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Mr. Miduel Eoulay/Ms. Smr~ium • Dicicico~ o/Mv~er'aLs mrl Gm(oay SeprertEer'19, ]999 Pnge 4 The small hay field located in Section 18 upstream from the breached Sage Creek Reservoir has not been formally been designated as an AVF, but appeazs to possibly qualify on the basis of limited flood imgation. Designation as an AVF is, however, questionable since this is an "upland area", the existence of unconsolidated stream-laid deposits has not been established, water availability for flood imgation is limited, and the size and inherent productivity of the subject area relative to support of agricultural activities is mazginal, at best. Based however, on the potential for this area to be designated as an AVF, further investigation of the property was initiated by Mr. Roy Karo (SCC Reclamation Manager) and Mr. Scott Dillon (Agricultural Economist). Mr. Kato and Mr. Dillon interviewed the landowners, Mr. Gary and Mrs. Mary Valora, on May 13, 1999 and completed a survey of their existing agricultural practices relative to the subject lands. The interview included discussions regarding current land use and land management practices, and farm operation economics. Findings from the interview and survey are summarized below. The portion of field considered a possible AVF encompasses approximately 10 acres (as measured and calculated by Ms. Brown of DMG) and is long and narrow, confomwtg to the valley configuration. The field produces native grasses (smooth brome (approximately 75 percent), bluegrass (approximately 20 percent), and various annuals and weeds (dandelions, yarrow, and Canada thistle, approximately 5 percent) and has not been tilled over the last 30 years. No row-crops are produced on this land. The field is harrowed in the spring to spread manure piles, used for hay production until August, and then used for limited grazing from September through November. Hay production is limited by the short growing season (approximately 90 days) to a single cutting, typically during the month of August. A beaver dam at the lower end of the field creates alive-acre parcel that is too wet for hay and is dominated by rushes and wetland grasses. Surrounding lands are unmanaged sagebrush range. Sage Creek, the primary drainage on the property, was historically diverted around the sides of the field. The landowner holds no adjudicated water rights to surface water in Sage Creek but has agreements for early runoff nathdrawals, allowing limited flood imgation until mid June when stream flows decline to a level precluding further withdrawals. The field is, therefore, flood imgated Eor a very limited period in late sprang during high spring runoff flow in Sage Creek from feeder ditches along the north and east sides of the field. The Valora's operation is a limited sheep ranch with approximately 50 to 100 head of sheep, which is not an agricultural production operation but does provide some supplemental income. Mr. Valora currently works full-rime as a heavy equipment operator, so they are not financially dependent on agricultural production. The Valora's were not able to provide an arutual production value for their sheep since their sales of wool and sheep are dependent on market conditions and vary significantly from year to year. Mr. Valora has been cazecaking this property for more than 20 years. He owns approximately 25 percent of the subject ha}' field and leases the remainder from a neighbor. Under the lease agreement, Mr. Valora retains 2/3 of the hay crop for irrigating and harvesting the land and then buys the remaining 1/3 from the landowner at the current market value (approximately $70 to $80/ton). The production from this hay field is approximately 2 tons/acre annually, or 20 tons. The cost of harvesting and baling the hay are approximately 50 to 60 percent of the hay value. Therefore, the subject hay field produces hay valued at a total of approximately $750 per year (at $75/ton). The Valora's annual income from hay production is 2/3 of this total or approximately $495.