Using IMPLAN for Conservation Economic Impacts


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This workshop will show how IMPLAN, an impact modeling tool, has been and continues to be used to conduct economic impact analysis on Great Lakes Restoration Initiative funds distributed by the Natural Resources Conservation Service in targeted Great Lakes watersheds. The presentation will also highlight ways to use IMPLAN results to show multiplier effects and jobs supported by these expenditures in the Great Lakes watershed basin.

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  • State and County codes Practices IMPLAN sectors Program Dollar Sums by Practice Program by IMPLAN Sector
  • on each State, Watershed, Congressional District, etc. in GLRI
  • This graphic illustrates the flow of NRCS funds to various areas. These are the activities that this analysis modeled. IMPLAN models economic impacts by allocating funds into different sectors of the economy. For example, FA funds for structural practices such as grade stabilization or composters go to construction sectors. FA funds for management practices such as nutrient management or brush management go to agricultural and forestry support sectors.
  • This flow chart illustrates the basic flow of NRCS financial assistance cost-share funds in a local economy, such as a parish or conservation district. This is the type of activity that this analysis is trying to quantify in dollar terms. The arrow at bottom left indicates that dollars spent in an area quite often make their way outside of that area…sometimes referred to as leakage.
  • The FA analyzed was money that was actually paid to program participants during calendar year 2010. Included in the analysis FA paid out during FY10 from EQIP, WHIP, CSP, CStP, WRP, GLRI, ARRA, and GRP The analysis also included TA funds expended in fiscal year 2010. Each major category of NRCS TA, such as Travel and Transportation, had to be separated out and matched with the appropriate industry sectors in order to model its impact on the states economy.
  • Using IMPLAN for Conservation Economic Impacts

    1. 1. Using IMPLAN for Conservation Economic Impacts Healing Our Waters – Great Lakes Coalition October, 2011 June C Moss & David Buland Natural Resources Conservation Service
    2. 2. What are the economic impacts of conservation practices? <ul><li>Saginaw Bay at Essexville </li></ul><ul><li>Buffers and Filter Strips </li></ul>
    3. 3. Background <ul><li>Great Lakes Watershed Basin </li></ul><ul><li>Estimate conservation activities impact local economies and multiplier effect over several years. </li></ul><ul><li>More short term in nature as the conservation practice installation takes place in shorter time frame than some other alternatives. </li></ul>
    4. 4. IMPLAN <ul><li>Social Accounting & Impact Analysis Software </li></ul><ul><li>NRCS Conservation Practices and Common Cost Items Linked to IMPLAN Sectors </li></ul><ul><li>NRCS Conservation Practices and Payments to be Analyzed </li></ul>
    5. 5. Practices and Common Cost Items Linked to IMPLAN Sectors <ul><li>Critical starting point in analysis </li></ul><ul><li>Link IMPLAN sectors to each NRCS Conservation Practice </li></ul><ul><li>Some practices have multiple sectors </li></ul><ul><li>Some practices have different typical installations that use different sectors </li></ul>
    6. 6. IMPLAN <ul><li>Get multiplier factors for each sector to check which sectors you need. </li></ul><ul><li>Based on practices installed </li></ul><ul><li>Need to check the sector assignments before you run IMPLAN </li></ul>
    7. 7. IMPLAN <ul><li>Sort data by the IMPLAN sectors </li></ul><ul><li>Sum the dollars for each sector </li></ul><ul><li>Determine the total cost of the practices installed/contracted </li></ul><ul><li>NRCS only used the governments cost or planned payment to the landowner </li></ul>
    8. 8. Using Access Database <ul><li>Importing Excel spreadsheets with data </li></ul><ul><li>Create Queries: </li></ul><ul><li>Key to keep data separated then can be combined in ways to make runs based on watersheds, counties, congressional districts, etc. </li></ul><ul><li>Importing data into IMPLAN </li></ul>EQIP by IMPLAN Sector
    9. 9. <ul><li>Analysis & Reports </li></ul><ul><li>NRCS Public Affairs, News Releases, Newsletters, and Fact Sheets. </li></ul>Using IMPLAN output
    10. 10. NRCS FA and TA Funds Mgmt Practices (Nutrient Mgmt, Brush Mgmt, etc) Employee Salaries, Office Supplies, Rent, Vehicles, etc) Grants, TSPs, etc. Structural Practices (Composters, Grade Stabilization, etc) FA $ FA TA TA $ $ $
    11. 11. NRCS FA Funds Farmer Contractor Contractor Employees Local Businesses $ $ $ $ $ $ Circulation of Dollars in a Local Economy Employees Other Local Businesses $ $ Outside the area (other counties, states, etc. $
    12. 12. NRCS Funding Analyzed <ul><li>FA obligated during FY10 and FY 11 from EQIP, WHIP, FRPP, EWRP, CTA, and the Great Lakes Commission. </li></ul><ul><li>TA allocated to GLRI during FY10 & FY11 including Salaries and Benefits for Employees, Travel, Transportation, Rent, Etc. </li></ul>
    13. 13. GLRI Allocation of $31,709,292 in this analysis
    14. 14. NRCS GLRI <ul><li>NRCS spent $31,709,292 </li></ul><ul><li>Creating Economic Output (sales) $57,241,948 </li></ul><ul><li>Creates or Supports 660 jobs Annually </li></ul><ul><li>Total Value Added Income $39,298,270 </li></ul>
    15. 15. NRCS GLRI <ul><li>Detailed Report: </li></ul><ul><ul><li>Federal Cost </li></ul></ul><ul><ul><li>Direct Impacts </li></ul></ul><ul><ul><li>Total Output </li></ul></ul><ul><ul><li>Total Value Added </li></ul></ul><ul><ul><li>Direct Jobs </li></ul></ul><ul><ul><li>Total Jobs </li></ul></ul><ul><ul><li>Jobs per Million of Federal Cost </li></ul></ul><ul><ul><li>Federal cost to Output Multiplier </li></ul></ul>
    16. 16. Questions or Comments