“…MANY authors have used discounted cash flow methods to assess the value of livestock improvement programmes, and to compare alternative breeding schemes (Soller, Bar-Anan and Pasternak, 1966;Hill, 1971;Hinks, 1971;James, 1972;Petersen, Christensen, Andersen and Ovesen, 1974;Brascamp, 1975;Cunningham and Ryan, 1975;Everett, 1975) but there has been little discussion of the appropriate discount rate to use. With the rates commonly used (8 to 15%) the value of genetic gains are substantially discounted, especially in the large farm animals with long generation intervals.…”