in the evaluation when realization of these benefits 

 is dependent upon installation of the project. The 

 costs associated with these improvements in tech- 

 nology should be accounted for in the analysis. 

 Changes in yields, both with and without the pro- 

 ject, should be projected consistently with the water 

 management and production practices accounted 

 for in the production cost analysis. 



(e) Livestock production. In geographically isolat- 

 ed areas increased livestock production may 

 depend on installation of the water resources pro- 

 ject. Where this can be demonstrated, net income 

 from additional livestock production may be includ- 

 ed as a benefit. The test for dependency is whether 

 the livestock feeds can economically be transport- 

 ed into or out of the area. Benefits cannot exceed 

 the delivered cost of the livestock feed if it were 

 purchased for use in the project area. Such pur- 

 chase prices would automatically include the costs 

 of transporting the feeds into the area. 



(f) Comparable lands. Comparable lands are 

 lands that have climate, aspect, slope, soil proper- 

 ties and water conditions similar to those of a given 

 category of lands benefiting from a plan. 



(g) Land values. The market value of lands 

 method for estimating the economic benefits of al- 

 ternative plans requires the involvement of qualified 

 land appraisers with local experience. Use of this 

 procedure is appropriate when: 



(1) lands to be affected by the proposed alterna- 

 tive plan are comparable to lands elsewhere which 

 can be appraised; 



(2) water resources conditions on comparable 

 lands are similar to those to be provided on lands 

 affected by an alternative plan, and they can be 

 identified and evaluated; 



(3) current market data are used to determine the 

 value of capital improvements and other factors 

 when making adjustments for these factors on 

 comparable lands; and 



(4) the estimated value of lands to be affected by 

 the plan is not changed by speculation that Federal 

 action is anticipated. 



2.3.4 Planning setting. 



(a) The without-project condition, including con- 

 servation measures, is the condition expected to 

 exist in the absence of an alternative plan. 



(b) The with-project condition is the condition ex- 

 pected to exist with each alternative plan under 

 consideration. 



(c) Agricultural income and production costs 

 should be determined for various conditions or 



levels of land and water quantity and/or quality 

 use. (Include other resources associated with 

 changes in land and water quantity and/or quality.) 

 The level of use to be evaluated initially is the with- 

 out-plan condition. Other levels of use to be evalu- 

 ated will depend on the number of alternative plans 

 selected for analysis. 



2.3.5 Evaluation procedure: Crops 



This procedure is for the evaluation of benefits to 

 crop production that would accrue from an alterna- 

 tive plan. Steps in this procedure are summarized 

 in Figure 2.3.5. 



(a) Step 1. Identify land use and cropping pat- 

 terns with and without a plan. This information is 

 generally developed for segments of the plan area 

 with significantly different characteristics. Collect 

 appropriate data about the current and historic 

 cropping patterns and yields in the project area. 

 When appropriate, collect similar data on other 

 areas with comparable soils to determine condi- 

 tions expected with alternative plans. Analyze 

 trends and expected changes for without-project 

 conditions. Project future cropping patterns and 

 yields under without-plan conditions. Include the ef- 

 fects of conservation and structural and nonstruc- 

 tural measures expected under existing programs. 

 Project future cropping patterns and yields for each 

 alternative plan. For analytical purposes, separate 

 land in the project area into two categories: lands 

 on which the cropping pattern is the same with and 

 without the plan; and lands on which there would 

 be a change in cropping pattern with the plan. To 

 estimate crop production benefits on lands where 

 there would be a change in cropping pattern, go to 

 Step 3. To estimate crop production benefits on 

 lands where there would not be a change in crop- 

 ping pattern, proceed with Step 2. 



(b) Step 2. Determine damage reduction benefit 

 For land on which the cropping pattern would not 

 change, determine the change in net income with 

 and without a plan. This is the damage reduction 

 benefit. Income increases may result from in- 

 creased crop yields and decreased production 

 costs. They are measured as reduced damage to 

 crops from excessive soil moisture, water inunda- 

 tion, drought and erosion, and reduced costs asso- 

 ciated with using water and land resources for the 

 production of crops. 



(i) Estimate reduced damage to crops from ex- 

 cessive soil moisture on the basis of the change in 

 frequency and duration of excessive soil moisture. 

 Estimate reduced damage to crops from water in- 

 undation on the basis of the change in frequency, 

 depth, and duration of inundation. Estimate reduced 



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