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53 ~ ~,:~ Fountain Valley Conduit municipal and industrial water return flows will account for about a $972,900 increase in value of farm production. Major crops grown are winter wheat, feed prain, forage crops, vegetables, melons and sugar beets. According to a report prepared by the University of Nebraska in 1968, for ~ach $1 increase in gross farm sales, an induced-by-effect (increased sales) of $1.29 will be created among the business sector supplying goods and services to farmers (University of t'ebraska, 1968). The report further states that for each $1 increase in gross farm sales a stemming-from effect (net dollar increase 'n activity among processing sector and their suppliers) nf ~".39 would be created in the State of Nebraska. Similar effects are expected to occur in Colorado. . Using this criteria for the Fountain Valley Conduit, the $972,900 of increased gross farm sales would cause an annual increase nf farm-related sales and services of $1,255,000. Tn addition, "he $972,900 of gross farm sales would cause an annual net ~ollar increase in activity among processors and their suppliers nf $4,271,000 Based on the above figures, the Fountain Valley Conduit return flow supplemental irrigation water will create an economic impact of $6,498,900 annually. Increased gross farm sales generated by return flows from "he Fountain Valley Conduit will create new iobs. The $972,900 increase in gross farm sales will provide an estimated ]l~ new farm-related jobs which will contribute to the economic stability of the rural areas. In addition to the new farm iobs, underemploy- ment and unemployment rates will be reduced. . The avaiJ~bility of project water may influence population "atterns in the Fountain Valley communities. The direct cause-and-effect relationship of water supply and urban growth is a moot point. On one hand the availability of water provides the potential for economic growth of urban centers such as Colorado Springs. On the nther hand, water itself does not cause population growth and the shortage of water does not prevent growth of urban areas. Population growth is influenced much more by other factors than by ',ater supply (McKee and Rice, 1974, Butcher, 1974). A generally desirable location will attract people, and a relatively undesirable rylace will experience outmigration (Rivkin/Carson, 1973). All lcinds of environmental attractions of unequal appeal induce people to resettle. The climate, mountains, lakes, and open country penerally . IV-19