AWMA_SOW.pdf

SCOPE OF WORK

AREA WIDE MARKET ANALYSIS

for the

Agricultural Conservation Easement Program – Wetland Reserve Easement (ACEP-WRE)

USDA – NRCS

Florida

1. SCOPE

A qualified independent real estate professional must complete an Area Wide Market Analysis (AWMA) or survey (market analysis) for the USDA – Natural Resources Conservation Service (NRCS) to be used in the Agricultural Conservation Easement Program – Wetland Reserve Easement (ACEP-WRE). The Agricultural Conservation Easement Program – Wetland Reserve Easement (ACEP-WRE) is a voluntary program to help farmers and ranchers preserve their agricultural land and restore, protect, and enhance wetlands on eligible lands.

The preferred real estate professional is a State-certified general real property appraiser or obtain a temporary practice permit in the state of Florida where the subject property is located and be in good standing with the licensing authority where the credential was issued, in conformance with title XI of the Financial Institution's Reform, Recovery, and Enforcement Act of 1989 (FIRREA). Appraiser must have demonstrated competency in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP) in conducting appraisals of agricultural properties of the requested type. A copy of the appraiser's State license or practice permit must be provided to the Contracting Officer (CO) at the time of bid submission and be in good standing with the licensing authority within the State Office Florida. Work will not be granted until such time as the CO has reviewed and approved the licensing credentials and the experience and education requirements of the contractor and any subcontractors. If the contractor elects to subcontract the appraisal work, the CO and COR shal l be not i f ied. The subcontractor must also be a State-certified general real property appraiser in Florida where the subject property is located and be in good standing with the licensing authority within the State of Florida. Proof of the subcontractor's qualifications must be supplied at time of bid submission with review from CO and COR. Appraiser and any subcontractor must have demonstrated competency in compliance with USPAP in conducting appraisals of agricultural properties with and without conservation easements of the requested types, as well as analyzing comparable sale and knowledge of agricultural commodity prices and agricultural land values within the State of Florida. In the event the contractor wishes to change personnel or subcontractors, the contractor must submit the same proof of qualifications, licensing, and good standing. Approval must be obtained from the contracting officer prior to the assignment of appraisal work to such individuals.

Failure to obtain such approval may invalidate the award and cause termination of the contract in accordance with the termination provisions of the contract.

The following alternative real estate professionals require National Headquarters (NHQ) approval prior to entering into the contract to provide the area wide market analysis:

a. A college-level professor or researcher of agricultural economics or similar discipline who has specialized expertise in agricultural and rural land values in the area encompassed by the market analysis.

Attachment One - AG-2B46-S-17-0022

b. An individual employed by a national, State, or local agricultural or rural land statistics service whose job responsibilities require expertise and familiarity with agricultural and rural land values in the area encompassed by the market analysis.

c. An individual with knowledge, expertise, and familiarity with agricultural and rural land values in the area encompassed by the market analysis.

2. INFORMATION PROVIDED BY NRCS TO THE REAL ESTATE PROFESSIONAL

a. State map showing the market areas to be analyzed

1. Regions or counties with similar land uses

2. Boundaries of each market area

b. Land uses in each market area requiring opinion of typical market value

1. Identify the land uses typically enrolled in ACEP-WRE.

2. Define what is included in each land use category-be as descriptive as possible to adequately define the land uses to be analyzed.

3. QUALITY OF WORK

The market analysis must be clear, accurate, and complete and must meet NRCS 's intent to determine the fair market value of land typically enrolled in ACEP-WRE. The market analysis must be conducted and reported in compliance with USPAP latest years Edition.

If the real estate professional is not an appraiser, they must provide in the report a description of their qualifications to provide the estimate of market values and certify the values in the report by signing the report.

The professional must select comparable properties adjust value for property differences, and conduct a current analysis of the competitive market.

4. SELECT COMPARABLE PROPERTIES

In selecting comparable properties-

a. Choose comparable sales from the entire area being analyzed that include land uses typically enrolled in ACEP-WRE.

b. Do not include sales far above or far below the average, as any divergence likely has valid reasons.

c. Use comparable sales that are reasonably current, based on sales activity in the market area being analyzed. Use sales no older than 18 months unless the market activity is limited and a longer time period is required. Concurrence by the contracting officer is required before using sales older than 24 months.

d. Use similar property types as much as possible.

e. Ensure comparable sales are in fact arm's length transactions.

f. Provide sufficient data on the comparable sales to support the conclusions of value.

5. ADJUST VALUE FOR PROPERTY DIFFERENCES

When comparing similar properties, there are always differences. Adjust comparable properties for differences:

a. Add or subtract value for differences in size.

b. Add or subtract value for feature differences, such as soil quality, water supply, etc.

c. Add or subtract value for location differences, including access.

