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<br />and developed a positive credit rating, would have few <br />problems with either short- or long-term financing, <br />according to the Bureau. <br /> <br />In order to benefit from this project, farmers would be <br />required to cover on-farm development costs to convert <br />farmland to sprinkler-irrigated farms which would require <br />a substantial amount of capital to purchase additional <br />farm machinery, sprinkler irrigation equipment, fencing and <br />buildings, and improvements. Lending institutions which were <br />contacted at the time of the Survey, including commercial <br />banks, Federal Land Banks, and the Farmers Home <br />Administration, generally agreed that both short- and <br />long-term financing could be obtained to meet these farm <br />development needs. <br /> <br />he post-Survey experience of farmers at the neighboring <br />Bureau of Reclamation Dolores project, however, has not <br />confirmed this optimistic view. As part of the farm analysis <br />for this project, the Dolores Demonstration Farm was used to <br />~~( project crop yields and other key information. <br />(The same Demonstration Farm used for Animas La Plata.) <br />(]} 'U' Farmers in that area now find themselves in the position of <br />I bankruptcy if they have to take Bureau water and undertake <br />the farm improvements necessary to use it. <br /> <br />Irrigation repayment would be divided into 13 blocks <br />under the original project, with each block determined by <br />availability of water, type of service, and geographical <br />location. The blocks include six for non-Indian land in <br />ColoradO, two for non-Indian land in New Mexico, four for <br />Indian land in ColoradO, and one for Indian land in New <br />Mexico. Repayment on each of the non-Indian blocks would <br />start after the appropriate development period and would <br />continue for 50 years for each block. (This may change under <br />the new cost-sharing agreement that has been negotiated <br />which may require 30-year repayment.) <br /> <br />The Animas La Plata Project was authorized as a <br />participating project of the Colorado River Storage Project. <br />Thus, net revenues of the Colorado River storage Project <br />storage units apportioned to Colorado and New Mexico may be <br />used to repay that portion of the irrigation construction <br />cost not paid from project sources. <br /> <br />Payments are scheduled so that costs assigned to each <br />block would be repaid in 50 years following the end of the <br />respective period. Irrigators would pay according to their <br />ability and the available ad valorem tax would be used for <br />repayment. The unpaid balance of each year's payment would <br />ba accumulated as an obligation of the Colorado River <br />storage Project revenue. apportioned to each state for <br />irrigation assistance. <br /> <br /> <br />11 <br />