Investing in People: Assessing the Economic Benefits of 1890 Institutions.

Abebayehu Tegene, Anne Effland, Nicole Ballenger, George Norton, Albert Essel,
Gerald Larson, and Winfrey Clarke. U.S. Department of Agriculture, Economic
Research Service. Miscellaneous Publication Number 1583.

Abstract
The 1890 land-grant universities (1890s) have developed teaching, research, and
extension programs that reach historically underserved students and communities.
Many studies have described the programs of 1890s, but no systematic effort has
measured their contribution to human capital development and to improving the
well-being of the rural population. This report examines the historical USDA
funding levels of the 1890 institutions; discusses the outcomes of these invest-
ments and potential measurable indicators of these outcomes; and outlines a con-
ceptual model for estimating returns to investment in education tailored to partic-
ularities of the 1890s.

Keywords: 1890s, land-grant universities, human capital, extension service, agri-

cultural research, research funding

Acknowledgments
The authors wish to thank the authors and participants at the 1890/ERS workshop
in September 1999. In preparing this report, we have benefited from many of the
ideas discussed at the workshop. For their comments on earlier drafts, we also
wish to thank McKinley Mayes, Doris Newton, Katherine Ralston, Dave
Weatherspoon, and Keith Wiebe. We appreciate the great help Michael LeBlanc
provided in improving the presentation of the report. The authors would like to
acknowledge Melody Mathis-Pace for her outstanding contribution with the tables,
charts, and text. Finally, we want to thank the editor, Shashunga Clayton, for doing
a great job, and Vic Phillips for his creative design.

Author affiliation: Abebayehu Tegene and Nicole Ballenger are with the Food and
Rural Economics Division, ERS, USDA; Anne Effland is with Market and Trade
Economics Division, ERS, USDA; Gerald Larson is with the Office of Budget and
Planning Analysis, USDA; George Norton is with Virginia Polytechnic Institute
and State University; and Albert Essel and Winfrey Clarke are with Virginia State
University.

Photo Credits:

Keith L. Pope, Florida A&M University, Public Affairs (center photo)

Ken Hammond, USDA (top right photo)
John Oubre, Southern University, Office of Publications (all other photos)

1800 M Street, NW
Washington, DC 20036-5831 March 2002
 The 1890 land-grant universities help ensure a more equitable distribution of educational opportunities. Photo courtesy Keith Pope.

Foreword
To enhance the relationship between the U.S. Department of Agriculture and 1890
land-grant universities and colleges, the Economic Research Service (ERS) entered
into cooperative agreements in 1997 with four 1890 institutions—Delaware State
University, South Carolina State University, Tuskegee University, and Virginia State
University. The purpose of this collaboration was to study outcomes and benefits of
investments in the 1890s’ programs in the food and agricultural sciences, to explore
methods of better quantifying benefits, and to improve effectiveness of Federal
(USDA) investments in the 1890s’ programs and initiatives. To accomplish these goals,
cooperators initiated an effort to design a framework for measuring USDA’s invest-
ments and for identifying, classifying, and quantifying (or otherwise assessing) the
outcomes of these investments.

As a first step, the cooperators posed a series of core questions, which form the focus
of this report. How have the programs at the 1890s been funded? What have been the
outcomes of these programs? What are the best indicators by which to measure those
outcomes? And how can conceptual models best be developed for estimating future
returns to investments in these programs? This report synthesizes a number of papers
presented at a workshop held September 1 and 2, 1999, at USDA’s Economic
Research Service, drawing particularly from three studies—Essel, Clarke, and Tegene
(1999); Norton and Tegene (1999); and Larson (1999).

ii ❖ Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 Economic Research Service/USDA
 Contents

Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ii
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Legislative History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Funding the 1890 Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
Funding for Teaching Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Funding for Research Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
Funding for Extension Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
Identifying Measurable Administrative Indicators . . . . . . . . . . . . . . . . . . . . .12
Teaching Outcomes and Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
Research Outcomes and Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
Extension Outcomes and Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
Exploring Conceptual Frameworks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
Human Capital Theory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
Measuring Returns to Human Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
Returns to Research and Extension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
Next Steps for the Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Appendix A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
Appendix B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26

Economic Research Service/USDA Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 ❖ iii
 Summary
The connections between education and the economy are complex and interdependent.
The economy affects the attractiveness of education by creating incentives or disincen-
tives to continue schooling. Family structure and emphasis on and access to learning
resources and experiences also help determine educational success. The 1990s wit-
nessed increasing rewards to higher education and heightened economic incentives for
additional schooling. Given this increased demand for education, access to and supply
of higher education underpin the future productivity of American workers and long-
term economic health and growth of our country.

The 1890 land-grant universities (1890s) help to ensure a more equitable distribution
of educational opportunities. They were established by the Second Morrill Act in 1890
to provide equal educational opportunities for African-American students who had
been denied admission to their States’ original 1862 land-grant universities. The 1890s
have developed teaching, research, and extension programs that serve mainly rural
communities. African-American students receive undergraduate and graduate educa-
tion at the 1890 universities in an environment particularly attuned to the needs of
minority students. Research and extension programs address issues of special interest
to minority rural communities and small-scale and limited-resource farm operators, as
well as more traditional topics reflecting the expertise and interests of the 1890 faculty
and graduate students.

USDA has strengthened links to the 1890 institutions by building a stronger base of
funding support. USDA’s Economic Research Service (ERS) entered into cooperative
agreements in 1997 with four 1890 institutions to study outcomes and benefits of
USDA investment in the 1890 institutions’ food and agricultural programs. The collab-
oration has explored core issues of the programs’ funding and achievements, the best
indicators by which to measure those achievements, and the development of conceptu-
al models for estimating the future returns to investments in these programs.

Many studies have described the programs of the 1890s, but there has been no system-
atic effort to measure the economic contribution of their teaching, research, and exten-
sion programs to human capital development and to improving the well-being of the
population they serve. As public funding of research and development falls under
increasing scrutiny and worthy educational investment opportunities multiply, linking
identifiable outcomes and measurable indicators with public investments in the 1890s
is increasingly important.

The 1890 land-grant universities began receiving Federal funds for research in 1967,
which totaled $283,000 per year through 1971. From 1972 to 1978, annual appropria-
tions for research and extension increased from $12.9 million to $23.5 million; and
they began to receive specifically authorized research formula funds (section 1445)
and extension formula funds (section 1444) with the enactment of the National
Research, Extension, and Technology Policy Act of 1977. This statute provided perma-
nent formula funding authorization for research and extension in the 1890s similar to
funding research and extension at 1862 land-grant universities. Total USDA funding of
the 1890s—including funds for research, extension, and general support—rose from
about $1.4 million in 1967 to about $100 million in 2000.

iv ❖ Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 Economic Research Service/USDA
 Federal research funding to land-grant universities has been through formula funds,
which provide guaranteed funding according to a specified formula, special grant
funds, and competitive grants. Federal sources constitute 83 percent of the total
research funds at the 1890s; extension programs at the 1890 universities are almost
entirely supported by Federal funding through the Cooperative State Research,
Education, and Extension Service. Financial support for teaching has come largely
from State governments. Federal support is still significant, however, for funding
scholarships and for enhancing the capacity of 1890 institutions to develop and
improve teaching programs.

Traditional administrative indicators of benefits associated with teaching, research, and

extension require clear statements of expected outcomes and measurable indicators that
allow monitoring of investments. Assessments of teaching programs in food and agri-
cultural sciences have been limited to measuring the number of successful graduates
that pursue further education and become leaders in their professions. Studies of
research outcomes often use publication and/or patent counts. These methods may
underestimate the research accomplishments of the 1890s. Research at the 1890s has
focused on small-scale farmers and limited-resource families, including research on
minor livestock species, such as goats and rabbits, that are suited to small-farm opera-
tions. Many of the research outcomes associated with the 1890 universities are not pub-
lished or patented, and most institutions do not have a working paper series. Other indi-
cators that better capture the contribution of the 1890s need to be designed. Ideally,
these indicators would capture not only benefits to traditional agricultural stakeholders,
but also impacts on economic development in the 1890s’ target rural areas.

Similarly, improved indicators of extension programs are needed. Extension programs

have typically documented and reported program inputs: the number of people partici-
pating, number of workshops and meetings held, number of educational materials dis-
tributed, and number of hours of volunteer service delivered. Extension programs,
however, have not documented outcomes (e.g., changes in knowledge, skills, or aspira-
tions; newer and more efficient methods adopted as a result of the program; or
changes in social, economic, or environmental conditions).

The Human Capital Model (HCM) provides, at least for measuring benefits of teach-
ing, an alternative to traditional administrative approaches. Education helps people
capitalize on technological and social changes, making them more productive and effi-
cient. It raises their incomes, thereby generating measurable impacts (e.g., earnings
gaps between 1890 and high school graduates) that can be attributed to the colleges.

However, several issues must be addressed to apply such an approach to measuring

human capital benefits of the 1890s. The models must be structured to disentangle the
effects of inherent ability, other personal characteristics, and job location from the
effects of an 1890 education, a challenge for any attempt to estimate the value of high-
er education. Also, because available data sets that cover earnings, level of education,
personal characteristics, and other variables needed to estimate the value of higher
education may not indicate the college attended, it may be necessary to survey 1890
graduates in order to complete an empirical evaluation.

Economic Research Service/USDA Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 ❖ v
 Economic returns to investments in research and extension programs at the 1890s can
be measured by estimating the value of productivity gains using one of two approach-
es: economic surplus analysis and production function estimation. The economic sur-
plus approach evaluates productivity changes that can be attributed to research. The
production function approach relies on statistical relationships between agricultural
output and expenditures on research (and extension). However, the contribution to pro-
ductivity change of a specific institution or group of institutions, which is needed to
apply economic surplus analysis, is difficult to identify, particularly for small pro-
grams like those at the 1890s. Similarly, production function estimation would be dif-
ficult because research and extension at 1890s is a relatively small portion of total
agricultural research and extension in the United States. Given the limitations of the
two standard approaches, a more pragmatic approach to estimate economic impacts of
research and extension at 1890s is to conduct case studies. These studies would rely
on cost-benefit analyses of a sampling of specific programs or projects to draw broad-
er conclusions.

