United States Part 610 

National 

Resources Economics 

Handbook 

Department of 

Agriculture 

Natural 

Conservation 

Service 

Chapter 4 Conservation Effects For 

Decisionmaking: A Framework For Economic Evaluation 

@OO-vi-NEH, draft, May 1995) 
Chapter 4 Conservation Effects For 

Decisionmaking: A Framework For Economic Evaluation I 

Contents: 610.0400 Introduction 4-1 

(a) Purpose and scope .......................................................................................... 41 

@) The planning process ...................................................................................... 41 

(c) Collecting and recording information .......................................................... 41 

(d) The framework ................................................................................................ 4-1 

610.0401 Steps in the CED process 4-2 

(a) Benchmark ....................................................................................................... 4-2 

@) Alternatives ...................................................................................................... 42 

(c) Impacts ............................................................................................................. 4-3 

(d) Values ................................................................................................................ 4-3 

610.0402 Comparison of the NRCS planning process and CED 4-3 

610.040 Case studies . 4- 

(a) What to record ................................................................................................. 4-6 

(b) Format choice .................................................................................................. 4-6 

(c) Procedure ......................................................................................................... 44 

(d) Types of case studies ...................................................................................... 4-7 

(e) Hierarchy of analysis ....................................................................................... 4-7 

Fiwe Figure 4-1 CED dccisionmaking process 4-1 

Table Table 4-1 Conservation Planning versus CED Process 44 

(200.i. NEH. draft May 1%5j 
Chapter 4 Conservation Effects For Part 610 

Decisionmaking: A Framework For National 

Economic Evaluation Economics 

Handbook a* 

(ZOO-vi, NEH, draft May 1995) 
Chapter 4 Conservation Effects For 

Decisionmaking: A Framework For 

Economic Evaluation 

610.0400 Indroduction 

(a) Purpose and scope 

Conservation Effects for Decisionmaking (CED) 

enables NRCS planners to display and evaluate the 

effects of various conservation options available to 

the land user. 

The CED process can be used to assist land users with 

their conservation decisions by 

Providing a framework in which to organize 

and present information that facilitates comparison of the positive (gains) and negative 

(losses) effects of a conservation option. 

Permitting consideration of all physical, sociological, and economic values pertinent to the 

evaluation. 

Encouraging the employment of analytical 

tools at appropriate levels of sophistication to 

provide information. 

Capitalizing on the knowledge and experience 

of our agency professionals and clients to 

foster interaction throughout the 

decisionmaking process. 

(b) The pl-g process 

The CED process is completely consistent with the 

planning process outlined in the National Planning 

Procedures Handbook. CED is not a new system, but a 

method of thought organization. It provides a way to 

evaluate the continuum of all alternatives available to 

the land user, and is intended to make conservation 

planning and application easier and more efficient. 

(c) Collecting and recording in- formation 

The collecting and recording of effects information for 

the CED process is not a new approach; it has been 

the mqjor thrust of conservation management systems 

(CMS), and of planning in general. The CED idea 

emerged from a national economic application work 

group. It links the planning process with economic 

input and emphasizes the end objective. The identification of the expected effects from applied conservation 

allows decisions to be made and actions to be taken. 

The CED framework is applicable to all NRCS program and planning situations. Consequently, it is also 

the theme and organizational tool for this handbook, 

which has an explanation of the steps in the process of 

evaluation, a diagram of the decisionmaking process, 

and examples of evaluation approaches. Case studies 

have been included in appendix B from each of the 

four Technical Center Regions. Subsequent chapters 

explain the various economic principles, tools, and 

techniques available for use if one wishes to carry 

evaluations to a more detailed level of analysis. 

(d) The framework 

The CED framework has information from many 

disciplines combined, so that a comprehensive and 

effective evaluation can be made. For more guidance 

on how to carry out a CED analysis, consult with you 

state office about CED training, the CED Training 

Manual, and the CED Workbook. The workbook 

contains step-by-step instructions and explanation of 

each step of the process. Lessons and questions are 

provided for self study. Always keep in mind that 

economics is just one of the many tools available to 

help NRCS do a better job and to help the land user 

make more informed decisions. Figure 4-1 is a chart 

presented to graphically explain the CED 

decisionmaking process. 

