Urban Rural Jim Brown

Council of State GovernmentsRural Policy ForumUrban Rural Interdependenceand LeadershipAugust 2006: 

Council of State Governments Rural Policy Forum Urban Rural Interdependence and Leadership August 2006 James E. Brown, Governor Kulongoski’s Natural Resource Policy Director, Retired

Overview: 

Overview Forestry overview Social overview Oregon approaches for developing rural policy Summary and recommendations

Oregon’s Forests: 

Oregon’s Forests Oregon 62 million acres Forestlands 28.5 million acres 46 percent of Oregon is forested

Oregon’s Forest Ownership: 

Oregon’s Forest Ownership

Forestlands Where Timber Harvesting is Prohibited/Severely Limited*: 

Forestlands Where Timber Harvesting is Prohibited/Severely Limited* 10,300,000 acres (more than one-third of Oregon’s forests Scientific Reserves Wilderness Parks and Monuments Habitat Management Areas Adaptive Management Areas Riparian Areas *Source: First Approximation Report, 2000

Oregon Timber Harvests 1849-1999(Million Cubic Meters): 

Oregon Timber Harvests 1849-1999 (Million Cubic Meters) OSU Sustainable Harvest Baseline Private Sustainable + Federal Northwest & Eastside Plans Private Sustainable + Current Federal Sales > > >

Historical Harvest Trends: West: 

Historical Harvest Trends: West PUBLIC INDUSTRY NIPF

Historical Harvest Trends: East: 

Historical Harvest Trends: East PUBLIC INDUSTRY NIPF

1999 Timber Harvest by Ownership/ Forest Land Ownership : 

1999 Timber Harvest by Ownership/ Forest Land Ownership Forest Land Ownership 1999 Timber Harvest

Timber-Dependent Counties in Oregon: 

Timber-Dependent Counties in Oregon

Oregon Unemployment Rate Percent of U.S. Unemployment Rate: 

Oregon Unemployment Rate Percent of U.S. Unemployment Rate

Oregon Urban and RuralAverage Annual Wage: 

Oregon Urban and Rural Average Annual Wage

The Lever of Current Forest Finance: 

The Lever of Current Forest Finance Wilderness 9% Capital Cost 0% Return Stocks and Taxable Bonds Source: $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ Conversion 15% Capital Cost 15% Return Commercial Management 9% Capital Cost 9% Return Conservation Management 9% Capital Cost 4-6% Return

Citizens Want A High Quality of Life: 

Citizens Want A High Quality of Life Jobs Education Public Safety Human Resource services Quality Environment

The Character of the State Hinges on Rural Communities: 

The Character of the State Hinges on Rural Communities The “feel” of the state is provided by working landscapes and associated small communities Moral character of rural citizens and their children personal independence and self-reliance autonomy strong work ethic and high moral character connection to working landscapes Economic theory conflict between resource extraction and the quality of life model

Rural Communities Hinge on Working Landscapes: 

Rural Communities Hinge on Working Landscapes Jobs Revenues to state and local government Produce goods, values, and services for the public at large - including amenities Have the knowledge/skills/ethic/ infrastructure to manage working landscapes Provide alternative to urban sprawl

The Biggest Problems Facing the State: 

The Biggest Problems Facing the State Compared to forest management and environmental issues, other issues are more important (or as important) to Oregonians: Education Quality Education Funding The Economy/Recession Energy Costs Concern About Being Personally Secure At Home and Work Source: Davis, Hibbits, & McCaig, Inc.

Environmental Issues: 

Environmental Issues Very Concerned Somewhat Concerned Source: Davis, Hibbits, & McCaig, Inc.

Balance Desired in the Management of Federal Forestlands : 

Balance Desired in the Management of Federal Forestlands Social Meeting a wide range of social needs such as employment, recreation, revenues to support healthy rural communities, and providing aesthetic and spiritual values. Environment Protection of water quality and wildlife habitat. 2002 OFRI Survey Economic Growing forests for products people use.

Balance Desired in the Management of Private Forestlands : 

Balance Desired in the Management of Private Forestlands Social Meeting a wide range of social needs such as employment, recreation, revenues to support healthy rural communities, and providing aesthetic and spiritual values. Environment Protection of water quality and wildlife habitat. 2002 OFRI Survey Economic Growing forests for products people use.