As a next step in developing these frameworks for measuring investments in 1890 pro-
grams, a team of researchers from ERS, Virginia State University, Virginia Polytechnic
Institute and State University, University of Arkansas – Pine Bluff, and Langston
University has begun work, with the support of USDA’s National Research Initiative,
on further developing a human capital model applicable to the 1890s’ teaching pro-
grams and on pursuing a series of cost-benefit analysis case studies of 1890s’ research
and extension projects.

The 1890 land-grant universities play a significant role in training students from various ethnic minorities in agricultural and food sciences, engineering, mathe-
matics, and other disciplines. Photo courtesy Keith Pope.

vi ❖ Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 Economic Research Service/USDA
 Investing in People
Assessing the Economic Benefits
of 1890 Institutions
Abebayehu Tegene, Anne Effland, Nicole Ballenger, George Norton,
Albert Essel, Gerald Larson, and Winfrey Clarke

Introduction of how these programs have been funded, what have

been the outcomes of these programs and what are the
The connections between education and the economy best indicators by which to measure those outcomes,
are complex and interdependent. The economy affects and how to develop conceptual models for estimating
the attractiveness of education by creating incentives the future returns to investments in these programs.
and disincentives to continue schooling. Family struc-
ture and access to learning resources and experiences Many studies have described the programs of 1890s,
also help determine educational success. The 1990s but there has been no systematic effort to measure the
witnessed increasing rewards to higher education and, economic contribution of the 1890s’ teaching,
therefore, heightened economic incentives for addi- research, and extension programs to human capital
tional schooling. Given this increased demand for edu- development and to improving the well-being of the
cation, access to and supply of higher education will population they serve. As public funding of research
underpin the future productivity of American workers and development falls under increasing scrutiny and
and long-term economic health and growth of our worthy educational investment opportunities multiply,
country. linking identifiable outcomes and measurable indica-
tors with public investments in 1890s is increasingly
The 1890 land-grant universities (1890s) help ensure a important.
more equitable distribution of educational opportuni-
ties. They were established by the Second Morrill Act Legislative History
in 1890 to provide equal educational opportunities for
African-American students who had been denied Congress created the land-grant system of colleges and
admission to their States’ original 1862 land-grant uni- universities to make practical higher education accessi-
versities. The 1890s have developed teaching, ble to working families. The land-grant system took
research, and extension programs that serve mainly shape through four pieces of landmark legislation,
rural communities. African-American students receive amended over time, that endowed the colleges and uni-
undergraduate and graduate education at the 1890 uni- versities in the system with three missions: teaching,
versities in an environment particularly attuned to the performing agriculture-related research, and providing
needs of minority students. Research and extension extension services to farmers.
programs address issues of special interest to minority
rural communities and small-scale and limited- The first piece of legislation, the Morrill Act of 1862,
resource farm operators, as well as more traditional provided a grant of public land to each State and U.S.
topics reflecting the expertise and interests of the 1890 territory to fund a perpetual endowment for at least
faculty and graduate students. one institution to teach “agriculture and the mechani-
cal arts.” The legislation established a network of pub-
USDA has strengthened links to the 1890 institutions lic institutions still known as the 1862 land-grant col-
by building a stronger base of funding support. leges and universities. Every State has established at
USDA’s Economic Research Service (ERS) entered least one 1862 institution using the funds from the sale
into cooperative agreements in 1997 with four 1890 of its allotment of public land.
institutions to study outcomes and benefits of USDA
investment in the 1890s’ food and agricultural pro- The Hatch Act of 1887 created the State Agricultural
grams. The collaboration has explored core questions Experiment Stations (SAESs) under the auspices of the

Economic Research Service/USDA Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 ❖ 1
Table 1—Development history of 1890 institutions and Tuskegee University
Initiated Initiated
Year 4-year graduate Regional
Name of Institution founded program program accreditation
Alabama A&M University 1875 1939 1958 1963
Alcorn State University 1871 1871 1975 1961
University of Arkansas-Pine Bluff 1873 1929 NA 1933
Delaware State College 1891 1947 NA 1957
Florida A&M University 1887 1909 1951 1949
Fort Valley State College 1895 1945 1957 1957
Kentucky State University 1886 1929 1972 1939
Langston University 1897 1897 NA 1939
Lincoln University 1866 1935 1940 1945
University of Maryland-Eastern Shore 1886 1936 1978 1953
North Carolina A&T University 1891 1925 1939 1946
Prairie View A&M University 1876 1909 1954 1958
South Carolina State College 1872 1924 1948 1960
Southern University 1880 1922 1957 1958
Tennessee State University 1909 1922 1942 1946
Tuskegee University 1881 1928 1943 1933
Virginia State University 1882 1943 1937 1933

NA = Not available.
Source: Christy and Williamson (1990), p. 32.

land-grant universities. Research funded by the Hatch Thus, the Second Morrill Act led to the establishment
Act provided teaching material for professors and of land-grant colleges for African-Americans, which
strengthened the scientific basis of the curriculum. are known as the 1890s. Today, 17 institutions, located
Funds appropriated under the Hatch Act are allocated predominantly in the southeast region of the United
among the States according to a statutory formula based States, are included in the 1890 system. Of the 17,
on each State’s farm and rural population. In States hav- Tuskegee University is the only private university. It is
ing two experiment stations, funds are divided as deter- considered an 1890 because it was created by State
mined by the State legislature (USDA, 1994). legislation and has historically focused on agricultural
research. In addition, beginning in fiscal year 2000,
The Second Morrill Act, passed in 1890, provided for agricultural appropriations acts have provided that
annual appropriations to each State to support its land- within the total appropriations for 1890 research and
grant college. The act also forbade racial discrimina- extension formula programs, $1 million shall be made
tion in admission policies for colleges receiving these available for both research and extension at West
Federal funds, but granted States the right to establish Virginia State College.1
separate colleges for Black and White students. The
act required Federal funds to be divided between a Finally, the Smith-Lever Act, passed in 1914, created
State’s land-grant colleges and universities in a “just,” the Cooperative Extension Service as a joint effort of
but not necessarily equal, manner. the U.S. Department of Agriculture, the State land-
grant institutions, and individual county governments.
Southern States established separate Black colleges. The act provided for this partnership across Federal,
Maryland assigned its money to a private Black col- State, and county levels to give instruction and practi-
lege that subsequently became a State institution. cal demonstrations in agriculture and home economics
Alabama, Arkansas, Florida, Texas, Kentucky, in rural areas of the United States.
Virginia, Mississippi, and Missouri gave portions of
the funds to existing public Black schools. Delaware,
Georgia, North Carolina, Oklahoma, South Carolina, 1West Virginia abolished the 1890 designation for West Virginia
Tennessee, and West Virginia created new land-grant State College in the wake of Brown vs. Board of Education, the
schools for their Black residents (Huffman and 1954 Supreme Court ruling that ended segregation in public
Evenson, 1993). education.

2 ❖ Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 Economic Research Service/USDA
 Chronology of Major Legislation Affecting 1890s

Year Legislation Purpose

1862 Morrill Act Established the land-grant college system. Gave each State
30,000 acres of land (for each senator and each of its represen-
tatives in Congress) to endow colleges.

1887 Hatch Act Provided annual grant for agricultural research, and established
the State agricultural experiment stations.

1890 Second Morrill Act Blacks were to be admitted to land-grant institutions. States
could establish separate land-grant colleges—“the 1890s”
were established.

1906 Adams Act Provided each State additional Federal funding for agricultural
research.

1914 Smith-Lever Act Established the Cooperative Extension Service.

1917 Smith-Hughes Act Established Federal grants for vocational education in agricul-
ture, home economics, and industrial arts in public colleges
and high schools.

1935 Bankhead-Jones Act Established formula funding for research and Federal-State
matching grants.

1965 Public Law 89-106 Established “Specific Research Grants” program and provided
research funds collectively for 1890 institutions.

1977 Food & Agriculture Act Provided formula funds to research at 1890 institutions.

1985 Food Security Act Amended the 1977 act to provide not less than 6 percent of
Smith-Lever funds to be allocated for extension work at the
1890 institutions.

1998* Agricultural, Research, Established requirements for State matching of Federal formu-
Extension, and Education Act la, extension, and research funding of 1890 institutions.

Sources: Adapted from NRC (1995) and Christy and Williamson (1992).
*U.S. Department of Agriculture, Cooperative State Research, Education, and Extension Service

Economic Research Service/USDA Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 ❖ 3
 Funding the 1890 Institutions States for scientific research at agricultural experiment
stations, which were to operate under the direction of
Although the 1890s are part of the same system that an 1862 institution or other substantially equivalent
authorizes and governs the 1862 land-grants, lack of arrangement (USDA, 1994); no State has established
financial resources slowed the 1890s’ growth and such an experiment station at an 1890 institution.
development. For example, no Federal funds were
available to these institutions until 1967 (figs. 1 and 2). In 1967, through P.L. 89-106, a broad authority for
While cross-institution comparisons are difficult to research grants awarded on a discretionary basis, the
assess because of differences in missions, the 1890s 1890s began to receive Federal funds to support
have received far less funding relative to 1862 land- research (USDA, 1994). Funds granted to 1890s under
grant colleges on a per student basis (Huffman and this program totaled $283,000 per year through 1971
Evenson, 1993). Legislatively established funding (see table 2). In fiscal year 1972, Congress appropriat-
mandates for research and extension have not been ed $8.8 million for research grants to 1890 institutions.
appropriated. The actual funding for 1890 research and That same year, Congress appropriated $4.0 million
extension relative to the minimum amount required under section 3(d) of the Smith-Lever Act for exten-
under sections 1445 for research and 1444 for exten- sion work specifically at 1890s (USDA, 1994),
sion is shown in figure 3. On the other hand, actual although these funds were distributed to the 1890s
funding for extension fell far short of the mandate for through the 1862 land-grants in each State.
most of the first 10 years, and has exceeded the man-
date since 1990, albeit by a lesser amount than for Direct appropriations to support agricultural research
research. In addition, some federally funded programs at 1890s started with the enactment of the Evans-Allen
have never been established at 1890 institutions. For Act as section 1445 of the National Research,
example, the Hatch Act of 1887 authorized funding to Extension, and Teaching Policy Act (NRETPA) of

Figure 1
USDA support for 1890s
Funding by program, fiscal year 1967-2000

Million dollars
120

Research formula Extension formula Construction

100 Capacity building Other USDA

80

60

40

20

0
1967 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99

Fiscal year

Source: USDA, Office of Budget and Program Analysis.