- Figure 4-1 CED decisionmaking process 

Implement plan It=> Experience 4- 

w Benchmark 

,aL CED 

(200-vi, NEH, draft May 1995) 4-1 
Chapter 4 Conservation Effects For Part 610 

Decisionmaking: A Framework For National 

Economic Evaluation Economics 

Handbook 

- 

610.0401 Steps in the CED 

process 

(a) Benchmark 

Field office level planning efforts should always first 

identify the benchmark condition. The planner and 

land user work together to develop a picture of existing conditions, trends, problems, opportunities, and 

objectives. The assistance provided is based upon soil, 

water, and other natural and cultural resource information. The description of benchmark conditions 

could include: 

'4 

Other inventories and evaluations 

Description of current crops, farming practices, 

livestock type and condition, and available 

equipment 

Consideration of sociological and economic 

characteristics 

Planning objectives and the complexity of each situa- 

'n determine the level of detail necessary for invenies and evaluations. 

The objectives of the land user will usually affect the 

kind and amount of information gathered and evaluated. However, the formulation of planning objectives 

requires that the objectives of society as well as those 

of the land user be considered. The planning process 

should also identify opportunities. This creates a 

broader view that goes beyond the search for resource 

problems to recognize where resource enhancements 

may be achieved. For example, if a given area does not 

have a significant soil resource problem onsite, opportunities may still exist to make on-farm improvements 

that could increase efficiency and profitability, while 

at the same time reducing negative water or air quality 

effects offsite. 

(b) Alternatives 

Alternatives that meet both individual and societal 

objectives need to be considered after a picture of the 

benchmark situation and expected future trends are 

developed. The CMS (Conservation Management 

System) formulation process will normally be used to 

develop alternatives that provide a desirable view of 

the future. 

Proposed alternatives enable planners to develop a 

picture of the conditions that could exist on the farm 

or ranch with conservation treatment. Alternatives 

represent the world of possibilities, a vision of what 

could be, based on predictive models, professional 

judgment, and experience with the expected effects of 

each action or set of actions considered They are the 

different options that are proposed to deal with current and future problems or issues arising from the 

existing situation. 

An alternative is generally a Resource Management 

System (RMS), but could also be an Acceptable Management System (AMS), or Alternative Conservation 

System (ACS) for plans developed for the 1985 Food 

Security Act. It could be a single practice or simply an 

aaustment to present farming operations. Proposed 

alternatives must be consistent with Sections I11 and 

IV of the Field Office Technical Guide (FOTG), and 

must also be within the approval authority of the 

planner. Apart from the FOTG, the experience and 

knowledge of the planner and decisionmaker are the 

main sources of information used for selection. 

To achieve a specific alternative, certain steps or 

actions need to be taken. Examples of actions include 

a change in cropping sequence, land use, time of 

seeding, tillage or timing of cultivation, structural 

improvements to the farm, or simply lowering the 

speed of a single tillage operation. Each individual has 

a different experience base which can be increased by 

on-the-job training, specialized training courses, field 

trials, or the use of models. A useful learning experience for planners is to visit land users with successful 

conservation treatments already applied. Technology 

transfer through exposure in this manner rapidly 

broadens an employee's perspective and improves 

their expertise and confidence. If successful on-farm 

experiences are documented and shared as case 

studies, the knowledge base of others within and 

outside the agency could also be easily enhanced. 

Such experiences should be recorded first in physical 

and biological terms rather than monetary ones, because monetary values are simply a translation of the 

former and can be expressed in current dollars at any 

time. 

. 

' 

4-2 (200-vi, NEH, draft May 1995) 
Chapter 4 Conservation Effects For Part 610 

Decisionmaking: A Framework For National 

Economic Evaluation Economics 

Handbook 

(c) Impacts 

610.0402 Commarisoa of 

the NRCS planhng process 

and CED 

The completed alternative is compared with the 

benchmark condition to estimate the impacts of the 

actions. The impacts of applied conservation options 

are the differences between the benchmark or current 

condition and trends and the proposed alternative 

situation Quantification of the impacts is dependent 

upon the degree of detail used to describe or measure 

the benchmark and expected alternative conditions. 

