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<br />. <br /> <br />assessment per quarter is higher than most, if not all, other irri- <br />gation systems in the San Luis Valley. This gives a competitive edge <br />to the farmers under other irrigation ditches. <br />From Tables 15 and 16 the average projected profit per quarter <br />amounts to $6,800. If a person farmed four quarters, his profit <br />would be $27,000 which is probably within reason. If a person <br />farmed only two quarters, his profit would be $13,600 which is prob- <br />ably inadequate or certainly marginal for supporting a family. For <br />comparison purposes, a repayment of $30,000 per year would be nearly <br />$100 per quarter per year. In other words, the person farming two <br />quarters would have to reduce his already marginal or inadequate <br />profit another $200. The person farming four quarters would have to <br />reduce his profit by $400 per year. Currently, the average farmer <br />in the SLVID farms only two quarters. <br />For the existing situation in the SLVID, the obvious question is, <br />I~ould the average person farming only two quarters be willing to pay <br />an additional $200 per year even though it would reduce his already <br />marginal profit?" We believe the answer to this question Is yes, <br />since the SLVID farmers recently have demonstrated their willingness <br />to repay a deb t . <br />The ability of the SLVID to make repayments over and above normal <br />expenses was demonstrated during the years 1979 and 1980. During 1979 <br />the Rio Grande water users incurred large legal and engineering <br />expenses assoc i ated wi th the "Ru I es and Regu I at i on" I awsu it. As a <br />result of these expenses, the Rio Grande Water Users Association <br />assessed the SLVID approximately $60,000 in 1979 over and above the <br />normal assessment. Approximately one-half of this assessment was <br />paid by the SLVID in 1979 and the remainder was paid in 1980. In other <br />words, the SLVID demonstrated its ability to repay approximately <br />$30,000 per year. This also demonstrated the general attitude of the <br />SLVID farmers to repay their debts on a timely basis. It was the <br />opinion of the SLVID Board that this additional payment of $30,000 per <br />year, or approximately $100 per quarter, was the maximum additional <br />tax they could expect to receive from the SLVID farmers. Whether or <br /> <br />. <br /> <br />. <br /> <br />-61- <br />