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<br />N
<br />-
<br />c.
<br />
<br />....
<br />
<br />Budgeting of typical farms requires many kinds of input-output and price
<br />information. Labor requirements, machinery and building needs, land
<br />investment, feed requirements, and other data are needed. Research in similar
<br />irrigated areas has been heavily relied upon for this information. It has
<br />been supplemented by information obtained during the field survey. Prices
<br />and expenses were also obtained in the Smith Fork area.
<br />
<br />oC
<br />
<br />The terms farm income and adjusted farm income are used in the following
<br />discussion. For purposes of this report these terms are defined as follows:
<br />
<br />Farm income - Total farm receipts less total farm expenses except; (1)
<br />Lnterest on capital investment, (2) irrigation water costs and (3)
<br />allowance for operator and family labor and management.
<br />
<br />Adjusted farm income - Farm income less interest on capital investment
<br />except interest on investment in land and water.
<br />
<br />Projected Agricultural Income
<br />
<br />Estimates of potential farm incomes have been made for typical range beef,
<br />dairy, feeder steer, and farm sheep farms. Salient features of the four
<br />basic types were described in preceeding sections. Farm budgets for each
<br />type were developed for evaluation areas A, B, and C.
<br />
<br />The feeder steer type farm, only, was used in estimating potential farm incomes
<br />for evaluation area D. While this area provides the greatest opportunity for
<br />the development of new farms, the acreage is relatively small. Operators
<br />of newly established farms are not likely to hold federal grazing permits and
<br />the area's location is likely to discourage the establishment of dairy farms.
<br />Feeder steer and farm sheep type farms are the most likely to develop on area
<br />D. Since farm incomes are similar for feeder steer and farm sheep type farms,
<br />the feeder steer budget was used in estimating potential farm incomes for
<br />evaluation area D. Dairy and feeder steer type farm budgets were used for
<br />area E.
<br />
<br />,
<br />The summaries of selected items from projected farm budgets give a general
<br />indication of sizes and organization of the four basic types of farms considered.
<br />tables 10, lOA, lOB, and,lOC. With proje"ct.geve1opment" the',wldghtecL
<br />average farm receipts for evaluation areas A, B, C, D, and E are $14,416,
<br />$14,263, $13,139, $20,182, and $13,636, respectively. Correspondingly,
<br />annual farm expenses, excluding interest and water costs, average $8,199,
<br />$8,259, $8,158, $15.034, and $8,933 per farm. These result in average farm
<br />incomes of $6,217, $6,004, $4,972, $5,148, and $4,703. Interest on invest-
<br />ment, except investment in land and irrigation water, at five percent amounts
<br />to $1,581, $1,610, $1,541, $1,088, and $I,078. If these interest amounts are
<br />deducted from farm incomes, the weighted average adjusted farm incomes y
<br />would be $4,636, $4,394, $3,431, $4,060, and $3,625, respectively.
<br />
<br />Y Return to operator and family labor and management and to land and irrigation
<br />water.
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