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<br />-, <br /> <br />~, <br /> <br />. <br /> <br />. <br /> <br /> <br />year, these wells could provide wilter for 56,000 to 60,000 ilcres of crops. <br />This water would insure that il maximum yield Is obta incd rilthcr than a yield <br />of SO percent of maximum. Using the most recent Colorado Aqricultural <br />Statistics (1974) and the estimated gross cash values for various crops for <br />o the 1974 season, a gross cash value of $12,946,000 can be estimated for, <br />" 60,000 acres of irrigated land in prowers and Bent Counties. This estimate <br />~ includes the various percentages of the crops shown in the referenced <br />-..J publication for both Prowers and Bent Counties applied to the 60,000 acre <br />N figure. If the wells use resulted in an increase in yield of 50 percent, then <br />the direct economic benefit would be $6,473,000 per year. The inJtifeqt <br />-.f1"'--"---, ~ <br />, economic benefits to the 'community would be three to four times this amount <br />if the accepted economic multiplier for agriculture is used. <br /> <br />The Association has the potential to increase the number of member <br />wells to over 700 and the resulting direct economic benefits could increase <br />proportionately to approximately $13,000,000 per year. <br /> <br />This year the pumping facilities provided supplemental water to over <br />1500 acres of crops under the Buffalo Canal, which would have produced very <br />little without the ground water due to the extreme shortage of river water. <br />'The lack of river water can be partially attributed to the large number of wells <br />, L above the Buffalo Canal headgate. The crops that were produced on these <br />1500 acres included alfalfa, milo, corn, sugar beets, onions, melons, and <br />feed grains. The-average gross cash value of these crops this year is <br />conservatively estimated to be $215 per acre and the direct economic benefit <br />is estimated to be $322,500. <br /> <br />From the above, the tremendous economic value of the Demonstration <br />Project can be observed. A benefit-cost analysis Cun ue; ,"Jpliee to the; situation <br />where the Association has 700 members with a direct economic benefit of <br />approximately $l3,OOO,OOO per year using 1974 crop prices. The annual cost <br />using a IS-year life on pump and motors and 10 percent interest, $12,000 per <br />year power costs, 2,000 annual maintenance costs, and a salvage value <br />of $60,000 is estimated to be approximately $19,500. The benefit-cost <br />ratio is 667 which is an exceptional value and clearly indicates the value <br />of the Demonstration Project. <br /> <br />~ <br />, <br /> <br />--- - <br />