Drake University Agricultural Law Center

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2 Rural Lands Rural Livelihoods: Using Land and Natural Amenities to Revitalize Rural Iowa Prof. Neil D. Hamilton

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4 Objectives of the Rural Land Rural Livelihoods Conference 1. Create an opportunity to build partnerships with Iowa organizations, such as the Iowa Natural Heritage Foundation, Iowa-USDA RD, and institutions like the county conservation boards and private groups. 2. Create increased student research opportunities, such as through targeted use of interns with rural development and sustainable land organizations. 3. Bring together an array of Iowans engaged in different aspects of land based rural development, using their examples and enterprises to illustrate the breadth of issues and opportunities and to identify model policies and case studies for further work. 4. Articulate the land-livelihood connection to help people recognize the issues go beyond production agriculture to include environmental quality, amenity based enterprises and alternative uses of rural lands as significant parts of Iowa s future

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6 Rural lands conference goals 5. Create a context to address issues of Renewable Energy from Agriculture (REA), especially those broader than corn, such as wind, carbon and switch-grass. 6. Provide a gathering and forum for public officials from different levels of government and across the state to discuss and identify ideas and options for development. 7. Identify and discuss the legal, policy and operational issues reflected in the various enterprises and examples to identify how existing laws and programs support rural development initiatives. 8. To develop a list of the legal tools which need to be developed and the range of policy issues to address to increase the opportunities for Iowans.

7 Premises of the conference 1. Across Iowa there exist a wide range of rural economic development initiatives related to using land for non-traditional crops and uses. 2. There is a strong and growing demand for owning and managing land to increase natural amenities and support alternative uses such as recreation. 3. The new attention to renewable energy from agriculture may support production of bio-fuels and other rural land based activities such as switchgrass and community wind initiatives.

8 Premises of the conference 4. Collectively these activities can be the source of new economic enterprises and livelihoods for owners of the land. Alternatively the land is providing owners with personal rewards and enjoyment. 5. One common feature with all these land uses is they are based on owning and managing lands to enhance natural amenities in the broadest sense. 6. You do not have to own land or live in rural Iowa to enjoy and appreciate what landowners are creating, as the uses create the context of rural Iowa experiences. 7. Our challenge - and our state s - is to consider how these efforts can be promoted and expanded.

9 The Importance of Land and Natural Resource Amenities Why focus on the natural resources amenities and land as a component of rural development in Iowa? This question is an opportunity to identify the values and justifications for a heightened attention to natural resource amenities and offers a way to examine the motivations and opportunities of the landowners who under gird this development. The following are ten justifications or answers to this question.

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11 1. Places and projects rather than jobs at any cost In the past Iowa has not focused on natural resource amenities as a key to rural development. Doing so now creates the chance to ask a variety of policy questions and examine new economic models not extensively considered. Much of Iowa s history of economic development efforts over the past 30 years has focused on jobs, jobs, jobs with little attention to land or amenities.

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13 To some observers the 80 s and 90 s approach to economic development can be summarized as the Triple P of pork, prison and poker. But the low paying jobs and other social problems associated with these opportunities made them less than ideal to support sustainable economic development. Today Iowa may be moving to a new triple P of places, people and pilot projects. The key recognition is that to support economic development you have to create places where people want to live and one way to do so is with natural resource based projects.

14 This shift is reflected in programs like the Great Places initiative of the Iowa Department of Cultural Affairs and by projects like the Honey Creek State Park and Resort near Centerville. One effect of moving to a places approach to rural development is how it requires citizens to consider what it takes to make an area or region an attractive place for people to live and for employers to seek.

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16 2. Long term natural investments Enterprises or land uses based on some dimension of natural amenities are typically long term and have a natural or living dimension. For example many common initiatives involve planting trees or grasslands, establishing vineyards, or restoring prairies.

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18 When an enterprise involves making long-term investments in constructing landscapes or establishing natural features which may take years or decades to mature, the investments are more permanent and stable. The expense and planning involved in establishing a vineyard or restoring a prairie or wetland are significantly different than deciding whether to plant corn or soybeans - and not as easily reversed next year in light of new market forces.

