The purpose of this study was to evaluate the impacts of Peru's research and extension programs on two regions in Peru and assess the implications of those impacts on institutional action by the Agrarian Bank and the Peruvian research and extension service. An LP model was constructed for two regions, Contumaza and Tarapoto, and was run under various levels of risk, alternative credit arrangements, selected price changes, and with and without the newly released varieties. Results from the various scenarios demonstrated that the introduction of new varieties increased net income, labor use, and the demand for credit in both regions. Also, altering the amount of credit available had a much more significant impact on the regions than altering the interest rate. / M.S.