Economic Indicators

Not long ago, rural communities were much more self-sufficient. Today, local economies are involved in international economic activity that has created wealth for our communities but has also led to downsizing and flight of U.S. capital and labor to overseas markets. 

The national economy is regularly measured by looking at unemployment figures, new housing starts, and the activity of the stock markets. They don't measure whether we have a healthy environment or healthy communities. Nor do these measurements account for different kinds of economic activity, like the informal economy of road side stands or barter, or how specific market niches like dairying or heritage tourism could affect our region s wealth. 

Predicting the future of the global or local economy is difficult perhaps impossible to do, but good indicators should tell us if our local economy is being built on principles of sustainability. At our second conference in McArthur, Vinton County, we asked the question: What would a healthy economy look like in southern Ohio? Three of the 18 indicators suggested were Agricultural Marketing, Forest Health and Wealth, and Employment and Poverty.

Agricultural Marketing 

Background
One indication of a sustainable local economy is a strong agricultural base, which can be measured by looking at the agricultural markets in the area. Local agricultural markets include Community Supported Agriculture (CSAs); farmers markets; storefronts that feature local products like Farms-A-Plenty and The MarketPlace; and training and outreach work like that of Community Food Initiatives (CFI) and Appalachian Center for Economic Networks (ACEnet)

The Focus of the Indicator
This indicator describes new agricultural market activities and the amount of money being made from them, using information collected from the Appalachian Center for Economic Networks (ACEnet), local CSAs and OSU Extension. ACEnet links local consumers and retailers to local specialty food products through a series of tastings, surveys, and brochures, and by providing a community kitchen incubator. ACEnet serves more than 50 local businesses and organizations and estimates that they have created easily $1,000,000 in sales through their programs. One example is Frog Ranch, a local salsa producer, whose annual sales have increased by over 300 percent in recent years. Similarly, the MarketPlace, ACEnet s retail store for local businesses, sold approximately $55,000 of local products in the last year.

What We Found
New, mostly small-producer, agricultural markets are increasing in the region. In 1997 we saw the introduction of a new farmers market in Nelsonville, Athens County. That same year, 14 local producers sold through the Good Food Direct! marketing project to 65 customers. Sales for the year totaled $5,860, almost doubling the figures for 1996. Although the numbers are fairly small, Good Food Direct! is growing at an impressive rate. In 1998 the eight highest-selling producers are providing fresh, local food to an estimated 130 customers.

Another source of locally grown food is the Far Corner Farm CSA, in Amesville. Far Corner Farm is just beginning its fourth season and will serve from 75-85 shareholders this year. Last year the CSA was so successful that its owners, Kevin Smyth and Elise McMath, actually had to begin turning customers away. They consider their venture a full success and expect heavy demand for their organic food to continue.

Working Conclusions
There is positive growth in the local agricultural marketing arena, and if the national trend to purchase organic, fresh foods continues, local markets will be able to capitalize on it. For the large-crop farmer, however, and the fate of farming as America has known it, the future is harder to determine. Trends in land use are ominous. Some states, like Wisconsin and Maryland, have passed agricultural land preservation acts that help farms and farmers continue their work, and Ohio is looking at such legislation. Preliminary information indicates that because new markets are emerging, we are moving in the right direction for sustainable food systems and food security, as well as providing farmers a livelihood. But we still import millions of dollars worth of food that could be grown locally, giving farmers and entrepreneurs more opportunities to create wealth.

Connections
By increasing regional agricultural markets we take a big step towards sustainability and food security. We keep more dollars local, and farmers get fair prices for their products. Fresh food is also linked to health and nutrition in a community. According to the Ohio Ecological Food and Farm Association, 25 percent of a vegetable s nutrition is lost in a day, and up to 80 percent can be gone in three days. It takes anywhere from five to thirteen days for California-grown food to get from the field to store shelves in Ohio, where it may sit for many days. 

Local agricultural markets are linked to environmental issues such as reduced greenhouse emissions from lowered transportation and less monocropping (growing just one type of crop). Local agricultural markets also preserve local farmlands and farming as a long-standing and valuable community institution and a career option for its citizens. (See Farming Practices in the section on Environmental Indicators.)

Suggestions for Additional Research
We need to explore the economic and environmental impact small producers can have, and how smaller agricultural producers and livestock operators can earn their livelihoods. Some research on local markets presently exists, but more research could be done on specific market niches. More research on the habits and trends of local consumers will also help farmers grow the crops and develop the product lines that will sell.

