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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 />6of3S'6 <br /> <br />4.0 Farm Efficiency Adjustments <br />The Level A analysis crop budgets assume farm efficiencies equal <br />to that of a contiguous 1000 acre operation. That is, it was assumed <br />that at least 1000 acres could be farmed using one equipment <br />complement stored in a central equipment warehouse without excessive <br />transportation costs. In the Level B economic analysis, two types of <br />farm efficiency adjustments were made for certain parcels. The first <br />adjustment was for economies of scale where there were fewer than 600 <br />acres of current or newly irrigated new acreage that could be farmed <br />, as one unit. The 600 acre cutoff figure was used because economies of <br />scale decline rather steeply below this point. <br />A second type of adjustment for some parcels involved <br />transportation costs for on-farm equipment. These adjustments were <br />made in cases where isolated parcels could not be easily served out of <br />a central equipment warehouse. In cases where individual parcels were <br />more than five miles from the assumed location of a central equipment <br />warehouse, an additional transportation cost for transporting <br />equipment to and from the parcel from a central location was assumed. <br />The effects of these adjustments on the parcels identified as <br />preliminary PIA in the San Juan Watershed are described in the <br />following sections. <br />5.0 Results of Level B Analysis for the San Juan Watershed <br />Boyle Engineering's Task D and E Report for the San Juan <br />Watershed, dated August, 1986, identifies two currently unirrigated <br />parcels as having positive residual repayment capacities. That is, <br />these parcels show positive returns after subtracting the costs of <br /> <br />5 <br /> <br />'il:. <br />