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APPENDIX 1

Missouri Agricultural Wetland Mitigation Bank Pilot Project

Wetland Restoration Cost Estimate

Cost to Purchase and Restore Prior-converted croplands for the Missouri Agricultural Wetland Mitigation Bank Pilot Project

The proposed project involves purchase of a permanent conservation easement on an 80-acre parcel of land for mitigation purposes. The entire 80-acre parcel is currently farmed every year and can be restored to functioning wetlands. The proposed restoration effort will involve (a) restoring site hydrology; and (b) restoring native vegetation within the former prior-converted cropland areas (planting seedlings and management). The goal of the mitigation effort is to establish a 73-acre wetland complex surrounded by a berm that encompasses 7 acres. The estimated cost of the various mitigation activities is presented below:

Cost (per Acre)
Easement Purchase (80 acres @ $1,500/acre) $120,000
Land Appraisal  500
Easement Costs (Title insurance, survey)  2500
Restoration Costs:
Earth Moving (13,200 @ $0.75/yard) 9,900
Tree Planting* 6,400
Seeding (60 ac @ $200/acre) 6,000
Structures (2 water control structures and pipe) 3,200
.
Mandatory Monitoring (5 year period/1 per year) 7,500
.
Financial Guarantee Bond (Three percent per year premium for five year period, based on total cost of restoration and 5-year monitoring, for this project. the premium is based on $33,000, and the yearly premium is $990) 4,950
.
Administration (Five percent of the land costs to cover Trust management) 6,000
.
Total Cost to Purchase and Restore Wetlands $166,950
.
Estimated Cost per Wetland Credit (73 credits available)

$2,300

* Price is for Root Production Method (RPM) trees. Sufficient funds are available for up to 20 acres, using RPM trees and seedlings