PERMISSIHI.K IKKHiATlON r|(Ai«ih>^ '2\ 



niHinly };ravity \v«t«M-, hut iiiuNt iuos\ of the gravity systoins Miipplo- 

 mental piinipini; l>y th«' indivitiual ImiuIowthts is tlu« \\s\u\\ practiiT. 

 ami it lias not hUvjivs I)«m»u possiMo t<t arrivr at a satisfai'tnry fi^'un- (tf 

 total cfwts to th«' faniuT. Costs uinifr puinpin^r systems luiv*- Ix-i-n 

 obtaiiiiHl by comhiniiij; power posts with iiittn'st, ilepreriatioTi aii<l taxes 

 on the wells aiitl |>uinpin^ r(piipnient. power ehar;;es lieinj; furnished 

 hy the |)owcr coiiipjiiiics supplyiti^r I hi* servi«'e. The iiJve>titralioiis of 

 preMMit water costs have ineluded alt of the aetive irri^atiou <listriets 

 in the foothill belt an<l most of the eompanies supply iu«r irrigation 

 water in the three up|)er counties of San .loaipiin \'allev. as well as 

 indiviilual pumpinir plants oti 44 hohlinjrs. The latter, however, repre- 

 sents hut a small pcrccntaire '»f the total ninnber of irritration pumpiujr 

 plants in Fresno. Tulare. Kin^rs. an*l Kern counties and can ojily he 

 considered as examples taken more or less at random. 



Althouffh th»' complete <lata i;athere«l re<.'ardiun present irritration 

 e<)st.s are set forth in Chapter \'lll. fre«pient r«'ference to the material 

 is m;ide ill uthiT I'liaptcrs 



Basis on WhicH Costs of Production Have Been Computed. 



There is n«)t always airreement as to what items shnidd be included 

 in tletermininjr costs of proihicinjr farm crops. The practice of faiin 

 nianairemt'iit spe<Malists has been followed in the main. and. in addition 

 to lal>or and materials, the fidlowin^' have been included : 



Di'preciation on improvement.s. other than dwellin^jrs an<l irri^'ation 

 wells; depreciation on eipiipment. other than pum|>in^' plants; depre- 

 ciation on pernianent plantinirs; taxe> and insurance, and an allowance 

 for treneral expens«'s amounting' to fntm .'» to !<• per cent of the costs 

 of all labor ami materials u.s<>d. 



The cost of irrijration water has not bei-n include<l. .since determina- 

 tion of that item lias b«'en the purpose of the impiiry. nor has interest 

 on the farm investment Immmi consitlered as part of the cost of |m-o- 

 •luetion. The am«»unt needed to cover the latter has l>een stated. 

 however, for each iTop eon«i<lered. 



The position is not taken in this report thai iiit< rest on the farm 

 investment is not a le;ritimate item in the cost f)f pr«Mlucinir a farm 

 crop. It may or may not be earned, however, and if not earned can not 

 be paid. Since it obviously eonies. if at all. after other costM are paid 

 and sifu'c many farm eiiterprisi-s continue in operation year after year 

 witlif»ut returnini; any "net" above the actual cash outlay, the lalxir 

 income to the «»p«'rator an«l depre<'iation. the prfK'C«ltire of determinim; 

 reasftnable chartr«*ji for irriKati«)n water on the ba>ns of cost <»f pro- 

 duction and farm incf»me is si- ' d by b'avinjr inter»^t out of that 

 cost. As prcN'-"-'^ stated, hi -■ ■ ;. thi' |i''''^«MtatiiiMs wlm-li fnllnM, 

 show what is i, ly to cover interest 



Anions (»ther items not includeij is interest on workin»r capital, 

 whether owned or Ixirrowed This i • Ily at iry part of 



the cost of pHMluction. but farm n... ...^ .. ut reci : . :•) not «'us- 



toMiarily include it and no satisfactory basis is nvnilabie ff»r <leterminin>r 

 or ••stimatinu what would \t*' pro|M«r figures to us4v 



The custom of ineludin;? an in the e<»si of prrxluetion ff»r 



the Usual jjoinir watre for the t; .. ;.. owner or o|M>rator ilevot«*d to 



the farmiii'* operations lias been followed. This means that the actual 



