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Abstract

Excerpts from the report: The purpose of the overall investigation is to provide some of the facts needed to resolve a major issue in planning and evaluating Federal water resource projects. The issue concerns the appropriate level of prices to be used in determining the benefits of agricultural production increases from Federal water projects. The objective of this research is to determine whether the issue posed is a significant one: do all projects combined significantly affect U. S. production and farm prices? If the answer is yes, then a secondary objective is to indicate some of the conceptual questions that need to be answered to derive appropriate prices for evaluating the benefits of increased agricultural production from Federal water projects. A third objective is to propose some interim price adjustments for project evaluation under future conditions of a market economy unrestrained by government production controls.

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