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I I I I I I I I I I I I I I I I I I I 001512 4.0 Farm Efficiency Adjustments The Level A analysis crop budgets assume farm efficiencies equal to that of a contiguous 1000 acre operation. That is, it was assumed that at least 1000 acres could be farmed using one equipment complement stored in a central equipment warehouse without excessive transportation costs. In the Level B economic analysis, two types of farm efficiency adjustments were made for certain parcels. The first adjustment was for economies of scale where there were fewer than 600 acres of current or newly irrigated new acreage that could be farmed as one unit. The 600 acre cutoff figure was used because economies of scale decline rather steeply below this point. A second type of adjustment for some parcels involved transportation costs for on-farm equipment. These adjustments were made in cases where isolated parcels could not be easily served out of a central equipment warehouse. In cases where individual parcels were more than five miles from the assumed location of a central equipment warehouse, an additional transportation cost for transporting equipment to and from the parcel from a central location was assumed. The effects of these adjustments on the parcels identified as preliminary PIA in the Animas and Florida drainages are given in the following sections. 5.0 Results of Level B Analysis for Animas and Florida Drainages Boyle Engineering's Task D and E Report for the Animas and Florida Watersheds, dated May, 1986, identifies six parcels as having preliminary repayment capacities high enough to justify water delivery charges. All of these parcels are currently unirrigated, but show the 5 <'