4 ❖ Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 Economic Research Service/USDA
Figure 2
USDA support for 1890s in constant dollars
Funding by program, fiscal year 1967-2000

Million dollars
120

Research formula Extension formula Construction

100 Capacity building Other USDA

80

60

40

20

0
1967 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99

Fiscal year

Source: USDA, Office of Budget and Program Analysis.

1977. This statute provided a permanent funding the National Agricultural Research, Extension, and
authorization for the 1890s similar to the Hatch Act Teaching Policy Act of 1977. This act provided for
authorization under which formula funds for research extension funding directly to the 1890s instead of
at 1862 land-grants have been appropriated since 1887 through the 1862s as had been done since 1972 under
(McDowell and Evans, 1990). Under section 1445, Smith-Lever 3(d). Under section 1444, 1890s receive
1890s receive an amount equivalent to no less than 15 an amount equivalent to no less than 6 percent of
percent of the funds appropriated under the Hatch Act funds appropriated under Smith-Lever annually (see
each year (see table 3). table 3).

From 1972 to 1978, annual appropriations to 1890s Total USDA funding of 1890s for the 34 years from
(under the Special Grants authority for research and fiscal year 1967 to 2000, including funds for research,
Smith-Lever 3(d) for extension) increased from $12.9 extension, and general support, rose from about $1.4
million to $23.5 million. Two-thirds of the funds were million in 1967 to about $100 million in 2000. For the
reserved for supporting research in an effort to inte- period 1972 through 2000, the average rate of increase
grate these institutions into the public agricultural in total funding was 7.3 percent per year. Funding for
research system (see table 2). research grew at an annual rate of 4.5 percent, while
funding for extension grew at an annual rate of 7.05
The 1890s began to conduct extension and outreach percent (see table 2).
programs, with emphasis on underserved populations
and communities, shortly after their establishment The National Research, Extension, and Teaching
under the Second Morrill Act of 1890. However, they Policy Act of 1977 and subsequent Federal legislation
did not receive specifically authorized Federal exten- in 1981, 1985, 1990, and 1996 enhanced Federal
sion formula funds until enactment of section 1444 of financial support to the 1890s. State support for 1890s’

Economic Research Service/USDA Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 ❖ 5
Figure 3
Funding for 1890 research and extension relative to mandates in 1977 farm bill, 1979-2000
Million dollars
5

-1

-2

-3

Research
-4
Extension

-5
1979 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 2000

Fiscal year

Source: USDA, Office of Budget and Program Analysis.

research and extension programs was further strength- far more than their match requirements (National
ened by the Agricultural Research, Extension, and Research Council, 1995). However, no such require-
Education Reform Act of 1998, which required States ments applied to Federal contributions to research
in which 1890s are located to phase in, over a 3-year based at 1890 institutions until the 1998 legislation
period (FY 2000-FY 2002), a 50-percent non-Federal was enacted.
match for each Federal dollar received for research and
extension programs under section 1444 (which funds In fiscal year 2000, the first year of the matching fund
extension) and 1445 (which funds research).2 Prior to phase-in period, States were required to match 30 per-
this legislation, Federal law required State govern- cent of the Federal allocation for research and exten-
ments to match the Federal formula-based contribu- sion programs. In total, States provided a 27-percent
tions to research conducted at the experiment stations match, and 7 States took advantage of the opportunity
located at 1862 institutions; in fact, States contributed to request a waiver, which was available for fiscal year
2000 only (see tables 3, 4, and 5). Preliminary infor-
2The matching requirement is for 30, 45, and 50 percent for fiscal
mation for fiscal year 2001 indicates that most States
years 2000, 2001, and 2002. States could ask for a waiver only for will have met the applicable 45-percent requirement
fiscal year 2000. (Larson, 2001).

6 ❖ Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 Economic Research Service/USDA
Table 2—USDA funding for 1890 land-grant institutions and Tuskegee University, fiscal year 1967-2000
Strengthening/
Research Extension Research capacity
formula formula extension building Other Other
Fiscal year payments1 payments2 construction3 grants4 CSRS5 USDA6 Total

$1,000

1967 283 0 0 0 1,150 NA 1,433

1968 283 0 0 0 1,150 NA 1,433
1969 283 0 0 0 1,150 NA 1,433
1970 283 0 0 0 1,150 NA 1,433
1971 283 0 0 0 1,150 NA 1,433
1972 8,833 4,000 0 0 1,150 NA 14,033
1973 10,883 6,000 0 0 1,150 NA 18,033
1974 10,883 6,000 0 0 1,150 NA 18,033
1975 11,824 6,450 0 0 1,150 NA 19,424
1976 12,706 6,450 0 0 1,150 NA 20,306
TrQr 3,176 1,373 0 0 292 NA 4,841
1977 13,352 8,400 0 0 1,150 NA 22,902
1978 14,153 9,333 0 0 1,150 NA 24,636
1979 16,360 10,115 0 0 1,176 NA 27,651
1980 17,785 10,453 0 0 1,174 NA 29,412
1981 19,270 11,250 0 0 1,177 NA 31,697
1982 21,492 12,241 0 0 270 NA 34,003
1983 22,394 16,241 10,000 0 821 NA 49,456
1984 22,844 17,241 10,000 0 610 NA 50,695
1985 23,474 17,741 10,000 2,000 598 NA 53,813
1986 22,320 16,887 9,508 1,902 1,071 NA 51,688
1987 22,320 16,877 9,508 1,902 5,901 NA 56,508
1988 23,333 18,291 9,508 1,902 499 NA 53,533
1989 24,333 18,291 9,508 1,902 521 6,300 60,855
1990 25,012 21,836 9,508 7,308 888 8,200 72,752
1991 26,346 22,794 9,508 10,250 1,989 10,300 81,157
1992 27,400 24,730 9,508 10,250 1,652 11,800 85,340
1993 27,400 24,730 8,000 10,250 1,302 16,609 88,282
1994 28,157 25,472 7,901 9,917 1,844 16,200 89,491
1995 28,157 25,472 7,901 9,207 1,634 18,700 91,781
1996 27,735 25,090 7,782 9,200 5,242 15,859 90,908
1997 27,735 25,090 7,549 9,200 4,757 21,224 95,555
1998 27,735 25,090 7,549 9,200 4,479 21,696 95,749
1999 29,676 25,843 8,426 9,200 4,844 16,366 94,355
2000 30,676 26,843 12,000 9,200 4,879 16,319 99,917
1 Research formula payments have been made under sec. 1445 of P.L. 95-113 since 1979; payments were made under P.L. 89-106 from 1967 to 1978.
2 Extension formula payments have been made under sec. 1444 of P.L. 95-113 since 1979; funds were provided under Smith-Lever sec. 3(d) from 1972 to 1978.
3 Research/Extension Construction grants were provided through Cooperative State Research Service (CSRS) for research facilities for 1983 to 1987; and through

ES for extension facilities from 1988 to 1992 and for research and extension facilities since 1993.
4 Strengthening grants were funded from 1985 to 1991. Capacity building grants were begun in 1990.
5 Other CSRS includes Morrill-Nelson payments (through 1994); Bankhead-Jones payments (through 1981), and grants under various special and competitive grant

authorities.
6 Other USDA includes work under cooperative agreements, support for students under cooperative education authorities, and liaison officers at 1890 institutions.

NA = Not available.
Sources: USDA budget reports and appropriation history records. Amounts shown in other CSRS and other USDA categories are based on available records,
which are incomplete for years prior to 1989.

Economic Research Service/USDA Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 ❖ 7
Table 3—Comparison of matching requirements and actual match for research at 1890 institutions1,
fiscal year 2000
FY 2000 30 percent required Actual
Institution State allocation match match Difference

Dollars

Alabama A&M University AL 1,619,671 485,901 485,901 0

Tuskegee University AL 1,600,501 480,150 108,893 (371,257)*
University of Arkansas-
Pine Bluff AR 1,421,565 426,470 441,830 15,360
Delaware State University DE 547,577 164,273 203,600 39,327
Florida A&M University FL 1,201,936 360,581 360,581 0
Fort Valley State University GA 1,828,727 548,618 0 (548,618)**
Kentucky State University KY 2,124,022 637,207 637,207 0
Southern University LA 1,295,569 388,671 0 (388,671)**
University of Maryland-
Eastern Shore MD 958,815 287,645 0 (287,645)**
Alcorn State University MS 1,638,116 491,435 3,600,000 3,108,565
Lincoln University MO 2,031,558 609,467 609,467 0
North Carolina A&T
State University NC 2,618,586 785,576 500,012 (285,564)*
Langston University OK 1,337,442 401,233 401,233 0
South Carolina State University SC 1,406,226 421,868 0 (421,868)**
Tennessee State University TN 1,995,099 598,530 0 (598,530)**
Prairie View A&M University TX 2,664,999 799,500 799,500 0
Virginia State University VA 1,716,752 515,026 515,026 0
West Virginia State College WV 975,000 _ _ 0

Total payments to States 28,982,161 8,402,151 8,663,250 261,099

Note: Funding is provided under section 1445 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (NARETPA).
1 Includes Tuskegee University and West Virginia State College.

Section 1449 of the NAREPTA does not apply to West Virginia State College.
* Waiver requested for the difference.
**Waiver requested.
Source: USDA, Cooperative State Research, Education, and Extension Service.

