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<br />o <br />~ <br />C\l <br /> <br />AGRICULTURE ECONOMY <br /> <br />Farm Unit Income Analysis <br /> <br />Cost of production will include such items as interest on invest- <br /> <br />meat, taxes, insurance, depreciation and upkeep on buildings, depreciation <br /> <br />on farm equipment, and water costs. These costs /DUst be paid from gross <br /> <br />crop income. Analysis of such costs show that for a farm unit of 80 <br /> <br />acres the cost of production would amount to $1,084 which includes <br />$320 allowance for water cost, $320 for interest on investment, $160 <br />for taxes, $272 for depreciation of farm buildings and equipment, and <br />$12 for insurance on farm buildings. The gross crop income for a farm <br /> <br />unit of 80- acres, as given in crop income analysis previously discussed, <br /> <br /> <br />is $2,944 per year. Atter allowance for the above items of expense the <br /> <br />income above the cost of production would be $1,860 per farm unit. <br /> <br />This farm unit income does not include allowance for the income from <br /> <br />farm livestock, garden, or the saving from an opportunity to live in <br /> <br />farm home. These benefits are estimated to be $600 per year making a <br />total income for a farm unit of 80 acres $2,460 per year. <br /> <br />Land Settlement <br /> <br />Since the entire area to be served by the project is in private <br /> <br />ownership with over 86% of the land under cultivation and since farm <br /> <br />units on the average are much smaller than is considered required for <br /> <br />best economic operation very little opportunity exists for additional <br /> <br />farm units. A readjustment of farm population with some increase in <br /> <br />the size of farm unit may be expected to take. place with the providing <br />of additional water for irrigated land and the development of a water <br /> <br />supply for the 931 acres of new land. <br />