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00 c:' ~ - c BUREAU OF RECLAMATION REPORT Economic Analysis Cost Allocation The entire construction cost ($1,476,000 exclusive of nonreimburs- able money expended from the Colorado River Development Fund) is properly allocable to irrigation without interest in accordance with reclamation law, except such part of that cost as is ultimately found attributable to the preservation of fish and wildlife. All costs for operation, main- tenance, and replacements are likewise allocable to irrigation. Repayment ..;., Payment capacity of the project farmers was estimated by the farm budget method. Analyses were mde of conditions anticipated with project development on a dairy and general livestock farm of Class 1 land and general livestock farms of Class 2 and 3 land. Payment capacity of Class 4 land was estimated from a study of pasture rental operations. Land use, crop and livestock yields, and farm expenses used in the budget analyses were determined through a comparison of conditions on actual farm units with similar climate, water supply, soil characteristics, markets, and other basic factors. The farm budget analyses showed that all project lands, including Class 4 pasture land, could pay operation, maintenance, and replacement costs estimated at $1.25 an acre annually. In addition land in all classes could pay annually toward retirement of construction costs an average of about $1.04 an acre or a total of about $S ,330. The estimated annual payment capacity of project lands, segregated by land class, is shown in the following table. ESTIMATED PAYMENT CAPACITY OF PROJECT LANDS Annual ent er acre Annual total Required for Available available for operation for payment payment' of Payment maintenance of construc- construction Land class Acres ca acity re lacement s tion costs costs 1 S20 $3.0S $1.25 $1.B3 $1,510 2 5,400 2.36 1.25 1.11 5,990 3 1,020 1.95 1.25 .70 720 4 730 1.40 1.25 .15 liO Total or avera e 7 970 2 29 1.25 1.04 S