8 ❖ Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 Economic Research Service/USDA
Table 4—Comparison of matching requirement and actual match for extension at 1890 institutions1,
fiscal year 2000
FY 2000 30 percent required Actual
Institution State allocation match match Difference

Dollars

Alabama A&M University AL 1,328,487 398,546 398,546 0

Tuskegee University AL 1,328,487 398,546 91,677 (306,869)*
University of Arkansas-
Pine Bluff AR 1,199,632 359,950 547,383 187,433
Delaware State University DE 433,652 130,096 159,900 29,804
Florida A&M University FL 1,117,451 335,235 335,235 0
Fort Valley State University GA 1,600,131 480,039 0 (480,039)**
Kentucky State University KY 2,004,220 601,266 601,266 0
Southern University LA 1,101,869 330,561 0 (330,561)**
University of Maryland-
Eastern Shore MD 847,013 254,104 0 (254,104)**
Alcorn State University MS 1,311,143 393,343 586,861 193,164
Lincoln University MO 2,002,099 600,630 699,000 98,370
North Carolina A&T
State University NC 2,384,762 715,429 500,000 (215,429)*
Langston University OK 1,196,996 359,099 359,099 0
South Carolina State University SC 1,162,178 348,653 0 (348,653)**
Tennessee State University TN 1,802,935 540,881 0 (540,881)**
Prairie View A&M University TX 2,466,029 739,809 1,546,215 806,406
Virginia State University VA 1,521,996 456,599 456,599 0
West Virginia State College WV 1,000,000 -- -- 0

Total payments to States 25,809,080 7,442,786 6,281,781 (1,161,003.00)

Note: Funding is provided under section 1444 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (NARETPA).
1 Includes Tuskegee University and West Virginia State College.
_ _ = Section 1449 of the NAREPTA does not apply to West Virginia State College.

* Waiver requested.
**Waiver requested for the difference.
Source: USDA, Cooperative State Research, Education, and Extension Service.

Table 5—Required and actual match for 1890 research and extension, fiscal year 2000
30-percent
Program Allocation match Actual match Waiver*

Thousands of dollars

Research (section 1445) 28,982 8,402 8,663 7

Extension (section 1444) 25,809 7,443 6,282 7

Total 54,791 15,845 14,945 7

*Seven States requested waivers in matching requirements for both research and extension funding.
Source: USDA, Cooperative State Research, Education, and Extension Service.

Funding for Teaching Programs example, while USDA allocated $406 million for
research and $439 million for extension, the allocation
Although the original driving force for the land-grant
for higher education grants was only $18 million (of
system was the need for higher education for the
which more than half was for institutional capacity
majority of the U.S. population, financial support for
building in both teaching and research at 1890s)
the teaching component of the land-grant mission has
(National Research Council, 1996).
since been largely relegated to States. The Federal
Government’s financial support to the land-grant sys- The Second Morrill Act did not endow the 1890 insti-
tem has been centered on funding research and dis- tutions with the public land and other resources appro-
seminating research-based knowledge through exten- priated for the 1862s, and they were not compensated
sion (National Research Council, 1996). In 1995, for

Economic Research Service/USDA Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 ❖ 9
in subsequent legislation (National Research Council, (1) formula-based grants administered through USDA,
1996). For example, the Morrill-Nelson grants, which
provided $50,000 annually to each State for land-grant (2) special grants earmarked by Congress for specific
academic programs, were not accessible to 1890s for institutions and administered by USDA,
many years, and when they became available the
amounts were minimal. Compensatory efforts have (3) competitive grants awarded and administered by
been made through strengthening and capacity build- USDA, and
ing programs initiated in 1985, which were designed
(4) cooperative agreements with USDA and other
to enable the 1890s to meet the needs of an expanding
Federal agencies.
student population (National Research Council, 1996).
While Federal sources constitute only 30 percent of
Currently, the majority of funds for undergraduate and
the 1862 land-grant universities’ total research funds,
graduate instruction at the 1890s come from State gov-
Federal sources make up 87 percent of total funds for
ernments. However, Federal support is still significant
research at the 1890s (table 6). Federal formula funds
for funding scholarships and enhancing the capacity of
constitute approximately 90 percent of the CSREES-
1890 institutions to develop and improve teaching pro-
administered research funds for 1890s, while the cor-
grams. The major Federal support programs for 1890
responding figure for 1862s is 44 percent. Non-Federal
land-grant teaching are administered by the USDA
sources contribute 19.5 percent of total research funds
Cooperative State Research, Education, and Extension
at 1862s; private sources of research funds at 1890s
Service Office of Higher Education. Federal support
are very small (1 percent). State funding is the single
for teaching programs includes:
largest source of research funding for 1862s, account-
(1) The teaching components of 1890 Institution ing for 47 percent of funds, while States’ contribution
Capacity Building Teaching and Research Grants to research at 1890s is only 12 percent. State funding
Program, of 1890s’ research will likely increase with passage of
the Agricultural Research, Extension, and Education
(2) The USDA/1890 National Scholars Program, a Reform Act of 1998, which requires States to match
cooperative education program, and 50 percent of Federal formula funds for 1890s’
research and extension.
(3) Higher Education Multicultural Scholars Program.
Over the last four decades, the types of Federal fund-
The Capacity Building Grants Program that began in ing to land-grant universities have changed, with a
1990 has become the most significant of these three decreasing share of research dollars awarded through
Federal sources of funds. USDA awarded 429 formula funds and an increasing share awarded
Capacity Building Grants between 1990 and 1999, of through competitive grants and special grant funds
which 242 (56 percent) were for teaching projects.3 (Huffman and Just, 1999). Moreover, the funding
The teaching grants awarded $41.6 million to strength- bases for agricultural research have been shifting
en teaching capacity at 1890s (Hood, 1999). USDA recently away from public sources and toward private.
investments made through these programs help to These developments put 1890s at a comparative disad-
advance the quality of teaching programs in food, agri- vantage to 1862s, since most 1890 universities are
culture, and natural resources at 1890 universities. comparatively small and more dependent on Federal
formula funding than the 1862s. Thus, even small
Funding for Research Programs changes in USDA funding for research play a much
Research at land-grant colleges and universities is sup- larger role in the 1890s than in 1862s.
ported by funds from Federal, State, and private
sources. Federal support for research at land-grant col-
leges is primarily financed through four funding mech-
anisms (National Research Council, 1995):

3During the same period, 44 percent of USDA's Capacity Building

Grants were for research projects.

10 ❖ Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 Economic Research Service/USDA
Table 6—Source of funds for research to 1890 and 1862 institutions, fiscal year 2000
Funding mechanism 1890s 1862s
$1,000 $1,000

Formula funding 28,311 (75.8%) 186,915 (7.9%)

Special research grants 714 (1.9%) 58,727 (2.5%)
Competitive research grants 0 (0%) 40,877 (1.7%)
Other CSREES 2,812 (7.5%) 34,472 (5.7%)
Other USDA 89 (.2%) 75,022 (3.2%)
Other Federal 512 (1.4%) 285,379 (12%)
State appropriations 4,548 (12.2%) 1,117,819 (47.4%)
Other non-Federal 370 (1%) 458,912 (19.5%)

Total 37,356 (100%) 2,258,123 (100%)

Source: USDA, Cooperative State Research, Education, and Extension Service.

Funding for Extension Programs Cooperative Extension Service) to 1890 extension pro-
grams. Funds were provided under Smith-Lever sec-
The 1890 extension service programs are funded
tion 3(d) from 1972 to 1978, and increased from $4
almost entirely by USDA through the Cooperative
million in 1972 to $9.3 in 1978. The 1977 Food and
Extension Service. The Smith-Lever Act established
Agriculture Act eliminated the role of the Extension
the Cooperative Extension Service as a joint effort of
Service in distributing funds to the 1890 Extension
USDA and the land-grant institution in each State, and
program in those States with two land-grant colleges
also provided for county-level participation. The 1890s
(Godfrey and Franklin, 1992); since 1979, extension
were directed to work in cooperation with their 1862
formula funds have been made under section 1444 of
counterparts to extend the benefits of the Cooperative
P.L. 95-113. These formula funds increased from
Extension System to their States’ Black populations
$10.1 million in 1979 to $26.8 million in 2000 (see
(USDA, 1988). This arrangement lasted until the mid-
table 2). Extension facility construction grants were
1960s, when charges of discrimination brought a
also provided for extension facilities from 1988 to
reevaluation of the dual program.
1992 and for extension and research facilities since
Beginning in 1972, Congress provided direct funding 1991 (USDA, 1994).
(as well as funding to be administered by each State’s

Economic Research Service/USDA Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 ❖ 11
 Identifying Measurable have played a significant role in training students from
various ethnic minorities in agricultural and food sci-
Administrative Indicators
ences, engineering, mathematics, and other disciplines.
It has been argued that through all three of their mis- In 1993 about 20 percent of minority students pursuing
sion programs—teaching, research, and extension— bachelor’s degrees in agriculture and natural resources
the 1890s build human capital in traditionally under- specializations were enrolled at 1890 colleges
served areas (see, for example, Williams, 1973; (National Research Council, 1995). Moreover in 1994,
Brazziel, 1983; Parks, 1985; Williams and Williamson, 16 percent of all African-American students enrolled
1985; Allen, 1990; Davis, 1992; Evans et al.; and in U.S. institutions of higher education were enrolled
Polopolus, 1990). Yet, little measurable empirical evi- at 1890s.
dence exists of the private or social benefits generated
The 1890 land-grant institutions play a significant role
by teaching, research, or extension activities of the
in educating minority students for professions in agri-
1890 universities. There has been no systematic effort
culture and related fields. During the 1970s, approxi-
to measure the economic contribution of the 1890s’
mately 80 percent of the students enrolled in agriculture
programs to human capital development or to improv-
at the 1890 institutions were non-White, compared with
ing the well-being of the population they serve.
only 5 percent at 1862 institutions (Hytche, 1992). In
In the parlance of some management systems, out- the 1980s, the 1890 institutions accounted for about 35
comes are benefits that accrue to individuals and soci- percent of all minorities enrolled in agriculture-related
ety when people participate in a program. They may
take the form of enhanced learning (knowledge, per- Table 7—Administrative outcomes and indicators
for teaching
ceptions/attitudes, or skills); increased income; or a
Outcomes Indicators
change in conditions, such as improved health, from
the adoption of a desired behavior or practice. Matriculation Numbers and proportions of:
Indicators are measurable events accepted as evidence ·students who return to complete
their degree program
that an outcome has been achieved.
·students graduating with different
levels of degrees
Contributions to social welfare made by educational
institutions are difficult to measure. For example, a
·ethnic minorities graduated

college or university may create an atmosphere that is Employment Income earned by graduates
especially welcoming to minority students, thereby Numbers and proportions of:
encouraging some students to attend college who oth- ··
graduates employed in USDA
graduates employed in agriculture
erwise might not (LeBlanc, 1996). Usual indicators of
educational output such as test scores may not capture ·
graduates employed in their field

such contributions. Similarly, not all R&D contribu-

tions may be captured by standard measures of Professional/ Numbers and proportions of
leadership graduates:
research output such as patent or publication counts.
Indicators that do not take these types of contributions
achievement · pursuing graduate or professional
studies
into account may underestimate total benefits. · with advanced degrees in leadership
roles
Teaching Outcomes and Indicators · active in their professional and/or
community organizations
In 1993-94, the Historically Black Colleges and
Universities (HBCUs) awarded 28 percent of bache-
· indicating education key to contribu-
tions as citizens and or in their
professions
lor’s, 15 percent of master’s, 9 percent of doctorate,
and 16 percent of first-professional degrees to Blacks Personal Number and proportion of graduates
satisfaction who:
in the United States (National Center for Education
Statistics, 1996). The 1890s institutions are a subset of ·return to the same institution at a
higher program level
the HBCUs and play an important role in educating
African-Americans.
··
are active in alumni associations
recruit and/or recommend others to
their alma mater
The 1890 land-grant universities account for a third of ·
contribute financially to alma mater

all African-American students enrolled in HBCUs and Source: Essel, Clarke, and Tegene, 1999.

