PROJ00072

• Contract/PO #: C153592
• Contractor Name: West Divide Water Conservancy District
• Contract Type: Loan
• Water District: 0
• County: Garfield
• Bill Number: SB 89-85
• Loan Projects - Doc Type: Feasibility Study

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the field will be sufficient for one irrigation; and if applied at the

appropriate time, will produce at least one additional ton of hay. It should be

noted that the incremental cost of production consists essentially of the time

and machine expense involved in irrigating and harvesting, since all other

expenses involved in the fanning openltion (such as taxes, machine purchase,

ditch maintenance, etc.) will be incurred regardless of crop yield. Based on

the above discussion, Table 7.1 presents a development of the incremental value

of the last acre-foot of water available at the optimum time. Production cost

is based on average rates for custom cutting and bailing. If the owner uses his

own equipment and labor, the cost is less.

TABLE 7.1
DEVELOPMENT OF MARGINAL WATER VALUE
FOR ALFALFA HAY PER ACRE-FOOT

Gross value of increased production
Incremental cost of production
Net Marginal Value

$ 60
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$ 38

Transit loss from Alsbury Reservoir to the field may be as much as 15%,

thus the value at the reservoir for break-even return based on the above figures

is about $32.00.

If the price of stored water at the reservoir is set at $25.00 per

acre-foot, this would provide what conservatively should be a marginal profit of

$7.00/ton or 11-2/3% on gross sales. If the water is available in years when

hay is in short supply, the profit will be substantially greater. Potential

contractors have indicated a willingnes$ to pay $20.00 to $25.00 per acre-foot

for water available for call on short notice.

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7.3 Residential Use:

Quantities of water required for residential use are small compared to

commercial irrigation; but the value per unit is very high, particularly where

the presence or absence of a reliable water supply spells the difference between

building or not building on a given tract. In most parts of the West Divide

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