The impacts should be described in narrative form at a 

minimum, and in quantitative terms to the extent 

possible. They should also be recorded in an easy to 

understand manner for consideration by the 

decisionmaker. 

Table 4-1 compares the steps of the NRCS planning 

process and the concurrent activities of the CED 

process. 

Conservation Effects or Impacts Worksheets can be 

used to record this information. Differences in erosion 

rates, habitat values, water quality, acres farmed, 

bushels harvested, labor and fuel requirements, pesticides used, etc., should all be documented to the 

extent that such information is needed by the land 

user or is required by the agency. The time frame . . 

when the impacts occur might also be identified, 

because certain actions such as pasture improvements 

can result in immediate costs, but the resulting yield 

increases may be delayed and then occur for an extended period of time. 

Each individual’s values will affect the relative merits 

of an impact. Ten additional quail may be a positive 

impact to one person and a negative one to another. 

An individual’s set of values may be in harmony with 

society’s best interest or it may be in direct conflict. 

Once it has been applied to the impacts, the positive 

and negative points may be listed. This listing can start 

out generally and be expanded to increasingly detailed 

levels. The procedure may involve traveling completely back through the decisionmaking process, or it 

may involve increasingly sophisticated levels of detail 

on the same impacts. The process is continued until 

the land user has enough detail to make an informed 

decision. In most cases, the planner will identify the 

costs and describe necessary maintenance for each of 

the options. Often a limited amount of detailed information will be enough. Occasionally, however, a more 

complex analysis will be necessary, and the concepts 

presented in this handbook may help. 

(ZOO-vi, NEH, draft May 1995) 4-3 
Chapter 4 Conservation Effects For Part 610 

Decisionmaking: A Framework For National 

Economic Evaluation Economics 

Handbook 

- Table 4-1 Conservation Planning versus CED Process 

Conservation Planning CED Process 

(I] Ident.ify the pmeAU significant resource problems 

relating to the five resources (soil, water, air, plants, and 

animals) are identified and documented. 

(2) Determine the objectives-This step establishes the 

level of detail for the planning effort based upon objectives. 

The client’s objectives are clearly documented. This step 

includes determining the client’s expectations, to try capabilities, characteristics, tenure, values, and limitations; NRCS 

policy and technical requirements; community traditional 

values; financial constraints; and legal requirements. 

(3) Inventory Ihe resources-Factual data sufficient to 

analyze problems and to develop and evaluate alternatives 

-w available and recorded in suitable formats. 

(4) Analyze the resource data-Data must be analyzed to 

verify the problems, determine their causes, and determine 

if the data are sufficient to use in formulating proposed 

solutions. Data are analyzed to quantify identified problems 

and to forecast conditions and effects without action. 

(5) Fonndate alternative solutions-Alternative solutions 

are developed that produce the effects of solving or alleviat- ing identified problems and meeting the client’s objectives. 

(6) Evaluate alternative solutions-Alternative solutions 

are analyzed and compared, using CED and other tools, to 

determine if they meet the client’s objectives, NRCS policy, 

and technical and legal requirements. Eff‘ts of alternatives 

are evaluated individually and compared to Benchmark 

conditions as to their ability to solve or alleviate the problems and meet the client’s objectives. 

(7) Client determines a course of actim.-The alternative 

solutions selected is based on the client’s clear understanding of the effects of each alternative, and the selected solution is recorded in the proper format. 

(8) Client implements the plan-Client has adequate 

%formation to implement, operate, and maintain the planned 

!atments. Completion of this step alleviates or solves the 

oblem. 

. 

(1) BenchmrU~~e Benchmark part of CED 

also starls with identifying the problem A key factor is the 

necessity to document the current conditions for later 

comparison with the Alternative, or future conditions to 

determine Impacts The CED Benchmark part also overlaps 

Steps 2,3, and 4, Determine the Objectives, Inventory the 

Resources, and Analyze the Resource Data Experience, 

especially individual experience, is required in every part of 

CED that calls for judgment. 

