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<br />co <br />,..... <br />'"='" <br /> <br />Development of the project is not expected to result in an increase <br />in the number of beef farms with range permits, or in the number of <br />cows in the breeding herds on these farms. <br /> <br />Grade A dairy - The analysis of dairy enterprises is based on 45 <br />cows per farm. Labor requirement::; are near maximum for a family- <br />size operation. Seventy-three percent of the milk produced is sold <br />at a grade A price and 27 percent at a grade C price. All milk <br />wi 11 be produced under grade A standards and sold to grade A p'1ants. " <br /> <br />Feeder calf. - C~lves are purchased in fall from owner::; of range <br />herds, OIintered and grazed on irrigated pasture the following <br />summer and sold as grass-fat long yearlings in the fall. The size <br />of herd used in the analysis was 150 head. <br /> <br />Farm-flock sheep - Farm flocks con~;st of 350 mature ewes per farm. <br />sale of grass-fat lambs and wool is the principal source of income. <br /> <br />Cash-crop farms - Alfalfa hay and small grains are produced and sold <br />to ranchers and dairymen on the project and surrounding areas. Sugar <br />beet::; are also produced on these farms. <br /> <br />Captial Requirements <br /> <br />Projected capital requirements on several farm types on the Silt project <br />are shown in table 20. Capital requirements on beef farms vary from $77,500 <br />to $88,000. Grade A dairy farms require capital ranging from $67,000 to ,. <br />$89,000. Capital needs for feeder calf operations vary from $48,500 to <br />$72,000. Capital needed for sheep farms varies from $45,000 to $68,000. <br />Needs on cash-crop farms range from $36,500 to $55,000. These figures <br />represent the cost of new structures and equipment and assume a farm residence <br />value of $10,000. <br /> <br />Farmers who are presently on the Silt project have most of the capital items <br />needed, with the possible exception of additional land development and <br />expansion of livestock numbers. New farms will require most of the capital <br />items listed except for the investment shown for present land and water <br />supply. New farms will require approximately $20,000 less capital than <br />present farms because of the large investment in present water supply. <br /> <br />Return to Operator and Family Labor and Management <br /> <br />An appraisal of the adequacy of projected farm incomes requires a guide or <br />standard in terms of returns to operator and family labor and management. <br />An average return of $3,100 for essentially full-time family-type farms <br />has been considered an acceptable minimum. This amount is used as a <br />general guide in appraising the adequacy of prospective farm incomes. For <br />farms with greater or less than average operator and family labor inputs, <br />capital requirements, or managerial skills, this return would vary'accordingly. <br />The farm dwelling and domestic water supply system are not included as farm <br />expenses or farm receipts in the budget analysis. <br /> <br />- 39 - <br />