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<br />. <br /> <br />. <br /> <br />It is our judgment th.:tt on!.y the .,,,tet used in the last option wi1.1. diminish <br /> <br />irrigated agricultl,lre in northeastern Colorado, and we estim.:J.te that the amount of <br /> <br />^2ter invo!.ved is less than 3,200 acre-feet annua!.ly. Bui!.ding Narrows Dam will <br /> <br />clearly mean.sQrrle changes in where farmers grmv sugar beets, corn, "alfalfa, etc., <br /> <br />out it will not significantly diminish the amount of such production. <br /> <br />.Finally, it should be pointed out that the $11.5 million in agricultural <br /> <br />production in the take area depends significantly upon the 31.000 acre-feet of <br /> <br />. water available from the \,eldon Valley ditch, whereas ~ of this water "as <br /> <br />included in computing agricultural benefits in the project service area. Weldon <br /> <br />Valiey water will most probably be dealt with through options (1) or (3) just <br /> <br />mentioned, and no loss in agricultural production from t~is water is expected. <br /> <br />In conclusion, losses in gross agricultural sales due to Narrows Darn cannot <br /> <br />be estimated by citing the current level of annual agricultural production of <br /> <br />$11.5 million in the take area. Actual agricultural production losses will be a <br /> <br />small fraction of this amount. On the other hand', increased gross agricultural <br /> <br />sales in the project service area are conservatively estimated to be $17.0 million a <br /> <br />year, and are significantly higher from a regional perspective, due to the increased <br /> <br />a~ount of project water under consideration from such a perspective. For the <br /> <br />reasons outlined above, the state's analysi3 of the irrigation benefits and costs <br /> <br />is based upon the net benefits procedure described earlier in this section, rather <br /> <br />t~an attempting to compare gro3s sales. <br /> <br />. . . . . . . . . . . . . . . . . . . . . . . . . . <br /> <br />In surmnary, then, our economic analysis shows major returns from this project <br /> <br />to the agricultural sector, and therefore to virtually every other sector of the <br /> <br />state's economy. There is no question that additional water is needed within north- <br /> <br />east Colorado.now and in the future. Narrows will supply new agricuccural water <br /> <br />- 7 - <br />