PROJ00452

• Contract/PO #: FS0029X
• Contractor Name: Trinidad Project USBR 1964
• Contract Type: Miscellaneous
• Water District: 0
• County: Las Animas
• Loan Projects - Doc Type: Feasibility Study

Agricultural Economy

With the exception that minor improvements are n'eeded on some
canals and turnout structures, all ditches are adequate to deliver
the regulated irrigation water, Estimated future "with!' project
annual ,non-Federal OM&R expenses are shown in table 13,

Table 13.--Estimated annual non-Federal. irrigation
, OM&R expenses

Economic, Irrigable
study tract acres Per acre Total
,Model 6,177 $4.00 $24,710
Baca Joint 2,428 4,00 9,710
South Side 6,359 4.00' 25,440 ,
Hoehne * 4,753 4,00, 19,010
Total 19,717 $7l:l, 570

* This study tract includes eight ditch systems:
Hoehne, Johns Flood, Chilili, El Moro, Victor Fiarez,
Burns and Duncan; Lewelling and McCOrmick, and Salas.

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_'".S.

.FINANCIAL'AND ECONOMIC ANALYSES

.i.,

.),

Payment Capacity

The payment capacity of the irrigable lands and t:he irrigation
benefi ta were computed from tlie same set .of ,farm budgets. Fer the
,"wit,hout" preject conditions, one budget was prepared .of the
representative irrigated farm fram each .of the f.our ecanomic tracts.

Far the "with" pr6ject conditions, three budgets (.one for each
class of irrigable land) were prepared for the representative
irrigated farm from each of the four ecanqmic tracts.

Payment' capacity is the naximum annual net farm income'
'available to the :water users for repaying water charges. In the
payment capacity studies, the "without" farm budgets :were used'to
measure the return to labor and management that :would be available
for, family li;"ing :withaut the project. Table 14 is a summary .of
these farm budget studies. Inasmuch as the return to labor and
management derived in these budgets is less than the minimum family
living aliowance specified by Reclamati.on procedures, a value 'of
$2,775,was !!Sed in the "with" farm budgets.

43

Rev. 9/64