PROJ00506

• Contract/PO #: C153824
• Contractor Name: Preisser, Rodney J.
• Contract Type: Loan
• Water District: 17
• County: Lincoln
• Bill Number: SPL
• Loan Projects - Doc Type: Feasibility Study

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Table I
Summary of Projected Costs & Returns
and Net Return to Water
Preisser Property, Lincoln County, Colorado

Item

Units

Irrigated
Alfalfa Hay

Non-Irrigated
Native Hay

Revenues
Yield
Price per unit
Gross revenues

tons/acre
$lIon
$/ac

4
$91.25
$365.00
, .

1.25 (1)
$80.25 (1)
$100.31

Costs
Land prep & plant $/ac $45.00 $20.00 (2) (3)
fertilizer & pesticides $/ac $12.50 $10.00 (3)
harvest & haul $/ac $65.00 $25.00 (3)
irrigation operating costs $/ac $57.94 $0.00 (4)
sprinkler system $/ac $53.90 $0.00 (5)
overhead, taxes & misc. expenses $/ac $30.00 $20.00 (3)
management $/ac $12.00 $8.00 (3)
Total costs $/ac $276.34 $83.00
Net retum $/ac $88.66 $17.31
differential net retum irr. vs. non-irr. $/ac $71.35
capitalized net return irr. vs. non-irr. $/ac $713 (6)
Irrigation water CU rate aCoff/acre 2.2 (7)
capitalized net return to water $/ac-ft $324

NOTES:
(1) Colorado Agricultural Statistics 1997, for l-incoln County.
(2) est. cost of initial stand, amortized over 4 year life.
(3) CSU ag extension, verbal comm., 1998.
(4) Mtn. View Electric irrigation rate of $0.05364/kwh & $2.00/hp (verbal comm., 1998)
and PCC test of Preisser system by Brad Young, 1997
(5) $50k installed, 10-yr life, annualized at 80/0
(6) capitalized at 10% per annum
(7) typical CU rate, HRS Water Consultants, Inc., 1990

HRS Water Consultants, Inc.
80091-04 July, 1998

HRS WATER CONSULTANTS, INC.