WSP01535

• File Number: 8200.750
• Description: San Juan River General
• State: CO
• Basin: San Juan/Dolores
• Water Division: 7
• Date: 12/1/1986
• Author: Western Research Cor
• Title: Economic Analysis of Potentially Irrigable Parcels in the Animas and Florida Watersheds - December 1986
• Water Supply Pro - Doc Type: Report/Study

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001522

Revised Repayment Calculations for
Parcel A36, Animas Watershed

The cropping pattern that maximizes repayment capacity for land

parcels in climatic zone D is an alfalfa and malt barley rotation.

Parcel A36 in the Animas Watershed, however, is considered suitable

only for native hay production because of its 4A land classification.

Thus, it was necessary to develop a revised repayment estimate for

that parcel. During the Level A economic analysis, native hay budgets

were developed for climatic zones F through J. Production costs for a

similar cropping pattern in zone D were estimated using a linear

regression curve fitted by the least squares technique to the cost

data derived for zones F through J. The results of the regression

analysis are depicted in Table B-1.

The agronomic study of the reservations indicates that native hay

yields of 3.5 tons per acre and a pasture carrying capacity of 6.0

animal unit months (AUM) could be expected for parcels in climatic

zone D. Table B-2 shows production costs, gross returns and net

returns for these yield levels on a native hay operation consisting of

75 percent baled hay and 25 percent pasture. The overall net return

of $141.27 per acre was increased by 10 percent to allow for the

possibility of higher returns under ideal conditions. The resulting

estimate of $155.00 per acre is $115.00 lower than the alfalfa, malt

barley return of $270.00.

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