Laserfiche WebLink
<br />,.. <br /> <br />..., <br /> <br />I. ~~ <br /> <br />. -. <br />'-i "-' <br /> <br />Reclamalion Instructions <br /> <br />Series 110 Planning <br /> <br />Part 116 Economic Inves1iga(ions <br /> <br />CHAPTER 5 COST SHARING <br /> <br />116.S.2AIS) <br /> <br />(5) Disposable Family Income. As previously indicated, income to th~ farm famill' con- <br />slstmg 01 (1) net tarm income without the project, (2) returns 10 Ihe increased family <br />labor and management employed with the project, and (]I the return to the farm <br />operator's equity share of increased capital investment is deducted from net farm <br />income in order to determine payment capacity. Payment capacity will be the rec- <br />ommended water charge. The disposable income available for family living is the dif- <br />ference between net farm income with the project and the recommended waler <br />charges or payment capacity. As a guideline, the family disposable income should be <br />approximately equal to or greater than the average farm family median income in <br />the United States for the preceding] years of record. However, it may be less in <br />areas of hislorically low agricultural Income compared to national averages in order <br />to aVOid excessively low repayment by irrigation water users. <br /> <br />161 Small Tracts and Part-Time Farms. In order 10 oblain a higher level of repayment <br />tram water use converted trom commercial agricultural to noncommercial use on <br />small tracts and part.time farms, irrigation water charges will include two <br />components: (1) an accounl charge, and (2) the applicable commercial irrigation <br />charge per acre of irrigable land or per acre-foot of water. The account charge <br />together with the commercial irrigation charge for repayment of full service land <br />should be negoliated within a range which has an upper limit determined by the <br />tOlal rate necessary to repay the irrigalion Cost allocation with interest, and a lower <br />limit determined by the total rate necessary to repay the irrigation cost allocation <br />without interest. Waler charges for commercial farms will be the applicable commer- <br />Cial rate per acre or per acre-foot reduced by the amount of the account charge so <br />that the twO charges in combination do not exceed the recommended water charge <br />for commercial farms in the payment capacity determinations. In the case of sup- <br />plemental service, the account charge will be the same as for full supply service <br />divided by the amount of water required per acre for a full supply. <br /> <br />In order to increase the amount of repayment from part-time farms, the above f1at- <br />rate procedure may be modified by adopting a rate schedule of decreasing account <br />charges per acre for part-time farms ranging in size up to a limit of 10 or 15 acres as <br />appropriate. considering the size of small commercial farming enterprises expected <br />on the project. The effect of such a variable account charge is to reduce the slope <br />of the rale curv" as the size of part-time farms increases as illustrated in the figure <br />below. <br /> <br />Note: The next page is 116.5.28. <br /> <br />, <br /> <br />116-4-1/12/B2 ISupersedes lOflSfBOI <br />