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<br />'~ <br /> <br />f' <br />I <br />, <br />, <br /> <br />" <br />...1 <br />, <br />, <br /> <br />B. Irrigation Benefits <br /> <br />The primary benefit to be achieved from this project <br />is the value of increased hay production. Tables I and <br />II presented in the section on land use indicate that on <br />the average 1.46 tons of additional hay production per <br />acre-foot of consumptive water can be expected. The value <br />of increased hay production can be quantified in three <br />separate ways. The first is through the direct market <br />sales of hay. The second is the benefits resulting from <br />increased production of beef using the hay production <br />from this project. The third is the additional capability <br />of the ranch to produce a calf crop as a result of the <br />increased hay production. <br /> <br />i <br />, <br /> <br />i <br />1 <br /> <br />Even though the land parcels referred to are priori- <br />tized into four categories, the hay production per acre- <br />foot of consumptive use only varies from 1.38 tons per <br />acre-foot to 1.53 tons per acre-foot in the various cate- <br />gories. The current price of North Park hay is about $60 <br />per ton. Costs of production for Meyring Livestock Company <br />have recently been about $30 per ton, therefore, a net <br />profit of $30 per ton would be expected from the increased <br />hay production. <br /> <br />, <br />J <br /> <br />At present it will be assumed that nine out of ten <br />years the reservoir can be filled to its proposed storage <br />capacity, thus allowing for increased hay production 90% <br />of the time. It is therefore assumed that 1.32 tons of <br />additional hay production will result from each acre-foot <br />of consumptive use on an annual basis. <br /> <br />-:'1 <br /> <br />1.47 tons/aft x 90% = 1.31 tons/aft consumptive use <br /> <br />This gives a primary benefit for supplemental water <br />of $39.60, and a total benefit per year of $41,952. <br /> <br />$30/ton x 1.32 tons/aft x 1059.4 aft = $41,952 <br /> <br />The life of the structure, and therefore the life of <br />the annual benefit' stream, will be assumed. to be 50 years. <br />A 10% discount rate will be used. With these two para- <br />meters, the present value of the annual benefit stream is <br />$392.63 per acre-foot of supplemental water. <br /> <br />$39.60/aft x 9.9148 = $392.63 <br /> <br />The present value of total project benefits in this <br />case is $415,948. <br /> <br />$41,952 x 9.9148 = $415,948 <br /> <br />-39- <br />