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. crop yields. Approximately 70 percent of the SLVID farmers use the more costly, but overall more efficient, center pivot sprinkler systems. The center pivot sprinkler systems and wells were developed in response to the lack of a full water supply throughout the irriga- tion season, the falling water table which reduced or eliminated sub- irrigation, and the limited water supply. Currently, the average size farm in terms of irrigated acres is 273 acres or approximately two quarters. According to Don Moschetti, the minimum economical farm size is four quarters. High machinery costs and larger sized equipment enables each farmer to more economically farm a larger number of acres. Because of the narrowing margin costs of machinery and larger sized equipment available, one farmer can farm a larger number of acres. Because of the narrowing margin between production cost and prices received for crops, it is necessary for a farmer to farm larger areas and to develop better management practices to reduce production costs per acre. As higher taxes are levied by the SLVID, the farmers who currently farm less than four quarters will find it increasingly difficult to make a profit. In fact, we predict that higher taxes along with other increased produc- tion costs will force many of the farmers who farm less than four quarters to sellout. We also anticipate that these farms will be taken over by the larger and more efficient operations. In 1980, the San Luis Valley Farm and Ranch Management Association, in their publication "Farm Business Analysis," prepared an eleven year (1970-1980) summary of cash expense trends and cash income trends. The basic data was obtained from approximately 80 members of the Farm and Ranch Management Association that generally represent above aver- age farmers for the entire San Luis Valley. Because this type of information is not available for the SLVID, the results for the entire San Luis Valley are summarized in Table 14. Relatively speaking, the years 1977, 1978, and 1979 were poor years for the San Luis Valley farmers. However, 1980 has been a much better year with cash income less expenses as a percent of income comparable with the years 1970 through 1976. For comparison purposes, the corresponding cash income less expenses is also shown on Table 14. This comparison tends to verify that the Farm and Ranch Man~gement Association data are -56- . .