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NRCS Economic Tools, Resources and Concepts Economic Principles March 2004 Maine.

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Presentation on theme: "NRCS Economic Tools, Resources and Concepts Economic Principles March 2004 Maine."— Presentation transcript:

1 NRCS Economic Tools, Resources and Concepts Economic Principles March 2004 Maine

2 NRCS Economic Guidelines and References eFOTG NRCS Economics Handbooks NRCS Economists National Planning Procedures Handbook NEDC Economics of Conservation Planning Course Web sites

3 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

4 Statewide Practice Cost List

5 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 560

6 Program Cost Lists

7 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

8 Program Cost List Update Process Assess changes needed Collect actual cost data Analyze data Make proposed changes – set AM, FR, AC Field Office review Regional Office approval (for EQIP) Upload into CST

9 FY 2004 Update descriptive statisticsCollected actual cost data from CCC- 1245s to develop descriptive statistics about statewide costs Mean, median, standard deviation Indexed to 2003 dollars


11 512 - Pasture and Hayland Planting Costs per Acre Dollars per Acre Percent of Jobs 0.34.16 $351$484$218

12 Cost-sharing Methods

13 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.

14 FOTG Economics References

15 eFOTG Section I Economics References Agricultural statistics Economic, demographic, and census data Machinery costs and custom rates Livestock economics NRCS economics handbooks Crop budgets Irrigation investment costs

16 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

17 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

18 NRCS Economics Resources on the web NRCS Economics and Analysis Site Social Sciences Institute Alternative Enterprises Publication Natural Resource Economics

19 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

20 Economic Principles Summary (cont.) You have help Broad generalizations difficult to make (problems are site-specific) other decision-making processesThere are other decision-making processes (political, bureaucratic, etc.) – economics is just one of many

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