(GP/GT) for Additional Water Supply in the Lower Rio Grande

PRODUCTION LOSSES: With any type of production there will
be shrinkage or production losses due to stem quality J.nd/or the
quality of post-harvest handling. The figure cited for production
losses is an estimate suggested by experienced rose growers. A dry
climate is expected to have fewer losses than a humid climate
because of generally lower disease-related problems.
BLOOMS SOLD PER YEAR: The total estimated number of
blooms sold per year is arrived at by mUltiplying bloom production
by the number of rose pl:lnts by the number of acres in production.
then subtracting the allowance for production losses.
GREENHOUSE SIZE: It is assumed that four acres is a reasonable
Slze for a startup commercial operation.
ACRES: A ten-acre plot is assumed. Six of the ten acres will be
used for warehouse/office facilities, parking. supply storage, and will
also allow for future expansion.
H.LD. LIGHTING: The assumed cost of H.LD. lighting is 5200 per
lamp and includes installation.
H.LD. LAMPS/ACRE: It is assumed that 785 four-hundred watt
H.LD. lamps are required per acre of greenhouse.
Economic Assumptions
ST A TE TAX RATE: Corporate state rates are calculated
assuming a base tax rate in order to simplify calculations. Rules for
the period of time tax losses may be carried forward vary by state;
however. in order to simplify calculations. tax losses are carried over
and back for a one-year period. Tax credits and special incentives
are not considered in this analysis.
FEDERAL TAX RATE: Federal tax calculations are based on a
flat rate and remain constant across the United States. The I.R.S.
allows ~ax losses to be carried over for up to five years and carried
back for three years. However. in order to simplify calculations, tax
losses are carried over and back for a one year period. Tax credits
and other special deductions are not considered in this study.
F.LC.A. (Social Security) TAX RATE: FJ.C.A. taxes are calculated
based on the current flat rate and remain constant across the U.S.
F-IO