WSP10897

• File Number: 8200.750
• Description: San Juan River General
• State: CO
• Basin: San Juan/Dolores
• Water Division: 7
• Date: 12/1/1986
• Author: Western Research Cor
• Title: Economic Analysis of Potentially Irrigable Parcels in the San Juan West Watershed - December 1986
• Water Supply Pro - Doc Type: Report/Study

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proximity to these parcels, no economies of scale could be achieved by

incorporating them into an existing operation. Thus, a revised set of

crop budgets for a 204 acre corn and soybean crop rotation was

developed.

The details of the crop budget analysis for Parcels SW76, SW81

and SW82 are described in Appendix 8 to this report. A summary of the

results is given in the farm efficiency adjustment column of Table

5-1. That column shows that farming the three parcels as a 204 acre

unit would decrease repayment capacity by $55.00 per acre from the

level that could be achieved with a 1000 acre operation. The last

column of Table 5-1 shows adjusted residual repayment capacity for

each parcel after subtracting both land clearing charges and the farm

efficiency adjustment from residual repayment capacity. The results

show that Parcel SW76, consisting of approximately 100 acres, should

be dropped from consideration as potential PIA because its adjusted

residual repayment capacity is negative. Parcels SW81 and SW82,

however, still qualify as potential PIA after the Level B economic

analysis.

6.0 Conclusions

The preliminary analysis of potentially irrigable parcels in the

San Juan West Watershed resulted in the elimination of one parcel,

SW76, as potential PIA. The Level B economic analysis of two other

parcels totaling 104 acres, did not eliminate them from further

consideration. Prior to finalizing recommendations for these parcels,

an on-site inspection should be made to verify individual parcel

characteristics.

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