Abstract
Cost-Benefit Analysis of the Virginia Expanded Food and
Nutrition Education Program (EFNEP)
Radhika Rajgopal
(ABSTRACT)
Each year approximately 7,500 low-income Virginia families
are enrolled in the Expanded Food and Nutrition Education
Program (EFNEP), administered through the Virginia
Cooperative Extension (VCE). Chronic disease and health
conditions cost society an estimated $250 billion each year
in medical charges and lost productivity. It has been
assumed that the numerous diet and food-related changes
made by EFNEP participants will lead to a reduction in the
risk of chronic disease among homemakers, and perhaps, other
family members. Thus, the improved diets and behaviors
resulting from EFNEP participation may result in substantial
future savings in healthcare costs among participants.
This study explores the possibility of potential economic
benefits for the Virginia EFNEP participants.
In 1996, the Virginia Cooperative Extension was awarded a
grant from the Cooperative State, Research, Education, and
Extension Service, United States Department of Agriculture
(CSREES, USDA) to conduct a cost-benefit study of EFNEP in
Virginia. Though computation of the cost-benefit ratio for
the Virginia adult EFNEP includes both direct and indirect
benefits, this study addressed only the assessment of the
direct tangible benefits based on the savings from economic
costs of avoided diseases. Existing EFNEP data for the
1996 fiscal year was used to identify optimal nutritional
behaviors that can delay or prevent the onset of certain
chronic diseases and health conditions. The economic costs
of diseases were identified from scientific literature and
translated as potential benefits. The administration costs
of EFNEP were also compiled.
The total direct tangible benefit for the diseases and
conditions identified was estimated to be $17,770,722.
Along with the indirect tangible benefits ($321,462),
the total tangible benefits for the Virginia EFNEP was
calculated to be $18,092,184. The direct tangible costs
associated with the Virginia EFNEP in 1996 was $1,922,204.
The benefit-cost ratio for the Virginia EFNEP for the 1996
fiscal year for the subset of the population practicing
the optimal nutritional behaviors is calculated at
$9.41/$1.00 (a $9.41 return for every $1 invested in EFNEP
in Virginia). Also, a benefit of $2.45 to $1.00 was
calculated when only 25% of those participants practicing
optimal nutritional behaviors were assumed retain these
behaviors through life. For a program of the magnitude of
EFNEP, these results are very gratifying.
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