l'KI{MI>sS||tLK IHKKiATION' < IIARISICS 19 



i|uality of . soil, thry rotiltl Iw put on a n-ltitiv«> parity with tlut.M- Ix-tti-r 

 sitiiatiMt by a>i>r.vsimr th,» rhar^cs in acvonlHUtM* with lh«' «*arnini» 

 capnrity of thr hiixl : that is. on a lM>n«-tit or ad vah)n*ni hasis. It in 

 as>iini«><i in this r«*port that that prniTiiiirc will \u- fo||ow<*«|. It' th«> 

 inahility of the farnu>r> to u\vv\ th<> payniriit sM|>'p>st«Ml is du*' to their 

 poor luana^tM-ial ahility, lack of capital, or other causes not inherent in 

 the soil, it is ohvions ad valorem «»r heiiefit aMsoKsinents would r>ot a'wf 

 thein relief. 



•lust as |)ersonal judirment has ••iilered partly into decisions as to 

 what i'onstitute nornuil costs of production aind harvi'stinjr, the fiirurcH 

 as to farm income have heen hased oidy partly on historical averajres 

 i»f yields anti prices. Foi- th*- latter, the hest availalile co|lectiv«' ju«li.' 

 m»'nt as to the yields and prices on which tin* several crops nuiy he 

 cxpti'ted to he stahili/.ed in the future has in some cases heen substituted, 

 the procedure followed depeiulin*: on the economic outlook for ea<'h 

 particular crop. In this way an ••iTort has hcf'u nuide to ascertain, for 

 the principal crops irrown in the upper San .Ioa<|uin N'alley. the ••xtent 

 to which the farm income may he expected to cxcee«l the cost of the 

 iteins, other than irrigation water, which make up the cost of producing; 

 and harvestinir the i-nip 



( )hviously. all of this r\ii-s> .ii">\>- l.nin i<.^i> i^ iM>i ^ivailahle f«tr 

 jiayinir for irri^'atiou water if the farm is to he a sm-ccssful husiness 

 enterprise. The enterpri.Me certaiidy would not hr considered satis- 

 factory if. in addition to tin* costs of product i«»n and harvestinir. interest 

 coidd not b«» paid on the farm iiivestmetit. The jimount necessairy for 

 this has th«'r«'fore l)»'«'n indicated in the <'as«' of «>a«'h crop, usin^' a rate 

 of 6 prr cent per annum. The remainder left after paying intorest 

 represents that available for meetin>r the cost of irrii;ation water and for 

 profits ahove interest. 



I low nnn-h of this firud margin alxtvc costs and interest the Innd- 

 ••wners can pay for irriu'ation water is larijely a matti>r of individinil 

 or colltM'tive judirment. Althouirh conclusif)ns reirardinir this have Im'ch 

 reached, the essential available facts luive been presented in sut-h form 

 as will assist tlmse w ho^e judirment is difTerent to n-ach their own 

 conclusions. It is <|uite possible many farmers woidd Im> wijlinu to pay 

 for irri^ration water to the full extent of the amount remainini; after 

 fneetintr all cfists of itr'xlucf ion and harvrsfinir. together with intep'st at 

 »i per cent per annum. an«l sf»me prolnddy wouhl Iw willini; to pay more 

 in order to save existintr investments. The attitude of the landownem 

 as to what thev are willinu' to pay has not. however, h«Tn ronMidere<l in 

 th«' investiiration. althouirh it in realized this tiitimafely will Ix' a nwijor 



fffi'tfti* ifi Mw f ki'i il il *• til 



Procedure in Gathering 0at4 



Airriculture in the four count ii*s of the upper San .loa<|uin Valley 

 is highly cliversiHed. The crops irrown inehide nearly all of the*** ftiiind 

 in California, except a few of tl ' ' d fruits ami hi. me of the 



important truck crops not yet • establisheil in the area. 



From the standpoint •)f invi-^tment ami i;rc»sM n'turuH \ter new. ri!ni?» 

 fruits head the list, hut the area is a favorabli' one for other en»|M« at 

 |>n'-ent viehlinir a relatively hiirh return |mt mre. mieh as Km|>oror 

 (jrrapes, early shippinj? vari«''i''s nf i»r;M>«> j<'1'J iMJifln-s jind f.Trl\ truck 



