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<br />~ <br />0:> <br />l'o <br /> <br />- 18 - <br /> <br />Net ranch income on Ranch II I was $8,124, and return to operator I s labor was <br /> <br />-$266 in 1962. Good prices were obtained from the sale of calves on this ranch in <br /> <br />1962 and consequently, the normalized situation at lower prices shows a large re- <br /> <br />duction in cattle sales. Expenses of operation are reduced in the normalized <br /> <br />situation, but only Slightly from the 1962 actual situation. Net ranch income in <br /> <br />the normalized situation would be $4,182 with a return to operator's labor of <br /> <br />-$4,210. The relatively low returns to operator himself are due in part to the fact <br /> <br />that the operator is providing substantially less than one man-equivalent of labor. <br /> <br />The gain on this ranch from the use of supplemental water is a good deal less <br /> <br />than on previous ranches considered. The rangeland is thought to be fully stocked <br /> <br />and the land use and productivity near its best level. A slight increase in crop <br /> <br />yields and in the production of aftermath pasture is expected. The beef cow herd <br /> <br />can be increased to 225 head of cows and heifers to calve, with corresponding small <br /> <br />increases in cattle sales, returns, and operating expenses. The net gain from the <br /> <br />use of supplemental water on this ranch is expected to be only $144. <br /> <br />With the use of additional lands from the project area, as well as supplemental <br /> <br />water on present lands, 232 acres of land can be added, making a total of 400 acres <br /> <br />of irrigated land. The CO~I herd can be increased to 250 head and calves fattened <br /> <br />for sale at choice s laughter grade. Net ranch income is increased throueh the use of <br /> <br />additional land and water from $4,182 in the normalized situation to $11,923 in the <br /> <br />new situation. Return to operator's labor is increased from -$4,210 to $1,007. The <br /> <br />net gain with the project, after payment of additional water costs, is $5,217. <br /> <br />Case-Study Ranch IV.--Ranch IV sold exclusively yearling cattle and had a capacity for <br /> <br />about 200 cows and heifers coming two years old, together with offspring. This ranch <br /> <br />made considerable use of leased range and meadow land. The ranch also had both <br /> <br />National Forest permits and Bureau of Land Management permits. Investment require- <br /> <br />ments \~ere $550 per breeding CO~I for land and buildings, and $904 total investment. <br />