14 



niVISIoN OF WATER RESOURCES 



Table 1 shows the excess of farm income over the costs of producing: 

 and liarvestin^' tlie crops considered, tojietlier with interest on the 

 avera^-e investment at (i i)er cent \)cr annum ; also the amounts it is 

 belie\'ed can reasonably be i)aid for irrigation water. 



The costs considered permissible are for a full supply of water 

 delivered at the land on which it is to be used, and are therefore 

 intended to include all such items a;s interest and principal payments on 

 necessary capital expenditures for irrip-ation works and water sup]ily, 

 costs of maintenance and operation of irri<>ation works, as ordinarily 

 understood, and supplemental pumpinj;. 



It is not sug'<>ested that none of the o:rowers,in the upper San Joa(piin 

 Valley can ])ay higher irrigation charges for the different crops studied 

 than are arrived at herein. Some, of course, produce more than others, 

 and there are wide ditt'erences in the efficiency of growers, types of 

 farm enterprises, amount of working capital available, and the numerous 

 other factors that determine cost of production and farm income. 

 Neither is it suggested that the charges ])ro))Osed can be ]iaid by all 

 of the growers, this also being because of the ditl'erences mentioned 

 above. The i>ermissible charges suggested are intended to be base 

 charges which will be assessed in accordance with the earning capacity 

 of the land; that is. on a benefit or ad valorem basis. 



The extent of the water emergency in tlie up])er San -loaciuin Valley 

 has not been taken into consideration in this investigation. Conse- 

 quently, no attempt has' been made to detei-inine what the growers can 

 pay for water in order to save in>'estments which would be lost or 

 l)laced in jeopardy without im])ortation of an additional water su]')])iy. 

 Those matters were considered outside of the realm of the investigation. 



TABLE 1 



SUMMARY OF DATA SHOWING EXCESS OF ESTIMATED FARM INCOME OVER COSTS 



PER ACRE OF PRODUCING THE PRINCIPAL CROPS GROWN IN THE UPPER SAN 



JOAQUIN VALLEY, PLUS INTEREST ON THE AVERAGE INVESTMENT AT 6 



PER CENT PER ANNUM, TOGETHER WITH RECOMMENDED PERMISSIBLE 



ANNUAL COSTS FOR IRRIGATION WATER' 



' IrriRation water is not included in co«t8 of production. For ba.sL<i on which farm income has been estimated sse 



stateniiMils reuanlind each crop or uroup of croiw conhidered. 

 ' Uel<riiiiiicd only Ki'niTally; s"'i> Irxt. 



Since what seems to be reasonable ]>ermissible costs (which in each 

 case are less than the excess of fai'iu income over the costs of producing 

 and harvesting the crop, together with interest on the avei-age invest- 

 ment), have lieen suggested, it seems desirable l<i stale the reasons on 

 wliieli the eoneliisioiis expressed ;ire based. 



