Editor’s note: This commentary is by Rob Riley, the president of the Northern Forest Center, which co-founded the national Rural Development Innovation Group with the Aspen Institute and the U.S. Endowment for Forestry & Communities.
The 30-million-acre Northern Forest — stretching across the northern tier of New York, Vermont, New Hampshire and Maine — isn’t just another pretty place. It’s home to 2 million people, a destination for world-class outdoor adventure, a $33-billion piston in the region’s economic engine, and a provider of clean air, clean water, renewable forest products and storage for billions of tons of carbon.
The benefits generated by this forested region don’t stop at its rural borders. They extend to the 80 million people living within a day’s drive, to the millions who visit the region annually, and to the environmental well-being of all people.
The widespread impact of Covid-19 has left no one untouched. Here in the Northern Forest, the impact of economic shutdowns has destabilized the foundation of our rural economies. The pandemic struck while the region’s post-industrial forest economy was still evolving, while its rural communities — where recessions arrive sooner and last longer — were still emerging from the Great Recession.
And yet we see great opportunity in this moment. With the impending infusion of federal stimulus funds, we can position the rural economy for long-term prosperity and resilience and help the region’s communities reach their potential. To succeed, we need to do more than funnel money through the same old channels.
First, Fix the Pipes — It is difficult, if not impossible, for rural communities and organizations to use even the best federal community and economic development programs to improve their local economies. Outdated regulations, the reduced capacity of federal agencies to address rural needs, and a bias for “solutions of scale” routinely keep funds from flowing where they are most needed. Rural stimulus investments will miss their mark unless federal rural investment policies and programs are updated.
Second, Invest in Local Capacity — Providing direct federal support to towns and municipalities – regardless of size – would change the game. It would be a first step toward ensuring that local governments can continue to provide essential services while also advancing a recovery that goes well beyond salvaging what used to be. In many small towns, one or two paid staff do it all and often do not have the capacity to pursue complex grants. An infusion of direct federal support for local governments is particularly important in rural communities where local revenue and income is disproportionately tied to a single industry hard-hit by Covid-19, such as tourism.
At the same time, we must repair burdensome statutory and regulatory systems that prevent rural agencies and organizations from applying for programs and assistance. These public and private sector partners can augment the capacity of small communities and share knowledge and strategies across the region.
Next, Provide the Right Capital Support to Small Businesses — Small businesses, mostly locally owned, operate on very thin margins yet are essential employers and economic drivers for rural communities. They cannot shoulder additional debt even at low interest rates, and they cannot risk participating in programs whose outcomes they cannot clearly predict. Loan rates usually increase with risk — clearly a backward way to support businesses in an uncertain economy. Particularly in the tourism and hospitality sector, which employs about 100,000 people in the region, we need to provide grants to businesses to shore up their balance sheets, rehire staff, restock their shelves and begin generating tax revenue again.
Third, Bridge the Unacceptable Digital Divide — The inequities of the digital divide were a problem before Covid-19, but the pandemic has shown just how unfair it is for rural communities, where internet is slow and often unavailable.
Broadband is as essential as electrical service and good roads, and it is time we stopped accepting that inadequate service suffices for rural places. We no longer accept electricity that goes out for several hours a day, nor interstate highways full of potholes. Rural communities should not be forced to settle for substandard or non-existent broadband. We need to boost the federal definition of “high speed” well above the current standard, a threshold that most urban businesses and residents would rail against. And broadband is a quickly evolving technology; we cannot assume a “one and done” solution will work. Rural broadband service isn’t just for Zoom chats with family across the country, it is an essential business, education and health care lifeline that is failing rural communities. We must do better by installing the best technology that can keep up with future improvements.
Just spending more money won’t solve these problems. Instead, we must fix the broken pipes and invest wisely in new approaches that will create opportunity and a more resilient economy in rural places. With the right changes, the influx of federal stimulus money can be an investment in the future of the Northern Forest and rural America.
