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<br />The basic physical data indicated that the irrigated soil types could <br /> <br /> <br />be grouped into four crop y.ield classes. Each of the different soil classes <br /> <br /> <br />was analyzed for the levels of irrigation improvement and combinations of <br /> <br />irrigation methods. <br /> <br />Crop budgets were developed for the four soil classes and the eight <br /> <br />major crops which include over 90 percent of all crops inventoried. <br /> <br />The types of benefit items that were measured on the crop budgets <br /> <br />were irrigation labor cost savings, operation and maintenance cost savings, <br /> <br />energy and fuel cost savings, machinery labor cost savings, fertilizer cost <br /> <br />savings, and crop yield changes. Data was then analyzed on a watershed <br /> <br />basis according to the number of acres of each class of soil. <br /> <br />Downstream Benefits <br /> <br />The downstream benefit figure for 1980 agreed to by the Colorado River <br /> <br />Salinity Control Interagency Committee is $499,000 in average annual <br /> <br /> <br />benefits for each miligram per liter (mg/l) decrease in salinity concentra- <br /> <br /> <br />tion of the Colorado River at Imperial Dam. The $499,000 converts to $52.00 of <br /> <br /> <br />average annual benefits per ton of salt reduction that was used in the economic <br /> <br />analysis to obtain downstream benefits by watershed. <br /> <br />Other Benefits <br /> <br />Other benefits accruing because of the improvement program are employ- <br /> <br />ment benefits and externalities. Employment benefits accrue through <br /> <br />employment of otherwise unemployed or underemployed labor resources during <br /> <br />installation. <br /> <br />Externalities include two types of benefits: the first type "stems <br /> <br />from" program implementation and the second type is "induced by" the pro- <br /> <br />gram. Benefits that stem from implementation arise from increased produc- <br /> <br />tion of goods afforded by the improvement program. With this increased <br /> <br />supply of goods, new demands are placed upon the local transporting, <br /> <br />001217 <br /> <br />II-14 <br />