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20 The extensive participation of Iowa landowners in long-term conservation programs such as the Conservation Reserve Program and the Wetland Reserve indicate many Iowa landowners are comfortable with making longterm land management decisions. But the difference in the permanence of WRP easements as compared to CRP contracts shows the need for permanent protections.

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22 3. New enterprises bring jobs and money to rural areas The activities based on natural resource amenities can be the basis for new economic enterprises. These new enterprises can create jobs, profits, and economic activity for individuals and families. Much of the money flowing to these businesses works its way back into and through rural communities.

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24 There are a variety of new enterprises being supported on the land, with wine production or tourism being two of the most prominent in Iowa. Whether it is the construction of a new winery or the opening of a canoe outfitter natural resource businesses provide new employment opportunities.

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27 4. New enterprises add diversity and create identity for locales Many of the new land based enterprises being created in rural areas are result of creativity and innovation of the owners. As a result they are often new or unique activities for a region, such as the first winery, bed and breakfast or farmstead cheese maker. The creativity and innovation in these businesses often provide the source for additional innovation by other local businesses.

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29 One antique shop becomes three then five, then an older home is restored as an inn, and then a new café is opened and the process continues to snowball until a community becomes a regional tourist destination. The result can be the new enterprises help create an identity or defined attractiveness for a region that can be marketed and communicated to other.

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31 Collectively the effect is to bring diversity to the economy and add distinguishing features to the quality of life. These features can be as diverse as covered bridges, water trails for canoeing, collections of antique shops or preserved barns. A series of these enterprises can create the critical mass or foundation attractive to new residents, visitors, tourists, or business people considering where to locate and seeking areas with unique amenities.

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33 The Whiterock Conservancy, the Garst family s 5,000 acre land trust created to protect oak savannahs, river bottoms, and wildlife habitat as the base for ecotourism and recreation is helping underpin rural development in the Coon Rapids area. Other examples can be found in the land protection efforts underway in the Loess Hills and along the Upper Iowa River.

34 5. Resource based businesses protect environmental and natural features The development of natural resource based businesses has a circular effect as relates to the political and economic support for environmental protection and concern for natural heritage. Because the enterprises are based on investments in land and natural features they have a direct positive impact on the environment. If the business is to promote hunting and agri-tourism then the habitat and natural features necessary to support the enterprises must be present.

35 But the positive environmental effect goes beyond the land or property owned by any one business. Because the new natural resource based amenities provide evidence for the value of protecting or enhancing natural resources they provide an economic motivation for environmental protection.

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37 The reality is that promoting activities such as riverbased recreation will lead to efforts to clean up and protect the river just as prairie restoration diversifies the landscape. The economic motivation to enhance environmental quality can be a valuable alternative to traditional regulatory approaches, e.g. show how cleaning up the creek is in a region s economic selfinterest rather than being something done only under judicial threat.

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39 Scenic byways are a great example of creating identify and building on existing natural amenities by using natural beauty and existing roads to create touristic drawing power. Establishing a scenic by-way, like the White Pole effort in west central Iowa, creates new motivations to protect and enhance the natural features comprising the scenic values, be it open space, picturesque landscapes, or historic buildings. The cumulative effect of the activities contribute to increased stewardship and sustainability in the area.

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41 6. New enterprises can supplemental existing agriculture In some situations economic development can involve choices between otherwise competing uses for scarce resources. In most cases the type of land based activities being discussed are non-consumptive and complimentary to existing land uses.

42 Hunting, fishing, canoeing, horse-back riding, bicycle trails and many other outdoor activities co-exist with traditional agricultural practices and in many cases benefit from the land extensive nature of farming. This means in many cases new activities and enterprises they support can be woven into existing patterns of land ownership and farming operations rather than replace them. You don t have to take the cattle off the pastures to enjoy the land for other uses.

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44 Bike trails and rivers flow through agricultural landscapes without interfering with the uses. While some activities such as wetland restoration or prairies might not be able to accommodate row crop production, under our system of property ownership the choice of what crop to raise and whether to raise anything is the owners. This is why the motivation and desires of private landowners are critical for private land stewardship.

