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214 . Table 2. LA WMA Water Ri hts Financed B CWCB Loans Cost per Ac-Ft of Cons. Use $484 $475 $673 $676 $573 Cost $1 937440 $651 394 $3 124371 $177 000 $5,890 205 While the average price of the X- Y and Manvel rights is $480 per acre-foot, the Highland and Fort Bent transactions have an average price of$675 per acre-foot. The preceding table also indicates that water rights lending to LAWMA will total about $5.89 million if the Board approves the Highland and Fort Bent loan taking into account the release of the funds in the escrow account. Total lending to LAWMAfor all purposes will be about $6.0 million when the $130,000 in feasibility study loans are added in. WATER RIGHTS APPRAISAL e The Paddock and Milenski appraisal report summarizes 16 sales of water rights or land and water rights in the Arkansas Basin in the last two to two and a half years to arrive at an opinion of value for the Highland shares. The appraisal concludes that the market price is rising and that the "minimum fair market value" for the 4,640 Highland shares is $878 per share or $675 per acre- foot of consumptive use. Of the 16 sales tabulated in the appraisal, however, only two have prices at or near $675 per acre- foot. The great majority of sales fall about $100 or more below that level. The average price per acre-foot for all of the 16 transactions is $495. Attachment A is a graphical representation of the information in the appraisal report. LENDING RATE LAWMA is requesting a 2.0 percent, 40-year loan for the Highland and Fort Bent purchases with annual payments of $67,200 in years one through ten. The previous loan for the Manvel and X- Y purchases was made with an effective rate of return of3.0 percent. The standard agricultural Construction Fund lending rate for this year is 3.75 percent. Table 3 gives the estimated annual payments for three lending rates with a principal loan amount of$2,213,971 and requested annual payments of $67,200 in the first ten years. . 3