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Budgeting, linear programming and benefit-cost analysis were used in an economic investigation of a private irrigation project which serves 54 individually operated farms. On each of these farms, the opportunity exists for the integration of irrigated and dry land agriculture. The results of this study allow some comments to be made concerning the advantages which are claimed for this type of integration. One of the most appealing of these claims is that integration will encourage extensive types of agricultural production, rather than the intensive and often highly subsidized enterprises which have dominated many acres where farms are wholly or largely irrigated. This study indicates that, should farmers aim to maximize profits, the irrigation water would be used mainly in the production of forage for dairy cattle. Yet, the farmers have indicated that they would prefer to operate farm programmes which almost completely exclude dairying.