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I I I I I I I I I I I I I I I I I. I I ,',,\.'" " . A, ,., 001422 , ,',l ,..: . ",,' .~ 4.0 Farm Efficiency Adjustments The Level A analysis crop budgets assume farm efficiencies equal to that of a contiguous 1016 acre operation. That is, it was assumed that at least 1016 acres could be farmed using one equipment complement stored in a central equipment warehouse without excessive transportation costs. In the Level B economic analysis, two types of farm efficiency adjustments were made for certain parcels. The first adjustment was for economies of scale where there were fewer than 600 acres of current or newly irrigated new acreage that could be farmed as one unit. The 600 acre cutoff figure was used because economies of scale decline rather steeply below this point. A second type of adjustment for some parcels involved transportation costs for on-farm equipment. These adjustments were made in cases where isolated parcels could not be easily served out of a central equipment warehouse. In cases where individual parcels were more than five miles from the assumed location of a central equipment warehouse, an additional transportation charge was incorporated for transporting equipment to and from a central location. The effects of these adjustments on the parcels identified as preliminary PIA in the San Juan Watershed are described in the following sections. 5.0 Results of Level B Analysis for the San Juan Watershed Boyle Engineering's Task 0 and E Report for the San Juan Watershed, dated August, 1986, identifies two currently unirrigated parcels as having positive residual repayment capacities. That is, these parcels show positive returns after subtracting the costs of 5 ~, ,'~;