Forest Health and Wealth

Background
The Central Appalachian Region contains the oldest continuously present forests in North America, containing more plant and tree species than any other region in the United States. The natural capital of our forests can be the foundation of a sound economy and rekindle the cultural heritage of our region while supporting ecological stability.

A commitment to the forests of our region repays us in many ways. Their effects on water quality, climate, and recreational activities, and their provision of valuable timber and non-timber products, are strong incentives for preserving the forests. 

Making money from our forests usually means commercial timber harvesting. While this is a vital source of income for rural landowners and the timber industry, there are other ways to earn money from our forests. Other forestry income sources include value-added wood products, non-timber forest products, certified "green" or sustainably harvested woods, and recreation and tourism. In Appalachian Ohio, tourism supplies more than $68 million in taxes, employs 23,000 people, and provides a direct economic impact of $605 million to the region. Heritage tourism includes cultural activities, visiting historic sites and museums, and enjoying an area s natural beauty. A sustainable forest economy would provide many money-making options for landowners and at the same time enhance the quality of the forest. Blending new and traditional forestry markets and practices can create a healthier local economy and environment.

The Focus of the Indicator
Using easily accessible data, we measured the amount of money made from tourism. There are 17 state forests in Appalachian Ohio, with over 170,000 acres of land. There are four state parks and at least 25 other nature preserves or wildlife areas. All of these are rich in natural beauty that attracts visitors and their dollars to the area. We used information from a September 1996 study by the Wayne National Forest on the economic impacts of its outdoor recreation and also from the Hocking County Tourism Association.

What We Found
Estimates provided by Ted King of the Wayne National Forest state that the "Wayne attracted 689,000 visitors and 384,000, or 55 percent, were from outside the impact area." Non-local visitors to the forest spend an average of $82.74 per visit to the area. Applying this average expenditure to the number of visitors, the study concluded, "The average expenditure estimate yields annual recreational expenditures of approximately $31,772,000." The area impacted is the southeastern counties of Ohio that surround the Wayne National Forest.

A study prepared by Rita Jones, Hocking County Tourism Association Director, reveals that in 1996 the Hocking Hills tourism industry "experienced its largest tourism-generated growth year since the founding of the Hocking County Tourism Association in 1988." Telephone inquiries per year were 210 in 1993 and 1,513 in 1996. The direct sales impact from tourism in 1996 was $7.15 million for the county, and 305 jobs.

Unfortunately, the 1996 study undertaken by Wayne National Forest was the first and only one of its kind. The staff has gathered some numbers for 1997, but these are not as thorough as those for the previous year, according to King, and cannot be used to establish any trends one way or the other. He predicts there will not be significant change compared to last year, but more research is needed to determine the possibilities for forest tourism.

Working Conclusions
Earning dollars from our natural beauty can be seen as both positive and negative. Increased tourism can have negative impacts, as touring recreational vehicles congest the two-lane roads and slow down traffic, or as visitors burden the local sewer systems. In many communities we have not adequately discussed the impacts of tourism and the kinds of tourism we want to encourage for our area. At the 1997 Little Cities of Black Diamonds Day Celebration at Miller High School in Perry County, a panel of residents, business owners, and tourism professionals discussed with the audience major issues related to local tourism. Some audience members questioned the kinds of jobs that tourism brings. Are they all low-paying and only seasonal? Will they be enough to keep children from moving out of the area? This panel was a first step in encouraging community discussions about tourism. In developing a regional tourism economy, it is important to encourage local control and decision-making. This helps guarantee benefits to many citizens and manageable impacts on communities.

Connections
A richly forested landscape is a place that people want to visit, bringing in tourism dollars. It is also a place rich in habitat that preserves the homes of many animals and plants and makes the environment a better place for people, too. Another forest market opportunity, the emerging Non-Timber Forest Products (NTFP) industry, addresses cultural, economic and environmental issues in the Appalachian region. Developed wisely, NTFPs can contribute to our region s economy and the protection of complex ecosystems beneath the forest canopy while reaffirming the knowledge of the woods that many people maintain. 

Forest health is connected with air and water quality, soil integrity, and diversity. A 1989 West Virginia Department of Agriculture Market Bulletin states that over 50 years a tree can produce $31,200 worth of oxygen, provide $62,000 worth of air pollution control, recycle $37,500 worth of water, and control $31,250 worth of soil erosion.

