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<br />C"j <br />r-- <br />C"j <br /> <br />Weighted average development ~r acre of irrigable land is estimated as <br />follows: evaluation area A, $65.03; evaluation area B, $26.07; evaluation <br />area c, $66.53; evaluation area D, $52.37; evaluation area E, $39.04; eval- <br />uation area F, $26.90; evaluation area G, $69.77; evaluation area H, $37.92. <br /> <br />.0 <br /> <br />Direct Agricultural Benefits and Potential Farm Incomes <br /> <br />The economic analysis of the proposed Silt irrigation project has two primary <br />objectives: (1) an appraisal of direct agricultural benefits from project <br />development, and (2) an appraisal of prospective farm incomes from represen- <br />tative sizes and types of farms considered most likely with the proposed <br />irrigation development. Both of these analyses contribute to a general <br />appraisal of the prospects for a successful, stable, irrigated agricultural <br />economy. Farm incomes were estimated for five farm types, namely: range <br />beef, grade-A dairy, feeder calves, f~.~~ flock of sheep, and cash-crop. <br /> <br />Project lands are expected to be used largely for the production of grain <br />and forage crops. Sale of livestock and livestock products will likely be <br />the predominant sources of agricultural income to project farmers. <br /> <br />The residual approach was used to estURate direct agricultural benefits from <br />irrigation water. The total value of crop and pasture production was allo- <br />cated to the various factors of production, except water, in accordance with <br />their projected market prices with. the residual being credited to the project <br />as a direct benefit. For the 319 acres of project lands which presently <br />have a full water supply from pulllping, it is assumed that these lands would <br />have direct agricultural benefits equal to the savings in present pumping <br />costs, minus abandonment losses for present pumping equipment. <br /> <br />Estimates of returns with the project in the analysis are based on weighted <br />averages of anticipated farm types and of sizes of 130 acres in evaluation <br />area A, 135 acres in evaluation areas C and E, 140 acres in evaluation area <br />G, 150 acres in evaluation area B, 155 acres in evaluation areas D and F, <br />and 160 acres in evaluation area H. The annual equivalent value of direct <br />agricultural benefits attributed to the project for the evaluation area lands <br />are estimated at, A-$l6.22, B-$7.83, C-$25.68, D-$14.62, E-$14.64, F-$11.92, <br />G-$27.l5, and H-$12.45 per acre. Direct agricultural benefits on present <br />pump lands are estimated to be $21.55 per acre. The weighted average for <br />the entire 6,597 acres is $15.85 per acre, or $104,531 annually. <br /> <br />Development of the project will result in a more stable and profitable agri- <br />cultural economlf. For the sizes and types of farms analyzed, estimated farm <br />incomes will vary from $3,903 for a farm-flock sheep farm on evaluation area <br />A lands to $8,606 for a grade-A dairy fam on evaluation area C lands. The <br />general conclusion from this analysis is that the income prospects for fully <br />developed fams of the five types of farms analyzed are adequate to provide <br />a satisfactory level of living and to make some payment for irrigation water. <br /> <br />v <br />