12 ❖ Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 Economic Research Service/USDA
fields and graduated about 65 percent of African- Table 8—1890s research expenditures by ESCOP1
American recipients of bachelor’s degrees in agricultur- Program areas, 2000
al sciences. The 1890 institutions continued to be a sig- Research area $1,000 Percent
nificant source of minority graduates in the 1990s. Environment and natural resources 6,171 16.5
Plant systems 8,975 24.0
The schools and colleges of agriculture, forestry, and
Animal systems 9,241 24.7
renewable natural resources at these institutions offer
Food and non-food products 2,129 5.7
both undergraduate and graduate degree programs.
Minority students in baccalaureate programs at these Engineering 846 2.3
schools and colleges specialize in a wide range of Economics, markets, and policy 2,544 6.8
areas, although many seem to find a few areas, such as Human nutrition and food safety 4,901 13.1
animal sciences and agricultural business and manage- Family and community systems 1,628 4.4
ment, most attractive (see appendix tables B6-B7). Research support, administration 920 2.5

The specific outcomes of teaching programs at the Total 37,355 100

schools/colleges of agriculture in the 1890 land-grant 1 Experiment Station Committee on Organization and Policy.
institutions depend on the particular goals and objec- Sources: Cooperative State Research, Education, and Extension Service
tives established for these programs by the institutions, (CSREES). Data based on USDA's Current Research Information
System (CRIS).
by State and Federal agencies funding the programs,
and by stakeholders. However, based on the fundamen-
tal objective of the 1890 land-grant teaching pro- institutions in cooperation with Federal, State, and pri-
gram—to prepare students to become productive citi- vate partners. ARD partners with USDA’s Cooperative
zens capable of reaching their full potential—the out- State Research, Education, and Extension Service
comes of USDA-supported 1890 teaching programs in (CSREES) and holds membership in the State
food and agricultural sciences could be measured by Agricultural Experiment Station System (SAES) of the
the number of graduates who obtain degrees in food National Association of State Universities and Land-
and agricultural sciences; gain admission to Grant Colleges (NASULGC). It also cooperates with
graduate/professional school; secure employment; other regional, national, and international committees,
attain career/professional goals; and become leaders in organizations, and groups in developing programs and
their professions, communities, country, and the world. legislation affecting the food and agricultural research
needs of the Nation.
Each of these outcomes can be measured by a number
of indicators. For example, matriculation can be mea- Research priorities at 1890s are determined by Federal,
sured by the number and percent of students graduated State, and local priorities and needs, which are heavily
with different levels of degrees and/or the number and influenced by stakeholders. However, the fundamental
percent of African-American and other ethnic minori- food and agricultural research mission of the 1890s is to
ties graduated. Outcomes are often multi-dimensional ensure a safe, affordable, and ample food and fiber sup-
and not easily represented by a single indicator. Table ply; to promote a sustainable environment; to conserve
7 provides some examples of potential outcomes and natural resources; and to contribute to the improvement
indicators that might be used to measure the perfor- in the socioeconomic well-being and overall quality of
mance of 1890 institutions in the area of teaching. life of diverse rural and urban populations (Mayberry,
Most outcomes and indicators should be compared to 1976; and Mayes, 1992).
graduates from similar programs in other institutions
and graduates from 1862 and non-land-grant institu- The 1890s have developed research programs in ani-
tions adjusted for regional and social differences. mal science, crop science, natural resources, human
health and nutrition, and rural development. In addi-
Research Outcomes and Indicators tion, research at the 1890s has addressed the problems
Agricultural research at the 1890 institutions is facili- and concerns pertinent to small-scale farmers and lim-
tated by the Association of Research Directors, Inc. ited-resource families, including, for example, research
(ARD), a federation of the research directors from the on minor livestock species, such as goats and rabbits,
seventeen 1890 land-grant universities that provides that are particularly suited to small-farm operations.
coordination of research initiatives among member

Economic Research Service/USDA Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 ❖ 13
Current primary research areas at 1890 institutions information on profitable use of feed grains, pasture,
include economically competitive and sustainable forage, and other crop byproducts for producing minor
small-scale production systems; improved plant, ani- livestock species particularly suitable for small farm-
mal, and aquaculture production systems; crop diversi- ers; improved quality of animal production systems
ty and alternative crops and marketing strategies for and animal food products; and knowledge of new and
farmers; food safety and quality; family and communi- cost-effective techniques for plant breeding, sustained
ty development; protection and improvement of water productivity of plants, and improved plant manage-
quality and quantity; environmental pollution and ment systems.
waste management, value-added plant and animal
products, and improved nutrition and health (Mayes, Traditional indicators of research outcomes depend
1992). heavily on publication and/or patent counts. Common
indicators of research outcomes include the number of
Apportioning credit for observed changes to research products/patents produced; number of journal articles,
conducted at specific institutions, or even to research books, and monographs published; number of research
in general, is difficult. For example, how might one reports, staff papers, or working papers written; num-
partition the value of an increase in the agricultural ber of conference papers presented; number of copy-
productivity in the United States among contributions right notices filed; and/or number of refereed journal
from 1862 land-grants, 1890 land-grants, and other articles identified in citation indexes.
public and private research institutions? Particularly
for the 1890s, because research and development Extension Outcomes and Indicators
expenditures are relatively small portions of total agri- The Cooperative Extension Service is an outreach
cultural R&D expenditures in the United States, esti- and education program designed to enable people to
mating a statistical relationship between agricultural improve their lives through scientific knowledge adapt-
productivity or other advancements in the agricultural ed and applied to their everyday issues and needs
sector and funding in these institutions becomes nearly (National Research Council, 1995: p. 68). The impetus
impossible. for the Federal extension initiative stemmed from con-
cerns in the early 1900s that knowledge and technolo-
It may be difficult to estimate the contribution of gies being developed at the State agricultural experi-
1890s to changes like overall productivity growth, but ment stations and USDA were not reaching those
each institution’s output or research outcome can be farmers and citizens not enrolled in the land-grant col-
identified. In one approach, the Experiment Station leges. Congress addressed these concerns with the pas-
Committee on Organization and Policy (ESCOP) has sage of the Smith-Lever Act of 1914 that established
designed 9 general areas to identify research out- the Extension Service as a cooperative effort among
comes: environment and natural resources; plant sys- Federal, State, and county governments on a nation-
tems; animal systems; food and non-food products; wide basis.
engineering; economics, markets, and policy; human
nutrition and food safety; family and community sys- The 1890 universities began their outreach program for
tems; and research support and administration. Since Black farmers shortly after the universities’ establish-
1890s spend about 65 percent of their research funds ment. The “farmers conference” in 1892 and the “short
in the areas of animal/plant systems and environmental course in Agriculture” offered by Tuskegee (and soon
and natural resources research (table 8), outcomes in followed by other 1890s) are considered to be the
these research areas are particularly important. beginning of Black agricultural extension work
(Neyland, 1990, p. 149-151). As early as 1906,
Within these broad categories of research, potential Tuskegee’s “movable school” or “traveling school”
outcomes include new understanding of efficient use taught Black farmers better ways of farming by using
of land and water resources with environmentally field demonstrations, a model soon adapted for use
friendly farming practices; new information on healthy across the Cooperative Extension System. Today, the
and optimal nutritional requirements of individuals and 1890 extension system is part of a nationwide
knowledge of enhanced food safety measures; new Cooperative Extension System that encompasses the
and/or improved byproducts; new knowledge of effec- land-grant universities, the U.S. Department of
tive strategies for strengthening communities and Agriculture, and county governments.
improving quality of life for rural communities; new

14 ❖ Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 Economic Research Service/USDA
Table 9—Extension outcomes and indicators
Outcomes Indicators

Farmers make decisions that enhance profitability. Number of informal small-farm profitability and sustainability edu-
cation programs conducted, number of producers and landowners
participating in non-formal educational program, and number of
producers adopting recommended farm business management
practices such as strategic planning and risk management.

Farmers adopt production practices that enhance income, Number of producers adopting production practices and alterna-
environmental quality, and their communities. tives that are profitable and promote quality of soil, water, and air
resources; number of farmers adopting new and value-added
enterprises; number of farmers adopting cost-saving practices;
and number of farmers developing and implementing marketing
plans. Dollar value of new and value-added products produced,
savings from adopting improved management practices, and
additional income from farming.

Households have increased knowledge of family resource Number of childcare providers receiving training, number/percent
management and childcare providers improve the quality of participating childcare providers adopting recommended quality
of care given to children. childcare practices, number of participants starting new childcare
business as a result of training, number of people participating in
household resources/financial management program, and dollars
saved by adopting the new resource/financial management
strategies.

Farmers are more knowledgeable about government, Number of participants in the community leadership programs,
education, strategic planning, and their communities. number of participants who serve (attend) and/or plan to serve
(attend) community activities such as school board, governing
board, or planning commission board in their community, number
of participants who are appointed to leadership roles at all levels
of the community, and number of participants who report
increased knowledge and understanding of the economic
development plan for their community.

Source: Essel, Clarke, and Tegene, 1999.

