Federal Charges for Irrigation Projects Reviewed Do Not Cover Costs

摘要

GAO reviewed six Federal irrigation projects and found that the water produced will cost the Government between $54 and $130 an acre-foot each year, but the crops grown by the farmers will not yield enough revenue to cover this cost. The farmers will continue to buy the Federal water, however, because they are charged a price below Government cost. Repayments for irrigation are presented to the Congress as full repayment. Since no interest is charged, however, these payments actually cover less than 10 percent of the Federal Government's actual cost. This large subsidy arose because of the desire 80 years ago to settle the West and to promote regional economic development.