increased their expenditures for retail and services including groceries, professional services (doctors, lawyers, barbers, beauticians, etc.) and others. Because of the intensity of irrigation farming, this type of agriculture requires more agricultural inputs, retail and services, than dryland farming.

What happens to the economy in the community because of increased expenditures by agriculture brought about by irrigation development? Irrigation development sets forth a "chain reaction" of events throughout the community and region. The end result of this chain reaction is that the total impact of irrigation is some multiple of initial increases in farmers' expenditures. It is expected that the Polescat Bench Project will increase the crop receipts by about $2 million per year. Assuming that approximately $1.5 million of this will be spent in the community and region for agricultural inputs, retail and services by the farmers, and using Dr. Skold's findings, the net income of the firms from which farmers do their buying will increase by a factor of somewhere around 0.25 or by $375,000 ($1,500,000 x 0.25=$375,000). Then the chain reaction begins. These firms need to purchase more goods and services from other sectors of the economy who supply them. The net income of the firms from which the farmers make their purchases increases the economy's net income of the community by a factor of about 2 according to Dr. Skold. The $375,000 now becomes $750,000 ($375,000 x 2 $750,000) net income to the overall economy of the community.

The impact doesn't stop here. As the general level of income of people in the economy increase, they tend to consume more. This results in general increase of income in the community and region. The $1.5 million additional farm expenditure assumed to result because of Polecast Bench would increase the net income of the region or area by about $1,125,000. The $375,000 increases by a factor of about 3 according to Dr. Skold's study. This indicates that the gross irrigated agricultural dollar rotates around the community and region many times.

Dr. Arthur Peterson, Extension Economist at Washington State University, reports that irrigation development on a 10,000 acre area studied on the Columbia River Project developed an income, employment and tax base 17 times greater than a neighboring dryland area.

These are only a couple of studies that can be sited regarding the effects of irrigation development upon a community and region. Others show similar results. Obviously then, the effect of irrigation development on the Polecat Bench Project would be felt over and over again by land owners, farm operators, local businesses, transportation services, the local community, the State and Federal Government.

To this point, I have discussed irrigated agriculture development exclusively. May I point out in closing that my office and others at the University have long encouraged multiple purpose development of water resources in Wyoming. Multiple purpose planning and development of our water resources on projects such as is planned on Polecat Bench, can bring solutions to the needs and problems of many water users. The end result can be an environment that will provide a "good life" in rural America for more and more of our people. This is what Polecat Bench can be a "good life" for many people.

Thank you for this opportunity to appear before your Subcommittee.

Mr. BROSZ. I appreciate that, and I will go ahead and attempt to summarize the six pages.

Mr. KAZEN. Do you mean that a college professor is worse than a Congressman when it comes to that?

Mr. BROSZ. Pretty much.

I am Don Brosz, extension irrigation engineer with the University of Wyoming, and I have been since November 15, 1962. I have had the opportunity to work with many of our irrigators in the State of Wyoming. In addition, I also served as the Secretary of the Wyoming Water Development Association, which is comprised of people interested in the total cross section of Wyoming's water. At our last convention, which was in Cheyenne on October 19, of 1971, we did again pass, which we have for many years, a resolution asking that Congress authorize this project, and the complete resolution is in the written statement, Mr. Chairman.

Wyoming I think is known by many, as has been expressed already by you and the committee, as a beautiful State, a tourist State, a fish

ing State, and so on. But, agriculture is still the backbone of our economy and a stabilizing factor in our economy, and will be for a long time. It is agriculture such as we have here in the Powell Area, and in the area that is known as the Big Horn Basin and several other areas in the State, that gives us that good life that many of us, and many people would like to have who are in the crowded cities.

I think we have it right here with the open spaces, the clear air, and the clear water.

The next few statements I have pertain to the climate and soils of this proposed Polecat Bench area. Our records show that the climate and soils are conducive to good agricultural production. The soils are deep, sandy loams, and loam-type soils. The lay of the land is beautiful and some have already said, 70 percent is class 1 land. When we put this all together, particularly on the soils part, we come up with high water efficiency, which is very important today, a high labor efficiency, also high farm machinery efficiency and operating efficiency. Irrigated agricultural development has great effect on a community, and I attempted to show several of the ways here. I am using Dr. Skold's study from Colorado State University, as I follow through with what Polecat Bench could mean to the community and to the region. Taking these figures on firms, additional agricultural inputs. retail, services for these people, what the agricultural people or the farmers that would buy in this community, it could net as much as $375,000.

