Sorghum, Sorghum bicolor (L.) Moench, is important to the economies of Texas and the U.S. Sorghum midge, Stenodiplosis sorghicola (Coquillett), attacks flowering sorghum, causing substantial loss of grain every year. Sorghum midge-resistant genotypes are available for use in breeding programs to develop agronomically superior sorghum hybrids. Estimated yield loss caused by sorghum midge varied between 94.2 and 890.8 and 12.9 and 188.8 kg/ha if sorghum midgesusceptible and resistant hybrids, respectively, were grown. Yield saved by using a resistant hybrid was 48.1 (45.3 kg/ha) to 96.7% (702.0 kg/ha). Benefits accrued during a 25-year period were 66.7, 99.9, and 319.8 million (in 1984 constant dollar) at 1, 5, and 15% compounding/discounting rates, respectively. The corresponding accruable costs were $4.3, 6.7, and 23.4 million. Net present value was positive and cost-benefit ratio was less than one, indicating investment in developing a sorghum midge-resistant hybrid was profitable. Depending on the interest rate, a dollar invested in research and development of a sorghum midge-resistant hybrid would generate $13.6 to 15.7.