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PART VII AGRICULTURAL ECONOMY Detailed studies were made to measure the effects that regulating the water supply and conserving storable flood flows would have on the agricultural economy of the area, In making the studies, recognition was given to the effects of such factors as climate, extent and suitability of the land resource, farm size, land use, crop yields, and farm expenses and income. METHOD OF ANALYSIS For study purposes the Trinidad service area was divided into four tracts, each having its own economic characteristics. The four economic tracts and the ditch systems which comprise them are as follows: . I . ">1 1- 2, 3, 4, Model Ditch Tract (Model Ditch only) South Side Tract (South Side Ditch only) Baca Joint Tract (Baca Joint Ditch only) Hoehne Tract, comprised of eight ditches as follows: Hoehne, Johns Flood, Ghilili, Victor Florez, El Moro, Burns and Duncan, Lewelling and McCormick, and Salas. Farm budgets representing both the "without" and "with" project conditions were prepared for representative farms. Agri- cultural prices at U, S. projected long-term indexes of 250 for prices received and 265 for prices paid (1910-1914 ='100) were used in all farm budgets. The difference in income computed from the "without" and "with" budgets was the basis for deriving the payment capacity of the lands and the irrigation benefits. . -... The crop yields used in the "with" project budgets were based on the availability of a full water supply. In actual operations, however, a full water supply will not be available for all ditches and some ditches will experience greater shortages than others. Therefore, full payment capacities determined in the farm budget 36