We could express these in gross too, but I worked this out in net. To the region it could be as much as $750,000. To the community and region over $1 million in net income. These are some of the effects that irrigated agriculture could play in this community. At the University of Wyoming and many other places there have been studies showing results of multiple-purpose projects. We have projects where we talk about recreation, municipal use, multiple projects such as we have here which serve the needs and solve the problems for many water users. I think the people in this community are looking to this to serve the needs of the many users, and solve some of the problems they have as far as the needs for water here. All of this again is a place for the good life here in rural America.

In my closing, may I add that the University of Wyoming stands ready through its agricultural experiment stations and agricultural extension services to assist these people in this community.

I have with me a statement of Dr. William D. Carlson, president of our university, also endorsing the Polecat Bench area, and I would like to enter his statement into the record.

Mr. KAZEN. Without objection, the statement will be made a part of the record.

(The statement referred to in letter to Chairman Johnson, follows:) THE UNIVERSITY OF WYOMING,

Hon. HAROLD T. JOHNSON,

OFFICE OF THE PRESIDENT, Laramie, Wyo., September 21, 1972.

Chairman, House Interior and Insular Affairs, Rayburn House Office Building, Washington, D.C.

DEAR MR. JOHNSON: We are pleased to endorse the Polecat Bench Project located near Powell, Wyoming, which was the subject of hearings before the Senate Water and Power Resource Subcommittee September 19, 1972.

The 19,200 acres of new lands proposed for irrigation development in the project are some of the finest lands yet to be developed in the West from both economic and recreational standpoints.

Feasibility studies clearly indicate a cost-benefit ratio that is most favorable for construction and point to an opportunity for establishing eighty new farms, thus encouraging many families to locate in rural America.

The Polecat Bench Project is adjacent to the Shoshone-Heart Mountain development, a pioneer reclamation project, thereby contributing to the feasibility of the new development. The 89,000 irrigated acres of the Shoshone-Heart Mountain Project generated a gross crop revenue of some ten million dollars during the 1971 crop season. It is estimated the Polecat Bench Project would increase the gross revenue of the area by twenty per cent, or two million dollars annually.

In addition to creating new jobs, supporting new businesses, and placing public lands in private ownership, and subsequently increasing the tax base, the Polecat Bench Project would greatly enhance the attractiveness of life in Wyoming by opening new areas for sports and recreational activities. Further, the project would strengthen and preserve multiple-use concepts by providing a supplemental water supply for nearby communities.

Seventy per cent of Wyoming farms and ranches depend on irrigated lands for crop production. A major portion of the 1.7 million acres of irrigated land in the State has been developed under the Reclamation Act or through the irrigation district principle. The University of Wyoming has been very active in cooperating with the United States Bureau of Reclamation through the Agricultural Experiment Station and the Agricultural Extension Service to make the developments possible. Our interest and involvement in the Polecat Bench Project are no less. In view of the outstanding economic and social benefits which would accrue to Wyoming and the region, I respectfully urge the House Water and Power Resource Subcommittee to recommend authorization for the Polecat Bench Project at the earliest possible date.

Sincerely,

WILLIAM D. CARLSON, President.

Mr. KAZEN. Are there any questions from the members of the subcommittee?

Mr. Abourezk?

Mr. ABOUREZK. NO.

Mr. KAZEN. Mr. Melcher?

Mr. MELCHER. No questions.

Mr. KAZEN. Mr. Roncalio?

Mr. RONCALIO. Thank you very much.

Mr. KAZEN. Thank you very much. We appreciate your taking time out to appear before this committee and giving us the benefit of this

statement.

The next witness is Senator Dick Jones.

Mr. FAGERBERG. Mr. Chairman, my name is Mr. Robert Fagerberg, and owing to a conflict, Senator Jones asked for the Chair's permission for me to read his statement.

Mr. KAZEN. Come around, sir. We will be delighted to hear you.

STATEMENT OF DICK JONES, STATE SENATOR, CODY, WYO., AS GIVEN BY ROBERT FAGERBERG

Mr. FAGERBERG. Mr. Chairman and honorable members of the subcommittee [reading]:

"My name is Richard Jones, Cody businessman and State Senator from Park County.

"We have been witnessing a trend in our area toward fewer farms and farmers, which results in problems to the economics of rural com

munities such as we have in northern Wyoming. In order for this area to continue to grow and prosper, we definitely need growth, which we feel will have to come primarily from increased agricultural production. The development of Polecat would be a tremendous boost economically for the entire region.

