nrcs economic tools, resources and concepts economic principles march 2004 maine
TRANSCRIPT
NRCS Economic Tools, Resources and Concepts
Economic Principles
March 2004
Maine
NRCS Economic Guidelines and References
• eFOTG • NRCS Economics Handbooks • NRCS Economists • National Planning Procedures
Handbook• NEDC Economics of
Conservation Planning Course• Web sites
eFOTG Economic Resources
• Section I – Economics References and Practice Cost Data
• Section I Cost List - estimate what a practice may actually cost to install, irregardless of program or cost-share
Statewide Practice Cost Listhttp://efotg.nrcs.usda.gov/references/public/ME/StatewidePracticeCostList.xls
eFOTG Statewide Practice Cost List
• Provides estimates of what conservation practices may cost the client to install
• Not for programmatic cost-share purposes
• Planning and informational tool
• Installation costs vary considerablyInstallation costs vary considerably – therefore ranges given for each practice
Program Cost Lists
Program Cost Lists
• Administrative documents that display maximum payments, cost share rates and incentive payments for programs such as EQIP, WHIP, WRP, etc.
• Based on actual costs, program rules and state or local priorities
• NOT IN THE eFOTG – not technical documents
Program Cost List Update Process
Assess changes needed
Collect actual cost data
Analyze data
Make proposed changes – set AM, FR, AC
Field Office reviewRegional Office
approval (for EQIP)
Upload into CST
FY 2004 Update
• Collected actual cost data from CCC-1245s to develop descriptive statisticsdescriptive statistics about statewide costs
• Mean, median, standard deviation
• Indexed to 2003 dollars
512 - Pasture and Hayland Planting Costs per Acre
Dollars per Acre
Pe
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nt o
f Jo
bs
0
.34.34
.16.16
$351 $484$218
Cost-sharing Methods
• http://policy.nrcs.usda.gov/scripts/lpsiis.dll/GM/GM_120_404_d.htm
Cost-Sharing Methods• Average Cost (AC)The client receives a percentage of the average cost,
regardless of what it actually costs them. The average cost is calculated locally beforehand.
• Actual Not To Exceed a Specified Maximum (AM)
The client receives a percentage of the actual cost, as long it does not exceed a maximum rate determined before hand. Usually bills for work are collected.
• Flat Rate (FR)The client receives a predetermined amount, regardless of what it cost
them to perform the practice. The amount may be based on several factors besides the actual cost of the practice.
FOTG Economics References
eFOTG Section I Economics Referenceshttp://efotg.nrcs.usda.gov/treemenuFS.aspx?Fips=23029&MenuName=menuME.zip
• Agricultural statistics
• Economic, demographic, and census data
• Machinery costs and custom rates
• Livestock economics
• NRCS economics handbooks
• Crop budgets
• Irrigation investment costs
Machinery Costs & Custom Rates
• Provides estimates of how much farm operations cost
• Used as a reference in setting incentive payments
• Help estimate how much certain practices might cost to perform (or how much they will save!)
• Estimates in Northeast available from PA and MD NASS
Case Studies – Section V
• Provide a means to share conservation planning results
• Quick and practical means to share information to producers with similar resource conditions
• PARTIAL BUDGETS PROVIDE AN EXCELLENT FORMAT
• Opportunity to show off good projects
NRCS Economics Resources on the web
• NRCS Economics and Analysis Site
http://waterhome.brc.tamus.edu/NRCSdata/• Social Sciences Institute
http://www.ssi.nrcs.usda.gov/• Alternative Enterprises Publication
http://www.nrcs.usda.gov/technical/RESS/altenterprise/toolkit.html
• Natural Resource Economics
http://www.ecosystemvaluation.org/dollar_based.htm
Economic Principles Summary
• Economics is a tool for decision making which can be used at several levels (from Congress to the farm field)
• Get the most for what we have
• Dollar figures aren’t always necessary
• Many tools - pick the one to fit the question you’re asking
Economic Principles Summary (cont.)
• You have help
• Broad generalizations difficult to make (problems are site-specific)
• There are other decision-making other decision-making processesprocesses (political, bureaucratic, etc.) – economics is just one of many