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<br />..1 ., . ~ <br /> <br />.i.. ...i...J 1 <br /> <br />Reclamation Inslrucfions <br /> <br />S('rit'~ J 10 PJ.mnin.l-: <br /> <br />Pan 116 Economic Investi!1ation~ <br /> <br />CHAPTER S COST SHARING <br /> <br />llb.S.2A <br /> <br />vdJid.1ll'd rep.lyment c.:ontract~ with irri~alion organizations are required prior to commence- <br />menf o( comlruel;"n of featurf:'~ of a Service project. <br /> <br />Cll Paym('nl Cap,lcil~'. The amount which irrigators are able to pay toward project <br />(OSls i~ th.l! portion of the increased net farm income of the project area altributable <br />ro .ht' increa."ed water supply and projecl works after allowdnces have been made <br />for relurn~ to farm inveSlment and to family labor and management. Thb payment <br />capacity for Ihe irrigated area is estimated by preparing either a sufficient number of <br />farm budge'.... or (rop enterprise budgets to represem significant variations of produc- <br />livE' value within the irrigaled area when water charges become duly applicable at <br />the end of the developmenl period. The minimum number of farm budgels required <br />is normallv one for each land class on the project, one for each melhod of irrigalion <br />(sprinkler or gravity). and one depicting without prolect conditions. Additional budg. <br />ets may bE' required to adequalely depict {arm income under significant djfjerences <br />in land use patterns, or expected farm sizes. The following instructions refer to farm <br />budgets since this is the most common method. (rop enterprise budgets are equally <br />valid, provided care is taken to calculate farm expenses using assumptions and <br />methods generallv comparable to those employed in the farm budget melhod. <br /> <br />(2) Standards for Repavment Budgets. <br /> <br />(al The familv farm. To avoid monopoly of benefits by a few with disadvan- <br />tage to the general public, Reclamation law and policy emphasize the familv <br />farm. Such a farm contains land of sufficient productivity under irrigation to <br />meet farm expenses, to provide a reasonable return on investment, to main- <br />tain a suitable' level of living for the farm family, and to permit payment of <br />reasonable warer charges equal to or grealer than estimated irrigation opera- <br />tion and maintenance costs. In a family farming operalion, except jor seasonal <br />labor peaks, the function of labor and management can be performed by the <br />operator and his family. farm size should be sufficiently large to provide rea- <br />sonably full employment for family labor at a level of investment and man. <br />agement attainable by a typical farm operator under the type of farming <br />expected. full employmen! will usually be considered in the range of 2.BOO <br />to 3,000 hours of total operator and farm family labor input annually, if live- <br />stock enterprises are involved. In the case of pure crop farms, the measure of <br />full employment for the farm family will be related to the labor requirements <br />for the primary cropping season and may be less than 2,800 hours annually. <br /> <br />Ibl Type of farm. Differen! types of farms reflect differences in the major <br />source of 'arm income resulting from variations in crop adaptability, land char- <br />acteristics, and economic relationships which will prevail in the project area. <br />Such variations are identified by agricultural economic studies of the project <br />area, with the aid of data from comparable areas. A sufficient number of farm <br />types should be budgeted to reflect the kinds of farm organization and enter. <br />prises having an important influence on the payment capacity of the area as a <br />whole. <br /> <br />11b-4 - 1/12/82 (Supersedes 10/1S/80l <br />