ECONOMIC IMPACT Assessment of Cotton Breeding Research under Risk in Agro-climatic- zones of Iran

Document Type : Research Paper

Authors

1 PhD. Student, Economics Department of Tehran University

2 Professor of Agricultural Economics Department of Tehran University

Abstract

Technological development in agriculture as the main source of increased productivity requires sustained investment in agricultural research. However, in recent decades investment in agricultural research in developing countries has reduced and the Agricultural Research systems of public sector (government) in these countries, including Iran, have been faced with the challenge of funding research needs. In such circumstances, the funding of this type of research requires to provide documentary evidence of the interest of them to economic policymakers. Without revealed and compelling documentation of benefits, agricultural research will not earn sustainable financial support. Therefore this study estimates the potential benefits of cotton breeding research under its risk in agro-climatic zones of Iran that its results could set economic policymaking to persuade and convince for worthy support of cotton research. In order to conduct of this research, economic surplus method was used that can prepare effective outputs to derive the benefits of the research. Based on the findings, cotton breeding research in all studied zones, despite the uncertainty and the risk of their benefits, have acceptable economic returns. So that its expected average internal rate of return, Despite the risk and uncertainty of research and agricultural activities, is in the range of 26 to 40%. Therefor application of technology (improved seed) derived from them, can increase cotton production and supply and play fundamental role in cotton growers and consumers benefits. This evidence emphasize on necessary funding of agricultural research and its risk management.

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