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-j . .'L '-' ~J '..1 . sical and Economic Characteristics and i thout" Project Development This portion of the Appendix outlines, describes, and sets forth all of the general physical and economic characteristics necessary to meet the objectives of the study. fl~sical and economic conditions are the chief factors that influence the general type of farm economy in the North Sterling 11. II ". 11. . area wlth and wlthout proJect development. Physlcal factors, except for differences in water supply, would be the same "with "and "without"project development and would contribute toward a comparable type of agriculture. Changes brought on by improvements in technol- ogy and cyclical changes in livestock numbers can be expected under either si tuation. Crop acreages might shift. from time to time in response to price levels and national food requirements. More diversification of crops would be possible with an additional water supply and higher yields would be obtained more consistently than in previous years with an insufficient water supply. Farm operations in general would become more intensive; these changes would be reflected in the economy of the area. . To meet the objectives of the stud,)j, farm budget analyses were used to reflect conditions in the future "with" and "withouf" project development. These budget studies determine the value of an acre-foot of supplemental water for a representative farm in the North Sterling Irrigation District and form th~ basis for establishing rates for salable water to be released from Narrows Reservoir. Additional budget studies determine irrigation benefits per farm and for an acre-foot of supplemental water supplied to the North Sterling Irrigation District. These studies are basic to evaluation of irrigation benefits from the enhanced water supplies provided by Narrows Dam and Reservoir. Separate sections have been prepared for the repayment and benefit analyses, which reflect the difference due to time periods associated with the end of the construction period and the economic midpoint of the expected life of project facilities. The physical and economic considerations and limitations of each study are described therein. . In using the farm budget analysis, many input-output rela- tionships are required. These relationships have been developed to fit the physical and economic conditions for future production in the water service area expected of farm operators with average managerial ability. Appropriate input-output characteristics have been adopted from a number of sources including data from farm schedules and pertinent published information. Where this was not possible, standards were developed through judgment 24