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<br />. <br /> <br />inputs are also typical for Southwestern Colorado for 1974. <br /> <br />Agricultural'product and input prices have increased greatly over the <br /> <br />past three years. The rates of increase during this period were so high <br /> <br />. <br />. <br />that projections based on historical trends cannot forecast current <br /> <br />relations. Shortages of energy, shortages of world food supplies, and higher <br /> <br />rates of inflation are among the forces causing the higher rates of increase. <br /> <br />"Current" prices are probably more indicative of future prices of farm <br />products and inputs than the average prices that prevailed in the past or <br /> <br />projections based on historical data. <br /> <br />1.9 Cost and Return Budgets for Crops and Livestock <br /> <br />Cost and return budgets for individual crop and beef cow-calf produc- <br /> <br />tion are prepared. The production coefficients such as crop yields per <br /> <br />acre and percent calf crop reflect, high levels of management. <br /> <br />. <br />Relative prices are more important than absolute prices' in obtaining <br /> <br />.' revenue coefficients for project evaluation. It is thought that "current" <br /> <br />prices would be better indicators of the relationship' between agricultural <br /> <br />i~put and output prices. Due to the fact that projects on. Indian lands are <br /> <br />. <br /> <br />,overned by special regulations, neither taxes nor interests on investments <br /> <br />are charged. Machinery costs include fuel, repair and maintenance, depre- <br /> <br />eiation. insurance and shelter. Interest expense was included as a measure <br /> <br />of opportunity cost of money on all operating capital at the rate of 9% <br /> <br />per year for four months a year. <br /> <br />The feasibility of various crop combinations relative to the availability <br /> <br />of water is determined. The feasibility of. cow-calf production based on <br />two alternative schemes of feeding is studied. Net returns per acre of crop <br /> <br />land and per breeder-cow unit reflect returns to land, water, sprinkler <br /> <br />system. and operation and maintenance of main water delivery system. <br /> <br />., <br />