Myths and Realities in the New Rural America

by Kris Pearson

January 21, 2004 -- Long regarded as the bastion of traditional values in a modern world, rural America today finds itself facing a set of challenges that threaten its very existence. Like the boom towns of old, many rural communities are in danger of disappearing into memory as residents leave in search of economic, educational, and health care opportunities.

If rural America is not only to survive but also to thrive, a new vision and new models for success are needed. Developing that new vision is the focus of current discussions around the country. The discussions are a beginning in the development of a consensus on saving rural America.

As part of this ongoing conversation, Neighborhood Reinvestment in December hosted a one-day symposium, "The New Rural America: Local Opportunities, Regional Strategies, National Impact," at a NeighborWorks^® Training Institute in San Francisco. The symposium attracted practitioners from rural nonprofit organizations, rural political representatives, and other rural advocates from around the country. It was sponsored by Freddie Mac.

In addition to plenary sessions, the symposium also included breakout workshops and a special luncheon speaker, humorist, folklorist, essayist and storyteller Roger Welsch. Welsch's topic: "It's Not the End of the World, but You Can See It from Here – Greetings from Dannebrog, Nebraska."

The key trick, symposium participants agreed, is to move away from the myth of rural self-sufficiency and toward a new reality of rural self-determination.

In fact, rural America can thrive, said keynote speaker Mark R. Drabenstott, vice president and director, Center for the Study of Rural America, Federal Reserve Bank of Kansas City, if rural communities work together rather than compete with one another or with their urban counterparts.

"The basic selling point of rural America," said Drabenstott, "has historically been cheap land and cheap labor, but, with globalization, that strategy won't work anymore. It's not about Great Bend, Kansas, versus Chicago, but about Great Bend versus the Great Wall of China…Cheap labor, cheap land, and cheap taxes is no longer the formula for success."

Formula for Success
Drabenstott said globalization has dramatically changed the ways of doing business. This new economic geography, he said, means the "chickens come home to roost regionally." Only by working regionally, Drabenstott argued, can rural areas develop the critical mass needed to fuel production of new commodities. More than just agricultural products, commodities cover the range of things that are produced and used by consumers.

So what will be the next economic engine for rural communities?

Technology – namely advanced manufacturing technologies and precision products – is what Drabenstott believes is needed to move rural America into the 21st century. Advanced telecommunications, like the Internet, promote entrepreneurship and open a world market for new rural products and services. Identifying and producing such world-class products require a different business model than the rugged independence that historically has characterized rural residents.

"Developing a world-class competitive niche demands partnering," Drabenstott explained, "there needs to be a critical mass. We can celebrate ‘Lake Wobegon' but we need to create the ‘Research Triangle.'" That "triangle" needs support from businesses, schools, and local governments.

Regionalism, Drabenstott believes, is the key to developing a "new world economy" in rural America and creating the critical mass needed for new technological investment in rural areas.

"Twenty-first century economic regions are no respecters of 19th century surveyors," Drabenstott said. In other words, regionalism needs to be defined by economic opportunity rather than arbitrary borders. By defining those opportunities and the partners available to support those efforts, he said, critical mass can be established to develop a world-class competitive niche.

To identify potential niches, Drabenstott said, regions must look to local entrepreneurs with high growth potential – counting on local roots and local wealth to create local jobs. And in order to create and support these local entrepreneurs, Drabenstott says rural areas need to reinvent their public institutions – institutions like school systems, local governance, and the private and nonprofit sectors.

Role of Rural Nonprofits
Nonprofit organizations that exemplify regional innovation and creativity can have a key role in developing the future of rural America, Drabenstott said. Rural communities generally have more civic organizations than their suburban or urban counterparts and the nonprofit sector in rural areas often rivals the private business sector in community investment.

Symposium panelists not only generally agreed with Drabenstott's prescription for rural communities, but also argued that the nonprofit sector might do more than the for-profit or government sectors to structure those changes. The panelists included Randolph A. Adams of the Rural Community Assistance Program, Gordon Goodwin of the Heartland Center for Leadership Development, Moises Loza of the Housing Assistance Council, Luis Luna of the U.S. Department of Agriculture, and Caroline M. Carpenter of the W.K. Kellogg Foundation.

Adams, executive director of the Rural Community Assistance Program, said the nonprofit sector can be the "cement" that holds together regional economic partnerships. Goodwin agreed.

"The strength of nonprofit organizations," said Goodwin, a Heartland Center board member, "is that they are risk-takers. Running a nonprofit is about calculated investments, not just managing programs."

Loza, executive director of the Housing Assistance Council, said regionalization and partnerships are something rural organizations look at instinctively, as evidenced by the growing number of nonprofit mergers now taking place. Loza also said that affordable housing developers, in particular, can have a dynamic role in regional economic development.

