Impact of TVA's national fertilizer program
Since the beginning of the TVA fertilizer program in 1935, the accumulated benefit to the Nation has far exceeded the program's total cost. Present worth of benefits from the adoption of high-analysis fertilizers - projected to 1990 - is almost $49 billion, and present worth of savings from process development and improvement is $8.5 billion. A total program cost through 1981 from Federal appropriations was $413 million. When compounded at a 10 percent rate, present value of program cost is $2.79 billion. The partial-benefit/full-cost ratio for the TVA fertilizer program is $20.50 in benefits for each dollar of program cost. Another measure of program impact is the rate of return earned on the investment made in the TVA fertilizer program. Using total program costs as an estimate of the investment and only the savings estimated to accrue from production and distribution, an internal rate of return of 93.3 percent (in 1981 terms) was calculated. The TVA national fertilizer program has been a strong force in developing and introducing new technology and has stimulated sweeping changes in the US fertilizer industry. It has also stimulated dramatic advances in the production capability of US farmers. In the early 1930s, the TVA program was oriented toward stimulating fertilizer use to help reverse declining productivity of soils in the Southeastern US. The program was broadened in the 1950s and 1960s to include work with private fertilizer companies and farmer cooperatives throughout the Nation. This led to increased technical competence in the industry and better service for the American farmer. It also quickened the flow of TVA technology and new fertilizers to the industry and farmers. This study estimates only a part of the benefits from production and distribution savings. Benefits in the other three areas are discussed and in some cases order of magnitude estimates are given as a basis for informed judgment of the TVA program impact.
- Research Organization:
- National Fertilizer Development Center, Muscle Shoals, AL (USA)
- OSTI ID:
- 6320122
- Report Number(s):
- TVA/OACD-83/5; ON: DE83902047
- Country of Publication:
- United States
- Language:
- English
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