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<br />::'.j <br />(.O <br />~ ECONOMIC AND SOCIAL IMPACT <br />.-4 <br /> <br /><7') <br /> <br />(.:) <br /> <br />In the Grand Valley some farmers have readily adopted on-farm improve- <br />ments and management practices to achieve higher irrigation efficiencies. <br />However, it is anticipated that some wi 11 be slow to change, but eventually <br />will change once it has been demonstrated that on-farm improvements and <br />better management practices will result in greater economic returns. Also, <br />there may be some who will never entirely adopt the on-farm improvements <br />and management skills necessary to achieve more than a lower level of <br />economic well-being that, in many cases, is associated with a lower <br />level of irrigation water application. <br /> <br />Implementation of on-farm improvements and better management practices <br />will have a favorable impact on the area. The standard of living will <br />be improved through increased net returns to the farmer. <br /> <br />Moving from a lower management level to a higher management level will <br />result in increased yields and increased net returns to the farmer. <br />This result is brought about, in part, by the added value of on-farm <br />improvements as a result of implementing system improvements to improve <br />irrigation efficiency. The added value, however, could possibly increase <br />the property tax assessment on the individual farm. <br /> <br />The economic welfare of the entire community will benefit from imple- <br />mentation of system improvements. The construction industry which will <br />install land leveling, concrete ditch lining and other works will see <br />added employment. This added employment will bring increased spending <br />in the area. <br /> <br />Overall, implementation of better management practices and on-farm <br />improvements will have a beneficial impact on the economy of the entire <br />area. <br /> <br />In an effort to analyze the impacts on the regional economy, an input- <br />output analysis was developed to show the effects each level of management <br />would have on the Upper Colorado Region. The original Input-Output <br />(1-0) Model was developed by the Economics Work Group for use in the <br />Upper Colorado Region Comprehensive Framework Study. This original <br />model was updated to a 1975 price base and 1980 technology. <br /> <br />The basic relationship shown in Table 8 includes value added, increased <br />income, requirements for labor, and total gross output, related to final <br />demand. Final demand represents sales to the final consumer and is <br />defined as the sum of five major components: (1) sales to households <br />(personal consumption expenditures), (2) sales to federal, state and <br />local governments (government purchases of goods and services), <br />(3) gross private capital investment, (4) exports of goods and services <br />from the region, and (5) inventory accumulation. <br /> <br />27 <br />