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<br />Land and Irrigation Development <br /> <br />Development costs for project lands are estimated by evaluation areas on <br />the basis of the level of management expected on the project and the <br />physi ca1 requi rements of the soils and si te condi tions. They are consistent <br />with anticipated irrigation efficiencies and expected crop yields. <br /> <br />Estimated costs include clearing of nonirrigated lands, and leveling and <br />establishment of farm irrigation systems on project lands. Minor seepage <br />conditions can be corrected by proper irrigation practices, consequently <br />no drainage costs are anti cipated for project lands. <br /> <br />Estimated weighted average development costs per acre of irrigab1e land <br />are: Evaluation area A, $36.86 per acre; evaluation area B, $39.37 per <br />acre; evaluation area C, $41.50 per acre; and evaluation area D, $19.75 <br />per acre. <br /> <br />Direct Aari cu1 tura1 Benefi ts and Potential Farm Income <br /> <br />The economic analysis of the proposed Florida irrigation project has two <br />primary objectives: (1) An appraisal of direct agricultural benefits from <br />project development, and (2) an appraisal of prospective farm incomes from <br />representative sizes and types of farms considered most likely with the <br />proposed irrigation development. Both of these analyses contribute to a <br />general appraisal of the prospects for a successful, stable,irrigated <br />agricultural economy. Farm incomes were estimated for five farm types, <br />namely: Grade A dairy, range beef, feeder steer, farm flock of sheep, and <br />cash crop. <br /> <br />Project lands are expected to be used largely for the production of feed <br />and feed crops. Sale of livestock and livestock products likely will be <br />the predominant sources of agri cu1 tura1 income to project farmers. <br /> <br />The residual approach is used to estimate direct agricultural benefits <br />from irrigation water. The total value of crop and pasture production is <br />allocated to the various factors of production, except water, in accordance <br />with their projected market prices with the residual being credited to the <br />project as a direct benefit. <br /> <br />Estimates of returns with the project in the analysis are based on weighted <br />averages of anticipated farm types and sizes of 154 acres of evaluation area <br />A lands, 156 acres of evaluation area B lands, 160 acres of evaluation area C <br />lands and 111 acres of evaluation area D lands. The present annual equiva- <br />lent value of direct benefits for these evaluation area lands are estimated <br />at $13.03, $11.54, $8.34, and $1.72 per acre, respectively. The weighted <br />average for the entire 19,450 acres is $11.24 per acre, or about $219,000 <br />annually. <br /> <br />Development of the project will result in a more stahle and profitable <br />agri cul tural economy. For the farm sizes and types analyzed, adjusted <br />annual farm incomes will vary from $3,275 for a farm-flock sheep farm on <br />evaluation area C lands to $9,012 for a grade-A dairy farm on evaluation <br /> <br />iv <br />