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<br />. <br /> <br />good year for potato growers. The prices of barley and alfalfa <br /> <br /> <br />remain depressed relative to production costs and it is not expected <br /> <br /> <br />that these crops will produce a profit for a majority of the farmers <br /> <br /> <br />in 1981. <br /> <br /> <br />Part of the alfalfa and feed barley is used by a few of the <br /> <br /> <br />SLVID farmers for their livestock operation. Based on the prices <br /> <br /> <br />received for I ivestock in the "Colorado Agricultural Statistics," <br /> <br /> <br />1978 and 1979 were relatively good years for farmers raising live- <br /> <br /> <br />stock. However, because of high production costs and relatively low <br /> <br />prices 'received for livestock during 1980 and 1981, these years have <br /> <br /> <br />not been good years for farmers raising livestock. Again, because <br /> <br /> <br />of volatile and fluctuating prices received for livestock relative <br /> <br /> <br />to production costs, it is very difficult to estimate a firm repay- <br /> <br /> <br />ment ability for farmers raising livestock. <br /> <br /> <br />The respective counties tax the lands within the SLVID and the <br /> <br /> <br />SLVID receives its assessments or taxes from the county. If taxes <br /> <br /> <br />are not paid, the land is auctioned off by the county. During 1981, <br /> <br /> <br />only one out of 165 landowners did not pay the tax. In this instance, <br /> <br /> <br />the land went into an estate after the death of the farmer. The <br /> <br /> <br />lands have been sold and it is our understanding that the new owner <br /> <br /> <br />will pay the taxes as soon as land is released from the estate. <br /> <br /> <br />It is necessary to look beyond short term price fluctuations in <br /> <br /> <br />order to project repayment ability. Realistically, no one can accu- <br /> <br /> <br />rately project agricultural prices received by farmers. It is neces- <br /> <br /> <br />sary to pred'ict the future based on what has occurred in the past. <br /> <br /> <br />Over the last fifty years, SLVID farmers have generally been able to <br /> <br /> <br />"weather" price fluctuations. Prior to the last fifty years, during <br /> <br /> <br />the depression, several SLVID farmers along with others went out of <br /> <br /> <br />business. Assuming a major depression does not occur in the future, <br /> <br /> <br />we would project that SLVID farmers will continue to adjust to changing <br /> <br /> <br />conditions such that they will be able to make loan repayments. <br /> <br /> <br />With increasing production costs relative to prices received, <br /> <br />the SLVID farmers have adjusted through better farm management <br /> <br /> <br />practices and conjunctive use of groundwater to increase their <br /> <br />. <br /> <br />. <br /> <br />-55- <br />