WSP08675

• File Number: 8220.106
• Description: Animas-La Plata
• State: CO
• Basin: San Juan/Dolores
• Water Division: 7
• Date: 6/1/1995
• Author: USDOI-BOR
• Title: Economic and Financial Analysis Update
• Water Supply Pro - Doc Type: Report/Study

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Tractors and Self Propelled Machinery ................... 72
Pickups and Trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 72
Sprinkler Irrigation System ................................ 73
Interest Rates and Farm Indebtedness ......................... 73
Long Term Interest Rates ............................ 73
Short Term Interest Rates ............................ 74
DebtlEquity Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 74

DepreCiatIOn .......................................... 74

Taxes ............................... . . . . . . . . . . . . . . .. 75

Insurance ............................................ 75
Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 76
Operator, Family, and Hired Labor . . . . . . . . . . . . . . . . . . . . . . . . . .. 77

Wage Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 78
Social Security Taxes and Worker's Compensation Rates. . . . . .. 78
Crop Production Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 79
Custom Work .................................... 79

Fertilizer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 79
Herbicides . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 79

Seed Cost ....................................... 81
Miscellaneous Costs ................................ 82
Livestock Production, Death Loss, and Replacement Rates . . . . . . . . . .. 83
Feed Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 84
Winter Feeding and Grazing Requirements. . . . . . . . . . . . . . . .. 85
Livestock Equipment .................................... 87
Livestock Marketing Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 87
Miscellaneous Livestock Costs .................... . . . . . . . . .. 88
Other Farm Expenses .................................... 88

Electricity ........................... . . . . . . . . . . .. 88
Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 89
Adjustments to Farm Budgets for Benefit Analysis ................ 90
Interest Rates for Benefit Analysis ...................... 90
Fertilizer Rates for Benefit Analysis ..................... 90

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CHAPTER 3. - IRRIGATION PAYMENT CAPACITY ANALYSIS. . . . . . . .. 92
Method of Analysis ..................................... 92
Net Farm Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 92
Return to Manageinent .............................. 92
Return to Equity. .................................. 93
Return to Operator and Family Labor .................... 93
Payment Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 93
Financial Feasibility Conclusion ..... . . . . . . . . . . . . . . . . . . . . . . .. 94
CHAPTER 4: IRRIGATION BENEFIT ANALYSIS ................... 96
Method of Analysis ..................................... 96
Irrigation Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 96

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