12 
BULLETIN 1257, U. S. DEPARTMENT OF AGRICULTURE 
under section 2 of the act, the section under which most of the 
projects are operating. The percentages under section 1 would be 
slightly larger. 
Table 5. — Percentages of announced charges remaining unpaid at beginning 
and end of 20-year period of payment, when 6 per cent interest compounded 
annually on deferred payments is included. 
[Under section 2 of extension act.] 
Period of postponement. 
None.. 
1 year. 
2 years 
3 years 
4 years 
5 years 
6 years 
7 years 
Percentage 
Percentage 
of charge 
of charge 
unpaid 
unpaid 
when pay- 
when pay- 
ments 
ments 
begin. 
end. 
100.00 
135. 59 
104. 00 
153. 73 
110. 36 
173. 00 
117. 10 
193. 45 
124.25 
215. 08 
131. 83 
237.94 
139. 86 
262. 29 
148. 37 
288.02 
Period of postponement. 
Percentage 
of charge 
unpaid 
when pay- 
ments 
begin. 
8 years. 
9 years. 
10 years 
11 years 
12 years 
13 years 
14 years 
157. 39 
166. 95 
177. 09 
187. 84 
199. 23 
211. 30 
224. 10 
Percentage 
of charge 
unpaid 
when pay- 
ments 
end. 
315.28 
344.22 
374. 92 
407.44 
441.87 
478.44 
517. 10 
Since the payments never equal the interest, the amounts unpaid 
increase even after the payments begin. Table 4 shows for each 
project the number of years during which water was supplied before 
payments of construction charges began. Not all of the land was 
ready for water when water was first supplied, and the projects 
were not in position to supply water to all the land within their 
limits at the time when water was first supplied; consequently the 
subsidies to individual farmers will vary with the length of time 
water had been used before payments began. The percentages given 
in the table represent the maxima for the several projects, with the 
percentages for individual farmers varying from these maxima to 
the percentages shown in the first line of the table, the latter apply- 
ing to those who begin paying as soon as they begin using water. 
For example, take the Salt River project. The announced charge 
for water is $60 per acre. Water was supplied to some farmers 11 
years before payments began. At the beginning of payments the 
accumulation of interest charges would have increased the charge 
to 187.84 per cent of the announced charge, or to $112.70; and at 
the end of the 20-year period during which the $60 will be repaid, 
without interest, the accumulated debt, with interest, will amount 
to 407.44 per cent of the $60 charge, or $244.46. This represents 
the subsidy, per acre, to such a farmer in the Salt River Valley at the 
time when the Government will consider his debt discharged. For 
the farmer who came in and began to use water at the time when 
payments began, the corresponding figures will be $60 and $81.35. 
For others who began using water between these dates the subsidy 
will vary between these limits. 
As already shown, if the payments begin when the use of water 
begins and are made as they become due the subsidy amounts to 
slightly more than one and one-third times the announced cost. The 
various projects lie all along the line between that and the instance 
just cited. 
