COST BENEFIT ANALYSIS OF A SORGHUM HYBRID RESISTANT TO SORGHUM MIDGE (DIPTERA, CECIDOMYIIDAE)/

The economic benefits resulting from the use of sorghum cultivars resi stant to sorghum midge, Stenodiplosis sorghicola (Coquillett), were co mpared with the research and development costs. In 1984 dollars, the c ost to develop the technology was approximately $2,720,000. For each d ollar invested in research and development of a sorghum midge-resistan t sorghum hybrid, the value of benefits to increased crop yields from the use of the resistant hybrid ranged from $24.2 at a 5% discount rat e (the interest rate used to determine the present value of annual ben efits and/or costs collected over time) when no insecticide was used t o $2.7 at a 20% discount rate when insecticide was applied five times. The average value of benefits to increased crop yields at zero, three , and five insecticide applications at discount rates of 5, 10, 15, an d 20% was $9.9 for each dollar spent to develop the technology. The in tangible benefits that accrue to society as a result of the developmen t and use of insect-resistant sorghum were not estimated. Important be nefits from the development and deployment of sorghum midge-resistant sorghums include reduced crop production costs and greater yield, as w ell as enhanced sustainability of the sorghum production system and th e conservation of natural and biological resources.