The 1890 institutions have targeted their extension resource and environmental management, and nutri-
programs toward limited-resource and underserved tion, diet and health.
populations. Historically, these audiences lacked
access to other non-formal educational opportunities The customer needs of each State determine the areas
because they were hard to reach; had distinct problems of each land-grant institution’s educational priorities,
associated with their poverty, minority status, and scale but many 1890 institutions offer extension programs in
of farming; and presented little or no economic incen- most of these areas. For each area, institutions develop
tives to private sector suppliers. In 1998, the program plans that identify goals and objectives,
Association of Extension Administrators (AEA) pub- including activities needed to achieve them. Ideally,
lished a strategic plan to guide extension work at the for each objective, the program plan defines outcomes
1890 institutions in the 21st century. In this plan, the desired, indicators for measuring these outcomes, and
AEA identified the special mission of the 1890 evaluation methods that may be used to gather infor-
Extension System as assisting “diverse audiences, with mation.
emphasis on those who have limited social and eco-
nomic resources, to improve their access to positive Extension programs help a target audience find solu-
opportunities through outreach education.” tions to a defined problem in a systematic and sequen-
tial educational process. They create opportunities for
Extension programs commonly focus on seven base people or communities with a problem to progress
areas (National Research Council, 1995): agricultural from awareness to increased knowledge and skills to
competitiveness and profitability, community resource adoption of a desired behavior. To meet the education-
and economic development, family development and al mandates of stakeholders and funding sources,
resource management, 4-H and youth development, extension programs must establish goals and objectives
leadership and volunteer development, natural that stimulate outcomes which ultimately result in a

Economic Research Service/USDA Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 ❖ 15
desired personal and societal change. These outcomes cies, clients, and stakeholders, Extension is challenged
may include improved quality of life for individuals to develop meaningful outcomes and measures for its
and families, more productive farms and forests, and programs that allow for adequate determination of
enhanced environmental conditions in urban and rural their effectiveness and returns on public investments
communities. (National Research Council, 1996).

Determining the value of extension programs will Valuing the economic benefits of 1890 extension pro-
require the collection of quantitative and qualitative grams will require collecting data on inputs, activities,
data on outcomes and indicators. Rennekamp, Warren, outputs, and outcomes of all the different outreach and
and Maurer (1996) have listed seven levels of data that educational programs offered by the 17 institutions
can be collected about outcomes of an Extension pro- that comprise the 1890 Extension System. Rennekamp,
gram, in order of their usefulness in documenting out- Warren, and Maurer (1996) provide a detailed descrip-
comes. These levels are changes in social, economic, tion of some of the methods and approaches that can
or environmental conditions; things participants are be used in gathering such data.
doing differently as a result of the program; changes in
knowledge, opinions, skills, or aspirations; partici- Because quantitative data are easier and more amenable
pants’ feeling about the program; number of people to mathematical analysis, program planners and evalua-
who participated in the program; what was done and tors tend to prefer to obtain such data for measuring
the interactions of the participant with the educator; educational impacts. For example, the number of peo-
and resources expended for the program. The highest ple affected by an extension program is usually used as
levels reflect changes in participant behavior and a gauge for the program’s effectiveness. Unfortunately,
social impacts. However, as noted by the Greater this method often leaves out qualitative impact infor-
Kalamazoo Evaluation Project (Spring 1998), measur- mation. In addition, it may not necessarily provide a
ing behavioral changes of program participants poses good guide in determining which projects are having
serious challenges. At best, any such behavioral out- the largest impacts. A program that affects 100 people
come measurements are only approximations. significantly (however significance is measured) may
be a better use of funds than a program that affects
In the past, the Extension Service has been effective in 1,000 people only slightly. Just focusing on quantitative
documenting and reporting program inputs, activities, data and modeling may fail to capture the greatest out-
and outputs (number of people participating, number comes that extension programs can have on people’s
of workshops and meetings held, number of education- quality of life. Although qualitative measures are
al materials distributed, number of hours of volunteer imprecise and difficult to evaluate economically, valu-
service delivered, etc.), but have been less effective in ing the return on investment in 1890 extension pro-
documenting outcomes. With increased demands for grams must inevitably include a qualitative component.
accountability from governments, other funding agen-

16 ❖ Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 Economic Research Service/USDA
 Exploring Conceptual improved measures of physical capital as well as to
interest in technological change and in human capital
Frameworks
and its measurement (Becker, 1980).4
Attempts to evaluate the impacts of these institutions
The incentive for acquiring human capital through a
may consider various types of outputs, but the educa-
college education is based largely on technological and
tional mission has probably generated the greatest
other changes in the economy. If technology and the
returns. Because education is embedded in the individ-
economy as a whole were to remain stagnant, incen-
uals who receive it, economists often refer to educa-
tives for higher education would be minimal.
tional investments as generating human capital
Education increases society’s ability to adjust to rami-
(Becker, 1980). Human capital, like other forms of
fications of technological and economic change by
capital, provides a service that pays off over a period
helping people figure out how to allocate resources
of time. And, it is the product of deliberate investment
better given the new environment (Huffman, 1977;
decisions, both public and private. In the next sections,
Schultz, 1975; and Welch, 1970). If they allocate bet-
we focus on the role of the 1890s in developing human
ter, they are more productive and efficient, and
capital. We discuss how economists conceptualize the
incomes rise. Students expect to capture the value of
link between resources that flow into human capital
their productivity gain in the form of higher wages. Of
development and benefits that flow out. We also indi-
course, education can also help people make better
cate what might be involved in estimating the net eco-
consumption decisions and improve their productivity
nomic benefits from human capital development at the
in home production, child rearing, and other ways that
1890 institutions.
benefit the individual and society (Michael, 1972).
Human Capital Theory
4Much of the conceptual work on the value of human capital was
The concept of human capital has been around for cen-
contributed to or stimulated by economists T. W. Schultz and Gary
turies. However, about 40 years ago, the study of
Becker (Schultz, 1961, 1971, 1975; Becker, 1962, 1980, among
human capital increased, in part due to the realization many other papers and books). A large literature of empirical stud-
that growth in physical capital explains a relatively ies has followed (e.g., Hansen, 1963; Hanoch, 1967; Welch, 1973,
small part of income growth in most countries. The 1975; Cain, 1976; Huffman, 1977; Psacharopoulos, 1981;
search for better explanations of income growth led to McMahon, 1991; Cohn and Hughes, 1994).

Table 10—Percent of White college-graduate earnings earned by Black, Latino,

and Asian-American college graduates
Category 1939 1949 1959 1969 1973 1979 1982 1989
Percent

Male:
Black 59 72 67 68 90 82 81 70
Latino 61 66 78 76 97 88 90 83
Asian-American 73 85 85 110 -- 91 -- 100

Female:
Black 67 89 71 101 97 95 92 94
Latino -- -- -- 99 102 94 97 98
Asian-American -- -- -- 104 -- 110 -- 106

Source: Carnoy, 1995.

Table 11—Private rates of return to college education

Category 1939 1949 1959 1969 1973 1979 1982 1987
Percent

White male 10.9 9.1 10.4 10.8 8.6 9.5 9.8 11.0
Black male 5.7 5.8 6.1 10.2 9.8 8.6 8.5 12.7
Latino male 7.2 7.1 8.6 7.9 10.2 8.7 11.7 12.2

Source: Carnoy, 1995.

Economic Research Service/USDA Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 ❖ 17
And as an economy grows, the value of human time The rates of return to non-White male graduates were
increases, increasing the value of human capital and in the 6-10-percent range just before U.S. entry into
stimulating demand for it in many forms. World War II, depending on location, compared to 10-
12 percent for white males. These lower rates of return
Demand for less discrimination in access to schooling prevailed despite lower forgone earnings (income stu-
and higher education may also increase with economic dents might have earned had they been working rather
growth. Discrimination in education and in the work- than attending college) of Blacks while they attended
place reduces the returns to education, both for the college. Even at 6-10 percent, however, college was a
individual and for society, and retards economic good investment for Blacks. By the mid-1980s, it
growth. Evidence indicates that returns to schooling appears that racial differences in rates of return to a
during the first half of this century were significantly college education had essentially disappeared (Carnoy,
less for Blacks than for Whites and were also less for 1995 and table 11). Although earnings after college
Blacks than they are today (Becker, 1980; Welch, remained lower for Blacks than for Whites, the costs
1973; and Carnoy, 1995), although Black male college of attending college remained lower also, especially
graduates still earn significantly less than White, the forgone earnings.
Latino, or Asian-American graduates (see table 10).
Measuring the Returns to Human Capital
Similarly, historical discrimination in education and
How rates of return to college education are calculated
extension service available to Black farmers hindered
is relevant for estimating impacts of the 1890 institu-
their productivity. Huffman (1981), using 1964 data
tions. When economists refer to an expenditure on
from southern States, showed that Black farmers in the
higher education as an investment in human capital,
U.S. South obtained lower quality and fewer years of
they are implying it is possible to measure a return on
schooling than White farmers, and that the extension
this investment. The return is based on the future
services provided to Black farmers were fewer and of
income streams generated by the capital, compared to
lower quality than those provided to White farmers. He
the costs of acquiring it. Cost-benefit techniques can
estimated an econometric model that identified the
be used to make this comparison, taking into account
quantity and quality of Black farmers’ education and
that costs and benefits occur during different time peri-
extension services as the primary source of their lower
ods. The typical pattern of earnings for college versus
productivity relative to White farmers. Huffman (1981)
high school graduates is illustrated in figure 4. College
concluded that this lower productivity contributed to
graduates receive earnings lower than high school
the exodus of Black farmers from southern agriculture
graduates while in college, but receive higher wages
at double the rate of White farmers during the 1950s
when they are older.
and 1960s, when agricultural technology was changing
rapidly. Investment in human capital provides net returns to the
individual and to society. Individuals benefit from
Many empirical studies provide estimates of economic
increased lifetime earnings. Earnings after taxes, with
rates of return to schooling, including higher educa-
and without the education, can be compared with
tion, and some disaggregate those rates by gender and
direct and indirect costs of the education borne by the
race (e.g., Psacharopoulos, 1994; Constantine, 1995;
individual. Direct costs include tuition, fees, books,
and Carnoy, 1995). The rates vary over time with the
supplies, unusual transportation and lodging costs, and
health of the economy and as structural changes
other expenses, while indirect costs include primarily
increased job access for minorities and women.
the income forgone while going to school. As indicat-
Estimated rates of return to a college education have
ed in figure 4, even if a student works while in school,
averaged from 9 to 15 percent with a dip in the 1970s
his or her earnings are usually less than if he or she
(Cohn and Hughes, 1994; Carnoy, 1995; and table 10).
were not in school.
Rates of return to a college education for the African-
American population were lower than those for the
5Card and Krueger (1992a) found that people educated in States
White population for several years (see table 10); job
discrimination (Becker, 1980) and lower quality of with high-quality schools (as measured by student-teacher ratio,
average term length, and the relative pay of teachers) exhibit high-
education (Card and Krueger, 1992b) may have led to
er returns to additional years of schooling. In another paper, Card
lower earnings of Black graduates.5 and Krueger (1992b) found that improvements in the quality of
education Blacks receive explain 20 percent of the narrowing of
the Black-White earnings gap during 1960-80.