Look at financing differences that could have influenced sale price. Seller financing can sometimes result in a higher price paid for a property than its true value.

6. CONDUCT A CURRENT ANALYSIS OF THE COMPETITIVE MARKET

a. Sold Listings.-Sold listings represent actual comparable sales. Sales data should be within the last 18 months.

b. Active Listings.-Active listings are properties currently for sale. These listings matter only to the extent that they indicate the competition for buyers. They are not indicative of market value. Sellers can ask any price they want for their property, it does not mean the prices are realistic and does not reflect any counter-offers that may occur.

7. MARKET AREA

NRCS is defining the market geographic areas for the AWMA (as shown on the attached map). For this process, the State has been divided in three areas: 1) North Region consists of 21 counties with Taylor and Madison counties along with the Gulf of Mexico forming the westerly boundary, the Atlantic Ocean the easterly boundary, the State of Georgia the north boundary and Volusia, Marion and Citrus counties forming the southerly boundary; 2) Central Region consists of 17 counties with the Gulf of Mexico being the westerly boundary and the Atlantic Ocean the easterly boundary, the north boundary include Hernando, Sumter, Lake and Seminole counties and the southerly includes Lee, Charlotte, DeSoto, Hardee, Polk, Osceola and Brevard; 3) Southern Region consists of 12 counties with the Gulf of Mexico forming the southwesterly boundary along with Highlands, Glades, Hendry, Collier and Monroe counties. The Atlantic Ocean forms the easterly boundary and the north boundary includes Highlands, Okeechobee and Indian River counties.

Note that Northwest Florida is not a part of the Area Wide Market Analysis (AWMA).

Note: I f and where additional or minor areas/markets need to be defined/established, a narrative must be provided to substantiate the finding.

8. OTHER CONSIDERATIONS

General Appraisal Considerations

a. Land Use, Land Quality, Soils and Topography.-The land uses and soil types to be considered must be comparable to land typically enrolled in ACEP-WRE. These are predominately level, low-lying areas of cropland but may also include areas of pastureland and woodland. A map of potentially eligible ACEP areas (based upon soil drainage class, flooding, or both) is provided.

b. Improvements.-Do not include the value of improvements, such as homes, sheds, fences, barns, etc.

c. Levee Protection.-Where significant, separate values must be developed for land behind Federal protection levees.

d. Existing Easement-Do not use sales data from lands under existing easements as comparable sales. I f any are identified, the data should be provided in a separate part of the report.

e. Development Pressure. This is a highly significant feature of the Florida property values and requires thorough investigation and documentation.

f. Highest and Best Use.

9. PRESENTATION OF ANALYSIS

The report must be presented in a neat, easy-to-read format, free of grammatical and clerical mistakes with separate sections for each deliverable. Deliverable Two should represent the state as subdivided in areas that have been created in Deliverable One. The supporting documentation must be presented with sufficient narrative so that the analysis can be reviewed and critiqued.

One component of the deliverable will be a tabular presentation, segregated by geographic area (to be selected), which presents fair market value for each necessary category of land use/type present in each area described.

At a minimum, one representative value for agricultural land and one representative value for nonagricultural land, pastureland, or woodland must be provided for each of the specified market areas.

Provide a description of the social, physical and economic characteristics of the specified market areas. Provide a thorough description of each category that a representative value is provides.

Describe the land uses included in the category.

The report must comply with USPAP Standards.

All market analysis reports submitted to NRCS become the property of the United States and may be used for any legal and proper purpose. Therefore, a condition that limits the distribution of the report is not permitted.

10. DELIVERABLES

The final report and supporting documentation are the deliverables for this assignment. The final report will include a hard copy and a digital copy.

Fair Market Values to be established within each area for the State of Florida: Deliverable One

Land Type/Use Valuation Required

Deliverable Two should include: at a minimum, the fair market value of the following land uses/types should be considered (if found) in selected geographic areas and will be defined in the report (your report will cover all appropriate land uses/types found in each geographic area that is selected by NRCS from alternatives you propose):

• Cropland

Organic/muck soils: both irrigated and non-irrigated, as applicable Mineral soils: both irrigated and non-irrigated as applicable

• Perennial or Long-lived Crops: (grove, vineyard, perennial berries, other)

• Abandoned Citrus: A grove is considered abandoned when the following conditions exist: no production care during the past 2 years, no weed control or grass mowing, livestock present, weather damage, neglected trees that are not economically feasible to maintain, or no commercial harvest during the last 2 seasons (definition provided by Florida Agricultural Statistics Service)

• Pasture

• Improved

Semi-Improved

• Wooded/Forested Land

• Natural Land (other than forested or wetland)

• Wetlands -Functioning (are natural and functioning wetlands adequate categories to cover the range of possibilities)

Note: Sales data is required /or each land use/type chosen in a geographic area. Where there is not enough data to develop a market value, a narrative rationale must be provided to substantiate the finding. Where a market value for additional land use /types (i.e. any use that is substantial in terms of acreage and significantly different in terms of value per acre) need to be established, a narrative must be provided to substantiate the finding. A value will be established for the land use type.

