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<br />.-oj <br />0) <br />l'- <br /> <br />- 15 - <br /> <br />pasture which is only partially and inadequately irri~ated. The cow herd could be <br /> <br />increased from 125 head to 140 head of cows and heifers to calve with calves being <br /> <br />marketed as before. Return to operator labor would be changed from a -$1,444 to a <br /> <br />-$747. The cost of the supplemental water was assumed to be $1.90 per acre, and <br /> <br />the total charge including interest on that cost as an operating expense would make <br /> <br />additional costs for water about $1.96 per acre. After payment of water costs, a <br /> <br />net gain of $697 is shown through the use of supplemental water on Ranch I. <br /> <br />If additional land in the project area were also added, the ranch could increase <br /> <br />its acreage of deeded irrigated land by 260 acres, making a total of 490 acres of <br /> <br />irrigated land including leased land. The beef-cattle breeding herd could be in- <br /> <br />creased to 195 head of cows and heifers to calve. The production of hay and small <br /> <br />grains would also be sufficient to allow for the fattening of all calves on a <br /> <br />ration of grain, hay, and irrigated pasture for sale as choice slaughter-grade <br /> <br />animals with heifers weighing about 900 pounds and steers about 975 pounds. <br /> <br />The combination of greater number of cows and heifers to calve, together with <br /> <br />marketing of fat yearlings, more than triples the value of cattle sales. Cash ex- <br /> <br />penses of operation would also be almost tripled, but only about a 66 percent in- <br /> <br />crease in depreciation is necessary. The plan with additional land, as well as <br /> <br />water, results in an increase in net ranch income up to $9,902 from $2,742 in the <br /> <br />normalized situation. Investment is also increased by almost 75 percent with the <br /> <br />addition of land, cattle, feed yards and equipment, and after deducting interest on <br /> <br />investment return to operator labor is increased to $2,723 from -$1,444.00 in the <br /> <br />normalized situation. <br /> <br />The charge for water used on full service project lands, including interest on <br /> <br />the charge as operating capital, I~as $5.76 per acre. After deducting this addition- <br /> <br />al cost for water, a net gain of $4,167.00 is shown for Ranch I, with the project <br /> <br />constructed and additional water and additional land being used. <br />