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<br />Cl <br />en <br />en <br />(0 <br /> <br />The farmer, or the land 01mer in case of tenant operated <br /> <br />. <br /> <br />,tarms, must pay for water out of the net ,income derived from <br />crop production. Land rental agreements between the owner and <br /> <br />.. <br /> <br />farm operator, or tenant, provide a rational basis for deter- <br /> <br />mining net farm income. The usual type of rental agreement is <br />pne in which the owner furnishes the land and improvements, pays <br /> <br />the taxes and water charges, and, in return, receives a stipu- <br /> <br />lated part of the crops. Utilizing the established rental rate <br /> <br />~ <br /> <br />for this t:iPe of agreement, the owners income was determined to <br /> <br /> <br />be $2.91 for dry land, $9.69 for land now irrigated and $13.57 <br /> <br />under operation of the project. <br />The differences between the owner's share with the project <br /> <br />and without the project are $10.66 for dry land and $3.88 for <br /> <br />irrigated land. These values represent the incremental gross <br /> <br />crop income to the land owner, attributable to irrigation water <br /> <br />made available by the project. The owner's share of the in- <br />cremental crop income is used to make up any added expense to <br /> <br />. <br /> <br />efficiently utilize the additional ,later, an allowance for a <br /> <br />. <br /> <br />reasonable return on the increased value of his investment, and <br /> <br />vater charges. Items making up the additional expense include <br /> <br />the incremental cost of farm management and increased taxes on <br /> <br />the farm property. Water charges are composed of the increased <br /> <br />operation and maintenance and repayment costs. These factors <br /> <br />were evaluated, from which it was estimated the owners could <br /> <br />. <br /> <br />afford to pay $1.02 per acre for sup91ementa1 water and $4.41 per <br /> <br />acre for a full supply on the 2,700 acres. <br /> <br />-18- <br />