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Winners and Losers: Formula versus Competitive Funding of Agricultural Research

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  • Huffman, Wallace E.
  • Norton, George
  • Traxler, Greg
  • Frisvold, George
  • Foltz, Jeremy

Abstract

State Agricultural Experiment Stations (SAESs) were established with federal formula funding by the Hatch Act of 1887. In 1955, the Hatch Act was amended and a number of subsequent formula funding programs were consolidated under the USDA Cooperative States Research Service (CSRS), which today is known as the Cooperative Research, Education and Extension Service (CSREES). Currently, all of the Hatch funds and a small amount of other formula funds go to SAESs. In 1977, CSRS established its first competitive research grant program. However, this program remained quite small until 1990, when it was re-named the National Research Initiative (NRI) Competitive Grants Program with a much larger funding authorization. Currently, the SAESs account for 60% of U.S. public agricultural research, with 7% of SAESs funding obtained from Hatch funds and 2.3% from NRI Grant funds (Huffman & Evenson, 2006b, pp. 107, 117- 118). Hence, the SAES system has become relatively diversified in its funding sources after starting with only Hatch funding.

Suggested Citation

  • Huffman, Wallace E. & Norton, George & Traxler, Greg & Frisvold, George & Foltz, Jeremy, 2006. "Winners and Losers: Formula versus Competitive Funding of Agricultural Research," ISU General Staff Papers 200601010800001369, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:200601010800001369
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    Cited by:

    1. Valentina Cristiana MATERIA & Roberto ESPOSTI, 2010. "Modelling Agricultural Public R&D Cofinancing Within A Principal-Agent Framework. The case of an Italian region," Working Papers 347, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    2. David E. Ervin & Leland L. Glenna & Raymond A. Jussaume, 2011. "The Theory and Practice of Genetically Engineered Crops and Agricultural Sustainability," Sustainability, MDPI, vol. 3(6), pages 1-28, June.
    3. Esposti, Roberto & Materia, Valentina, 2015. "The determinants of the public R&D cofinancing rate An empirical assessment on agricultural research," 2015 Conference, August 9-14, 2015, Milan, Italy 211624, International Association of Agricultural Economists.
    4. Norbert L. W. Wilson & Lurleen M. Walters & Tara Wade & Kenesha Reynolds, 2024. "The distribution of competitive research grants from the National Institute for Food and Agriculture: A comparison of 1862 land grant universities, 1890 land grant universities, and other institutions," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(1), pages 76-94, March.
    5. Sparger, John Adam & Norton, George W. & Heisey, Paul W. & Alwang, Jeffrey, 2013. "Is the share of agricultural maintenance research rising in the United States?," Food Policy, Elsevier, vol. 38(C), pages 126-135.

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