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<br />. <br /> <br />. <br /> <br />. <br /> <br />- .~.""'I <br />i~.L~ , <br /> <br />A G.R leu L T U R A LAN D PRO J E C TEe 0 NOM I C S <br /> <br />INTRODUCTION <br /> <br />Objective of Study <br /> <br />The primary objective of this study is to determine the benefits <br />and value of supplemental irrigation water in the project area. The <br />study is specifically concerned with: identifying and appraising irri- <br />gation benefits attributable to the area as a result of the project; <br />determining the average value of an acre-foot of supplemental water; <br />for irrigation repayment; and making general plans and recommendations <br />for the repayment contract. <br /> <br />General Procedure of Analysis <br /> <br />The agricultural economic studies involve detailed analyses of <br />the organization and operation of representative farms in the North <br />Sterling Irrigation District which is the principal market for pro- <br />ject water. Since the North Sterling Irrigation District has sub- <br />stantially greater irrigable dryland resources for future development <br />as compared to the overall Narrows Unit, further farm budget analyses <br />were made to reflect the economic effects of a lesser irrigable land <br />resource potential that prevails in the Lower South Platte Water <br />Conservancy District as a whole. The detailed North Sterling Analysis <br />as modified to reflect the basin wide irrigable land resource potential <br />constitutes the basis for determining irrigation payment capacity and <br />benefits applicable to the Narrows Unit. <br /> <br />For repayment analyses, these farms reflect the expected land <br />use under both "with" and "without" conditions of project develop- <br />ment at the end of the construction period. Irrigation benefit <br />studies are based upon land use and crop yields expected to exist <br />at the approximate economic mid-point of a 100-year period of <br />analysis. These farm budget analyses define and measure potential <br />changes in land use, irrigation repayment and benefits resulting <br />from supplemental water. Projected long-term price indexes at <br />250 for prices received and 265 for prices paid (United States <br />index for 1910-14 = 100) were used in all farm budgets. <br />