04-23-2020
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Use or disclosure of information or data 2 Proprietary Property of Watts & Associates, Inc. <br />contained on this sheet is subject to the <br />restrictions on the title page of this proposal. Copyright © 2020 Watts & Associates, Inc. All Rights Reserved. <br />I. INTRODUCTION <br />The Authority is charged with development, implementation, and management of a <br />comprehensive flood management system which protects the cities of Fargo, North Dakota and <br />Moorhead, Minnesota, from major (catastrophic) flooding events. The Comprehensive Project <br />coordinates efforts with the U.S. Army Corp of Engineers (USACE), Federal Emergency <br />Management Agency (FEMA), and numerous state and local government stakeholders. Flood <br />management includes a series of river control structures integrated with diversion channels that <br />allow flood water to pass through the Fargo – Moorhead metropolitan area in a highly controlled <br />manner. <br />One component of Comprehensive Project is the utilization of an upstream mitigation area that <br />begins on the edge of the southern embankment (source: www.fmdiversion.gov). The upstream <br />mitigation area (or staging area) would retain flood water as part of the overall control of water <br />passage through the metropolitan area. The staging area is approximately 30,000 acres, and <br />consists primarily of land devoted to agricultural purposes (e.g., cropland). Depending on the <br />flood event, the length of time of retention could impact crop production (resulting in crop loss) <br />in a variety of mechanisms, including but not limited to: 1) prevention of planting a crop; 2) <br />crop loss due to a flooding event during the growing season; and 3) crop loss due to prevention <br />of harvesting a crop. Crop losses will have a negative financial effect on the farming operations <br />in the staging area. Consequently, the Authority is seeking solutions to mitigate the risk of crop <br />loss in the staging area. <br />The Authority has facilitated discussions with W&A and stakeholders in the staging (retention) <br />area to review concepts for crop loss compensation in the event of a flood that would require the <br />Authority to utilize the staging area for flood control. The following proposal outlines a two <br />phased approach to develop and implement a crop loss compensation program that is reflective <br />of the risk of crop production in the staging area. A rationale is provided for each phase. Phase I <br />provides a near term framework that is based on existing crop insurance procedures which can be <br />clearly communicated to stakeholders in the staging area while simultaneously providing near <br />immediate utilization. Phase II provides a more in-depth focus of considerations for developing <br />a separate insurance product designed specifically for the Authority staging area. <br />II. OBJECTIVES <br />1. Phase I: Develop an administrative framework to compensate growers for crop losses <br />caused by Comprehensive Project induced flood events during the crop growing season. <br />The framework will be based upon the current crop insurance system administered by <br />RMA. <br />2. Phase II: Develop a crop insurance product that is specific to the component risks of <br />cropland directly within the staging area. <br />The following sections of this proposal provide additional information regarding each phase.
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