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<br />o <br />- <br />00 <br /> <br />- 34 - <br /> <br />Although outside rangeland is fully utilized at present, one should not complete- <br />ly rule out the possibi 1i ty of settlers on new units either leasinp: or buying outside <br /> <br />rangeland to go \~ith the farm unit. <br /> <br />It is recognized that in preparing budgets, rather generous complements of build- <br /> <br />ing and equipment have been included, with corresponding charges for repairs and de- <br /> <br />preciation. It is perhaps common on reclamation projects for the farm units to be <br /> <br />built and to operate on a "shoe string." If this were done on the Savery-Pothook <br /> <br />Project, it is possible that investment in buildings and equipment could be reduced <br /> <br />by a few thousand dollars, with corresponding reductions of a few hundred dollars in <br /> <br />depreciation and smaller reductions in repair costs. Reductions of a small amount in <br /> <br />investment in machinery and equipment might also be made with corresponding reduction <br /> <br />in depreciation and repair costs. Even reducing these items to a minimum, however, <br /> <br />would not likely reduce over-all investment, depreciation, repair costs, and total <br /> <br />costs of operation to the point where farm plans which were previously unfeasible <br /> <br />would become feasible. <br /> <br />The plans which have been tested and indicated to be unfeasible, generally speak- <br /> <br />ing, fall so far short of beinp. satisfactory that there do not appear to be any ad- <br /> <br />justments in the budgets which would .ake them reach a satisfactory return to opera- <br /> <br />tor and family labor. At the same time, those plans which do appear feasible have <br /> <br />been tested using estimates which are sufficiently conservative that there should not <br /> <br />be too much danger of error in them. The principal possible sources of miscalcula- <br /> <br />tion have been pointed out in the assumptions made regarding the sale of hay at <br /> <br />$20.00 per ton, and in the assumptions regarding the availability of outside range <br /> <br />and pasture. <br /> <br />In development of the Savery-Pothook Project, it would appear desirable to em- <br /> <br />phasize first the provision of an adequate supply of supplemental water to existing <br /> <br />units. Planning the project on a basis that would allow and encourage operators of <br />