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Columbia Orchard Co.

The Columbia Orchard Co. is a private water company which provides water for 400 acres of orchard land in the Moses Coulee unit. The total operation, maintenance, repair, and power costs have ranged from $13 to $22 per acre from 1950 to 1954 with an average cost of $17 per acre for this period. Greater Wenatchee Irrigation District

The Greater Wenatchee Irrigation District was organized in 1922 to irrigate 29,000 acres of land in the vicinity of the East, Moses Coulee, and Brays Landing units. The district is inactive, but still organized.

IRRIGATION REPAYMENT Farm budgets have been prepared for representative farms to appraise farm income possibilities and determine payment capacities under the proposed plan of development. Budgets were prepared for representative fruit farms and general cash-crop farms with development, and for a typical dryland wheat farm without development.

BASIC ASSUMPTIONS

The major assumptions used in the preparation of farm budgets in this analysis are explained in the following paragraphs. Prices

Anticipated farm commodity prices and prices paid by farmers in this analysis are the average prices expected to prevail in the Greater Wenatchee area during the repayment period. They were developed from the general price projections adopted by the Federal Interagency River Basin Committee in 1951. These price projections were based on a general level of prices equal to 215 percent of the 1910-14 price level or approximately 83 percent of the 1946-50 price level.

Price projections for the commodity for the State of Washington were used to determine the long-term prices for individual commodities. These projected prices were adopted as long-term prices for the Greater Wenatchee division. Table 13 summarizes price information used in

this report.

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TabLE 13.—Washington farm prices, 1946–50 and projected normal

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i Unless otherwise indicated, projections were taken from the BAE revised pamphlet on prices, dated August 1952.

* Price at Packinehouse door or equivalent without containers. Prices of all deciduous fruits projected
at 85 percent of 1946 50 aver age.

? Based on 20 percent processed and 80 percent sold fresh,
4 Based upon projected price for all truck crops (87 percent of 1946-50).

Farm investment items

Principal items of farm investment used in this budget analysis are: (1) The estimated long-term value of the land before project development plus the cost of necessary leveling and clearing of the land to prepare it for crop production under the type of irrigation system to be used; (2) the estimated new cost, at long-term prices, of farm buildings, improvements, and farm machinery; and (3) the estimated new cost of the irrigation system at long-term prices. Annual costs associated with these investment items include: (a) An allowance for repairs for applicable items; (b) replacement reserves for all depreciable items computed on a 5-percent sinking fund factor over the estimated useful life of each item; and (c) 5 percent of the total farm investment to cover debt retirement and capital accumulation. Value of farm privileges

The value of farm-produced food, the rental value of the farm dwelling, and the cost of providing a domestic water supply are important factors in appraising the economic value of an irrigation development. The total value of these so-called farm privileges was estimated separately for each farm budget. This annual value amounted to $845 on the fruit budgets and $745 for dry farm budgets.

FARM BUDGETS FOR REPRESENTATIVE FARMS

Basic farm budgets were prepared for four types of farms to represent conditions with and without project development. A dryland wheat budget and 2 fruit budgets, 1 for apples and 1 for soft fruit production, are presented to represent conditions without project development. Two fruit budgets, 1 apple and 1 soft fruit, together with 1 general crop budget are considered as representative of conditions with project development. Payment capacity is based entirely upon budgets representing anticipated conditions by land class with project development. Many additional budgets were prepared to show minor variations, such as method of water application, and to adjust the basic fruit budgets to represent conditions without project development. Fruit farms

Fruit farms containing 20 to 25 acres of apple trees or 25 to 30 acres of soft-fruit trees constitute full-time orchard enterprises on lands well suited to fruit production in north-central Washington. Farm budgets were prepared for four representative fruit farms for the division as a whole. Similarity of units within the division makes one budget apply equally well to several units. Minor variations between units, such as method of water application, were handled by separate budgets adjusted to reflect these differences. The farm organization and financial summary for fruit farms are shown in tables 14 and 15.

Table 14.-Farm organization and financial summary for representative apple

orchards with project development

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Financial summary:

Cash farm receipts..
Farm privileges.-

Gross farm income..
Farm expenses:

Farm operating costs.
Investment allowance 3.

Total...
Family living allowances..
Payment capacity:

Total unadjusted.
Total adjusted
Per acre.-

do.

6, 157
2, 347

7, 525
2, 690)

6, 101
2, 351

7, 456 2, 695

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do.
do
do.

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1,006

819

716 35. 80

566 22. 64

754 37.70

614 24. 56

Sprinkler.

Gravity.
• Equal to 5 percent of original investment.
• After deducting 25 percent as allowance for contingencies and water users' inducement.

TABLE 15.-Farm organization and financial summary for representative cherry

peach orchards with project development

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General-crop farms

Two budgets were prepared to represent the general farming operation anticipated for the frosty area of the Moses Coulee unit. General cash-crop farms containing 100 acres of irrigable land constitute full-time operations for this type of farming. The farm organization and summary for these two farms are shown in table 16.

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Table 16.— Farm organization and financial summary for representative general

crop farms with project development

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Gross farm income...
Farm expenses:

Farm operating costs.
Investment allowance ?

Total.
Family living allowance.
Payment capacity:

Total unadjusted.
Total adjusted ...

Per acre.

do..

14, 357

13, 714

do..
do.

8,176
1, 442

8, 0416
1, 417

do.
do.

9, 618
2, 250

9, 463
2, 250

do.
..do.
do.

2, 489
1. 867
18. 67

2, 001
1, 501
15.01

iGravity.
* Equal to 5 percent of original investment.
: After deducting 25 percent as allowance for contingencies and water users' inducement.

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