Economic Profile of the Upper Mississippi River Region
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ECONOMIC PROFILE OF THE UPPER MISSISSIPPI RIVER REGION INDUSTRIAL ECONOMICS, INCORPORATED 2067 Massachusetts Avenue Cambridge, Massachusetts 02140 Economic Profile of the Upper Mississippi River Region Prepared for: Division of Economics U.S. Fish and Wildlife Service U.S. Department of the Interior Prepared by: Robert Black, Bruce McKenney, Alane O’Connor, Erin Gray, and Robert Unsworth Industrial Economics, Incorporated 2067 Massachusetts Avenue Cambridge, Massachusetts 02140 March 1999 Acknowledgements We wish to thank John Charbonneau and Lynn Lewis of the U.S. Fish and Wildlife Service and Bruce Carlson of the U.S. Army Corps of Engineers for their review of the report and insightful comments and suggestions. We are also grateful to Holly Stoerker of the Upper Mississippi River Basin Association for helping us identify initial contacts and providing research assistance. We also extend our thanks to the people who offered their comments at a briefing on the draft report on February 8, 1999 in Minneapolis, Minnesota. In addition to John Charbonneau, Lynn Lewis, and Bruce Carlson, attendees included Bill Hartwig (USFWS), John Blankenship (USFWS), Marvin Moriarty (USFWS), Barbara Naramore (Upper Mississippi River Basin Association), and Matt Kerschbaum (USFWS) . The draft report was distributed to a number of interested parties in addition to the reviewers listed above. We thank the following people for their review and comments: Terry Moe (Wisconsin Department of Natural Resources), John Duvyejonck (USFWS), James Williams (Missouri Department of Natural Resources), Bob Delaney (U.S. Geological Services), Dick Lambert (Minnesota Department of Transportation), and Dan Ray (The McKnight Foundation). Finally, we wish to thank the many people that provided valuable information for the report. These individuals and their organizations are listed in Appendix C of the report. A C K N O W L E D G E M E N T S Table of Contents Executive Summary................................................................................... i Key Findings for Economic Sectors ............................................... ii Chapter 1: Introduction and Purpose ................................................... 1 Sectors Examined ........................................................................... 1 Study Area ...................................................................................... 4 Data Sources ................................................................................... 4 Summary Economic Profile ........................................................... 7 Revenue and Employment ........................................................ 7 Water Use ................................................................................. 9 Land Use and Land Value ...................................................... 10 Report Structure............................................................................ 11 Chapter 2: Commercial Navigation ..................................................... 13 Data Sources and Methodology.................................................... 13 Development of the UMR for Commercial Navigation .......................................... 14 Shipments on the UMR ................................................................ 16 UMR Waterway Transportation Industry: Revenue and Employment ...................................................... 18 Trends ........................................................................................... 19 Chapter 3: Commercial Harvest of Natural Resources ..................... 21 Data Sources and Methodology.................................................... 21 Commercial Fishing ..................................................................... 22 Commercial Fish Harvest ....................................................... 22 Economic Value of Fish Harvested ........................................ 23 Trends ..................................................................................... 24 Commercial Musseling................................................................. 24 Commercial Musseling, 1800s to 1940s ................................ 24 Commercial Musseling, 1970s to the present ........................ 25 Mussel Harvests, 1987-1998 .................................................. 25 Trapping ....................................................................................... 26 Number of Animals Trapped .................................................. 27 Economic Value of Pelts ........................................................ 28 Trends ..................................................................................... 28 Chapter 4: Water Supply ...................................................................... 29 Data Sources And Methodology .................................................. 29 Overview of Water Supply and Water Users ............................... 30 Water Supply System ............................................................. 30 Major Users of the Public Water Supply................................ 31 Revenues and Employment in the Water Supply Sector .............. 32 Trends in the Water Supply Sector ............................................... 33 T A B L E O F C O N T E N T S Chapter 5: Recreation and Its Role in the Regional Economy ......... 35 Data Sources and Methodology.................................................... 35 Corps of Engineers Recreation Study..................................... 35 Other Recreation Studies ........................................................ 37 Recreational Activity and Economic Importance ........................ 37 Economic Activity Associated with Developed Recreational Areas ................................. 37 Other Studies of UMR Recreation ......................................... 39 Caveats and Uncertainties ...................................................... 40 Trends in Recreational Activity.................................................... 41 Chapter 6: Tourism and Cultural/Historical Resources ................... 43 Data Sources and Methodology.................................................... 43 Tourist Attractions ........................................................................ 44 Cultural/Historical Resources................................................. 44 River Towns and Festivals ..................................................... 47 Riverboat Tours and Gaming ................................................. 48 Travel Expenditures and Travel-Generated Employment in the UMR Corridor .............................................................. 49 Trends ........................................................................................... 51 Chapter 7: Mineral Resources ............................................................. 53 Data Sources and Methodology.................................................... 53 Overview of Major Mining Activities .......................................... 54 Crushed Stone ......................................................................... 55 Sand and Gravel ..................................................................... 55 Coal......................................................................................... 55 Cement .......................................................................................... 56 Lime ........................................................................................ 56 Other Mining Operations ........................................................ 56 Mining Revenues .......................................................................... 56 UMR Corridor vs. UMR’s Five-State Region........................ 57 Areas of High Mining Activity............................................... 57 Mining Employment ..................................................................... 58 Trends ........................................................................................... 58 Chapter 8: Agriculture.......................................................................... 59 Data Sources and Methodology.................................................... 60 Overview of the UMR Corridor’s Agricultural Sector................. 61 Corn ........................................................................................ 62 Soybeans ................................................................................. 63 Livestock ................................................................................ 63 Revenue and Employment in the Agricultural Sector .................. 64 Trends ........................................................................................... 65 Chapter 9: Energy Production ............................................................. 67 Data Sources and Methodology.................................................... 67 Overview of Power Plants ............................................................ 68 Power Generation and Capacity ................................................... 69 Revenue and Employment ............................................................ 71 Trends ........................................................................................... 72 T A B L E O F C O N T E N T S Chapter 10: Manufacturing.................................................................. 73 Data Sources and Methodology.................................................... 73 Manufacturing Revenue and Employment ................................... 74