Optimal Expenditures for Agricultural Research and Extension: Implications of Underfunding

Abstract

Abstract Significant increases in agricultural productivity will be needed for the United States to meet its future food policy goals related to an abundant and stable food supply. The nation's ability to meet this challenge will depend on the level of investment in agricultural research and extension. Each dollar of underfunding relative to the economically efficient level of research and extension expenditures ( a ) will cost the government $@@‐@@2.56 ($@@‐@@1.50 discounted) if it later makes up for the low investment level or ( b ) will cost consumers $@@‐@@4.39 ($@@‐@@3.07 discounted) if the government does not make up for the low level of investment.