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, , , i.~~j!~ ,,\October 1973, ';,; u, INCREMENTAL COST ANALYSIS Attached is an incremental study showing the results of expanding Indian irrigation from 3,055 to 6,500 acres based on sprinkler and gravity service. The most significant change in expanding the Indian irrigation development is the need to construct a totally new canal to the reservation boundary. The MYI system is incapable of delivering above 60 second-feet without completely rebuilding the canal struc- tures and enlarging the water prisms. This becomes significantly more expensive than constructing a new canal on a different aline- ment. Cost estimates included 'in the incremental analysis do not include geologic and field survey input. Consequently the new canal costs are based on normal geology and average field conditions. As shown on Map #1, the new canal alinement is through existing irrigated acreage served by the MYI system. Approximately 250 acres of irrigated land would be required for canal right-of-way. Future benefits from this land have been accounted for in the land aquisition costs included in this analysis. The area through which the new canal would traverse is also SUbject to intensive thunder storms, and erosion is quite prevalent on arroyos in the area. Also not included is an allocation of McPhee ,iam and reservoir operation, maintenance and replacement costs. It was assumed that small deliveries to the reservation would be insignificant. However, should larger quantities be released to the reservation, then an allocation would be necessary. Irrigation benefits were assumed to be the same per acre for both sprinkler and gravity system in this analysis. Any difference in net farm income between the two systems will be the result of a trade-off between capital expenditure for sprinkler system and additional labor required to operate a gravity system. } ( Based on the assumption made regarding capital expenditure for sprinkler irrigation, and the amount and cost of farm labor required for gravity irrigation net farm income was essentially the same for both systems. However it should be noted that return per acre-foot of water diverted is approximately $5.00 to $7.00 higher for sprinkler system due to the more efficient use of water.