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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />(I.n '{, 11 .., "j <br />u "...1 _,~..1 ,~. .... <br /> <br />In an evaluation of PIA, the benefits associated with bringing new <br /> <br /> <br />land under irrigation stem primarily from the increased production of farm <br /> <br /> <br />commodities. It is important to note, however, that bringing new land <br /> <br /> <br />under irrigation will not always result in increases in crop production for <br /> <br /> <br />the country as a whole. To the extent that increases in crop production in <br /> <br /> <br />one region of the country result in decreases in crop production in another <br /> <br /> <br />region, no overall economic benefit is achieved. However, if it can be <br /> <br /> <br />established that an irrigation project will increase total farm output for <br /> <br /> <br />the nation, it can be assumed that economic benefits will result. This <br /> <br /> <br />topic is discussed in more detail in succeeding sections. <br /> <br /> <br />The costs associated with bringing new land under irrigation can be <br /> <br /> <br />divided into three categories. They are: <br /> <br /> <br />. on-farm crop production and marketing costs; <br /> <br /> <br />. on-farm irrigation costs; and <br /> <br /> <br />. off-farm water delivery costs. <br /> <br /> <br />Each of these cost categories may have capital investment, labor and <br /> <br /> <br />materials costs associated with it. To determine whether a particular land <br /> <br /> <br />parcel is practicably irrigable, it is necessary to compare the magnitude <br /> <br /> <br />of these costs with the benefits that would accrue from increased <br /> <br /> <br />production. If it can be shown that the benefits to increased agricultural <br /> <br /> <br />production would exceed the costs associated with that production, then the <br /> <br /> <br />land parcel is assumed to be practicably irrigable, or PIA. <br /> <br /> <br />Over the past 50 years, economists have developed a number of <br /> <br /> <br />techniques for estimating costs and benefits associated with irrigation <br /> <br /> <br />projects, and making comparisons between these cost and benefit estimates. <br /> <br /> <br />Although the theoretical framework within which these comparisons are made <br /> <br />5 <br /> <br />- <br /> <br />1 ~ <_". <br />