Identification and Evaluation of Potential Thrid Party Impacts Related to the Habitat Component of the Proposed Platte River Recovery

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5.0 Economic Impacts of Land Use Changes from Agriculture to Protected Habitat ■ Changes in indirect sales, income and employment can occur to other sectors in the region not directly associated with a land use change but who provide goods and services to the direct sector(s). Changes in induced sales, income and employment can occur to sectors that provide goods and services to indirect sector(s) and to the employees of the direct and indirect sectors. Using these definitions of direct, indirect and induced economic impacts, the potential economic impacts associated with the Program include the following. ■ The estimated changes in total sales, employment and income (direct, indirect and induced) to the study area economy associated with converting land from agricultural production to protected habitat 5.2 Value of Agricultural Production under Current Conditions Agricultural production is an important part of the regional economy in Central Nebraska. During the project scoping process, concerns were raised that the proposed Program would negatively impact the regional economy if land uses change from agricultural production to managed habitat. Using information in Section 4.0 on the Habitat Protection Scenarios as a guide, the FWS utilized a GIS land cover database to further describe the land uses in areas where habitat may be protected and restored. The economic contribution of current agriculture production in these areas was estimated and summarized in Tables 5.2 -1, 5.2 -2, and 5.2 -3. This includes all agriculture production in each of the blocks or segments as described from the GIS land cover database. According to these estimates, Scenario 1 provides $1.44 million dollars annually in direct sales due to agriculture production. This results in additional positive economic impacts for the regional economy as summarized in the last four columns of Table 5.2.1. Direct, indirect and induced sales, income and indirect business taxes from agricultural production in the habitat blocks and Cottonwood Ranch are estimated to be $2.1 million, $210,900 and $174,500, respectively. Additionally, 22.2 full -time and part-time jobs are supported by agricultural activities in these areas. Under Scenario 2, current land activities generate $1.2 million in direct agricultural sales. This further generates direct, indirect. and induced sales, income and indirect business taxes totaling $1.7 million, $169,900, $143,700, respectively. Employment supported by agricultural production in these areas is estimated to be 19 jobs. The economic contribution of current agricultural production on potential habitat lands under Scenario 3 was estimated to generate $728,600 in direct sales. This generates direct, indirect and induced sales, income and indirect business taxes totaling $1.5 million, $104,000 and $88,700, respectively. Agricultural production on these lands also supports 12 jobs. Hwd:40210014.doc 5 -2 Third Parry Impact Study Final Report