300_10_3.pdf
PDF 123 KB Posted
- Attached to
- Market Analysis
- Solicitation number
- AG-1535-S-10-0006
About this file
NB_300_10_3 Grassland Reserve Program Easement Compensation Procedures for Fiscal Year 2010
View the file
Other files
| File | Type | Posted |
|---|---|---|
| 300_10_2.pdf | ||
| Market Analysis Questions.pdf | ||
| WRP_SOIL_Join.DBF | DBF file | |
| RFP_RI Market Analysis_2010_REVISED.pdf | ||
| RFP_RI Market Analysis_2010.pdf |
On GovTribe
Work with this file
- Download the original file
- Contacts named in this file
- Similar government files
- Ask GovTribe AI about this file
Text version
NB_300_10_3, Grassland Reserve Program Easement Compensation Procedures for Fiscal Year
National Bulletin: 300-10-3 Date:
November 13, 2009
Subject:
LTP - Grassland Reserve Program Easement Compensation Procedures for Fiscal Year 2010
Action Required By: January 15, 2010
Purpose. To provide guidance for determining compensation for the Grassland Reserve Program (GRP) easements enrolled during 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 GRP easement compensation. The law states, “in return for the granting of an easement by an owner under the program, the Secretary shall make easement payments in an amount not to exceed the fair market value of the land less the grazing value of the land encumbered by the easement.”
The Secretary is required to pay as compensation for a GRP easement the lowest of—
A. The fair market value of the land encumbered by the easement, utilizing—
(1) The Uniform Standards of Professional Appraisal Practice (USPAP) or
(2) An area-wide market analysis or survey.
B. The amount corresponding to a geographical area rate cap (GARC).
C. The offer made by the landowner.
Explanation. The fair market value of the land for FY 2010 enrollments will be based on an area-wide market analysis, or an area-wide market survey, or an appraisal. States will obtain the fair market value using one of these methods. The preferred method is for States to contract with a qualified real estate professional for a market analysis or survey of lands likely to be enrolled in GRP. These market analyses are similar to the market analysis a real estate broker might do in order to establish an asking price for a house. When insufficient information exists to conduct an area-wide market analysis, an appraisal will be used to determine fair market value for GRP easement acquisition.
The appropriate GARC will be established by the State Conservationist (STC), in consultation with the State Technical Committee, considering the fair market value and the rights that the United States is acquiring with the GRP easement. The GARC should be lower than the fair market value and should be the primary basis of the GRP easement compensation, unless the landowner is willing to accept a lower amount.
A GRP GARC is to be established for a geographical area in the State that has similar grazing values and similar development pressures. A geographical area can be a single county or multiple counties (not necessarily adjacent to each other). The size (in acres), location, proximity to roads, availability of water, and quality of grassland are items that should be considered is establishing the GRP GARC.
The STC will review proposed geographic areas and associated GRP GARC with the State Technical Committee. The final determination of the number of geographical areas and associated GRP GARC will be made by the STC. The geographical areas and associated GRP GARC must be reviewed annually and made available to the program applicants at the time of application.
The implementation of the GRP easement compensation process must be well documented, completely transparent, and able to withstand close scrutiny. To ensure that the process is able to withstand scrutiny, there must be a separation of duties between those who have the task of contracting for and reviewing the USPAP appraisal or area-wide market analysis or survey and the NRCS staff who have the task of developing the GARC.
To ensure compliance with the statutory provisions regarding easement compensation, States must determine a value for option A and B (described below), and give landowners the opportunity to make an offer for all GRP easements held by the United States.
These GRP compensation values will be determined by three independent means:
A. The fair market value of the land encumbered by the easement will be determined by a licensed real estate appraiser or real estate professional conducting an area-wide market analysis or survey, where sufficient market information exists (see Attachment A), or by a licensed real estate appraiser conducting a USPAP appraisal (see Attachment B).
B. The GARC will be determined by the STC in consultation with the State Technical Committee.
C. The landowner offer must be declared in writing. An offer lower than the GARC may enhance the probability of enrollment.
A sample statement of work that may be used to obtain a market analysis from an independent real estate professional is attached (see Attachment A). There are well-established requirements for conducting a USPAP appraisal (see Attachment B).
GRP easements held by eligible entities through a cooperative agreement will use a USPAP appraisal obtained and paid for by the entity.
NRCS must ensure that GRP easements are acquired at the lowest possible price that is fair and equitable to the landowner. The STC will ensure that GRP GARC is not set at a level that would exclude enrollment of lands with high ecological value.
By January 15, 2010, States should send a summary of their area-wide market analysis or survey or a letter indicating that they will use the USPAP appraisals to the Director, Easement Programs Division (EPD). Additionally, States must send their FY 2010 GARCs to the Director, EPD, for approval before they can be used.
Contact. For further information, contact the National GRP Manager, at (202) 720-0242 or by e-mail at elizabeth.crane@wdc.usda.gov.
