Outward Migration (McCook, Nebraska City, Plattsmouth: loans, homes, employment)

[Off Pavement]

The January issue of National Geographic has a photo essay about outward migration in North Dakota. It paints a rather vivid picture of the result of near total outward migration and farm and ranch consolidation.

There are areas of Nebraska that appear to be caught in the same death spiral of outward migration, and I'd like to hear your thoughts on possible ways to stem the tide.

Myself...I believe rural areas should be doing everything possible to attract internet based niche business that is not dependent on local demographics.

[momlady530]

My totally unprofessional and uninformed opinion is that large ranching and farming conglomerates should not be allowed. I think they create a monopoly in the area driving out the smaller farms and eliminating competition. Yes, rural towns need to diversify. Hopefully the emerging ethanol industry with help revitalize rural economies.

[Katiana]

I'm not sold on ethanol. Supposedly takes more energy to produce than it provides. Plus, growing corn for ethanol will increase the price of food. JMO.

[GraniteStater]

Even the Wall Street Journal has run an article recently claiming that more ethanol related production is probably not a good idea. It just does not make good sense when you look at the energy ratios of ethanol compared with gasoline.

[Gretchen B]

Originally Posted by Off Pavement

The January issue of National Geographic has a photo essay about outward migration in North Dakota. It paints a rather vivid picture of the result of near total outward migration and farm and ranch consolidation.

There are areas of Nebraska that appear to be caught in the same death spiral of outward migration, and I'd like to hear your thoughts on possible ways to stem the tide.

Myself...I believe rural areas should be doing everything possible to attract internet based niche business that is not dependent on local demographics.

Unfortunately the outward migration is a fact. I'm one of the statistics. My great-grandparents homesteaded in so. central Nebraska back in the 1880's. The farm stayed in the family until the early 1990's. Actually, I guess it's still in the family, but the family home was torn down so that the ground could be farmed totally. My own family moved out of rural Nebraska in 2001 for jobs.

I would say jobs is #1 to get people to stay in Nebraska. Also, it saddens me so much to see the Wal-Marts coming into the small towns forcing local longtime merchants out of business on Main Street.

There's also been a horrible trend in Nebraska toward "stinky" industries that do nothing to attract people to the communities.

On the plus side, Nebraska is one of the few places with truly "wide-open spaces", where one can really take a deep breath and relax.

I would love to see some of the smaller towns reinvent themselves with unique stores and attractive downtowns, capitalizing on their historic character. There were a few places that seemed to be doing that (of course this was back in 2001 and things may have changed), but places like Broken Bow, McCook, Nebraska City, Plattsmouth, Gothenburg, and a few others seemed to be revitalizing their Main Streets. I hope that's still the case.

[mattpoulsen]

Actually, if anything, the ethanol industry will kill the rural areas. Ethanol is nothing more than a government subsidy in disguise. The science is simply not there. Most estimates show that there is essentially no energy benefit to using ethanol. Meaning that after you calculate all the energy needed to plant, harvest, and process the corn you end up with just enough fuel to do all those things (or less). Which means...you would have been better off not producing ethanol.

The problem is that corn growers have been living high on the hog lately and when the carpet is pulled out from underneath them they will be left holding the bag. Furthermore, all these ethanol plants will be "ghostplants" in a few years. I am hoping though that they can be converted to process "switchgrass", which is processed and grown much more efficiently...allowing for much better energy gain/energy used ratios. In the coming years there will be a major push for this product.

Small communities can not pin their hopes on ethanol. They absolutely must diversify. Maybe there should be a larger focus on more novel agricultural products...find a niche that the mega farms don't compete. The point is, whatever they do, they can't continue to do things the way grandpa used to do it.

[momlady530]

I totally agree with you guys on the ethanol thing. There are too many variables right now with the industry, however, I do think the future of the industry is bright. Someone mentioned that it takes the same amount of energy to produce ethanol as you get out of ethanol. That is correct when speaking of ethanol from corn. The promise lies in ethanol from prairie grasses which has great potential. National Geographic had a wonderful article a few months ago concerning this issue.

[momlady530]

"Small communities can not pin their hopes on ethanol. They absolutely must diversify. Maybe there should be a larger focus on more novel agricultural products...find a niche that the mega farms don't compete. The point is, whatever they do, they can't continue to do things the way grandpa used to do it.[/quote]"

Matt, you mentioned a "niche". Perhaps this could be organic products? From what I understand organic farming is fairly small-scale. There definitely is a high demand for organic products here on the east coast. Just another uneducated guess.

