Resettlement policy framework and specific resettlement action plan

Calculation of compensation for temporary acquisition of lands for the first year is performed in the same way as for permanent acquisition (multiplication of crop price by crop area, and by average production). If temporary acquisition lasts for several years, agricultural producers shall receive compensation for the second and consecutive years equal to annual net income in current prices, received from all standing crops on the plot. Net income is calculated by extracting gross expenditures for crop production from gross annual income. Valuation shall be performed separately for each crop, so that an average weighted annual net income is obtained.

In order to determine amounts of compensations for temporary or permanent acquisition of lands, the following information is required:

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  Crop patterns;
  
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  Current market prices for agricultural crops;
  
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  Yields from production of crops for last three years; and
  
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  Expenditures for crop production.
  

Information about crop patterns and production costs was obtained from the 2009 farms census (Tables 14, 15 and 17). Information about production of crops in 2006 to 2008, and on current prices in Project districts, was provided by district departments of statistics (Table 16). Compensations for permanent and temporary acquisition of lands under annual crops, per ha, are shown in Table 17.

Table 14. Crop structure in Project farms, whose land will be acquired for ID construction (taking into account permanent crops)