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I I I I I I I I I I I I I I I I I I I 001538 1.0 Introduction The Level A economic analysis of potentially irrigable acreage (PIA) on the Southern Ute and Ute Mountain Ute Indian Reservations specifies crop budgets and gives estimates of on-farm returns for potentially irrigable lands in ten different climatic zones. (The Level A economic analysis is described in a separate report.) The results of the Level A economic analysis were used by Boyle Engineering to identify land parcels in the Animas and Florida Drainages that, based upon preliminary investigations, had sufficient on-farm returns to justify water delivery costs. This report describes a Level B economic analysis of individual parcels in the Animas and Florida Drainages preliminarily classified as PIA by Boyle Engineering. The purpose of this Level B economic analysis is to make any necessary adjustments in the economic analysis to reflect the unique characteristics of individual parcels. The Level B economic analysis includes three factors that were not considered in the Level A analysis. First, land classes (soil types) that may affect crop suitability are considered and changes in cropping patterns are made when indicated. Second, the Level B economic analysis incorporates land preparation charges for tree, brush and grass removal that will be necessary prior to irrigated agricultural use. Finally, the Level B economic analysis considers economies of scale and farm efficiency factors as they apply to individual parcels or groups of parcels and makes any adjustments in cost and/or returns necessary for a final PIA determination. The methods used in making these adjustments are described below. . ~i~.!.: