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2004 Economic Profile of the Lower Mississippi River Region

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2004 Economic Profile of the Lower Mississippi River Region ECONOMIC PROFILE OF THE LOWER MISSISSIPPI RIVER REGION INDUSTRIAL ECONOMICS, INCORPORATED 2067 MASSACHUSETTS AVENUE CAMBRIDGE, MA 02140 January 2004 ACKNOWLEDGEMENTS This report was prepared by Robert Black, Stephanie Hutchison, and Chris Warshaw of Industrial Economics, Incorporated. The research was directed by James Caudill of the U.S. Fish and Wildlife Service’s Division of Economics, Robert Delaney of the U.S. Geological Survey's National Wetlands Research Center, and Ron Nassar, Coordinator of the Lower Mississippi River Conservation Committee.1 The following individuals and organizations provided valuable review and comment on the draft study: Bruce Reid (Audubon Mississippi); Doug Daigle (Mississippi River Basin Alliance); James Wanamaker (Mississippi Levee Commissioners); Rayford Wilbanks (U.S. Army Corps of Engineers); Erwin Roemer (U.S. Army Corps of Engineers); Roy Crabtree (National Marine Fisheries Service); Barbara Keeler (U.S. Environmental Protection Agency); David Walther (U.S. Fish and Wildlife Service); Donald McCrory (Memphis Shelby County Port Commission); George Grugett (Mississippi Valley Flood Control Association); Bob Gramling (University of Lousiana); R. Glenn Thomas (Louisiana Department of Wildlife and Fisheries); Ken Wells (The American Waterways Operators); and Gary Christoff (Missouri Department of Conservation). Finally, we wish to thank the individuals who provided data for this study. A complete listing of these individuals and their organizations can be found in Appendix C to this report. 1 The Lower Mississippi River Conservation Committee is comprised of two Governor- appointed representatives from the natural resource management agencies in the states of Arkansas, Kentucky, Louisiana, Mississippi, Missouri, and Tennessee. Table of Contents EXECUTIVE SUMMARY INTRODUCTION AND SUMMARY OF RESULTS...........................................CHAPTER 1 Purpose............................................................................................................................. 1-1 LMR Study Area.............................................................................................................. 1-1 LMR Economic Sectors................................................................................................... 1-2 Methodology and Data Sources....................................................................................... 1-6 Summary Economic Profile............................................................................................. 1-7 Report Structure............................................................................................................... 1-9 COMMERCIAL HARVEST OF NATURAL RESOURCES ..............................CHAPTER 2 Data Sources and Methodology....................................................................................... 2-1 Forest Harvest ..................................................................................................................2-2 Annual Timber Harvest........................................................................................ 2-3 Forestry Revenue and Employment..................................................................... 2-6 Trends .................................................................................................................. 2-6 Commercial Fishing......................................................................................................... 2-7 Saltwater Commercial Fish Harvest .................................................................... 2-7 Freshwater Commercial Fish Harvest.................................................................. 2-9 Commercial Fishing Employment in the LMR Corridor................................... 2-10 Trends ................................................................................................................ 2-10 Trapping and Alligator Hunting..................................................................................... 2-11 Number of Animals Trapped and Economic Value........................................... 2-12 Summary........................................................................................................................ 2-14 OUTDOOR RECREATION AND ITS ROLE IN THE REGIONAL ECONOMY..........................................................................CHAPTER 3 Data Sources and Methodology....................................................................................... 3-1 Overview of Recreation in the Lower Mississippi River Corridor.................................. 3-2 Outdoor Recreational Activities .......................................................................... 3-2 Recreational Resources........................................................................................ 3-4 Recreational Expenditures in the Lower Mississippi River Corridor ................................................................................... 3-6 Levels of Recreational Activity ........................................................................... 3-6 Estimation of Expenditures and Associated Employment................................... 3-8 Support of Recreational Activity Beyond the Corridor ..................................... 3-10 Caveats and Uncertainties.................................................................................. 3-11 Trends in Recreational Activity..................................................................................... 3-12 Table of Contents (continued) TOURISM AND CULTURAL/HISTORICAL RESOURCES ............................CHAPTER 4 Data Sources and Methodology....................................................................................... 4-1 Tourism in the Lower Mississippi River Corridor........................................................... 4-2 Brief History of the Lower Mississippi River Corridor....................................... 4-2 Cultural Resources of the Lower Mississippi River Corridor ............................. 4-6 National Natural Landmarks.............................................................................. 4-10 Travel Expenditures and Travel-Generated Employment in the LMR Corridor ................................................... 4-11 Trends ............................................................................................................................ 4-13 WATER SUPPLY.....................................................................................................CHAPTER 5 Data Sources and Methodology....................................................................................... 5-1 Overview of Water Supply and Water Users................................................................... 5-2 Public Surface Water Supply System .................................................................. 5-2 Self-Supplied Surface Water................................................................................ 5-4 Revenues and Employment in the Water Supply Sector ................................................. 5-5 AGRICULTURE.......................................................................................................CHAPTER 6 Data Sources and Methodology....................................................................................... 6-2 Overview of the LMR Corridor’s Agricultural Sector .................................................... 6-3 Soybeans .............................................................................................................. 6-4 Cotton................................................................................................................... 6-5 Revenue and Employment in the Agricultural Sector ..................................................... 6-6 Aquaculture...................................................................................................................... 6-9 Trends ............................................................................................................................ 6-11 Soybeans ............................................................................................................ 6-12 Cotton................................................................................................................. 6-14 MINERAL RESOURCES........................................................................................CHAPTER 7 Data Sources and Methodology....................................................................................... 7-1 Overview of Major Mineral Resource Industries ............................................................ 7-2 Oil and Gas .......................................................................................................... 7-2 Salt ....................................................................................................................... 7-3 Other Minerals ..................................................................................................... 7-6 Mineral Resource Revenues and Employment................................................................ 7-8 Oil and Gas Industry ............................................................................................ 7-8 Remaining Minerals Industry .............................................................................. 7-8 Trends ............................................................................................................................ 7-10 2 Table of Contents (continued) ENERGY PRODUCTION .......................................................................................CHAPTER
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