Midge Tolerant Wheat is an innovation with a great return on investment. This finding comes from a cost-benefit analysis report prepared for Agriculture and Agri-Food Canada (AAFC). According to program evaluation experts, Ference and Company, the net benefits of the Midge Tolerant Wheat innovation is approximately $456 million.
AAFC's Innovation Programs Directorate hired the Vancouver-based consultants to measure the return on investment of the technology. The study puts the development cost of the innovation at $16.3 million, which includes ongoing investment over the next three years.
Ference notes that the net benefits (1997 net present value) of approximately $456 million, result in a benefit cost-ratio of about 37:1. When this cost-benefit analysis is factored in with the other advantages the technology provides, such as eliminating the need for spraying, midge tolerant wheat is truly an innovation that pays.
Click here to read the complete report by Ference & Company Consulting Ltd.