The Diversion Authority board is taking the next step in its development of an Agricultural Impacts Mitigation Plan for lands impacted by the F-M Area Diversion Project. The board is requesting an economic analyst, appraiser, or actuary conduct a before and after appraisal of farmland in the Project’s staging area.
The Mitigation Plan goes beyond the minimum federal requirements, which are limited to purchasing flowage easements, by also considering crop insurance. The Plan will help mitigate the impacts from the operation of a key component of the Diversion Project: the upstream retention or staging area, which will temporarily store flood waters on agricultural land to mitigate downstream impacts during times of excessive flooding.
In a Request for Qualifications document issued August 18, the Diversion Authority is requesting the farmland appraisal to determine if an Authority-provided supplemental crop insurance product would change the cost/value of a flowage easement. The selected economic analyst, appraiser, or actuary will need to:
- Conduct a “before project” appraisal of the current land value;
- Conduct an “after project” appraisal without an assumed supplemental crop insurance product offered by the Authority;
- Conduct an “after project” appraisal with an assumed supplemental crop insurance product offered by the Authority;
- Use at least three properties in various locations within the staging area. (The Diversion Authority will provide access to the properties).
Several factors should be considered in determination of the flowage easement value, including frequency and duration of project operation, current value of agricultural land, quantification of potential impacts, effect on market value of land from floodwater retention, and others. The selected consultant will work with the Diversion Authority to define and document economic inputs for this study.
The results of this Consulting Assignment will be included in a report showing analysis and results.
The complete RFQ document for the “Ag Risk Economic Evaluation for Temporary Water Retention Easement Values and Crop Insurance” is posted in the Bids and Requests for Proposals/Qualifications section of the Library. Please note: the RFQ document is a large download.