(2) Altemative‘values/ercperience-The client’s objectives 

are needed in CED for you to produce an Alternative, or 

future condition. The client’s Values also affect the choice of 

which Conservation Management System 

(3) Benchmark/eqm%ence-Recording factual data in a 

suitable format can be considered the end product of establishing the Benchmark in CED. Experience is used to decide 

what kind of data is important to record. 

(4) BmhmaMexperience-Eknchmark is quantifying 

problems and forecasting conditions and effects of resource 

problems. 

Experience is a CED contribution to this step of the conservation planning process of resource problems through the use of user experience documentation from Section V of the 

FOTG. 

(5) Allernative/ercperience-If the client does not like the 

results of a proposed CMS, a new Alternative CMS is proposed and the CED process is cycled through again. 

(6) CED--This is the most important part of the CED 

process. 

(7) ValuedCED WorksheetAzierarchy of andysidexperience-The intended result of the CED process using Values, 

CED Worksheet, Hierarchy of Analysis, and Experience is a 

clear understanding of the proposed Alternative and how it 

would affect the operation. 

(8) CED-The CED goal is to involve the client in the 

decisionmaking process, so that the client is fully committed 

to carrying out the conservation plan. 

4-4 (2004, NEH, draft hlsy 1W5) 
Chapter 4 Conservation Effects For Part 610 

Decisionmaking: A Framework For National 

Economic Evaluation Economics 

Handbook 

- Table 4-1 Conservation Planning vesus CED Proeess-Continued 1 

Conservation Planning CED Process 

(9) Evaluation OJ the resdts of the plan--?his step, which 

could also be called monitoring or follow-up, itssesses the 

success of the NRCS assistance in solving the identified 

problems and meeting the dient's objectives It includes 

recording the client's experience with the plan as imple 

mented. This provides NRCS with effects information for 

use with other clients with similar xxsource problems. 

(9) wm*me experience Part Of CED 

relates to this step of the conservation planning process. 

Because the CED process documents the effects in Section V 

of the FOTG, it will provide a growing base of experience to 

draw upon when working with other clients with a similar 

resource setting. 

@zsO-vi, NEH, draft May 1995) 4-5 
Chapter 4 Conservation Effects For Part 610 

Decisionmaking: A Framework For &ational 

Economic Evaluation Economics 

Handbook 9 

610.0403 Case studies 

Information regarding the effects of conservation can 

be collected from any source possible, but without 

extensive research results or local expert knowledge, 

a case study is a convenient and relevant way to collect this information A case study enables the conservation planner to document conservation systems 

currently used in a farming or ranching community, 

along with the motivations that led to their adoption. 

Having ready data about the effects and impacts of 

conservation systems will enhance NRCS's ability to 

implement effective conservation technologies and 

policies. A case study is also a way to record conservation effects information using the CED process. The 

CED process is a multidiscipline effort often including 

information from agronomy, engineering, geology, and 

economics. Resulting case studies felt to be useful 

should become part of the FOTG, Section V, Part B 

(Conservation Effects). 

.. 

(a) What to record 

The conservation practice effects that a land user 

experiences can be used to project what may happen 

when the same practice is applied to a different farm 

or ranch with similar resource characteristics and 

problems. In a case study, NRCS conservationists 

systematically record resource settings and conditions, before and after a conservation option is implemented. The changes or effects that occur as a result 

are the important things to record. 

The value of the case study concept is establishment 

of a systematic method for NRCS field staffs to record 

the effects they observe when conservation has been 

applied. Conservationists and land users can then use 

this information when choosing which conservation 

option will best suit their needs. 

(b) Format choice 

The choice of a case study format is based on the ease 

with which one can document a wide variety of factors 

influencing an individual's conservation decisionsincluding those factors that may be non-quantitative in 

nature. While the initial focus of a case study may be a 

single land use, the study can be expanded to include 

relevant social and environmental fa'ctors. 

