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<br />C\J <br />c.. <br />..,. <br />.... <br /> <br />Although the farms on the project are already established and <br />under cultivation, it would be necessary for the farmer to obtain <br />capital to plaoe his land, improvements, equipment, and livestock in <br />satisfactory condition for successful farm operation under more in- <br />tensive cultivation. It is estimated that the capital required would <br />be about $4,200 for the Colorado 'division and around $2,500 for the <br />New Mexico diVision. The project farmer should be able to obtain croo- <br />it through Federal lending agencies and through the facilities of <br />commercial banks and insurance companies. <br /> <br />,-. <br />'-- <br /> <br />A development peri od of three years, in addi ti on to the c onstruc- <br />tion period of two yearsJ before repayment of construction charges is <br />initiated is believed desirable in order to provide f81~ers with the <br />opportunity of completing necessary land development and repairs to <br />improvements on dormant lands. <br /> <br />Repayment Ability <br /> <br />Using data on crop production as shown in table 2, and applying <br />the owner-renter relationship as a means of determining repayment <br />ability, the following figures were derived; <br /> <br />Oolorado Division: Assuming a complete water supply, the maxi- <br />mum alllount available for water charges and inducement for the farmers <br />would be $2.80 for 1.30 acre~feet of supplemental water per acre. <br />Since the contracts for supplemental water in the Colorado division <br />would be made on an acre-foot basis, $2.15 per acre-foot would be the <br />maximum amount available for water charges and inducement for the <br />farmer. <br /> <br />The following items were then segregated and the annual repayment <br />charges (Long Hollow Storage) computed: <br /> <br />Annual O&M <br />Annual water charge <br />Inducement to farmer <br />Maximum available <br /> <br />Per acre-foot of water <br />$0.38 <br />1.40 <br />0.37 <br />$ 2.15 <br /> <br />Annual O&M <br />Annual water charge <br />Total annual <br /> <br />Per acre-foot of water <br />$0.38 x 10,600 A.F. = $ 4,000 <br />1.40 x lO,600 A.F. = 14,840 <br />$1.78 $18,840 <br /> <br />The annual water charge, $14,840, over a 40-year period represents <br />a repayment ability of $593,600. <br /> <br />New Mexico Division: Assuming a complete water supply, the maximum <br />alllount available per irrigated acre for water charges and farmsrs in- <br />ducement is $2.80. <br /> <br />35 <br />