WSP02917

• File Number: 8200.750
• Description: San Juan River General
• State: CO
• Basin: San Juan/Dolores
• Water Division: 7
• Date: 12/1/1986
• Author: Western Research Cor
• Title: Economic Analysis of Potentially Irrigable Parcels in the Piedra Watershed - December 1986
• Water Supply Pro - Doc Type: Report/Study

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4.0 Farm Efficiency Adjustments
The Level A analysis crop budgets assume farm efficiencies equal
to that of a contiguous 1000 acre operation. That is, it was assumed
that at least 1000 acres could be farmed using one equipment
complement stored in a central equipment warehouse without excessive
transportation costs. In the Level B economic analysis, two types of
farm efficiency adjustments were made for certain parcels. The first
adjustment was for economies of scale where there were fewer than 600
acres of current or newly irrigated new acreage that could be farmed
as one unit. The 600 acre cutoff figure was used because economies of
scale decline rather steeply below this point.
A second type of adjustment for some parcels involved
transportation costs for on-farm equipment. These adjustments were
made in cases where isolated parcels could not be easily served out of
a central equipment warehouse. In cases where individual parcels were
more than five miles from the assumed location of a central equipment
warehouse, an additional transportation cost for transporting
equipment to and from the parcel from a central location was assumed.
The effects of these adjustments on the parcels identified as
preliminary PIA in the Piedra Watershed are given in the following
sections.
5.0 Results of Level B Analysis for the Piedra Watershed
Boyle Engineering's Task 0 and E Report for the Piedra Watershed,
dated August, 1986, identifies three parcels as having residual
repayment capacities high enough to justify water delivery charges.
All of these parcels are currently unirrigated, but show the potential

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