Thursday, June 05, 2014

"Valuation of research as intangible capital in agriculture can be measured by quantifying the impact of research on changes in asset values. This study examines the valuation of research as intangible capital in agriculture using Tobin's q theory. Both public and private research capital have been highly valued in U.S. agriculture. Using four different approaches, each $1 of public research capital had an average value that was 8.59 times higher than $1 of tangible capital or conventional assets such as real estate, vehicles, machinery and livestock. Private research capital was valued 5.2 times higher than tangible assets. Since the rate of return on conventional assets averaged 4.9% over the 1950-1991 period, the valuation price indicates that the rate of return on [public] research would be 40.4%." from Abstract, 'Valuation of intangible capital in agriculture' White FC, _J._Ag._and_Applied_Economics_27_(2):437 1995

"...bias against agriculture has resulted in lower rates of return on  investment in other economic sectors. In a survey of about 1,650 public-sector investment projects, for example, the rate of return averaged 11.5% in nations with a strong bias against agriculture and 18% where the bias was moderate or low. Rates of return on private-sector projects in these two classes of nations were 13 and 16 percent, respectively." Erlich PR _The Stork and The Plow_, citing Dasgupta 1993 [within] Schiff M, Voldez A, _The plundering of agriculture in developing countries_ Wash DC 1993