Table 2.3.10-1 — Summary of Crop Benefits — Continued 



(Farm Budget Analysis Method) 



a Annual value at the given year' 



b Annunlized at percent discount rate- 



Table 2.3.10-2 — Intensification Benefits 

 (Land Value Analysis Method) 



Item 



Without Plan 



Value of agricultural land . 

 With Plan 



Value of agricultural land . 



INTENSIFICATION BENEFIT. 



Current 

 Year 



Annuali- 

 zed, 



a Annualized at percent discount rate- 



Section IV— NED Benefit Evaluation 

 Procedures: Urban Flood Damage 



2.4.1 introduction. 



This chapter presents the procedure for measur- 

 ing the beneficial contributions to national econom- 

 ic development (NED) associated with the urban 

 flood hazard reduction features of water resource 

 plans and projects. 



2.4.2 Conceptual basis. 



(a) General. Benefits from plans for reducing 

 flood hazards accrue primarily through the reduc- 

 tion in actual or potential damages associated with 

 land use. 



(b) Benefit categories. While there is only one 

 benefit standard, there are three benefit categories, 

 reflecting three different responses to a flood 

 hazard reduction plan. 



(1) Inundation reduction benefit. If floodplain use 

 Is the same with and without the plan, the benefit is 

 the increased net income generated by that use. If 



an activity is removed from the floodplain, this 

 benefit is realized only to the extent that removal of 

 the activity increases the net income of other activi- 

 ties in the economy. 



(2) Intensification benefit. If the type of floodplain 

 use is unchanged but the method of operation is 

 modified because of the plan, the benefit is the in- 

 creased net income generated by the floodplain ac- 

 tivity. 



(3) Location benefit. If an activity is added to the 

 floodplain because of a plan, the benefit is the dif- 

 ference between aggregate net incomes (including 

 economic rent) in the economically affected area 

 with and without the plan. 



(c) Types of flood damage. Flood damages are 

 classified as physical damages or losses, income 

 losses, and emergency costs. Each activity affected 

 by a flood experiences losses in one or more of 

 these classes. 



(1) Phiysical damages. Physical damages include 

 damages to or total loss of buildings or parts of 

 buildings; loss of contents, including furnishings, 

 equipment, decorations, raw materials, materials in 

 process, and completed products; loss of roads, 

 sewers, bridges, power lines, etc. 



(2) Income loss. Loss of wages or net profits to 

 business over and above physical flood damages 

 usually results from a disruption of normal activities. 

 Estimates of this loss must be derived from specific 

 independent economic data for the interests and 

 properties affected. Prevention of income loss re- 

 sults in a contribution to national economic devel- 

 opment only to the extent that such loss cannot be 

 compensated for by postponement of an activity or 

 transfer of the activity to other establishments. 



(3) Emergency costs. Emergency costs include 

 those expenses resulting from a flood that would 

 not otherwise be incurred, such as the costs of 



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