Benefit-cost Analysis of Rust, Uromyces vicia fabae Resistant Lentil Varieties Development

Abstract

Lentil rust, Uromyces vicia fabae is a major disease of lentil causing grain yield loss of 25% in Ethiopia. Ex post analysis of investment on rust resistance lentil variety development was carried out to assess quantifiable benefit and briefly discuss intangible benefits resulted from the use of rust resistant improved lentil varieties in Gimbichu district in central Ethiopia. At 5% compounding interest rate, the Net Present Value was 2.33 million in 1963 constant Birr indicating that the investment was profitable. Similarly, the Internal Rate of Return was 38% which suggests that if money was borrowed at 38%, the benefit obtained from research, development and use of rust resistant lentil varieties would repaid the principal and the interest accrued in the time span considered. The benefit-cost ratio was 56:1 suggesting that a Birr invested in research and development of rust resistant lentil varieties would generate 56 Birr (in
1963 constant Birr). Therefore, public money spent for research and development of rust resistant lentil varieties was economical. In this scenario the intangible benefit includes biological nitrogen fixation, palatable straw for livestock, reduced weed pressure on the succeeding cereal crop, greater yield of split lentil and reduced rust disease in nearby districts.