Benefit Cost Analysis of Agricultural Production, Fort Apache Indian Reservation

Client: White Mountain Apache Tribe

Location: Whiteriver, AZ

Summary: Cardno ENTRIX served as economic expert for the White Mountain Apache Tribe in negotiation support of their future water right claims. As part of the project, Cardno ENTRIX conducted a benefit-cost analysis of agricultural production on the Fort Apache Indian Reservation, and was responsible for coordination among agronomists, horticulturalists, and silviculturalists while analyzing the feasibility of a wide variety of proposed crops and value added activities. For the agricultural production enterprises, Cardno ENTRIX analyzed the feasibility of a wide variety of proposed crops and value added activities. Cardno ENTRIX has developed farm level budgets of the proposed crops, analyzed the respective markets, and developed net revenues from value added activities. These value added activities include an Individual Quick Freeze (IQF) plant, packing shed for fruit, sawmill, and beef feedlot. The net benefits from the proposed irrigation project will be compared against the costs of the irrigation project.

The Project also included analysis of the financial and market feasibility of enhancing existing timber operations on the Reservation through planting of a poplar plantation. The poplar plantation will provide financial benefits to the Tribe directly through increased revenue from poplar sales, but also indirectly through three other mechanisms: 1) increased return on investment to existing sawmill facility through increased utilization and efficiency, 2) increased long-term annual revenues from existing forests due to increased thinning operations (previously not financially feasible), and 3) marketing of sequestration carbon credits in the Chicago Climate Exchange.