgBioForum, Vol. 8, Issue 2&3, pp. 100 to 107


Progress 10/01/04 to 09/30/05

Outputs
A new chapter on Agricultural Research and Development was completed for the Agricultural Research and Environmental Indicators series. This chapter emphasizes the impressive gains in agricultural productivity that have been driven by both public and private research, but notes uncertainty about how the increased research investment by the private sector, industry consolidation, and changes in public funding of research will affect R&D and its productivity impacts in the future. Research analyzed the impact of plant varietal protection (PVP) on the development of new cotton varieties. The results suggest that PVP has had a positive impact on this development and as a result, a positive impact on seed-cotton productivity.

Impacts
Effort has been devoted to examining both public and private sector investments in agricultural research. New approaches have been considered toward measuring private sector investments. Other efforts have focused on research funding mechanisms--examing the distribution of competitive grant funding across states and institutions. The data and analysis developed under this project have been published in a variety of settings and have been used by many public and private entities.

Publications

  • Naseem, A., Oehmke, J.O., Schimmelpfennig, D., 2005, "Does plant variety intellectual property protection improve farm productivity? Evidence from cotton varieties", AgBioForum, Vol. 8, Issue 2&3, pp. 100 to 107


Progress 10/01/03 to 09/30/04

Outputs
Recent advances in time series econometrics were used to model the impacts that structural changes have had on U.S. agriculture. A structural break in the long run productivity trend occurred in 1925 and a structural break in agricultural research expenditure happened in 1930. The agricultural R&D expenditure series for the public sector was updated to 2002. Data insufficiency has prevented an update of the private sector R&D expenditure series. A grant proposal to explore appropriate methods to update this series was submitted. An update of the Agricultural Research and Development Indicators chapter on Agricultural Research and Development is in progress. It emphasizes the important contribution of public agricultural R&D to agricultural productivity.

Impacts
Effort has been devoted to examining both public and private sector investments in agricultural research. New approaches have been considered toward measuring private sector investments. Other efforts have focused on research funding mechanisms--examing the distribution of competitive grant funding across states and institutions. The data and analysis developed under this project have been published in a variety of settings and have been used by many public and private entities.

Publications

  • Heisey, P., Michael L. Morris (lead author), 2003, "Estimating the Benefits of Plant Breeding Research: Methodological Issues and Practical Challenges", Agricultural Economics, Vol. 29, Issue 3, pp. 241-252
  • Yee, J., "Determinants of Agricultural Extension Resources in the Southeast", paper presented at SAEA Annual Meeting, Tulsa, OK, February 14, 2004. pp.
  • Day-Rubenstein, K., Heisey, P., 2003, Intellectual property rights issued for new plant varieties, U.S. Department of Agriculture, http://www.ers.usda.gov/briefing/AgResearch/Data/IPRdata2002.htm, December.
  • Schimmelpfennig, D., James F. Oehmke, 2004, "Quantifying Structural Change in U.S. Agriculture: The Case of Research and Productivity", Journal of Productivity Analysis, Vol. 21, pp. 297-315


Progress 10/01/02 to 09/30/03

Outputs
Journal article by Day-Rubenstein and others finds that competitive grants focus more on basic research and are concentrated among fewer states. Top-ranked biology and agricultural science programs were strong determinants of states' shares of competitive grants. Other significant factors were agricultural sector size and number of agricultural scientists. Book chapter by Heisey and others finds that genetic improvement has contributed to increases in aggregate wheat yields throughout the developing world, greater wheat production, reduced wheat imports by developing countries, and lower world wheat prices. Economic returns to international investment in wheat genetic improvement have been high.

Impacts
Effort has been devoted to examining both public and private sector investments in agricultural research. New approaches have been considered toward measuring private sector investments. Other efforts have focused on research funding mechanisms--examing the distribution of competitive grant funding across states and institutions. The data and analysis developed under this project have been published in a variety of settings and have been used by many public and private entities.

Publications

  • Schimmelpfennig, D., 2003, "Review of Agricultural Science Policy: Changing Global Agendas by Julian M. Alston, Philip G. Pardey, and Michael J. Taylor", Agricultural Economics, Vol. 28, Issue 1, pp. 74-75
  • Day-Rubenstein, K., Heisey, P., Klotz-Ingram, C. Frisvold, G. B., 2003, "Competitive Grants and the Funding of Agricultural Research in the United States", Review of Agricultural Economics, Vol. 25, Number 2, pp. 352-368
  • Day-Rubenstein, K., Heisey, P., 2003, Intellectual property rights issued for new plant varieties, U.S. Department of Agriculture, http://www.ers.usda.gov/briefing/AgResearch/Data/IPRdata2002.htm, December.
  • Heisey, P., Maximina A. Lantican, H.J. Dubin, 2003, "Wheat", Crop Variety Improvement and its Effect on Productivity: The Impact of International Agricultural Research, R.E. Evenson and D. Gollin (Eds.), CABI Publishing, Wallingford, UK, and New York, NY.
  • Heisey, P., Michael L. Morris (lead author), 2003, "Estimating the Benefits of Plant Breeding Research: Methodological Issues and Practical Challenges", Agricultural Economics, Vol. 29, Issue 3, pp. 241-252


Progress 10/01/01 to 09/30/02

Outputs
Fundamental progress on topics of enduring concern for research on agricultural R&D recently. Several examples include: 1. Thirtle, Schimmelpfennig, and Townsend on Induced Innovation in the American Journal of Agricultural Economics. 2. Schimmelpfennig, Thirtle, van Zyl, Arnade and Khatri on rates of return to agricultural research in Agricultural Economics placed as lead article in the journal and featured on publishers website as 3rd most requested in 2000.

Impacts
Journal article by Thirtle, Schimmelpfennig, and Townsend finds corroborating evidence for the induced innovation hypothesis and emphasizes that relative prices are only one factor influencing technical change in agriculture. Journal article by Schimmelpfennig, Thirtle, van Zyl, Arnade and Khatri calls into question high estimated rates of return to agricultural research by showing how sensitive these estimates can be to assumptions concerning the lag length and shape of research benefits.

Publications

  • Heisey, P., C.S. Srinivasan, Colin Thirtle, 2001, Public Sector Plant Breeding in a Privatizing World (AIB No. 772), Agricultural Information Bulletin, 772, Economic Research Service, U.S. Department of Agriculture, August, 25 pp.
  • Heisey, P., Lantican, M. A., H.J. Dubin, H. J., 2002, Impacts of International Wheat Breeding Research in Developing Countries, 1966-1997, International Maize and Wheat Improvement Center, Mexico, DF, MEXICO, April, 73 pp.
  • Heisey, P., C.S. Srinivasan, Colin Thirtle, 2002, "Privatization of Plant Breeding in Industrialized Countries: Causes, Consequences and the Public Sector Response", Agricultural Research Policy in an Era of Privatization, Derek Byerlee and Ruben G. Echeverria (Eds.), CABI Publishing, Wallingford, UK, and New York, NY.
  • Schimmelpfennig, D., Colin G. Thirtle and Robert F.Townsend, 2002, "Testing the Induced Innovation Hypothesis: An Error Correction Model of United States Agriculture, 1880-1990", American Journal of Agricultural Economics, Vol. 84, Issue 3, pp. 598-614.