/s/ Andree DuVarney for
LINCOLN E. BURTON
Acting Deputy Chief for Programs
Attachment A - Sample Statement of Work Attachment B - Requirement for Conducting a USPAP Appraisal
National Bulletins Title 300 Land Treatment Programs
NB_300_10_3, November 20091/22/2010 Page 1 / 2
NB_300_10_3, Grassland Reserve Program Easement Compensation Procedures for Fiscal Year
National Bulletin: 300-10-3 Date:
November 13, 2009
Subject:
LTP - Grassland Reserve Program Easement Compensation Procedures for Fiscal Year 2010
Action Required By: January 15, 2010
Purpose. To provide guidance for determining compensation for the Grassland Reserve Program (GRP) easements enrolled during 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 GRP easement compensation. The law states, “in return for the granting of an easement by an owner under the program, the Secretary shall make easement payments in an amount not to exceed the fair market value of the land less the grazing value of the land encumbered by the easement.”
The Secretary is required to pay as compensation for a GRP easement the lowest of—
A. The fair market value of the land encumbered by the easement, utilizing—
(1) The Uniform Standards of Professional Appraisal Practice (USPAP) or
(2) An area-wide market analysis or survey.
B. The amount corresponding to a geographical area rate cap (GARC).
C. The offer made by the landowner.
Explanation. The fair market value of the land for FY 2010 enrollments will be based on an area-wide market analysis, or an area-wide market survey, or an appraisal. States will obtain the fair market value using one of these methods. The preferred method is for States to contract with a qualified real estate professional for a market analysis or survey of lands likely to be enrolled in GRP. These market analyses are similar to the market analysis a real estate broker might do in order to establish an asking price for a house. When insufficient information exists to conduct an area-wide market analysis, an appraisal will be used to determine fair market value for GRP easement acquisition.
The appropriate GARC will be established by the State Conservationist (STC), in consultation with the State Technical Committee, considering the fair market value and the rights that the United States is acquiring with the GRP easement. The GARC should be lower than the fair market value and should be the primary basis of the GRP easement compensation, unless the landowner is willing to accept a lower amount.
A GRP GARC is to be established for a geographical area in the State that has similar grazing values and similar development pressures. A geographical area can be a single county or multiple counties (not necessarily adjacent to each other). The size (in acres), location, proximity to roads, availability of water, and quality of grassland are items that should be considered is establishing the GRP GARC.
The STC will review proposed geographic areas and associated GRP GARC with the State Technical Committee. The final determination of the number of geographical areas and associated GRP GARC will be made by the STC. The geographical areas and associated GRP GARC must be reviewed annually and made available to the program applicants at the time of application.
The implementation of the GRP easement compensation process must be well documented, completely transparent, and able to withstand close scrutiny. To ensure that the process is able to withstand scrutiny, there must be a separation of duties between those who have the task of contracting for and reviewing the USPAP appraisal or area-wide market analysis or survey and the NRCS staff who have the task of developing the GARC.
To ensure compliance with the statutory provisions regarding easement compensation, States must determine a value for option A and B (described below), and give landowners the opportunity to make an offer for all GRP easements held by the United States.
These GRP compensation values will be determined by three independent means:
A. The fair market value of the land encumbered by the easement will be determined by a licensed real estate appraiser or real estate professional conducting an area-wide market analysis or survey, where sufficient market information exists (see Attachment A), or by a licensed real estate appraiser conducting a USPAP appraisal (see Attachment B).
B. The GARC will be determined by the STC in consultation with the State Technical Committee.
C. The landowner offer must be declared in writing. An offer lower than the GARC may enhance the probability of enrollment.
A sample statement of work that may be used to obtain a market analysis from an independent real estate professional is attached (see Attachment A). There are well-established requirements for conducting a USPAP appraisal (see Attachment B).
GRP easements held by eligible entities through a cooperative agreement will use a USPAP appraisal obtained and paid for by the entity.
NRCS must ensure that GRP easements are acquired at the lowest possible price that is fair and equitable to the landowner. The STC will ensure that GRP GARC is not set at a level that would exclude enrollment of lands with high ecological value.
By January 15, 2010, States should send a summary of their area-wide market analysis or survey or a letter indicating that they will use the USPAP appraisals to the Director, Easement Programs Division (EPD). Additionally, States must send their FY 2010 GARCs to the Director, EPD, for approval before they can be used.
Contact. For further information, contact the National GRP Manager, at (202) 720-0242 or by e-mail at elizabeth.crane@wdc.usda.gov.
/s/ Andree DuVarney for
LINCOLN E. BURTON
Acting Deputy Chief for Programs
Attachment A - Sample Statement of Work Attachment B - Requirement for Conducting a USPAP Appraisal
National Bulletins Title 300 Land Treatment Programs
NB_300_10_3, November 20091/22/2010 Page 2 / 2 mailto:elizabeth.crane@wdc.usda.gov http://policy.nrcs.usda.gov//25855.wba http://policy.nrcs.usda.gov//25856.wba
NB_300_10_3
File details come from the government source that posted it. Updated .