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<br />:"t ,~t <br />iJiti I <br /> <br />. <br /> <br />Agricultural Economy <br /> <br />or not the Narrows Unit is constructed. <br />and "without" project conditions contain <br />prises. <br /> <br />Therefore, budgets for "with" <br />identical livestock enter- <br /> <br />Payment Capacity <br /> <br />Payment capacity is the maximum net farm income available to the <br />water users for defraying water charges. Two farm budgets were pre- <br />pared for a 530-acre general farm; one to represent conditions without <br />project development and the other to represent conditions with project <br />development. The results of the analysis are presented in table 16. <br /> <br />. <br /> <br />The "with" farm budget indicates that an annual net farm income <br />averaging $14,592 would be available for return to farm investment, <br />return to labor and management, and payment capacity. The sum of <br />$10,561 :per year was established as an equitable labor-management <br />wage. This sum consists of $9,904 return to labor and management <br />under "without" project conditions, $329 for the additional operator <br />and family required to operate the "with" project farm, and $334 which <br />is ten :percent of the increased net farm income, for management. <br /> <br />The $2,623 payment capacity per farm would result from the <br />provision of 229.12 acre-feet of supplemental water at the farm <br />headgate or an average value of $11.42 per acre-foot at the farm <br />headgate. However, salable project water will be measured at the <br />Narrows Dam. Application of average transportation losses of <br />38 percent results in a payment capacity of $7.09 per acre-foot <br />of water at the dam. <br /> <br />IRRIGATION BENEFITS <br /> <br />Irrigation benefits would accrue from increased values resulting <br />from greater production of agricultural products attributable to the <br />application of supplemental water. Evaluation of irrigation benefits <br />has been made for a 100-year period of analysis without adjustment <br />for a development period. <br /> <br />. <br /> <br />Increases in net farm income attributable to the Narrows Unit <br />are direct benefits. Profits from marketing and processing the <br />increased farm products represent indirect benefits. Growth in the <br />overall economy resulting from the effects of the project comprises <br />public benefits. <br /> <br />76 <br />