WSP03984 - Laserfiche WebLink

Home Browse Search

0'1891 The Operation, Maintenance, and Replacement on constructed Federal works, is not included in the farm expenses in the budgets, but must come from the payment capacity afforded by the project. Financial and Economic Analysis Payment capacity is the net farm income available to farmers for repaying water charges. The "without" project farm budgets were used to measure the returns available to the farmer for a family living. Without the project these returns were found to be less than the minimum living allowance provided by Reclamation procedures. Therefore, a minimum living allowance of $2,TT5 was used in the "with" farm budgets and deducted from the net farm income before computing the repayment capacity. As derived, the repayment capacity varies according to the productivity of soils and the cost of land development. As stated before, the budgets give the payment capacity with the project for a full water supply and are then adjusted for the water supply available to each ditch with the project. This was done by a formula derived from Bureau of Reclamation experience as follows: 95~ to lO~ water supply - no reduction in repaymentability 75~ to 95% water supply - 5~ reduction in repaymentability for each 1% reduction in water supply 75~ or less water supply ~ no repaymentability Table 19, column 2 shows the repaymentability of various Class 1 lands with a full water supply, column 5 shows Class 2 land repayment- ability and column 8 that for Class 3 land. The Class 1 land repayment- ability varies between the four budget groups in accordance with the water supply available without the project. As would be expected, ditches with the better water supplies would have the least repaymentability generated by the project as eviaenced by the Hoehne and JOhn's Flood figures being the smallest. Their "without" project budgets showed a high net farm income so the difference between this net income and that with a full water supply is less. Tbe South Side having a poorer water right has the highest repaymentability for Class 1 land. The Model area has no Class 1 land. In general the difference in repaymentability for Class 2 and 3 lands is for the same reason. These classes, however, have subclassifications which creates further variations in repoymentability. Column 13 is the payment capacity index derived from the water supply available to each ditch by the formula given above. It should be noted that a 75 percent water supply would give a zero payment capacity index in this column and a 95 percent water supply would give 100 percent in this column, so each of these figures represents the percent of water supply lying between a 75 percent and 95 percent supply. 18