NB_200_22_1 - NB 200-22-1 ECN - Normalized Prices and Discount Rate for Fiscal Year (FY) 2022 Water Resources Planning and Evaluation
NB 200-22-1 ECN - Normalized Prices and Discount Rate for Fiscal Year (FY) 2022 Water Resources Planning and Evaluation
National Bulletin: 200-22-1
Date: August 2, 2022
Subject: ECN - Normalized Prices and Discount Rate for Fiscal Year (FY) 2022 Water Resources Planning and Evaluation 


 
 
Purpose.   To transmit the current normalized prices for agricultural commodities and the water resources discount rate for FY 2022. 
 
Expiration Date.   July 31,2023  
 
Background.   The Economic Research Service (ERS) has estimated the national normalized prices for agricultural commodities since 1993 based on 5-year moving averages of actual market prices (2015 to 2019 for 2021 normalized prices). The State-level normalized prices for 2021 were calculated by multiplying the national-level normalized prices by the average ratios of the State-level market prices to the national prices for 2017 to 2019.       
 
Explanation.  

Three tables containing the current normalized prices for agricultural commodities for FY 2022 are available online at https://www.ers.usda.gov/data-products/normalized-prices/

Historic normalized prices are available at http://www.nrcs.usda.gov/wps/portal/nrcs/detail/national/technical/econ/prices/?cid=nrcs143_009686

 

The national watershed discount rate for FY 2022 is 2.25 percent. The U.S. Treasury security interest rate for the preceding FY on interest-bearing marketable securities with 15 years or more remaining to maturity was 1.875 percent (see https://www.treasurydirect.gov/govt/rates/tcir/tcir_fy2022_opdirannual.htm#table4). The change from FY 2021’s rate is limited by the maximum rate of change specified in the 1974 Water Resources Development Act (see http://edocket.access.gpo.gov/cfr_2003/aprqtr/pdf/18cfr704.39.pdf) of 0.25 percent. Historic water resource project discount rates are available at http://www.nrcs.usda.gov/wps/portal/nrcs/detail/national/technical/econ/prices/?cid=nrcs143_009685

The national watershed discount rate of 2.25 percent is to be used for any project that relies on Public Law 83-566 authority for implementation in FY 2022. For other NRCS activity, the 10-year nominal rate from OMB Circular No. A-94 is typically used. For calendar year 2022, this rate is 2.1 percent (see https://www.whitehouse.gov/wp-content/uploads/2022/05/Appendix-C.pdf).

Distribution.  This national bulletin is available on the NRCS Electronic Directives System website at https://directives.sc.egov.usda.gov.

Filing Instructions.  Due to printing and distribution costs, the availability of this information is limited to electronic format (with limited paper distribution). If a paper copy is retained, file it sequentially within Title 200.

   
 
Contact.   For further information, please contact Julie Suhr Pierce, Ph.D., National Economist, Ecological Sciences Division, Science and Technology Deputy Area, at 202-440-3036.   
 
 

 /s/

Noller Herbert
Deputy Chief for Science and Technology
  

 
 
    
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