Fair Market Values to be established for Easements Sold in (areas established in deliverable one) the State of Florida: Deliverable Two

The Valuation of Lands Placed in Easement of Various Types is Required

The establishment of a fair market value of lands, once they are placed under easements of various types, is an important component of establishing the Geographic Area Rate Cap (GARC) used by the NRCS in establishing payment rate for the Agricultural Conservation Easement Program – Wetland Reserve Easement (ACEP-WRE) in Florida.

The remainder portion, which the grantor retains, will have significantly different value depending on the rights that the grantor retains with the land. The relative values retained include:

The Agricultural Conservation Easement Program – Wetland Reserve Easement (ACEP-WRE) are for properties to be restored and or protected by the USDA-NRCS under a term use agreement. The ACEP-WRE is a voluntary program to help farmers and ranchers preserve their agricultural land and restore, protect, and enhance wetlands on eligible lands. The ACEP-WRE properties are restored by the USDA-NRCS to functioning wetland status with only grazing and vegetation management;

recreation for the owner; and quiet enjoyment of the owner as the primary retained rights.

Development of other forms of agriculture and commercial infrastructure is prohibited.

It is assumed that the value of eased land will reflect the options available to a new owner and the restrictions a new owner must accept as limits to his or her full bundle of ownership rights. The difference here may be subtle among the rights as listed above and must be established for NRCS's use in a scientifically accurate and statistically defensible manner. Reductions in value related to restrictions placed on ownership will also vary in relation to land capability, pressure to develop, and many other influences. Easements chosen for this deliverable must be segregated to reflect levels of limitation placed upon a new land owner with rationale justifying that value and the relation to NRCS programs listed above.

11. CONFLICT OF INTEREST

An independent, qualified professional will not analyze a property for a spouse, child, partner, or business associate or have a financial interest in the property to be covered by the proposed easement.

12. NONDISCLOSURE

Work performance required by this scope of work will involve access to potentially sensitive information about governmental and landowner issues. All contractor personnel must comply with the terms of AGAR 452.224-70, "Confidentiality of Information," as well as provisions of the Privacy Act of 1974 (5 U.S.C Section 552a). Additionally, the contractor's employees must comply with privacy of personal information relating to Natural Resources Conservation Service programs in accordance with section 1244, title II of the Farm Security and Rural Investment Act of 2002 (Public Law 1078- 171).

13. CIVIL RIGHTS AND PROGRAM DELIVERY

The contractor must ensure that its personnel prohibit discrimination in all aspects of programs and activities related to the contract on the basis of race, color, national origin, sex, religion, age, disability, political beliefs, sexual orientation, or marital or family status.

14. PERFORMANCE TIME

The Market Wide Appraisal Analysis Report is to be completed no later than 30 calendar days after contract award.

15. BASIS OF AWARD

Award will be based on price and price-related factors. Vendors' quotes will include all labor, materials, equipment, travel, and per diem necessary to provide the requested deliverables.

Florida's Wetland Reserve Program (WRP) Market Analysis Areas:

• The North Region consists of 21 counties with Taylor and Madison Counties along with the Gulf of Mexico forming the westerly boundary, the Atlantic Ocean the easterly boundary, the State of Georgia the north boundary and Volusia, Marion and Citrus Counties forming the southerly boundary.

• The Central Region consists of 17 counties with the Gulf of Mexico being the westerly boundary and the Atlantic Ocean the easterly boundary, the north boundary include Hernando, Sumter, Lake and Seminole Counties and the southerly boundary includes Lee, Charlotte, DeSoto, Hardee Polk, Osceola and Brevard.

• The Southern Region consists of 12 counties with the Gulf of Mexico forming the southwesterly boundary along with Highlands, Glades, Hendry, Collier and Monroe Counties. The Atlantic Ocean forms the easterly boundary and the north boundary includes Highlands, Okeechobee and Indian River Counties.

NW FL IS NOT part of

AWMA

North Region Central Region South Region

2. INFORMATION PROVIDED BY NRCS TO THE REAL ESTATE PROFESSIONAL