Public Opinion is in Direct Conflict with Public Behavior-Jo Ellen Force: 

Public Opinion is in Direct Conflict with Public Behavior-Jo Ellen Force Public opinion-want high quality of life education, public safety, human resource services, family wage jobs, quality environment Public behavior 1950 average house-1094 sq ft; 1994 average house-2100 sq ft.; yet, household size decreased from 3.37 to 2.62 persons per household paper consumption: 221 lbs in 1950 to 409 lbs in 1994 SUV’s

Pathway to Meeting the Public Interest is Through the Landowner: 

Pathway to Meeting the Public Interest is Through the Landowner Landowners willingly investing requires a policy framework Landowners investing in all resources--managing a portfolio of assets

Biodiversity is a Key Issue for Landowners: 

Biodiversity is a Key Issue for Landowners “From the landowner perspective, business certainty, and thus investments into the land … hinges on the biodiversity contribution society will require of them.” (Brown, 2001)

Slide25: 

Policy Dilemma: How to connect rural needs with urban wants

Karl N. Stauber: 

Karl N. Stauber “Why Invest in Rural America—And How? A Critical Public Policy Question for the 21st Century”

1. Sustainability is a Unifying Theme that Resonates with the Public: 

1. Sustainability is a Unifying Theme that Resonates with the Public “Sustainability” is defined as: “Meeting the needs of the present without compromising the ability of future generations to meet their own needs” (Brundtland Commission Report)

1. Forests are diverse, will be managed for many different purposes: 

1. Forests are diverse, will be managed for many different purposes Source:

Slide29: 

Sustainable forest management sustains forests first, then varies by forest type, goals/roles, ownership, location It treats each forest differently; approach, vital signs depend on goals, capabilities: High Production Value (HPVF) High Multiple Value (HMVF) High Conservation Value (HCVF) High Residential Value (HRVF) Sustainable Forestry is Broad Source:

Slide30: 

Sustainable Development Sustainable Forestry SCALE ASSESSMENT/POLICY Meeting the needs of the present without compromising the ability of future generations to meet their own needs. Draw upon economic/environmental/social resources to meet our needs and pass them along to future generations. Oregon Shines State of the Environment Report Oregon Benchmarks Legislation State/National/International Economy Natural and human resources (Renewable / nonrenewable) Landscape / Forest Natural process Local economies First Approximation Report Forest Assessment Project Forestry Program for Oregon Well-managed Forests Owner- ship/ Stand Forest Practice Act Compliance Third-Party Certification Incentives Social Economic Environmental Shared Responsibility Forest Management Unit Level Manufacturing Utilization Marketing &Consumer Consumption Recycling Different Ownerships Play Different Roles Federal State Private

2. Oregon’s Office of Rural Policy: 

2. Oregon’s Office of Rural Policy Housed in Governor’s office Jim Azumano, Director

Oregon’s Rural Policy Approach: 

Oregon’s Rural Policy Approach Advisory Committee 26 community meetings Identification of issues Involvement of agencies Identification of orphan issues

Office of Rural Policy Approach: 

Office of Rural Policy Approach Policy is based on: Place Capacity Research

3. Oregon Industry Clusters: 

3. Oregon Industry Clusters Commitment by business leaders and Oregon Government to pursue cluster strategies 30 clusters identified www.oregonclusters.org

What Are Industry Clusters?: 

What Are Industry Clusters? Groups of similar and related firms in a defined geographic area that share common markets, technologies, and workers’ needs; and which are often linked by buyer-seller relationships Firms and workers in an industry cluster draw competitive advantage from their proximity to competitors, a skilled workforce, specialized suppliers, and a shared base of sophisticated knowledge about their industry

Slide36: 

Government Federal State Local University Research and Education IT Providers Other Services e.g., Insurance, Financial Institutions Oregon Forest Practices Act Consulting Companies Other Public Education Transportation Equipment Manufacturers Allied/Supplying Industries Grading Agencies Associations Conceptual Model of Oregon’s Forest Cluster Forests Forest Owners Timber Harvesters Primary Manufacturers Secondary Manufacturers Intermediaries, Other Customers Consumers = Core Forest Industry = Core Industry Organizations = Forest Cluster Participants Source: fp Marketing Solutions

Summary of Forest Cluster Recommendations: 

Summary of Forest Cluster Recommendations Market leadership ROI via strategic management Biomass conversion Wood innovation Nanotechnology Green by design Clustering for rural and urban benefit

Karl Stauber’s Proposed Vision for Rural Lands: 

Karl Stauber’s Proposed Vision for Rural Lands Protect and restore the environment High quality, de-commodified food & fiber Laboratory of social innovation Produce healthy, well-educated future citizens Maintain population distribution and prevent urban overcrowding

Added Vision Thoughts: 

Added Vision Thoughts Preserve open space through working landscapes Preserve small communities & the “feel” of the state Preserve the infrastructure necessary to manage a landscape needed by the rural citizens and desired by the urban public

Funding the Vision Idea: 

Funding the Vision Idea “Real Estate Transfer Tax” or “Excise Tax” to pay for mitigation of land changing from a working landscape (the vision) to another use—draws on the idea of wetland mitigation banks

Summary: 

Summary Rural & urban areas are interdependent for their respective quality of life Need bipartisan leadership commitment over the long term to develop politically viable vision & strategies Need to fund the vision and strategies