DescriptionThis research utilizes economic surplus model and cost-benefit analysis to investigate the justifiability and profitability of drought tolerant (DT) rice research investments by Rockefeller Foundation together with Chinese Government. The research focuses on a sample of 160 rice farmers in Guangxi and Zhejiang who were instructed to plant DT rice. Then another 144 amongst them planted both DT rice and Non-DT rice in the same plot. The impacts of DT rice on yield, irrigation, and farmer’s income are evaluated using both nonparametric and regression analyses. Results show that DT rice variety significantly increases the yield while decreasing the irrigation. This allows farmers to minimize cost and maximize their income. The research investment has paid off and consumers benefit more than producers from development of drought-tolerant rice variety.