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<br />'-~ .., <br />.,.oj <br />~-, Economic Analysis <br />~ <br /> <br />r"":' <br /> <br />'... Introduction <br /> <br />Reduction in Colorado River salinity levels achieved by treatment of irrigated <br /> <br />land in the basin causes economic effects to users of the land, residents of the <br /> <br />region, and the nation in both the short and long term. Economic effects <br /> <br />experienced by users of treated land are an important d,eterminant. Therefore, <br /> <br />estimation of onfarm economic effects is proposed as one aspect of monitoring <br /> <br />efforts. <br /> <br />The second aspect is to determine changes or impacts in monetary terms for the <br /> <br />overall basin economy resulting from the implementation of the salinity control <br /> <br />program measures and their operation. <br /> <br />Data Collec tion <br /> <br />Onfarm economic effects can be estimated by measuring change in annual net farm <br /> <br />income. Primary data collected by case study is a means of measuring change in <br /> <br />annual net farm income. Case studies can be used to id..ntify production inputs <br /> <br />and outputs without treatment and with treatment. Analysis of measured change <br /> <br />in production inputs and outputs to determine impact on economic return to land, <br /> <br />management, and family labor in an estimate of change in net farm income before <br /> <br />taxes. Income analysis between years requires adjustment to a common price <br /> <br />base. <br /> <br />Production input costs include capital items and annual cash operating expenses. <br /> <br />Change in capi tal inputs would include investment in adopted treatment and <br /> <br />production machinery. Change in annual cash operating costs include operation <br /> <br />and maintenance costs of applied treatment and inputs to crop culture such as <br /> <br />seed, chemicals, energy, labor, and machinery repairs. <br /> <br />42 <br />