"Organizations involved in affordable housing don't ignore other community economic factors," said Loza. "Smart nonprofit housing developers take into account issues like infrastructure development and the needs of children."

Luna of USDA's Rural Business Cooperative Service said rural America's future will not be something developed in Washington, D.C. He said the federal government has a strong desire to move away from the perception of federal funding as "handouts," and, instead, toward the idea that such funding can be a tool to unlock local and regional capital.

Toward this end, Luna encouraged outside-the-box thinking. "I give you permission to be innovative," he said. "Lead the parade. Think beyond the way we now do business. Prepare for the next generation."

Carpenter, a Kellogg program director, said rural America is an untapped source of economic strength. But, she cautioned, given the results of a recent Kellogg study on perceptions of rural America, she thinks it unlikely that new ideas on the future of rural communities will come from outside rural communities themselves.

"Americans care about rural America," Carpenter said. "But in general, they don't really understand the challenges rural communities face."

Facing the Challenges
The panelists agreed that facing those challenges with outside-the-box thinking may mean embracing new ideas that come from unusual directions.

Looking to often marginalized rural populations – low-income residents, minorities and immigrants – can provide what Drabenstott terms "yeast" for new entrepreneurial efforts. Adams, Loza, and Luna each highlighted the need for multicultural, multigenerational approaches to economic development. Goodwin argued that innovative ideas on regional economic strategy probably are not going to come from those who have been leading rural communities over the past 20 years.

"The people with the most innovative ideas are the ones who make you feel uncomfortable," said Goodwin. "And that's good."

Symposium participants could further explore innovative ideas and successful rural community development models in the breakout workshops. They included such topics as "Private Sector Secrets for Rural CDCs," "Community Economic Development for Entrepreneurs," and "Regional Collaboratives and Other Out-of-the-Box Strategies."

Case studies focused on the experiences of a variety of nonprofit organizations and highlighted themes developed in the opening session – regionalism, finding natural allies, making connections, thinking outside the box, and entrepreneurial behavior.

Seeing the Humor
Nebraska humorist Roger Welsch said rural humor often is subtle, self-deprecating, and generally hits to the heart of the matter. His luncheon monologue used gentle humor to help highlight some of the symposium's core messages and examine rural stereotypes. One story was about a farmer who is having trouble making ends meet:

A farmer finds himself short on funds when the time comes to buy his seed corn. So he goes to the bank for a loan. The banker looks at the farmer's finances and shakes his head. "We're just not confident you'll be able to make enough money growing corn this year to pay your bills," the banker says, " much less repay your loan. But, I'll tell you what, I hear there's lots of money in garbanzo beans. So, if you agree to grow garbanzo beans, we'll loan you the money to get started." With no other options, the farmer agrees.

Eight months pass. One day, the banker runs into the farmer and says, "I see you repaid your loan. How did you make out with the garbanzo beans?"

"Well," says the farmer, "Not only did I repay my loan, but I also was able to buy that new pick-up truck out front there, and fix up my house, and buy a new tractor and plow. Then, I still had enough to put my kids into private school and send my wife on a vacation to Europe."

"Wow!" says the banker, suitably impressed.

"Yep," says the farmer. "And not only that, but I even had money left over to buy seed corn for next year."

Like the farmer, Welsch said, rural America is often resistant to change – even when it proves effective. While some rural advocates persist in believing that rural America's woes are caused by, and at the mercy of, globalization and urbanization, it is clear that the traditional images of rural America no longer hold the key to future success.

Changing to Succeed
"Keep a sense of humor along with a sense of mission" was the advice of U.S. Rep. Bennie G. Thompson of Mississippi, the symposium's closing speaker. Quoting President Wilson, Thompson said, "If you ever want to make enemies, try to change things." He urged symposium participants to step outside their comfort zones, identify and pull together natural allies, and push forward with a new game plan as fast as possible.

Results matter, Thompson said, so projects should be both manageable and measurable, with the knowledge that often small steps can become giant steps. Learn from what others are doing, Thompson urged, but use those lessons to innovate. Communicate with legislators.

"Government has a place in making communities safer and making communities more profitable," Thompson insisted. The key is to continue the conversation about the future of rural America and develop strategies that could help form a national rural policy.

"Be agitators," urged Thompson. "If you hook one pig, every pig will holler."

Thompson's remarks echoed the views of keynoter Mark Drabenstott.

"Rural America has an exciting future," Drabenstott said, "which we can seize only if we change the way we do business. That change begins with you. Washington and the state capitals won't solve this problem. The future is in your hands."

Kris Pearson (rna@sover.net) is executive director of RNA Community Builders.

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