18 ❖ Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 Economic Research Service/USDA
Figure 4 A human capital approach that focuses on earnings
Earnings profiles for college versus high gaps between 1890 graduates and high school gradu-
school graduates ates is likely to be more fruitful. However, several
Earnings issues must be addressed in any meaningful attempt to
apply such an approach to measuring human capital
benefits of the 1890s. First, the models used must be
College structured to disentangle the effects of inherent ability,
other personal characteristics, and job location from
the effects of an 1890 education, an issue of concern
for any attempt to estimate the value of higher educa-
High school tion. A statistical analysis that accounts for the various
factors influencing earnings gaps could handle this
problem.

A second issue more specific to the 1890s is the need to

Age capture how the returns have changed over time as the
degree of discrimination in labor markets has changed.
Source: Norton and Tegene (1999). As noted earlier, several studies have found lower
returns to education of African-Americans for earlier
Society benefits from the increased productivity of the periods when labor markets were more severely seg-
worker. Therefore, society typically bears some of the mented into Black and White than they are today
costs of the investment through subsidized tuition or (Becker, 1980; Hanock, 1967; and Welch, 1973),
other means. By accounting for these costs, and by although forgone income while going to college was
measuring earnings differentials before taxes as well as also low for Blacks in earlier periods. Unless a student
forgone earnings (before taxes) while in college, an prepared for a profession such as medicine or law and
estimate of the social rate of return can be obtained subsequently served the African-American community,
through social cost-benefit analysis. However, some of wage differentials due to a college education were small
the benefits to society remain outside this analysis, simply because many jobs that brought returns to
leaving the estimated returns likely an underestimate greater education were not available to African-
of total gains from education. Americans, especially in the South. This problem might
be handled by measuring only the value of an 1890 edu-
An alternative way to measure the social rate of return cation over a more recent period, during which discrimi-
to human capital investments related to education is to nation in the labor market is less pronounced.
estimate a model that relates productivity changes in a
country (or to a particular sector such as agriculture) to A third issue, again more specific to the 1890s, is
changes in land, labor, capital, and education.6 Edu- whether their particular contribution to education is
cation might be measured by a variable such as years creating a welcoming atmosphere for minority students
of schooling. Such models have been estimated both in that encourages students to attend college who other-
the United States and in several other countries (see wise might not. If this contribution is significant, the
Welch, 1970, for a classic paper related to U.S. agri- analyst must decide whether the relevant comparison
culture). The difficulty in using this approach for esti- for measuring the benefits of an 1890 degree is to
mating returns to investments in the 1890 universities, other colleges attended by Black students, or to bene-
however, is that their educational programs have rela- fits of a high school diploma only. Because continued
tively small impacts on the economy or on the agricul- availability of 1890s may be most important for their
tural sector (compared to the impacts of higher educa- ability to increase the total number of minority stu-
tion as a whole), making their impacts hard to detect dents attending college, the most appropriate compari-
empirically. son may be between an 1890 degree and a high school
diploma.

A fourth issue concerns the availability of data sources

6 Likewise, education can be included as a variable in a model that for estimating a human capital model for the 1890
assesses its impact on household productivity or consumption effi- institutions. Data sets are available that contain infor-
ciency (see, for example, Michael, 1972). mation on earnings, level of education, personal char-

Economic Research Service/USDA Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 ❖ 19
acteristics, and other variables needed for estimating institution or group of institutions is more difficult to
the overall value of higher education as a form of identify.
human capital. While these data sets are disaggregated
by race, they usually do not include the college attend- Production function estimation relies on statistical esti-
ed. It may be necessary to survey 1890 graduates in mation of a production function that contains expendi-
order to complete an empirical evaluation. The issue ture on research and/or extension as explanatory vari-
will then be whether to survey a comparison group or able(s). With this method, productivity growth is relat-
whether to rely on census data to create that group. ed to past investment in R&E and other variables, and
an attempt is made to estimate econometrically the
This combination of issues has implications for the part of total output or total factor productivity growth
human capital models and data needed to effectively that can be attributed to research and extension.
evaluate the 1890s as human capital “producers.” More Because R&E at 1890s is a relatively small portion of
details of an empirical model that might be used to total agricultural R&E in the United States, it is diffi-
accomplish this task are presented in appendix A. cult to estimate a statistical relationship between, for
example, agricultural productivity change and funding
Returns to Research and Extension at these institutions. Of the $6.3 billion expenditure on
While education is the primary activity of the 1890 agricultural research by Federal and State governments
land-grant universities, these institutions undertake sig- and the private sector in 1992 (Fuglie et al., 1996),
nificant research and extension (R&E) activities with expenditure on the1890s’ R&E was less than 1 percent
potentially measurable impacts. Economic benefits of ($51.1 million) (USDA, 1994).
investments in research and extension are often esti-
mated by using one of two approaches: economic sur- Given the limitations of the two standard approaches, a
plus analysis and production function estimation (see better way to estimate economic impacts of R&E at
for example, Fuglie et al., 1996 and Alston et al., the1890s is to conduct case studies. The case studies
1998). would conduct a benefit-cost analysis of a sampling of
programs or projects. The sample could either be ran-
Economic surplus analysis incorporates estimated dom or based on a selection of particularly successful
demand and supply elasticities and changes in produc- programs or projects. Focusing on successful projects
tivity that can be attributed to R&E to estimate the often makes sense when it appears that a few projects
benefit of research and extension to consumers and have impacts so substantial that they more than pay for
producers (consumers’ and producers’ surplus). To the funds invested in the entire program. Market data
obtain an estimate of rate of return, the changes in and expert opinion on the effects of projects on yield
consumer and producer benefits are compared to the or costs, adoption of results, and other factors can be
cost of the research. This approach is most often used used in the benefit-cost analysis. Adequately capturing
for individual innovations or individual commodities non-market benefits, such as to the environment and
for which the productivity change can be easily attrib- health, can be difficult, particularly for limited-
uted to specific research funding (Fuglie et al., 1996). resource farmers, but estimates are possible.
The contribution to productivity change of a specific

20 ❖ Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 Economic Research Service/USDA
 Next Steps for the Partnership mate goal of improving the effectiveness of these
investments. This report focused on the core questions
The 1890 land-grant universities have developed teach- of how 1890 institutions have been funded, what are
ing, research, and extension programs that reach his- the best indicators by which to measure program out-
torically underserved students and communities. comes, and how to develop conceptual models for esti-
Research and extension programs address issues of mating future returns to investments. Further research
special interest to minority rural communities and will continue work on identifying the most reliable
small-scale and limited-resource farm operators, as measures of outcomes and on assessing the adaptabili-
well as a range of more traditional topics reflecting the ty of available conceptual models to the particular
expertise and interests of the 1890 faculty and gradu- parameters of the 1890 programs. Research will also
ate students. begin on case studies of individual 1890 programs to
explore methods of assessing program outcomes using
The collaboration reflected in this report explored the a combination of measurable, quantitative indicators
best ways to measure returns to investments in teach- and qualitative data gathered through interviews and
ing, research, and extension programs, with the ulti- observation.

Economic Research Service/USDA Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 ❖ 21
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24 ❖ Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 Economic Research Service/USDA
 Appendix A —Human Capital Model

The human capital model that may be used will have tion 1 using the inverse of Mill’s ratio. After this esti-
components that (1) capture the time patterns of earn- mation, in order to take account of the differences
ings and costs, with and without college, to take into between the X vectors of the two groups in one time
account that earnings that come earlier are worth more period, as well as differences in the X vectors over
than earnings that come later, and (2) account for fac- time, the means of the attributes of the college gradu-
tors unrelated to a college degree that may be causing ates for one time period are substituted for the X vec-
part of the earnings differential, such as age, experi- tor for all years and for both college and high school
ence, location, gender, and race. The data will need to graduates. Let
indicate not only whether individuals graduated from
college or not and their race, but also whether the col- B = a + ∑d i X (3)
lege was an 1890.
where a is taken from the estimates of equations 2.
The following is a slightly modified version of the Then substitute B into equations 2.
human capital approach employed by Cohn and
Hughes (1994). Several steps are involved to control lnY = B + b1A + b2A2 + c1T + c2T2 (4)
for earnings differences for high school versus college
Because age and tenure are correlated, it is necessary
graduates that are related to non-college sources such
to estimate the age-related values of tenure. A regres-
as native ability, location, and personal characteristics.
sion of age on tenure (T = f(A)) is estimated, and the
The first step is to account for differences in the col-
estimated f(A) is substituted for T in equation 4. After
lege and high school groups using a self-selection
this substitution, lnY is a function of A only. Age earn-
technique such as the Heckman (1979) procedure.
ings profiles are then calculated on the basis of equa-
Probability of college attendance is estimated using a
tion 4 for each age. Next, the adjusted earnings (E) are
probit equation of the form:
obtained using equation 5 as follows:
CD=f(Z) (1)
E = [Exp(lnY)] * H (5)
where CD is a zero-one variable that indicates whether
where H is the number of hours worked per week
or not the individual has a college degree, and Z is a
(which might be assumed to be 2,000 for 40 hours per
vector of variables that is expected to influence college
week for 50 weeks, or it could be based on actual data
attendance (such as education of the father and mother,
for high school and college graduates). The next step
one- versus two-parent family, number of siblings,
is to use ordinary least squares to derive age earnings
location, rural/small town/big city, race, and economic
profiles separately for college and high school gradu-
conditions at the time of college decision). The equa-
ates using an equation such as:
tion is estimated with maximum likelihood (ML). The
following earnings equation is then estimated, first for E = f + g A + h A2 + v (6)
high school graduates and then for college graduates:
where f, g, and h are partial regression coefficients and
ln Y = a + b1A + b2A2 + c1T + c2T2 + v is a random error term. The two age-earnings pro-
∑diXi + e (2) files provide estimates of Ect for college graduates and
Eht for high school graduates, to be used in estimating
where Y represents hourly earnings, A = age, T =
a rate of return to education. The following equation is
tenure in employment, and X is a vector of relevant
used to estimate that rate of return:
labor-market and personal characteristics such as mari-
tal status, location, race, and sex. The coefficients a, b, ∑ t = 1...n (Ect - Eht - Ct)/(1 + r)t = 0 (7)
c, and d are scalars and e is a random error term. The
X vector also includes a “selectivity” variable, LAMB- where Ct are the direct costs of college education at
DA, which is derived from the ML estimation of equa- age t and r is the internal rate of return.

