300_10_2.pdf
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NB_300_10_2 Wetlands Reserve Program (WRP) Easement Compensation Procedures
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| 300_10_3.pdf | ||
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| RFP_RI Market Analysis_2010_REVISED.pdf | ||
| RFP_RI Market Analysis_2010.pdf |
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NB_300_10_2, Wetlands Reserve Program (WRP) Easement Compensation Procedures
National Bulletin: 300-10-2 Date:
November 6, Subject:
LTP - Wetlands Reserve Program (WRP) Easement Compensation Procedures
Action Required By: January 4, 2010
Purpose. To provide additional guidance for determining compensation for easements enrolled (obligated) in fiscal year (FY) 2010.
Expiration Date. September 30, 2010
Background. The Food, Conservation and Energy Act of 2008 (Public Law 110-234) changed the procedures for establishing WRP easement compensation. These new easement compensation procedures offer NRCS an important opportunity to reduce burdens on the landowner, reduce NRCS technical assistance costs, and increase enrollment efficiency.
Explanation. In order to ensure this efficient method of determining easement compensation can be continued, it is vitally important that NRCS ensure that WRP easements are acquired at the lowest possible price that is fair and equitable to the landowner. In addition, the implementation of the new easement compensation process must be well documented, completely transparent, and able to withstand close scrutiny.
There are three parts to the easement compensation process.
(1) The market value reflects the unencumbered value of the land.
(2) The Geographic Area Rate Cap (GARC) reflects the value the State Conservationist (with the advice of the State Technical Committee) determines to be fair compensation for the value of the easement.
(3) The landowner offer is a voluntary component of the easement compensation process. If the landowner chooses to make a voluntary offer, it must be in writing.
The determination of market value, either through appraisals or areawide market wide analysis or survey must be for a specific geographic area. There must be a corresponding GARC for the same area. Since NRCS is only acquiring a portion of the land rights, the GARC must always be lower than the market value.
The following actions must be taken:
All States should base their easement compensation procedure on land-use type or productivity group.
States are discouraged from having only one or two market analyses and GARC per State unless land values are consistent across the State.
States may have a combination of areawide market analyses and appraisals. However, a
State should not have an areawide market analysis and an appraisal within the same geographic area. A State may determine that a market analysis is defensible in one part of the State, but appraisals are needed in another part. When appraisals are used, GARCs will be set as a percentage of the full fee fair market value.
All States are to submit their FY 2010 easement compensation values on the attached spreadsheet.
State easement compensation procedures will be evaluated based on the following criteria:
(1) Was there a logical, defensible, well-documented process?
(2) Were the results consistent with neighboring areas or are there explainable differences?
(3) Was there a separation of duties between the development of the market analysis and the development of the GARC?
(4) Was the market value of the land greater than the GARC?
(5) Was the process reviewed by the State technical committee?
(6) Were the results certified by the State Conservationist?
States must submit their FY 2010 easement compensation values by January 1, 2010. States cannot make offers in FY 2010 until their compensation values have been approved by the Director, EPD.
Contact. If you have questions, contact the National WRP Manager, EPD, at (202) 720-9482.
/s/ Andree DuVarney for
LINCOLN E. BURTON
Acting Deputy Chief for Programs
Attachment
National Bulletins Title 300 Land Treatment Programs
NB_300_10_2, November 20091/22/2010 Page 1 / 2
NB_300_10_2, Wetlands Reserve Program (WRP) Easement Compensation Procedures
National Bulletin: 300-10-2 Date:
November 6, Subject:
LTP - Wetlands Reserve Program (WRP) Easement Compensation Procedures
Action Required By: January 4, 2010
Purpose. To provide additional guidance for determining compensation for easements enrolled (obligated) in fiscal year (FY) 2010.
Expiration Date. September 30, 2010
Background. The Food, Conservation and Energy Act of 2008 (Public Law 110-234) changed the procedures for establishing WRP easement compensation. These new easement compensation procedures offer NRCS an important opportunity to reduce burdens on the landowner, reduce NRCS technical assistance costs, and increase enrollment efficiency.
Explanation. In order to ensure this efficient method of determining easement compensation can be continued, it is vitally important that NRCS ensure that WRP easements are acquired at the lowest possible price that is fair and equitable to the landowner. In addition, the implementation of the new easement compensation process must be well documented, completely transparent, and able to withstand close scrutiny.
There are three parts to the easement compensation process.
(1) The market value reflects the unencumbered value of the land.
(2) The Geographic Area Rate Cap (GARC) reflects the value the State Conservationist (with the advice of the State Technical Committee) determines to be fair compensation for the value of the easement.
(3) The landowner offer is a voluntary component of the easement compensation process. If the landowner chooses to make a voluntary offer, it must be in writing.
The determination of market value, either through appraisals or areawide market wide analysis or survey must be for a specific geographic area. There must be a corresponding GARC for the same area. Since NRCS is only acquiring a portion of the land rights, the GARC must always be lower than the market value.
The following actions must be taken:
All States should base their easement compensation procedure on land-use type or productivity group.
States are discouraged from having only one or two market analyses and GARC per State unless land values are consistent across the State.
States may have a combination of areawide market analyses and appraisals. However, a
State should not have an areawide market analysis and an appraisal within the same geographic area. A State may determine that a market analysis is defensible in one part of the State, but appraisals are needed in another part. When appraisals are used, GARCs will be set as a percentage of the full fee fair market value.
All States are to submit their FY 2010 easement compensation values on the attached spreadsheet.
State easement compensation procedures will be evaluated based on the following criteria:
(1) Was there a logical, defensible, well-documented process?
(2) Were the results consistent with neighboring areas or are there explainable differences?
(3) Was there a separation of duties between the development of the market analysis and the development of the GARC?
(4) Was the market value of the land greater than the GARC?
(5) Was the process reviewed by the State technical committee?
(6) Were the results certified by the State Conservationist?
States must submit their FY 2010 easement compensation values by January 1, 2010. States cannot make offers in FY 2010 until their compensation values have been approved by the Director, EPD.
Contact. If you have questions, contact the National WRP Manager, EPD, at (202) 720-9482.
/s/ Andree DuVarney for
LINCOLN E. BURTON
Acting Deputy Chief for Programs
Attachment
National Bulletins Title 300 Land Treatment Programs
NB_300_10_2, November 20091/22/2010 Page 2 / 2 http://policy.nrcs.usda.gov//25831.wba
NB_300_10_2
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