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<br />. <br /> <br />representative of the above average or best farmers in the San Luis <br />Valley. When comparing cash income less expenses, Don Moschetti <br />expressed the opinion that on the average he would expect the SLVID <br />farmers to be slightly above the Colorado state-wide averages. <br />Projected income and expenses for the SLVID were estimated as <br />shown in Tables 15 and 16. Expenses were calculated based on esti- <br />mates prepared by Duane Steinhart, a local San Luis Valley Farm <br />Management Extension Agent. Projected income was based on "Colorado <br />Agricultural Statistics" along with prices and crop yields obtained <br />from local farmers. The acreage planted in each crop was projected <br />on the basis of trends established during the past three years. From <br />Table 15, potatoes and small grains account for approximately 90 per- <br />cent of the projected income for the entire SLVID. Although the <br />projected cost of production of small grains (primarily barley) <br />exceeded income, it is necessary to rotate small grains with potatoes <br />to properly maintain the fertility of the soil. <br />From Tables 15 and 16, the average projected income slightly <br />exceeds the projected cost of production. In order to make a profit, <br />farmers must therefore keep their production costs below average. <br />Again, this demonstrates the necessity of a large and well managed <br />farm. If the projected price received for potatoes is decreased by <br />ten percent, the projected income and projected cost of production <br />are nearly equal. This demonstrates that profitability of farming in <br />the SLVID is very sensitive to the price received for potatoes. For <br />average projected production costs, the profit per farm amounts to <br />$9,000 or 6.4 percent of income. This demonstrates why some of the <br />farmers have resorted to secondary off-farm jobs to supplement their <br />income. If the projected price received for potatoes is increased <br />by ten percent, the profit increases to 12.5 percent which corresponds <br />to the average agricultural profit represented in "Colorado Agricultural <br />Statisitics" over the last ten years. <br />For 1981, landowners paid assessments in support of the SLVID in <br />the amount of $800 per quarter. Their neighbors to the west under the <br />Rio Grande Canal, paid only $389 per quarter which included the opera- <br />tion of Santa Maria Reservoir. It is generally known that the SLVID water <br /> <br />. <br /> <br />. <br /> <br />-58- <br />