"With the many problems in our urban areas, rural development is one of the main ways to alleviate these problems. Without rural development, our population will continue to center in the big metropolitan areas due to the lack of employment opportunities in the small towns. Our youth are having to leave this part of the country out of the necessity to find employment. Many would prefer remaining in northwest Wyoming in place of migrating to city and urban areas.

"A development such as Polecat Bench will have tremendous potential for new jobs. The Polecat development would open up new farm units for a minimum of 80 families and create many new jobs and services to accommodate this growth of 80 families. Agricultural occupations are attractive to many people, and the present lack of employment forces many of our people to seek employment elsewhere. It is estimated that the new farm units on the Bench will attract an increase of 280 on-the-farm population and another 800 in residents within our communities.

"The business activity generated by the development of Polecat Bench by the gain in population, goods, and services is projected at approximately $12 million annually. This would have a significant effect upon the tax base on the local, State and national levels.

"A large part of Wyoming is federally owned, with the resultant oil and mineral royalties going to the U.S. Treasury, and we feel it is only equitable that a more significant contribution from reclamation funds be returned to this area to offset the depletion of our mineral resources. In a long-term analysis, the depletion of our mineral resources is actually a depletion of our economy. Polecat Bench unit is a solution which is practical to our area and we urge its approval."

Mr. KAZEN. Thank you, sir. We appreciate Senator Jones sending his report in.

He, as many of us, is concerned about one of the most serious problems facing rural America today. How do we keep our youngsters in these rural areas? Many of us are very worried that unless we develop these resources around our small communities, we will soon see this country dried up of small communities. It becomes more and more urgent as time goes by that we have more people instead of less people involved in the production of food and fiber for this country, and actually for the entire world, because more and more people are dependent upon us. So, we appreciate the statement made by the Senator, and thank you for bringing it to us.

Are there any questions from the members of the subcommittee? Mr. RONCALIO. I have just an observation I would like to make, Mr. Chairman.

Mr. KAZEN. The Chair recognizes Mr. Roncalio.

Mr. RONCALIO. I would like personally to thank Senator Jones for lending strength to this hearing with his statement, and I hope he will continue to give strong support in his position to us here.

Thank you very much.

Mr. KAZEN. The next witness is Mr. Charles Curtis. And I understand that Mr. Ross Copenhaver is here also. I think they are both connected with the Polecat Irrigation District, and if they would both like to come up together, we will hear both of you.

Mr. COPENHAVER. Congressman Kazen, I have a written statement and a letter from Mr. Curtis which is attached as a part of my statement, and we would like to present it that way, if we may.

Mr. KAZEN. Great. Come around. Yes, sir. The Chair just made the suggestion in the interest of time.

STATEMENT OF ROSS COPENHAVER, ATTORNEY, POLECAT

IRRIGATION DISTRICT

Mr. COPENHAVER. Chairman Kazen, honorable Congressmen, I am Ross D. Copenhaver, and have been an attorney at law in Powell, Wyo., since 1949.

In January 1967, at the request of a number of landowners, in the area of the Polecat Bench irrigation project, our law firm, Copenhaver and Castberg, started preparation of proceedings to form the Polecat Bench Irrigation District under the laws of the State of Wyoming. It was the desire of such petitioners:

1. To determine that all or a majority of the landowners were desirous of the development of the area.

2. To form an irrigation district which would be organized and ready to contract with, advice and consult with the Bureau of Reclamation in such development.

All owners of land within the proposed district were given notice of the proceedings, an opportunity to join as petitioners, and an opportunity to present any objectives, either in writing or by appearance at a hearing before the District Court of Park County, Wyo. Owners of 16,000 acres joined in the petition, consisting of a majority of the persons owning lands and representing more than one-third of the area, which was proposed to be included within the district, as required by law. At such hearing, on May 26, 1967, there were none of such landowners who expressed any objections, either orally or in writing.

Since 1955, I have, as an individual, as a member and for 1 year as president of the Powell Chamber of Commerce, been interested in and encouraged the development and use of Polecat Bench. I am still urging such development, because it will help to make farm lands available for young men who today find it difficult to find and obtain land to start in the agriculture industry. It will put such land to a more productive use than is now possible, thereby increasing the income and gross products of this area and the United States by reason of which the local community, county, State, and Nation will benefit; and because it is, in my opinion, a reasonable and practical investment of the resources of the United States.

I sincerely urge your approval of H.R. 1554.

Attached to my statement is a letter from the Two Dot Ranch Corp. signed by C. W. Curtis as vice president. It was delivered to the commissioners of the Polecat Bench Irrigation District to present to this committee. It is incorporated with my statement.

We sincerely urge your approval of H.R. 1554.