[Dave1215]

Originally Posted by Gretchen B

I would love to see some of the smaller towns reinvent themselves with unique stores and attractive downtowns, capitalizing on their historic character. There were a few places that seemed to be doing that (of course this was back in 2001 and things may have changed), but places like Broken Bow, McCook, Nebraska City, Plattsmouth, Gothenburg, and a few others seemed to be revitalizing their Main Streets. I hope that's still the case.

This is the key. As other's mentioned... "niche"... each local community has to come together like the one's mentioned above and define their niche. Each one will be different, but everyone can have one.

Even when evil WalMart comes in a town can redefine itself and find a niche in spite of WalMart.

I think the University and State College System could play a huge economic development role here. They have engineering, planning, business, finance, economic, social programs and degrees - challenge the University/State Colleges to apply that practically with a revitalization program for small towns. Put the students head knowledge to a practical program to help small towns. Give them an assessment of their assets (even if they think they don't have any) and the needs of the region/state/US and how can they use their assets to meet those needs. This would be a huge economic development boost for the state. I think UNL's Planning Department does this a little, but expand it to other programs and work cooperatively with the State Economic Development department, Lied Main Street program, State Chamber of Commerce, and local Chamber of Commerce's.

[itsMeFred]

Sorry this is long, but as someone who's been living in extreme rural Nebraska for 10 years, it's a topic near and dear to my heart.

Myself...I believe rural areas should be doing everything possible to attract internet based niche business that is not dependent on local demographics.

I don't know that that's the answer either. Though I will say, as an interent business operator, it is definately an income that is ideal for people in extremely rural areas. However, my little store, even if I really get it to grow, will never employ more than a couple of people. Myself included.

My totally unprofessional and uninformed opinion is that large ranching and farming conglomerates should not be allowed.

We have very few of those, actually. It's only in the last few years that they've been allowed to own operations in NE. But kids have been fleeing the family farm in droves for decades.
If you've ever looked at the numbers, you can see why. Even for kids who's folks own the home place free and clear, it's going to be tough to make a go of it. It basically has to support two families, now. Mom and Dad & the kids. Or, the kids and a retirement payment to Mom & Dad. And that's assuming you can wrangle the money it takes to operate.

My husband is a lifetime cattleman. However, his dad was always working for someone else's place. Ie, there is no homeplace. Consequently, in the 10 years we've been married and out of college we've looked at every angle to get our own. It won't happen.
If we do manage to get enough land/cattle to support themselves (a requirement for FSA loans) it'll never support us. There still has to be an off-ranch job. Frankly, most farmers and ranchers I've known (in SD, KS, CO, and WY as well as NE) have had to have at least one non-farm income.
There's an old joke in the business that behind every successful farmer is a wife with a job in town. Funny because it's so true.

Ironically enough, we're lucky. My husband runs a ranch for an out-of-state investor. About 90% of the time, the place is his to run as he sees fit. And, the steady paycheck that's independant of market prices is what has allowed me to stay home for eight years...
For that matter, most "large" farming and ranching conglomerates are owned by one person or family in this state. And there's really no way to limit that.

From what I understand organic farming is fairly small-scale. There definitely is a high demand for organic products here on the east coast

There's a pretty small demand here. The cities will have a better market, but in the rural areas, people tend to get their produce from the grocer because it's cheaper. That which they don't raise themselves that is. But consumers in the very rural areas tend to be living much closer to the poverty line...
We're looking at getting started in grass-fed beef. An organic product that can be marketed outside the local market via Internet or delivery to larger, urban areas.

Even when evil WalMart comes in a town can redefine itself and find a niche in spite of WalMart.

I have to agree. I went to college in Chadron 15 years ago (pre-WalMart). Chadron was a dying town and there was no argument about it. The college was the only major employer in town. Jobs for college students were very hard to come by. (I worked graveyard shift at Common Cents as was happy to have employment at all!) For that matter, the general unemployment rate in Chadron was fairly high. I can't recall numbers, but I do remember that being a factoid that I'd toss out periodically in frustration. :P
When WalMart came in, it shook things up at first. But Chadron has since reinvented itself as a trade center.
The same is true of McCook. Gretchen mentioned McCook's revitalized Main Street and frankly, I think the fact that McCook is a trade center (due to WalMart) is what keeps Main Street healthy, too.

I know WalMart can wreak havoc with a community's main street. But I also know that that is not always the case.