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<br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />Although Parcel 590 is classified as having less than' 10 percent <br />tree canopy, approximately 30 percent of Parcel 591 (or about 8 acres) <br />has a 10 to 40 percent canopy cover. The land clearing adjustments <br />given in Table 5-1 reflect the amortized value of clearing costs for <br />each parcel on an annual, per acre basis. <br />Although both parcels were judged suitable for the alfalfa, malt <br />barley rotation that maximizes repayment capacity, their combined size <br />of 288 acres is too small to achieve the 1000 acre economies of scale <br />assumed in the Level A analysis. 5ince there is no currently <br />irrigated acreage in close proximity to these parcels, no economies of <br />scale could be achieved by incorporating Parcels 590 and 591 into an <br />existing operation. Thus, a revised set of alfalfa and malt barley <br />budgets was developed for a 288 acre operation. <br />The details of the crop budget analysis for Parcels 590 and 591 <br />are described in Appendix B to this report. It should be noted that <br />changes in the equipment complements used in the Level A economic <br />analysis were made to reflect the smaller farm size. Also, projected <br />yields for Parcels 590 and 591 were estimated to fall half way between <br />those projected for climatic zones D and E. Although the preliminary <br />PIA analysis placed Parcel 590 in zone E and Parcel 591 in zone~, <br />both parcels lie on the breakpoint between the two climatic zones and <br />no significant differences in yields between the parcels would be <br />anticipated. <br />The results of the revised crop budget analyses are given in the <br />farm efficiency adjustment column of Table 5-1. The results show that <br />the economies of scale adjustment for Parcel 590 results in <br /> <br />8 <br />