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<br />ABSTRACT <br />The Dolores Project is a Bureau of Reclamation multipurpose water project <br />located near Cortez, Colorado. About 26,000 acres will receive supplemental <br />irrigation water, and about 28,000 acres previously in dryland crops or grazing <br />will be irrigated. <br />This report considers the economics of alternative crops that could be <br />grown under the project. The economic and physical environment is considered <br />as it effects the feasibility of potential crops. Crop budgets are developed <br />to more accurately assess the economics of the feasible crops. Linear <br />programming models of alternative crop and livestock operations are constructed <br />to estimate optimal farm plans. <br />With favorable alfalfa or bean prices, producers could realize fair net <br />returns. However, low prices for these crops, combined with poor grain prices <br />may motivate farmers to experiment with new and riskier crops. Financial <br />hardships for many farmers can be expected as they attempt to adjust to more <br />intensive farming methods, higher costs per acre and the ever-Changing economic <br />environment. <br /> <br />11 <br />