The aim of the research was to evaluate different methods of compensation payment, at the future dry detention reservoir for flood waters Brdnikova, based on the estimated economic impact of floods, ...which will allow the investor to make transparent decision on selecting a proper scheme. We prepared four compensation types: (a) a single payment, (b) annuity, (c) the payment after the loss event; and (d) the purchase of land. Calculated single payment is competitive to annuity for 40 years of land utilization. Annuity allows the investor to require from producers the fulfilment of agri-environmental conditions. The purchase of land requires a lot of financial resources. Payment upon the occurrence of a loss event provides the most realistic assessment is highly variable during the four decades. It brings additional obligations like restoration of agricultural land and neglects the drop in the value of land in the property market. This research offers a good starting point for preparing methodology for evaluation of compensation payments on a national level under the Water Act for damage on agricultural land as a consequence of building flood water dry detention reservoirs.
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•Dry detention reservoirs are frequently used as a measure to alleviate flood risk.•They impact the productive capacity of a rural landscape and agricultural economics.•The results ...showed damage to agriculture production (crop yield would be 1.7 million euros).•The most exposed farms would suffer damage in the range of three to five average annual salaries.•These findings indicate the need for discussion on agriculture-focused mitigation measures.
Dry detention reservoirs are frequently used as a measure to alleviate flood risk. When implemented on agricultural land, they decrease the productive capacity of a rural landscape and negatively impact soil characteristics, crop quality and quantity, agricultural infrastructure (i.e., irrigation equipment), and agro-economics. The Slovenian government prepared a Detailed Plan of National Importance to ensure flood safety in the Lower Savinja Valley. The proposed plan foresees the implementation of a chain of 10 dry reservoirs (520 ha of agricultural land) to provide a higher level of flood protection for the cities of Celje and Laško. We explored how economic calculation can adequately address flood risk management initiatives and prevent adverse effects on high-quality agricultural land. The results of agro-economic scenarios for the study area showed that expected damage to agriculture production (crop yield) in a worst-case flood event occurring during the growing period would be EUR 1.7 million. The most exposed farms would suffer damage in the range of three to five average annual salaries. These agro-economic findings indicate the need for discussion on agriculture-focused mitigation measures before the construction of flood protection measures.
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