United States Department of Agriculture
Natural Resources Conservation Service		 Economics Go to Accessibility Information
Skip to Page Content





About NRCS Economics

Updated 09/05/2007

The policy of the Natural Resources Conservation Service is that economics is an essential consideration in all agency decision making. Economic principles must be applied in the planning, implementation, and evaluation of agency policies and program activities to provide the most cost effective assistance to customers, cooperators, and partners for the sustained use of natural resources.

  • Economic principles and techniques, including cost effectiveness, economic feasibility, and benefit-cost analysis will be applied to all program formulation, management, and evaluation activities of the agency.
  • Economic effects of alternative actions should be provided to NRCS customers in order for them to make informed resource conservation decisions. NRCS policy permits cost effectiveness analysis, partial budgeting, profitability analysis, and other appropriate analyses when requested by the client. NRCS policy prohibits field offices from obtaining financial information beyond that volunteered by the client.
  • For nationwide consistency in the application of economics in all NRCS activities, the National Resource Economics Handbooks and other directives will be used as the guidance for the integration of economics into conservation planning, program implementation, and program evaluation at the field, state, regional and national offices of the agency.
  • Economic principles and techniques shall be used at all levels of the agency in order to satisfy the goal of maximizing environmental benefits per dollar expended as legislated for selected U.S. Department of Agriculture conservation programs.
The NRCS Resource and Economic Analysis site is the support site for NRCS economists. Other sources of NRCS Resource Economic Analysis information are available at NRCS State of the Land, Resource Economics and Social Sciences Division, and the Social Sciences Team.  

Economic Policy in the NRCS General Manual

General Manual   Title 200 – Economics

Part 400 – Economics Policy

400.0 Purpose

This section addresses policy, scope, responsibilities and references in carrying out the mission of the agency with respect to economics.

400.1 Policy

The policy of the Natural Resources Conservation Service is that economics is an essential consideration in all agency decision making. Economic principles must be applied in the planning, implementation, and evaluation of agency policies and program activities to provide the most cost effective assistance to customers, cooperators, and partners for the sustained use of natural resources.

400.2 Scope
  • (a) Economic principles and techniques, including cost effectiveness, economic feasibility, and benefit-cost analysis will be applied to all program formulation, management, and evaluation activities of the agency.
  • (b) Economic effects of alternative actions should be provided to NRCS customers in order for them to make informed resource conservation decisions. NRCS policy permits cost effectiveness analysis, partial budgeting, profitability analysis, and other appropriate analyses when requested by the client. NRCS policy prohibits field offices from obtaining financial information beyond that volunteered by the client.
  • (c) For nationwide consistency in the application of economics in all NRCS activities, the National Resource Economics Handbooks and other directives will be used as the guidance for the integration of economics into conservation planning, program implementation, and program evaluation at the field, state, regional and national offices of the agency.
  • (d) Economic principles and techniques shall be used at all levels of the agency in order to satisfy the goal of maximizing environmental benefits per dollar expended as legislated for selected U.S. Department of Agriculture conservation programs.

400.10 Responsibilities

(a) National

(1) Resource Economics and Social Sciences Division.

  • (i) Develop policy for the application of economic principles in all NRCS programs and activities.

  • (ii) Provide national technical leadership for integrating economic principles into all aspects of NRCS operations.

  • (iii) Coordinate with economists and others at all organizational levels to ensure that technical quality and standards of National Resource Economics Handbooks are consistent with NRCS economic policy.

  • (iv) Provide national leadership for technical coordination and clearance of economic analyses undertaken by other units of NRCS and other agencies, including special projects and analyses required in the policy development and rulemaking process.

  • (v) Provide a linkage to economists in other agencies, universities, and the private sector.

(2) Institutes.

  • (i) Provide leadership for NRCS in coordinating with resource conservation professionals nationwide in the development and adoption of economic tools and technology.

  • (ii) Provide technical expertise and assistance in the development and dissemination of economic tools when authorized by the Director of the Social Sciences Team to meet national requirements.

(b) Regional.

  • (1) Provide oversight and evaluation for economic activities.

  • (2) Review and assess the role of economics in the planning process, level of expertise and adherence to policy and guidelines.

(c) State.

  • (1) Obtain appropriate training to implement the procedures in the National Resource Economics Handbooks and other related economic policy guidance and directives.

  • (2) Conduct economic analyses related to all programs administered by NRCS in the state.

  • (3) Train appropriate NRCS and District staff to ensure that economic principles are considered in decision making at all levels of state program operations and management.

  • (4) Develop and maintain appropriate economic information in Field Office Technical Guides and other field office needs.

  • (5) Coordinate with appropriate private and public entities, including Land Grant universities, other agencies, and the private sector having economic expertise in natural resources conservation in order to provide agency clientele with assistance in an integrated and consistent manner.

400.20 References

  • (a) Economic guidelines for resource planning, management and evaluation for the agency are published in the National Planning Procedures Handbook, National Watershed Manual, policy governing the Field Office Technical Guide, National Resource Economics Handbook for Conservation Planning (Draft), National Resource Economics Handbook for Water Resources (Draft), National Resource Economics Handbook for Water Quality and other directives issued by the agency.
  • (b) The Economic and Environmental Principles and Guidelines for Water and Related Land Resources Implementation Studies issued by the U.S. Water Resources Council will be adhered to in the formulation and evaluation studies of water resource projects. It specifically sets forth principles that provide for consistency in the planning and implementation of water resource studies by the following agencies: (1) Corps of Engineers; (2) Bureau of Reclamation; (3) Tennessee Valley Authority; and (4) Natural Resources Conservation Service.
  • (c) Circular Number A-94 (revised) issued by the Office of Management and Budget may be used as guidance to conduct benefit-cost or cost-effectiveness analyses of federal programs and policies other than those related to water resource projects. The Circular provides guidance on the discount rate to be used in evaluating non-water resource federal programs whose benefits are distributed over time.
  • (d) OMB’s “Economic Analysis of Federal Regulations Under Executive Order 12866” and USDA’s “Regulatory Decisionmaking Requirements” (DR1512-1, December 21, 1995) will serve as guidance for economists and policy analysts when conducting an economic analysis (EA) and/or cost benefit analysis of proposed or existing significant regulatory action.
  • (e) The Agricultural Baseline Projections issued by the USDA Office of the Chief Economist and World Agricultural Outlook Board will be used when making official economic projections.

You can subscribe to the NRCS ECONNECT listserver by sending the message "subscribe econnect 'your name/title' " to listserv@ne.nrcs.usda.gov

The following worksheet is available in Microsoft Excel format.

Microsoft Excel WorksheetNRCS Economist Skills database (231 KB)