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Lake Brownwood Watershed - Texas State Soil and Water ...

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APPENDIX 4<br />

LAKE BROWNWOOD WATERSHED – ECONOMIC ANALYSIS<br />

Linda Dumke, Research Assistant; Brian Maxwell, Research Assistant; J. Richard Conner,<br />

Professor; Department of Agricultural Economics<br />

<strong>Texas</strong> A&M University<br />

INTRODUCTION<br />

Amounts of the various types <strong>and</strong> densities of brush cover in the watershed were detailed in the<br />

previous chapter. Changes in water yield (runoff <strong>and</strong> percolation) resulting from control of specified<br />

brush type-density categories were estimated using the SWAT hydrologic model. This economic<br />

analysis utilizes brush control processes <strong>and</strong> their costs, production economics for livestock <strong>and</strong><br />

wildlife enterprises in the watershed <strong>and</strong> the previously described, hydrological-based, water yield<br />

data to determine the per acre-foot costs of a brush control program for water yield for the <strong>Lake</strong><br />

<strong>Brownwood</strong> watershed.<br />

BRUSH CONTROL COSTS<br />

Brush control costs include both initial <strong>and</strong> follow-up treatments required to reduce current<br />

brush canopies to 5% or less <strong>and</strong> maintain it at the reduced level for at least 10 years. Both the<br />

types of treatments <strong>and</strong> their costs were obtained from meetings with l<strong>and</strong>owners <strong>and</strong> Range<br />

Specialists of the <strong>Texas</strong> Agriculture Experiment Station <strong>and</strong> Cooperative Extension, <strong>and</strong><br />

USDA-NRCS with brush control experience in the project areas. All current information<br />

available (such as costs from recently contracted control work) was used to formulate an<br />

average cost for the various treatments for each brush type-density category.<br />

Obviously, the costs of control will vary among brush type-density categories. Present values<br />

(using a 6% discount rate) of control programs are used for comparison since some of the<br />

treatments will be required in the first <strong>and</strong> second years of the program while others will not be<br />

needed until year 6 or 7. Present values of total control costs in the project area (per acre)<br />

range from $35.57 for moderate mesquite that can be initially controlled with herbicide<br />

treatments to $203.17 for mechanical control of heavy mixed brush. Costs of treatments <strong>and</strong><br />

year those treatments are needed for each brush type - density category are detailed in Table 4-<br />

1.<br />

LANDOWNER AND STATE COST SHARES<br />

Rancher benefits are the total benefits that will accrue to the rancher as a result of the brush<br />

A4-1

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