Investing in research and education versus commodity programs: Implications for agricultural productivity

The long-term impact of research, education, and various government support programs on U.S. agricultural productivity was analyzed using an error cor rection model. Results indicate that the proposed reduction in commodity pr ogram expenditures (e.g. 1996 Farm Bill) is unlikely to reduce agricultural productivity. Results suggest that shifting public funds from commodity pr ograms to education and research would raise U.S. agricultural productivity . Our estimates of long-term rates of return to public research are lower t han those from most previous, perhaps due to our improved model specificati on, but are high enough to justify continued public investments to raise pr oductivity.