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,:,:' U--, ,-4 ..-4 ,-. The level of management not only varies with irrigation efficiency, but also with soil type, whether a farmer is full or part time, and to what extent a farm manager changes his method of operation based on new technology. c.;: The Investigation - Basic cost-return data gathered ;n the Grand Junction area included crops grown, yields, farm operations, types and cost of equipment used, land values and acres irrigated per hour. Several variables were considered in computing gross returns, total costs and net returns for each crop budget of the three levels of management. Some of the variables are: (1) Land Values - Along with other factors, the degree of development on the farm has a direct effect on land values. In 1976, land values ranged from $600 per acre on a poorly developed farm up to $950 per acre for a highly improved farm on which land was leveled and where efficient use of water was combined with good cultural practices. Values for orchard land range from $2,000 per acre on poorly developed orchard land up to $5,000 per acre for highly improved orchard land. Land developers and speculator-type investors have been willing to pay much more than these rates for land. The land value affects the amount of interest included as a cost in the crop budgets. The table below presents land values with resulting interest costs that were used in the budgets for the three levels of management. Land Values by Management Level High Medium Low --------Dollars per Acre------- Land Value Row Crop Farm 950 5,000 800 600 Orchards 4,000 2,000 Interest Cost at 8-1/2% Row Crop Farm 81 68 51 Orchards 425 340 1]0 (2) I rri gat i on of management. lower rate per Labor Cost - Irrigation labor rates vary between levels Generally, a lower level manager will irrigate at a hour than a high level manager. 20