the change in total revenue due to the increased 

 catch minus the change in total cost due to har- 

 vesting the increased catch. 



(3) When the additional fish catch is expected to 

 affect market prices, the change in net income may 

 be estimated in two parts: (i) the cost savings for 

 the existing, or without-plan, catch; and (ii) the 

 change in net income associated with the incre- 

 mental catch. The incremental gross revenue may 

 be estimated by multiplying the change in catch by 

 a price midway between expected without and with- 

 plan prices. The incremental cost of the harvest is 

 then subtracted from the estimated incremental 

 gross revenue. 



(b) Harvest costs expected to vary between the 

 with- and without-plan conditions should be ana- 

 lyzed. 



(1) These include the cost of equipment owner- 

 ship and operation; harvesting materials; labor and 

 management; maintenance operation, and replace- 

 ment. Examples of changed costs include reduced 

 travel time, reduced travel time to safe moorage in 

 storm conditions, reduced costs associated with 

 more efficient or larger boats, reduced time await- 

 ing favorable tides, damage reduction to vessels or 

 facilities, reduced fish spoilage, and reduced main- 

 tenance expenditures. If costs associated with plan 

 measures (e.g., dock costs, harbor facilities, etc.) 

 are included in the plan cost analysis, exclude them 

 from harvest costs. 



(2) Value purchased input at current market 

 prices. Value all labor, whether operator, hired or 

 family at prevailing labor rates. Value management 

 at 10 percent of variable han/est costs and interest 

 at plan discount rates. 



(3) Project current production costs to the select- 

 ed time periods; any changes should reflect only 

 changes in catch or physical conditions. 



2.9.3 Planning setting. 



(a) Without-plan condition. The without-plan con- 

 dition is the most likely condition expected to exist 

 in the future in the absence of any of the alterna- 

 tive plans being considered. Several specific ele- 

 ments are included in the without-plan condition: 



(1) l-labitat condition. The biological resources 

 consist of stocks of living resources subject to 

 commercial fishing, any living resources ecological- 

 ly related to the stocks, the migration pattern and 

 reproduction rate of the stocks, and any physical 

 characteristic of the environment essential to these 

 living resources. 



(2) The institutional setting. Existing and expect- 

 ed local. State, regional, national, and international 

 policies and regulations governing the harvest and 

 sale of the affected species, including the level of 

 access to the fishery are included in the without- 

 plan condition. Other revisions of such policies and 

 rules of the alternative plans being studied. 



(3) Nonstructural measures. The effects of imple- 

 menting reasonably expected nonstructural meas- 

 ures. Nonstructural measures include prevention of 

 pollution to the marine environment or relocation of 

 shore facilities. 



(4) Market conditions. Information on the without 

 plan situation includes the projected number of har- 

 vesters, the percentage of their time and capacity 

 utilized, harvest technology, the markets in which 

 they buy inputs, fishing efforts, probable harvests, 

 harbors and channels utilized, ex-vessel price of 

 harvests, and probable processing and distribution 

 facilities. See 2.9.2. Project market conditions that 

 are consistent with the projected biological and in- 

 stitutional conditions. 



(b) With-plan condition. The with-plan condition is 

 the most likely condition expected to exist in the 

 future with a given alternative. The elements and 

 assumptions included in the without-plan condition 

 are also included in the with-plan condition. Special 

 attention should be given to tracing economic con- 

 ditions related to positive or negative biological im- 

 pacts of the proposed plan. 



2.9.4 Evaluation procedure: General. 



Follow the steps in 2.9.5-2.9.8 to estimate NED 

 benefits to commercial fishing from water or related 

 land resources plans. The level of effort expended 

 on each step depends on the nature of the pro- 

 posed project, the reliability of data, and the degree 

 of refinement needed for plan formulation and eval- 

 uation. (See Figure 2.9.4.) 



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