The "Committee of 82" is a study about the fact that 82 of Iowa's 99 counties are not growing as much as the other 17 and what Iowa needs to do to help stem that decline,” was an email that James Kersten, VP of Iowa Central Community College sent me after a stop in Ft. Dodge last week. I found it to be a very interesting study on the factors that have influenced growth in rural Iowa. The study is at http://www.committeeof82.org/about.html.
Their research found the following factors that helped growth (in order of importance): Entrepreneurship (non-farm proprietors/capita); suburban effect (commuting more than 30 minutes); livestock receipts; and recreational amenities.
Factors that hurt growth (in order of importance) were: Aging population (>65 year olds); farming income; local taxes; and increased transfer payments (Medicare, Social Security, etc.).
Many of these factors are things that I’ve been talking about in my work. I’m not at all surprised that entrepreneurism is the main factor. Initially, it surprised me that farm income was negative, while livestock receipts were a positive, but reflecting upon it I could see where a diversified agricultural community is far superior to one that is based upon the Corn/Soybeans/Florida one.
I’ll continue to dig up research on what great communities are doing right and try to report to you as I find studies like this.
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You make a very good point. Although the current farm program encourages “fence-row to fence-row” production, the Conservation Reserve Program (CRP) has taken millions of acres out of production. There are some counties in Iowa that have a much larger percentage of their land in the CRP and it would be interesting to see the impact of this particular program using the database of the Committee of 82.
My observation of the current farm program is that the government payments artificially increase farm incomes, which are quickly translated into higher farmland values at too low of a P/E ratio to intrinsic value. These high farmland values inhibit capital formation for new investment, retarding the ability of younger farmers to enter the industry.
My travels are showing me examples of niche markets that are being exploited by young farmers throughout the USA. These farmers are raising unique products, marketing them in creative ways and building a strong base without any subsidies. It is a stronger, more diversified business model that could help to revitalize many small towns.
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