Food Production: Problems and Prospects \ 3 



degree, by economic considerations in allocating funds to 

 research and deciding on its directions. However, as the estimates 

 reported in table 1.3 indicate, the existing situation in the coun- 

 tries studied appears to be one of serious underinvestment in 

 research. (This conclusion is not- easily drawn, however. To note 

 one difficulty, some of the studies reported are of successful proj- 

 ects, and in contemplating investment in research the public 

 authorities have also to consider the probability of failure.) 



Research creates new knowledge; schooling and extension dis- 

 tribute the available knowledge, each in its own way. The comple- 

 mentarity between these three activities was considered by 

 Welch (1970). He suggested that research, by producing new tech- 

 nologies, creates disequilibrium in the sense that producers find 

 themselves in nonoptimal allocation positions. Schooling pro- 

 duces the ability to comprehend and judge new situations and to 

 move rapidly to take advantage of opportunities and to close 

 allocation gaps. Extension can substitute for schooling in these 

 respects. Estimates by Evenson (1971), Huffman (1972), Khaldi 

 (1973), and Welch himself supported these theoretical considera- 

 tions and hypotheses.^ 



A Note on the Productivity Gains 



Improved productivity increases supply and reduces agricultural 

 product prices relative to what they would have been had produc- 

 tivity remained stagnant. If the technological improvements are 

 not distributed equally, some farmers may actually be worse off— 

 for example, wheat-growers in rain-fed areas who could not suc- 

 cessfully adopt the new irrigation-responsive, high-yielding 

 varieties. Even if productivity increases are realized on all farms, 

 the dynamics of the process may favor the larger and stronger 

 farmers. Increasing yields, for example, may raise income and 

 thus savings on the farms. The larger farmers will have larger sav- 

 ings funds and will be the first to purchase farm machinery, to in- 

 vest in tube-wells, and to procure the right mix of purchased in- 

 puts. The smaller farmers, the sharecroppers, and the day laborers 



6. Another aspect of Welch's contribution is discussed in chapter 7. 



