SUMMARY To provide a basis for negotiations of a repayment contract with an irrigation district representing the water users of the Tule Lake Division of the Klamath Project, this report has been prepared. It covers past, present, and anticipated future agricultural and economic conditions and substantiates the proposed district's capacity to repay construction costs for irrigation water as well as to meet operation and maintenance charges It has been prepared according to procedures and policies established pursuant to the Federal Reclamation laws (Act of June 17, 1902, 32 Stat. 388, and acts amendatory thereof and supplementary thereto.) In general, a representative farm budget method of analysis was employed to determine the payment capacity* Gross income of the land was based upon average per acre yields in the area and 1939-44 prices received. Prices of certain crops were adjusted further in accordance with long term outlook for these crops. From the gross income, all farm operating and retention expenses, including cultural and harvesting costs, taxes, insurance, depreciation and replacement, interest on investment, and a reasonable allowance for family living predicated upon the same base period (1939-44) have been subtracted to arrive at payment capacity. Individual consideration has been given to the block of land entered prior to 1948 (the major portion of the area), the lands of the Coppock Bay Area which are principally Class 2, and the undeveloped lands of the area just south of Malin, Oregon, Area C, Plate 1. The annual payment capacity of the irrigable lands entered prior to 1914-8, is determined to be approximately $50 per acre. The Class 2 lands of the Coppock Bay Area are shown to have a payment capacity of $21 per acre, as a result of slightly higher operating costs and probable lower yield or quality of certain crops. For the undeveloped area just south of Malin, Area C of Plate 1, the payment capacity is determined at $18 per acre after development to the extent expected under settlement and development plans currently being formulated The weighted average payment capacity for these areas is calculated to be $26.25 per acre. There is no need for a development period for the lands of the Tule Lake Division, except for the latter area as indicated above. Furthermore, after liberal allowance for farming costs and a reasonable family living, the resulting payment capacities appear to be well in excess of any annual installments likely to be considered necessary for repayment of the District's construction obligation and operation and maintenance charges.
Summary -- Introduction -- General description -- Agriculture and land use -- Water supply and requirements -- Irrigation and drainage improvements -- Contractual history and financial status -- Payment Capacity -- Plates -- Appendices.