Agricultural and recreational impacts of the conservation reserve program in rural North Dakota, USA

The Conservation Reserve Program (CRP), created in 1985, provides conservation benefits and agricultural supply control through voluntary, long-term retirement of crop land. While the effects of the CRP on the agricultural sector are well understood, the implications of its conservation benefits for rural economies remain largely undocumented. To quantify the effects on rural economies, this study addressed the net economic effects of decreased agricultural activity and increased recreational activity associated with the CRP in six rural areas of North Dakota from 1996 to 2000. Based on the level of economic activity that would have occurred in the absence of the program, net revenues from CRP land if returned to agricultural production in the six study areas were estimated at $50.2 million annually or $37 per acre of land currently enrolled in the CRP. Recreational (hunting) revenues as a result of the CRP in the study areas were estimated at $12.8 million annually or $9.45 per CRP-acre. The net economic effect of the CRP (lost agricultural revenues and gains in recreational expenditures) indicated that several areas of the state are not as economically burdened by the CRP as previous research has suggested. In addition, the net economic effects of the program would appear more favourable if revenues from all CRP-based recreation were included. The degree that recreational revenues offset agricultural losses might be further enhanced by enterprises that capitalize on the economic opportunities associated with expanded recreational activities on CRP lands.     

Regional economic impacts of water management alternatives: the case of Devils Lake,North Dakota,USA

Devils Lake, located in a closed basin in northeastern North Dakota has over a century-long history of highly fluctuating water levels. The lake has risen nearly 25 feet (7.7 m) since 1993, more than doubling its surface area. Rising water levels have affected rural lands, transportation routes, and communities near the lake. In response to rising lake levels, Federal, state and local agencies have adopted a three-part approach to flood damage reduction, consisting of (1) upper basin water management to reduce the amount of water reaching the lake, (2) protection for structures and infrastructure if the lake continues to rise, and (3) developing an emergency outlet to release some lake water. The purpose of this study was to provide information about the net regional economic effects of a proposed emergency outlet for Devils Lake. An input-output model was used to estimate the regional economic effects of the outlet, under two scenarios: (1) the most likely future situation (MLS) and (2) a best case situation (BCS) (i.e., where the benefits from the outlet would be greatest), albeit an unlikely one. Regional economic effects of the outlet include effects on transportation (road and railroad construction), agriculture (land kept in production, returned to production sooner, or kept in production longer), residential relocations, and outlet construction expenditures. Effects are measured as changes in gross business volume (gross receipts) for various sectors, secondary employment, and local tax collections. The net regional economic effects of the proposed outlet would be relatively small, and consideration of these economic impacts would not strengthen the case for an outlet.     

RESOURCE DEMANDS FOR ENERGY DEVELOPMENT IN THE YELLOWSTONE RIVER BASIN1

ABSTRACT: This paper reports on the development of a mathematical model for forecasting energy development in the Yellowstone study area for the years 1985 and 2000, and determining the associated economic demands for water, land, labor, capital, and mineral resources. The study was prepared for use by the Missouri River Basin Commission in conducting a comprehensive, “Level B” planning study of the water and related land resources in the Yellowstone River Basin. The study results indicate that the amount of coal development in the Yellowstone study area will depend primarily upon state and federal energy policies and regulations. Policies related to slurry pipeline transportation of coal will be particularly important in determining the level and pattern of future energy development in the area. Coal production under the “most probable” scenario is expected to increase from about 40 million tons in 1976 to 163 million tons per year by 1985, and 513 million tons in the year 2000. Consumptive water use for energy development in the study area could be as much as 556,000 acre-feet per year by the year 2000 (under the high scenario). A parametric analysis was conducted on the 1985 most probably scenario to determine the influence on the study results of variations in the delivered price of water. Water requirements were reduced by nearly one-fourth as water costs increased from zero to over $750 per acre-foot.     

Socio-economic impact management: programme design and implementation considerations

While larger mineral resource development projects offer new jobs and provide a stimulus to the economy of the area where they are sited, they may also pose problems in rural areas associated with rapid population growth. The purpose of an impact management programme is to anticipate and alleviate project effects that are generally perceived as undesirable and to enhance effects that are beneficial to site area communities. While the effective management of project effects is the end towards which all impact assessment efforts are directed, an integrated approach to impact management has been notably lacking. This paper suggests a systems framework for meeting this need by: (1) reviewing the need for impact management efforts; (2) discussing the objectives of, and considerations in, designing impact management programmes; (3) presenting a conceptual framework for, and key components of, such a programme; and (4) suggesting an approach for implementing such a system as an integral part of the project development process.