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Australian Sheep Industry CRC: Economic Evaluations of Scientific Research Programs
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Abstract
By the end of its seven-year term in 2007-08, the Australian Sheep Industry CRC (Sheep CRC) will have received total funds of about 90million,thatcomprisesCommonwealthandindustryfundingof30 million, and in-kind contributions valued at 60million.ThislevelofpublicandprivatefundingemphasisestheneedfortheSheepCRCtodemonstratethatitsresearchprogramswillgeneratesoundeconomicreturnstoallstakeholders.ThispaperreportsanevaluationofthepotentialeconomicvalueoftheachievementsoftheSheepCRCatthemidpointofitstermofoperationsatwhichithassomecompletedresearchandalargevolumeofresearchinprogress.Themainquestionthathasbeenaddressedinthisevaluationconcernsthenatureandlikelymagnitudeofthepotentialbenefitsrelativetothecostsoftheirrealisation.Theeconomicmethodsandotherproceduresthatwereusedtoanswerthisquestion,theevaluationscenariosandtheresultsobtainedaredescribed.Basedonthedefinedwith−andwithout−SheepCRCevaluationscenarios,the‘bottom−line’resultwasthattheSheepCRC’sscientificresearchprogramshavethepotentialtodeliveratotalincrementalbenefitwitha20−yearnetpresentvalue(NPV)of191.3 million, and a total benefit-cost ratio (BCR) of 8.1:1 (both at a 5% real rate of discount), indicating that the Sheep CRC’s total research investment over all programs has the potential to return about 8forevery1 of research investment funds.sheep research, economic evaluations, economic-surplus- benefit-cost analysis., Agribusiness, Farm Management, Livestock Production/Industries, Production Economics, Research and Development/Tech Change/Emerging Technologies, Q160,