@article{Dlamini:207288,
      recid = {207288},
      author = {Dlamini, Thula Sizwe and Magingxa, Litha and Liebenberg,  Frikkie},
      title = {Estimating the economic value of the national cultivar  trials in South Africa: A case for sorghum, sunflower,  soybeans and dry beans},
      address = {2015-06},
      number = {1054-2016-85985},
      pages = {13},
      year = {2015},
      abstract = {This study assesses the economic impacts of the national  cultivar trials in South Africa over the period 1978 -  2012. The
study uses experimental yield data to estimate  the yield losses that have been prevented by providing  farmers with
information that has facilitated the selection  of adapted cultivars on their localities. Using attribution  methods, the
study estimates the contribution of the  programme to yield growth, along a range of assumed  plausible yield gain
estimates attributable to the trials.  It finds that the yield benefits are equivalent to 13.10kg  and 7.67kg for sunflower
and sorghum output per hectare per  year, respectively, whilst the soybean and dry bean trials  contributed yields
equivalent to 16.42 kg and 17.13 kg per  hectare per year, respectively, at the assumed plausible  yield gain estimate
attributable to the trials of 5  percent. In present value terms, the estimated total  economic benefits that have accrued to
South Africa over  the period 1978 – 2012 amounted to R200 million in 2012  prices, which is equivalent to 4 percent of
the total gross  value of production for these crops in 2012. Of these  benefits, about R23.2 million came from the
evaluation of  sunflower cultivars, R84.7 million from dry beans, R85. 7  million from soybeans and R6.6 million from
the evaluation  of sorghum cultivars. Overall, the results imply a  benefit-cost ratio of 1.90, using a real discount rate  of
7.8% per annum and a modified internal rate of return of  16% per annum. These results confirm that investment in  the
national cultivar trials at the ARC has been a  profitable undertaking for South Africa and that continuing  with the trials
would be justified.},
      url = {http://ageconsearch.umn.edu/record/207288},
      doi = {https://doi.org/10.22004/ag.econ.207288},
}