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<br />~ <br />~ <br />l'- <br /> <br />- 23 - <br /> <br />Analysis of New Farm Units <br /> <br />Budgets were also prepared for new farm units in the rroject area with data <br /> <br />assembled from the sources as previously enumerated, and with the same general <br /> <br />assumptions and methods of procedure. <br /> <br />Land in the prOject area which would be brought into the new farm units is at <br /> <br />present partly privately rn~ned, and partly state or federally owned land. Based <br />upon present prices of comparable rangeland in the area, a price of $20.00 per acre <br /> <br />was placed upon new land as the purchase cost. Improvement and development of land <br /> <br />will be the first problem faced by settlers on the new farm units. Development costs <br /> <br />per acre are estimated at $10.00 for brush clearing, $35.00 for leveling, shaping <br /> <br />and grading, and $10.00 for irrigation systems. The total cost then for developed <br /> <br />land without improvements is estimated at $75.00 including purchase price. <br /> <br />Investment for a typical 400-acre farm capable of carrying about 150 head of <br /> <br />breeding cows would be $31,000, for land, $20,000 for buildings and improvements, '.' <br />$13,000' for machinery'and equipment, and $30,000 for breeding livestock, making a <br /> <br />total of about $94,000. If a cattle-fattening ente~rise is added, the investment <br /> <br />is increased by about $13,000. Buildings and machinery have been entered at average <br /> <br />investment, which is new cost plus salvage value divided by two. New acquisition <br /> <br />costs would actually be around $35,000 and $22,000, respectively, for buildings and <br /> <br />machinery to properly equip the unit. These acquisition costs reflect initial capital <br /> <br />requirements more accurately than do average investments. <br /> <br />The land-procurement and improvement'costs and investment in buildings, improve- <br /> <br />ments, machinery, and equipment for a typical farm have been shown, for illustrative <br /> <br />purposes only, to indicate what the requirements and costs are for a farm of this <br /> <br />size. For the farm budgets prepared, the actual acreages of land vary, as do the <br /> <br />requirements for buildings and, to a certain extent, farm machinery. The investment <br /> <br />requirements and fixed costs for these items are varied for individual farms and do <br />