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<br />
<br />Projected additional investment in land, land improvements, and development
<br />of farm irrigation systems per irrigab1e acre, required with project develop-
<br />ment, for evaluation areas A through H, are $66.82, $27.88, $81.53, $67.37,
<br />$39.04, $26.90, $93.13, and $61.74, respectively. At 5 percent the annual
<br />amortized cost per acre for the total additional inve~tment required would
<br />be $3.50, $1.45, $4.27, $3.52, $2.03, $1.39, $4.82, and $3.18.
<br />
<br />Development Period
<br />
<br />Benefits from the use of supplemental water would begin to accrue immediately
<br />after completion of the project. The 559 acres of nonirrigated land, which
<br />are in small, scattered tracts, are projected tD be developed in conjunction
<br />with land already under irrigation. Development of the 1,559 acres of
<br />nonirrigated land, on which new farffi~ ~re projected to be established is
<br />1ikely'to proceed at a slower rate. Several years may elapse before the
<br />full level of benefits are attained. The assumption is made for the Silt
<br />project that a period of three years will be required before the full level
<br />of projected benefits are achieved on the presently irrigated and intermingled
<br />new lands, and five years will be required for lands on which new farms are
<br />projected. Project benefits are discounted accordingly.
<br />
<br />Findings
<br />
<br />Increased net income per acre with project development for evaluation
<br />areas A through H are $20.52, $9.67, $32.54, $19.61, $17.40, $13.90,
<br />$34.71, and $16.88, respectively (table 19). Annual amortized cost of
<br />additional land investment and development ranges from $4.82 per acre for
<br />evaluation area G to $1.39 for evaluation area F (table 18). Discount
<br />factors are based on three-and five-year development periods, an interest
<br />rate of 5 percent, and an evaluation period of 100 years.
<br />
<br />The present annual equivalent values per acre of direct agricultural benefits
<br />for the eight evaluation areas are estimated at $16.22, $7.83, $25.68,
<br />$14.62, $14.64, $11.92, $27.15, and $12.45, respectively (table 19). The
<br />weighted average annual direct agricultural benefits for the 6,278 acres,
<br />except for those lands which presently have .a full water ~upp1y from pumping,
<br />are $15.56 per acre, or $97,657 annually.
<br />
<br />It was assumed that project lands which presently have a full water supply
<br />from pumping would have benefits equal to the savings in pumping costs
<br />minus abandonment losses for pumping equipment. Evaluation area A has
<br />213 acres of pump1ands and evaluation area B 106 acres. On the basis
<br />of present pumping costs, direct agricultural benefits from the 319 acres
<br />of pump1ands are estimated at $21.55 per acre annually, or $6,874 for
<br />the total acreage.
<br />
<br />The weighted average annual direct agricultural benefits are $15.85
<br />per acre or $104,531 for the proposed project.
<br />
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