The value of information as applied to the Landsat Follow-on benefit-cost analysis

An econometric model was run to compare the current forecasting system with a hypothetical (Landsat Follow-on) space-based system. The baseline current system was a hybrid of USDA SRS domestic forecasts and the best known foreign data. The space-based system improved upon the present Landsat by the higher spatial resolution capability of the thematic mapper. This satellite system is a major improvement for foreign forecasts but no better than SRS for domestic forecasts. The benefit analysis was concentrated on the use of Landsat Follow-on to forecast world wheat production. Results showed that it was possible to quantify the value of satellite information and that there are significant benefits in more timely and accurate crop condition information.