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<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 /><(', ~', ;" t) Q-) <br />1'; q , d.,' ..i <br /> <br />1.0 Introduction <br />The Level A economic analysis of potentially irrigab1e acreage <br />(PIA) on the Southern Ute and Ute Mountain Ute Indian Reservations <br />specifies crop budgets and gives estimates of on-farm returns for <br />potentially irrigab1e lands in ten different climatic zones. (The <br />Level A economic analysis is described in a separate report.) The <br />results of the Level A economic analysis were used by Boyle <br />Engineering to identify land parcels in the San Juan Watershed that, <br />based upon pre1iminary,investigations, had sufficient on-farm returns <br />to justify water delivery costs. This report describes a Level B <br />economic analysis of individual parcels in the San Juan Watershed <br />preliminarily classified as PIA by Boyle Engineering. The purpose of <br />this Level B economic analysis is to make any necessary adjustments in <br />the economic analysis to reflect the unique characteristics of <br />individual parcels. <br />The Level B economic analysis includes three factors that were <br />not considered in the Level A analysis. First, land classes (soil <br />types) that may affect crop suitability are considered and changes in <br />cropping patterns are made when indicated. Second, the Level B <br />economic analysis incorporates land preparation charges for tree, <br />brush and grass removal that will be necessary prior to irrigated <br />agricultural use. Finally, the Level B economic analysis considers <br />economies of scale and farm efficiency factors as they apply to <br />individual parcels or groups of parcels and makes any adjustments in <br />cost and/or returns necessary for a final PIA determination. The <br />methods used in making these adjustments are described below. <br /> <br />...;.-,,;;_:6: <br />