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<br />I Mt4al <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />proximity to these parcels, no economies of scale could be achieved by <br />incorporating them into an existing operation, Thus, a revised set of <br />crop budgets for a 204 acre corn and soybean crop rotation was <br />developed, <br />The details of the crop budget analysis for Parcels SW76, SW81 <br />and SW82 are described in Appendix B to this report. A summary of the <br />results is given in the farm efficiency adjustment column of Table <br />5-1. That column shows that farming the three parcels as a 204 acre <br />unit would decrease repayment capacity by $55.00 per acre from the <br />level that could be achieved with a 1016 acre operation, The last <br />column of Table 5-1 shows adjusted residual repayment capacity for <br />each parcel after subtracting both land clearing charges and the farm <br />efficiency adjustment from residual repayment capacity, The results <br />show that Parcels SW76 and SW81, consisting of approximately 146 <br />acres, should be dropped from consideration as potential PIA because <br />their adjusted residual repayment capacities are negative, Parcel <br />SW82, however, still qualifies as potential PIA after the Level B <br />economic analysis. <br />6,0 Conclusions <br />The preliminary analysis of potentially irrigable parcels in the <br />San Juan West Watershed resulted in the elimination of two parcels, <br />SW76 and SW81, as potential PIA. The Level B economic analysis of <br />Parcel SW82, consisting of 57 acres, did not eliminate it from further <br />consideration, Prior to finalizing recommendations for this parcel, <br />an on-site inspection should be made to verify its characteristics. <br /> <br />8 <br />