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<br />MAY I Q82 <br /> <br />Economic Analysis <br /> <br />Basic data for the economic analysis was obtained through public <br /> <br />meetings, questionnaires, and interviews with area residents, Bureau of <br /> <br />Reclamation and other federal and state agency personnel. Soil Conseration <br /> <br />Service employees, local leaders in the Me Elmo Creek Study area, research <br /> <br />publications and experts in the field were consulted in an attempt to <br /> <br />improve the analysis. The economic analysis emphasized the importance of <br /> <br />compiling and analyzing the physical data in a manner so the data were <br /> <br />sensitive to varying levels of resource development. The analysis was based <br /> <br />on comparing effects of the various alternatives with effects of continuing <br /> <br />ongoing programs. Water Resources Council's current normalized prices for <br /> <br />crops were used. One of the most important aspects of the analysis was <br /> <br />determining the effects of continuation of ongoing programs so that each <br /> <br />alternative could be judged from that basis. Data estimates for present <br /> <br />conditions also were developed. <br /> <br />Onfarm Benefits <br /> <br />Crop budgets were developed for continuation of ongoing programs and <br /> <br />for future conditions under each of the alternative plans. Production costs <br /> <br />were identified with particular emphasis placed on variable costs. In cases <br /> <br />where it was determined that yield levels and/or production costs varied by <br /> <br />soil classes, crop budgets were developed accordingly. <br /> <br />The basic physical data indicated that the irrigated soils types could <br />be grouped into three crop yield classes. Each of these soil classes was <br /> <br />analyzed for surface and sprinkler methods of irrigation. <br /> <br />II-B <br /> <br />0('1834 <br />