Economic Research Service/USDA Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 ❖ 25
 Appendix B —Tables

Appendix table B1—Student enrollment in 1890 land-grant universities, fall 1990-98

1990 1992 1994 1998

Alabama A&M University 4,886 5,068 5,543 5,128

Alcorn State University 2,863 2,919 2,742 2,847
University of Arkansas-Pine Bluff 3,672 3,709 3,823 3,069
Delaware State College 2,606 2,936 3,381 3,320
Florida A&M University 8,344 9,487 10,084 11,956
Fort Valley State College 2,158 2,537 2,823 2,847
Kentucky State University 2,506 2,541 2,563 2,299
Langston University 2,792 3,315 3,408 4,012
Lincoln University 3,619 4,030 3,512 3,214
University of Maryland-Eastern Shore 2,067 2,430 2,925 3,305
North Carolina State College 6,595 7,723 8,136 7,354
Prairie View A&M University 4,990 5,660 5,849 5,995
South Carolina State College 4,822 5,071 4,693 4,657
Southern University 8,941 10,403 9,904 9,567
Tennessee State University 7,393 7,591 8,180 8,750
Tuskegee University 3,510 3,598 3,322 3,090
Virginia State University 3,988 4,435 4,007 4,272

Total 75,752 83,453 84,895 85,682

Sources: National Center for Education Statistics (NCES) and 1890 Land-Grant System, Strategic Plan.

Appendix table B2—Student enrollment in 1890 land-grant universities, 1998-99

Undergraduate Graduate Total

Alabama A&M University 3,903 1,225 5,128

Alcorn State University 2,533 314 2,847
University of Arkansas-Pine Bluff 3,004 65 3,069
Delaware State College 3,057 263 3,320
Florida A&M University 10,711 1,245 11,956
Fort Valley State College 2,407 440 2,847
Kentucky State University 2,203 96 2,299
Langston University 3,969 43 4,012
Lincoln University 2,959 255 3,214
University of Maryland-Eastern Shore 2,984 321 3,305
North Carolina State College 6,367 987 7,354
Prairie View A&M University 4,738 1,257 5,995
South Carolina State College 3,875 782 4,657
Southern University 8,023 1,544 9,567
Tennessee State University 7,021 1,729 8,750
Tuskegee University 2,932 158 3,090
Virginia State University 3,341 931 4,272

Total 74,027 11,655 85,682

Source: 1890 Land-Grant System, Strategic Plan.

26 ❖ Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 Economic Research Service/USDA
Appendix table B3—Number of students graduated by 1890 land-grant universities, fall and spring 1997-98
Undergraduate Graduate Total

Alabama A&M University 544 375 919

Alcorn State University 523 212 735
University of Arkansas-Pine Bluff 371 9 380
Delaware State College 409 101 510
Florida A&M University 1,450 821 2,271
Fort Valley State College 557 289 846
Kentucky State University 328 25 353
Langston University 558 9 567
Lincoln University 456 92 548
University of Maryland-Eastern Shore 415 76 491
North Carolina State College 2,075 2,215 4,290
Prairie View A&M University 720 357 1,077
South Carolina State College 561 256 817
Southern University 948 274 1,222
Tennessee State University 822 260 1,082
Tuskegee University 416 101 517
Virginia State University 421 126 547

Total 11,574 5,598 17,172

Source: 1890 Land-Grant System, Strategic Plan.

Appendix table B4—Summary of minority baccalaureate enrollment in colleges of agriculture, renewable

natural resources and forestry classified by academic area in 1890 land-grant institutions, 1993-96
1993 1994 1995 1996
Academic area (n=13) (n=12) (n=13) (n=15)

General Agriculture 95 185 176 180

Animal Sciences 422 384 390 508
Plant Sciences 106 55 87 69
Horticultural Sciences 12 23 20 55
Soil Sciences 33 34 41 55
Agricultural Business & Management 561 549 426 489
Education, Comm., Social Sci. 92 61 94 85
Natural Resources 98 73 79 124
Forest Sciences 131 109 89 153
Ag. Eng./Mechanization 0 24 21 30
Food Sciences/Human Nutrition 42 38 45 94
Related Biological/Physical Sci. 0 0 173 184
Total 1,592 1,535 1,641 2,026
Nonagricultural programs 147 300 640 732

Total (all programs) 1,739 1,835 2,281 2,758

Note: n denotes the number of institutions reporting for the indicated year.
Source: Food and Agricultural Education Information System (FAEIS).

Economic Research Service/USDA Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 ❖ 27
Appendix table B5—Master’s student enrollment in 1890 land-grant colleges of agriculture, renewable nat-
ural resources, and forestry classified by academic area, ethnicity, and citizenship, fall 1998
African- Native Foreign Master’s
Academic area American Hispanic American Caucasian students total

General Agriculture 0 0 0 0 0 0
Animal Sciences 6 0 0 1 1 8
Plant Sciences 18 1 0 4 3 26
Horticultural Sciences 0 0 0 0 0 0
Soil Sciences 12 0 0 0 0 12
Agricultural Business & Mgmt. 23 0 1 5 10 39
Educ., Comm., Social Sci. 15 0 0 17 0 32
Natural Resources 20 0 1 33 3 57
Forest Sciences 0 0 0 0 0 0
Ag. Eng. Mechanization 0 0 0 0 0 0
Food Sciences/Human Nutrition 13 0 0 3 7 23
Related Biological/Physical Sci. 13 0 0 1 3 17
Total 120 1 2 64 27 214
Nonagricultural Programs 27 0 0 2 2 31
Total (all programs) 147 1 2 66 29 245

Note: Data represent only 8 of the 1890 land-grant institutions.

Source: Food and Agricultural Education Information System (FAEIS).

28 ❖ Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 Economic Research Service/USDA
Economic Research Service/USDA

Appendix table B6—Fall 1998 graduate and undergraduate enrollment in 1890 land-grant colleges of agriculture, renewable natural
resources, and forestry classified by level, gender, and academic area
Enrollment report by program area and level

Forestry Natural Resources Agricultural Sciences Non-Ag Programs Total Fall enrollment
Region
& Institution 2 year Bac. Mas. Ph.D. 2 year Bac. Mas. Ph.D. 2 year Bac. Mas. Ph.D. 2 year Bac. Mas. Ph.D. 2 year Bac. Mas. Ph.D.

North Central:
Lincoln University 0 0 0 0 0 0 0 0 0 125 0 0 0 3 0 0 0 128 0 0
Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 ❖ 29

North Eastern:
Delaware State
University 0 0 0 0 0 31 0 0 0 86 0 0 0 25 0 0 0 142 0 0
U. of Maryland-
Eastern Shore 0 0 0 0 0 50 10 17 0 84 21 0 0 125 0 0 0 259 61 17

Southern:
Alabama A&M
University 0 53 0 0 0 57 0 0 0 139 69 33 0 124 31 0 0 373 100 33
U of Arkansas
at Pine Bluff 0 0 0 0 0 23 2 0 0 89 5 0 0 121 0 0 10 233 7 0
South Carolina
State University 0 0 0 0 0 0 0 0 0 59 10 0 0 0 0 0 0 59 10 0
Fort Valley
State University 0 0 0 0 0 0 0 0 10 127 0 0 0 0 0 0 0 127 0 0
Tuskegee
University 0 7 0 0 0 19 15 0 0 495 52 0 0 0 0 0 0 531 67 0

Total (All reporting

institutions) 0 60 0 0 0 180 27 17 10 1,204 157 33 0 398 31 0 10 1,852 245 50

Source: Food and Agricultural Education Information System (FAEIS).

Appendix table B7—Fall 1998 graduate and undergraduate enrollment in 1890 land-grant colleges of
agriculture, renewable natural resources, and forestry classified by level, gender, and academic area
Baccalaureate Masters Doctoral

Academic area Male Female Total Male Female Total Male Female Total

General Agriculture 157 99 256 0 0 0 0 0 0

Animal Science 103 194 297 6 20 8 0 0 0
Plant Sciences 11 13 24 17 9 26 11 2 13
Horticultural Sciences 10 1 11 0 0 0 0 0 0
Soil Sciences 13 2 15 7 5 12 8 2 10
Agricultural Business
& Mgmt. 119 66 185 22 17 39 0 0 0
Education Comm.
& Social Sci. 31 12 43 29 3 32 0 0 0
Natural Resources 97 83 180 22 35 57 12 5 17
Forest Sciences 47 13 60 0 0 0 0 0 0
Agricultural Engineering/
Mechanization 14 0 14 0 0 0 0 0 0
Food Science/Human
Nutrition 8 40 48 14 0 23 3 7 10
Related Biological/
Physical Sci. 77 234 311 11 0 17 0 0 0
Total 687 757 1,444 128 89 214 34 16 50
Nonagricultural programs 66 342 408 20 11 31 0 0 0
Total (all areas) 753 1,099 1852 148 100 245 34 16 50

Source: Food and Agriculture Education Information System (FAEIS).

30 ❖ Investing in People: Assessing the Economic Benefits of 1890 Institutions / MP-1583 Economic Research Service/USDA