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<br />The cropping patterns assumed in the benefit analysis are the same as used
<br />~ in the analysis of potential farm incomes with the exception of rotation
<br />pasture. For ease of computation the acreage of rotation pasture was changed
<br />to alfalfa. It is generally assumed that when all costs are considered,
<br />net income per acre derived from alfalfa is equal to net income derived
<br />from rotation pasture. The cropping patterns used reflect the need for feed
<br />crops in livestock enterprises. Also, prices for feed crops are based upon
<br />their local value in livestock enterprises.
<br />
<br />Farms with an adequate water supply will require considerably more labor,
<br />including operator and family labor, than farms wi th partial water supplies.
<br />In the uwithl project budget, the additional operator and family labor
<br />required is considered as an expense in deriving benefits. This additional
<br />labor has been charged at the rate of $1.00 per hour.
<br />
<br />Tables 11, llA, lIB, lle, and lID show the value of crop production, annual
<br />production costs, and the difference in incomes by evaluation areas. With
<br />project development the weighted average increase in adjusted farm incomes
<br />for evaluation areas A, B, C, and E are $2,262, $2,275, $1,844, and $732,
<br />respectively. The value of the additional operator and family labor required
<br />to obtain the increased production amounts to $482, $484, $489, and $198.
<br />Subtraction of these amounts leaves a balance of $1,780, $1,791, $1,355 and
<br />$534. These latter amounts are available for the payment of the addi tional
<br />land and farm irrigation system improvements required and for supplemental
<br />irrigation water.
<br />
<br />Evaluation area D represents the nonirrigated land on which new farm units
<br />are most likely to be established. Adjusted farm income for the projected
<br />new farms is $3,841. Subtraction of the total value of operator and family
<br />labor required in production, $2,093, leaves a balance of $I,748. This
<br />amount would be available for payment of land and farm irrigation system
<br />development and for a full supply of irrigation water.
<br />
<br />Land Investment Associated with the Project
<br />
<br />The acreage in each evaluation area, the projected investment 'with' and
<br />'without' the project and the additional cost of land and farm irrigation
<br />system improvements required with the project, are shown in table 12.
<br />Costs of farm buildings, machinery, fences, domestic water, and maintenance
<br />and replacement costs of the farm irrigation system a re included as farm
<br />expenses in the budgets (tables 10Aand 11). Man and machine labor have
<br />been aligned with the degree of land and farm irrigation systems development
<br />for each evaluation area.
<br />
<br />Projected additional investments per irrigated acre required with project
<br />development for evaluation areas A, B, C, and E are $19, $23, $10, and $3,
<br />respectively. Development costs per irrigable acre (nonirrigated land)
<br />included in evaluation areas A, B, C, and Dare $59, $53, $56, and $48,
<br />respectively. At five percent the annual weighted a.verage costs per acre
<br />for the total additional investments required would be; A, $1.15; B, $1.45;
<br />c, 70 cents. D, $2,90; and E, 15 cents.
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