Suggestions for Additional Research
The emerging Ohio s Hill Country Heritage Area, a project of the Ohio Arts Council, will support the development of heritage tourism for the area. New research about the present and potential impacts of heritage and low-impact tourism could be done. Where are people visiting? How much do people spend on overnight trips versus weekend trips? What types of recreation or sightseeing are people in other parts of Ohio, West Virginia and Kentucky most interested in? Will the Ohio s Hill Country Heritage Area project help preserve historical sites in the region?

This indicator includes many aspects of forest market development, like non-timber forest products (NTFPs), adding value to cut lumber before shipping it out, and the "green" certification of lumber that is sustainably harvested. Research partnerships are needed that bring together botanical research specialists, business leaders, government agencies and woodlot owners to study habitat requirements of popular species, sustainable cultivation techniques, wise harvesting, and optimum markets for NTFPs. Surveys of woodlot owners and marketing strategies could support a network of those interested in growing and marketing products.

Concerns about possible extinction from the wild of the most popular and valuable species can be addressed through a plan for experimental cultivation plots developed by both woodlot owners and botanical researchers. Sustainable forest management could ensure that beneficial wild plants do not disappear as demands increase. 

Because current timber harvest methods may threaten the needs of the valuable resources beneath the forest canopy, data is needed on how to meet the requirements of the timber and non-timber industries so our region can enjoy many diverse economic resources from the forests.

Suggested Economic Indicators

Public Transportation 
Migration Patterns 
Restored Habitats 
Locally Owned and Operated Businesses 

Agricultural Marketing 
Service Sector Benefits 
Land Use Planning 
Industrial Diversity 
Worker-Owned Businesses 

Forest Health and Wealth 
Niche Markets 
Ecocultural Tourism 
Topsoil Condition 

Employment and Poverty 
Sustainable Logging Practices 
Coal Extraction 
Biking and Hiking Trails 
Economic and Community Development Support Agencies
 
Ohio's Hill Country

Heritage tourism, also known as cultural tourism, is one of the fastest growing areas in the tourism industry. There are heritage areas in Massachusetts, New Jersey and Pennsylvania; Ohio heritage areas include the Ohio Erie Canal Corridor in the northern part of the state. 

Appalachian Ohio, once the gateway to the Northwest Territory, has a distinctive sense of place and is an ideal heritage area candidate. Its wealth of culture and history are evident in burial mounds, Underground Railroad sites, historic buildings, and abandoned coal mines. Because of this richness and the opportunity it offers for sustainable community development, the Ohio Arts Council initiated the Ohio s Hill Country Heritage Area Program.

A heritage area fosters a balanced commitment to both the protection of environmental and cultural resources and the development of tourism and other economic opportunities. By involving many people in the process  of developing the heritage area (local elected officials, business people, tourism officials, community leaders, and representatives of arts, preservation, conservation and outdoor recreation organizations), OHCHAP hopes to have the best of all worlds: a healthy environment, a better economy, and a sense of pride in our region.

According to the National Coalition of Heritage Areas, "Heritage development begins by informing residents and visitors alike about community history, traditions and the environment, while providing [support] to create opportunities in outdoor recreation, tourism and the expansion and promotion of cultural resources."

"The most important thing about a successful regional heritage area is that many people are involved, and that the prosperity to be gained from increased tourism is shared by as many people as possible in our region," said Michelle Decker, Rural Action s Program Director working with OHCHAP. "Tourism that supports sustainable development is rooted in what we have to offer as a region what our unique assets are, like our history or our natural surroundings."

OHCHAP is a natural outgrowth of several Ohio Arts Council programs, especially the Ohio Appalachian Arts Initiative, which was started in 1994 to support existing organizations and nurture new organizations and projects in the Appalachian region. 

An Advisory Board and Executive Committee meet quarterly to plan the activities of the budding heritage area and to share resources that support local activities. For more information on how you can get involved, please call Pat Henehan at 614-466-2613.

Top five tourist activities and percent of tourists engaging in each activity:

Top 5 Tourism Activities	Appalachian Ohio	State of Ohio Average
Shopping	32.0%	7.3%
Visiting Historic Sites	21.0%	6.5%
Cultural Activities/Museums	15.5%	12.1%
Parks State & National	12.1%	6.6%
Hiking & Biking	10.3%	3.0%

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