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interest on investment averaging about $1,893 per farm. This return on investment is also available .for family living, investment, and other purposes. Incomes for several farm budgets appear low when compared with some irrigation proJectsurlder llloce favorilhle climatic and soil conditions. However, many farmers also have nonfarm incomes. The Paonia Project has evidently furnished a satisfactory living because farmers have irrigated under present conditions for many years. Future incomes with the project would be considerably higher than at present. Increased incomes or benefits associated with proposed additienal irrigation water are estimated at $15 per acre on 12,280 acres of presently irrigated farms. If this same benefit is applied on a per-acre basis to 2,100 acres of new land, the total annual direct benefits on 14,380 acres of project land would be about $215,000. Impacts of the Paonia Project on the Gunnison National Fores~ As far as can now be foreseen, construction and operation of the project will not require any changes in management, objectives, and physical plant or services now provided on the Gunnison National Forest. However, increased fire prevention services will be needed during and after the construction period. The county road which now serves a portion of the national forest will need to be relocated. Grazing, timber, wildlife, and other resource values and uses will not be affected. However, it is anticipated that visitors attracted to the reservoir and the adjacent mountainous areas will increase future recreational uses on nearby forest lands. Construction of the proposed Paonia Reservoir will undoubtedly attract large numbers of people for recreation. Therefore, recreational uses of the reservoir and adjacent land should be planned and facilities installed which will meet basic requirements for public health, safety, property protection, and prevention of pollution. Suitable lands, adjacent to the reservoir, should be reserved or acquired to be retained in public ownership for these purposes. These lands and the recreational facilities needed should be administered and maintained by a Federal, state, or local government agency to insure and protect the public interests and provide adequate public access to the reservoir area. Relationship of Watershed Conditions to the Paonia Project The watershed above the Paonia Project covers about 791 square miles and Laoludea the Anthracite-Deep Creek, Muddy Creek, Hubbard- Terror Creek, and Leroux Creek subwatersheds. 'The area includes various types of topography with considerable mountainous land. There is no cultivated land in the upper watershed. All lands are used either for grazing by livestock and big game animals ,timber production, watershed protection, or recreation and wildlife areas. Land ownership is 81 percent Fedral and 19 percent privately owned. Vegetative cover in the upper watershed is generally good. Localized vii