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46 7. New enterprises bring talent and leadership to communities One reality of political life in many rural areas is the decline in population especially among the young and educated. As they move away or fail to return home after college, the talent pool is reduced, placing even more demands on those who remain. The truth is many areas don t lack for good ideas as much as for the people needed to carry them out to chair the committee, to write the grant, and to organize the festival. One benefit of attracting and creating new natural resource based enterprises is the individuals engaged in them can be the source of new community leadership.

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48 The new energy, ideas and economic motivation of these entrepreneurs can give new leadership capacity to the organizations most responsible for supporting local development. The institutions to promote natural resource development already exist in the form of county conservation boards, soil and water conservation districts, local economic development boards, and Resource Conservation and Developments districts. What these groups often need the most is more local involvement and individuals with energy to make things happen.

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50 8. Resource based activities connect people with nature The types of activities commonly associated with natural resource amenities such as fishing, hunting, hiking, bird watching, biking, horse back riding, are experiential and require people to be outside in contact with the natural world. As a result people are engaged with natural amenities and the land. This direct contact serves both as a form of education about nature but also creating new allies in the public debate, such as funding natural resource investments.

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52 If you get people out on the rivers or into the countryside enjoying the experience they will possibly become supporters of efforts to expand funding for natural resource protection, such as Iowa s REAP program Resource Enhancement and Protection.

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54 The issue of nature-based education is especially significant for today s youth who in an age of computer games and the internet are increasingly separated from the natural world. The fears about the environmental illiteracy of children, known as nature-deficit disorder has created support for new initiative such as the No child left inside programs of some conservation organizations.

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56 9. Use valuable natural factories rather than build new ones One of the most common models of economic development is to seek new businesses in the hope they will build a factory and hire hundreds of people. This smoke-stack chasing can yield results if a community succeeds, but the costs of the effort in terms of the tax incentives and other subsidies required to compete and the short odds of being successful, can make it a frustrating and often unrewarding approach. Success can also turn to vulnerability if the factory decides to leave, a painful lesson many Iowa communities have learned.

57 One value of focusing on natural resource based development is to facilitate a change in attitudes to recognize all rural communities are already surrounding by millions of dollars of investments in natural factories. The farm fields, forests, grasslands and rivers of rural America are valuable and productive resources, many of which are almost impossible to recreate. But what is often missing is recognition of these values and the willingness to consider new ways to unlock or harness the economic potential.

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59 By focusing on natural resources and land we can take advantage of the natural factories already existing in rural areas the land, water and sunlight and utilize the products these factories produce from wildlife and switch grass to forest products and recreation experiences. Turning part of the focus of rural development to land and natural resource amenities means would mean not having to find new money for buildings and factories but instead would promote investing in the natural factories already present in rural areas.

60 One fundamental lesson to be drawn from the rapid expansion of ethanol plants in the rural Midwest is a recognition the regions are not as wealth and capital poor as many like to believe. Instead what ethanol investments show is the need for the right economic keys to unlock accumulated land wealth and promote investments in rural areas.

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62 10. New owners bring new attitudes and expectations for land One of the most significant social forces underway in rural Iowa is the transition of landownership to a new generation. Recent studies by Prof. Duffy at Iowa State reveal an increasingly concentrated land ownership pattern by an aging population with over 25% of Iowa s rural land owned by people over 75 and perhaps as much a 50% owned by those over 70.

63 Natural processes of aging and death mean a significant amount of land both in percentage and acres will be changing hands in the next decade. This period of transition creates both promise and peril for those concerned about the future of natural resources. The peril is the transition and the current high land values may place additional pressures to convert natural lands pastures, timber, and grass waterways to corn production. But there is also promise in this transition, especially if land is acquired by new owners with different objectives for using it.

64 At least a portion of those buying land in rural Iowa, market farmers, nature lovers and hunters, bring different attitudes and expectations to the land and its management than traditional owners. Many new owners have a longer term, multi-use perspective and are seeking to enhance natural amenities. In time these landowners and rural residents may represent a new political voice. At least some of them may be willing to consider non-traditional approaches to resource management and stewardship, such as collectively managing private land to promote noncompeting forms of public use like trails.

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