Date of Award:

5-1964

Document Type:

Thesis

Degree Name:

Master of Science (MS)

Department:

Applied Economics

Department name when degree awarded

Agricultural Economics

Committee Chair(s)

Lynn H. Davis

Committee

Lynn H. Davis

Committee

Paul Barkley

Committee

N. K. Roberts

Committee

George T. Blanch

Abstract

Problems that confront the farmer are varied, but one of the most important is the combination of his possible enterprises so that maximum financial return from farming is obtained. This problem has been made more important in the last decade by the severity of the agricultural price-cost squeeze.

Farmers' total net income, on a national basis, has declined from more than 16 billion dollars to about 13 billion dollars. In Utah, total net farm income has dropped from 91.3 million dollars in 1951 to 36.5 million dollars in 1961. Average net income of Utah farm operators dropped from $5.89 per acre in 1950 to $3.64 per acre in 1959, while farm size increased during the same period from 449 acres to 713 acres (2). Farmers of the Sevier River Valley have felt this decline in net income.

Many factors affect the allocation of the farmer's resources, which in turn determine the profit to the farmer and to an area. Supplies of various resources vary, prices fluctuate, and technology changes causing different amounts of some resources to be used.

Water supply is of particular importance to the farmers in the Sevier River Basin. For the years 1959, 1960, and 1961 primary water delivered to the farmers in the Kingston-Circleville-Junction area has averaged 42 percent, 40 percent, and 56 percent respectively, of decreed primary water rights for the months April through September (14).

This study has particular reference to the Kingston-Circleville-Junction area of the Sevier River Basin. This area has an altitude of about 6,000 feet with a growing season of about 125 days and an average rainfall of 8.14 inches. It is removed from main marketing centers, being approximately 174 miles south of Salt Lake City and 27 miles from Panguitch on the south and 55 miles from Richfield on the north. Cattle, small grains, and alfalfa with some corn silage and potatoes are the main products of the area. This investigation has studied existing conditions in an effort to determine adjustments of farm and area resource uses which would increase incomes of individual farmers and the area as a whole.

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