Case studies may provide the land user and conservation planner with information such as: 

a 

a 

0 

0 

(4 

Effectiveness of conservation and resource 

management systems 

New innovative practices 

Educational tools for field staff, farmers, and 

ranchers 

Planning and marketing tools 

Insight into the impacts of policy and technology changes. 

Procednre 

Section V of the Field Office Technical Guide contains 

procedural references on Guidance for the Development and Use of Case Studies as a Source of Conservation Effects Information. This might be a useful reference for those interested in developing their own case 

study files. Case studies can be used to examine a 

variety of topics, including but not limited to soil 

conservation, pesticide use, archaeological and historical preservation, water quality, and wetland preservation. The documented topic is usually determined by 

the land user. 

A detailed outline of the information sought in the 

interview of the land user should be made beforehand. 

To facilitate comparisons among case studies, it is 

useful to decide upon a format for answers (i.e., qualitative, quantitative or mixed). Questions that can be 

answered with a yes or no should be avoided. Informal, neutral questioning is usually effective with this 

type of study, as is individual opinions, descriptions of 

practices, and recommendations. Questioning should 

be structured to minimize note taking so that concentration can be focused on observing responses and 

stimulating a natural flow of conversation. 

The interview should begin with an explanation of 

how the infomation will be used and by whom. Responses are often less guarded and more enthusiastic 

when the person interviewed knows that they will not 

be quoted in the local paper, and that the information 

generated may be useful at the local, state, regional, or 

4-6 (200-vi. NEH, draft May 1995) 
Chapter 4 Conservation Effects For 

Decisionmaking: A Framework For 

Economic Evaluation 

Part 610 

National 

Economics 

Handbook 

national level, It is helpful to make arrangements to 

provide the land user being interviewed with a draft of 

the study after it has been completed along with the 

option to edit hidher own responses. This review 

process is an important means of ensuring the accuracy of each case study. 

Case studies allow the analysis of any number of 

factors relevant to the land user. Since such a vast 

amount of information can be obtained, not all of it 

can or should be used in the final report. It is important to remember that brevity and concise observations are valuable assets for effective use of a case 

study. 

Some case studies can last several years, when the 

land user is willing to keep track of costs and yields. 

This is probably the most useful situation since the 

extra data add reliability to the findings. 

(a) Types of case stadies 

Case studies'can be of three types: 

A comparison of the before and after treatment 

conditions on a single site. 

A comparison of two separate but comparable 

resources and land use situations (sites) on 

different farms or even on the same farm, i.e., 

one site with and one without treatment. 

A simple recording of farmer experiences with 

treatment on a single site regardless of the 

earlier conditions. 

The first and second types mentioned above require 

that data be collected for both the before treatment or 

benchmark situation and the after treatment condition 

arising from the adoption of conservation. 

The third type of case study represents the simplest 

approach, but inherently involves the greatest risk of 

misunderstanding the came and effect relationships. It 

focuses on with treatment conditions only. This may 

not be important for the immediate future, as the 

optional situation with any conservation is considered 

more desirable than the present situation. However, a 

more precise understanding of the cause and effect 

relationships of conservation is of great importance 

when considering the long run. 

(e) Hierarchy of analysis 

The following notes should be helpful when constructing a case study for which a greater level of detail is 

requested. 

The hierarchy of analysis refers to different 

levels of analysis needed to assist the land user 

in making an informed choice. Any number of 

levels may be used, depending on the amount 

of detail desired by the land user. 

The level numbers are not intended to have 

specific definitions other than relative to other 

levels. 

The impact information on the account ledger 

is not intended to be read across as single lines. 

Instead, the combination of positive impacts is 

compared to the combination of negative 

impacts. 

Information obtained from models and tools 

can be used to better determine the impacts 

when going to higher levels of analysis. 

Sometimes a higher level of analysis is needed 

in order to include an impact not previously 

considered, even though it may not involve 

relining information already displayed. 

Information should be presented in the manner 

most helpful for the land user, such as total 

amounts for the treatment unit rather than per 

acre amounts. 

(ZOO-vi, NEH, draft 1939-5) 4-7 -