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I I I I I I I I II !I il II ! 'I 'I I I I I I i\ ~ ~ "t- 0' , " / n t~ I. .l.. ." ~, One of the reasons for the operating losses at NAPI has been an inability to achieve projected crop yields. Table 3-3 shows projected and actual yield levels for crops harvested by NAPI during 1980 and 1981, along with projected yield levels for 1982. The results show that with the exception of the 1981 corn crop, yield levels have consistently fallen below projected levels. In summary, although the experience of the Navajo Indian irrigation project shows that irrigated crops can be successfully grown in the area, cost-effective crop production is difficult to achieve. The operating losses illustrated above are based upon the direct cost of on-farm production, and do not include any repayment of capital costs for the water delivery system. 3.4 Agricultural Potential of the Ute Reservations The potential for the successful development of irrigated agricultural enterprises on the Southern Ute and Ute Mountain Ute Indian Reservations is a function of several factors, including the availability of suitable soil and climatic conditions. Studies of soil suitability on the Southern Ute and Ute Mountain Ute Reservations were conducted by Stoneman, Landers, Inc. under contract to the State of Colorado. The results of their studies indicate that there is a combined total of approximately 81,200 acres of arable land on both reservations. Approximately 30,900 arable acres are located on the Southern Ute Reservation, and about 50,300 acres are located on the Ute Mountain Ute Indian Reservation. The arable land base identified cy Stoneman, Landers, Inc. forms the basis for the economic analysis of PIA described in this report. 20 - I,