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DOCUMENT RESUME ED 266 906 RC 015 627 the Economic DOCUMENT RESUME ED 266 906 RC 015 627 TITLE The Economic Evolution of Rural America. Hearings before the Subcommittee on Agriculture and Transportation of the Joint Economic Committee. Congress of the United States, Ninety-Ninth Congress, First Session (February 11, May 15, 1985). Part 1. INSTITUTION Joint Economic Committee, Washington, D.C. REPORT NO Senate-Hrg-99-280-Pt-1 PUB DATE 85 NOTE 815p.; Some sections may not reproduce well due to marginal legibility. For part 2, see RC 015 626. PUB TYPE Legal/Legislative/Regulatory Materials (090) EDRS PRICE MF05 Plus Postage. PC Not Available from EDRS. DESCRIPTORS *Agricultural Trends; Agriculture; Change Strategies; *Economic Change; *Economic Climate; Economic Development; Economic Opportunities; Government Role; Hearings; Policy Formation; Rural Areas; *Rural Development; Rural Economics IDENTIFIERS Congress 99th; *South Dakota; *United States ABSTRACT Three days of hearings focused on rural America, in general, and on South Dakota (as the most agrarian of all states), in particular, in an attempt to formulate a blueprint for a national agenda on improving the state of rural America. The first day's sessions addressed the outlook for the South Dakota economy. The second day's sessions considered the topic, "Rural Mainstreet: An American Institution," providing evidence that rural America is not participating fully in the current national economicrecovery; the rural population is dwindling and aging; rural income is sagging; agricultural and natural resource industriesare in recession; and small communities are losing their economic identity. The third day's session discussed the role of rural economic developmentas the keystone to the revitalization of rural America and ideas for formulating rural development policies and strategiesto strengthen the rural economy. Testimony includes statements from witnesses, prepared statements, letters, and supplemental materialsfrom almost 50 individuals representing manufacturers, localgovernments, United Sioux Tribes, National Federation of Independent Business,and the Chamber of Commerce of the United States. (NEC) *********************************************************************** Reproductions supplied by EDRS are the best thatcan be made from the original document. *********************************************************************** S. FIRG. 99-280, PT. 1 THE ECONOMIC EVOLUTION OF RURAL AMERICA U.S. DEPARTMENT OF EDUCATION NATIONAL INSTITUTE OF EDUCATION E CATIONAL RESOURCES INFORMATION CENTERmaim This document has been reproduced as received from the person or organutoon originahng it. CI Minor changes have been made to improve reproduction quality HEARINGS Points of view or opinions stated in this docu BEFORE THE ment do not necessarily repretent official NIE position or policy. SUBCOMMITTEE ON AGRICULTURE AND TRANSPORTATION OF THE QD c) JOINT ECONOMIC COMMITTEE cr- 4) CONGRESS OF TH IUNITED STATES .0 NINETY-NINTH CONGRESS C\J FIRST SESSION C:3 'Li PART 1 FEBRUARY 11, 1985THE OUTLOOK FOR THE SOUTH DAKOTA ECONOMY MAY 8, 1985RURAL MAINSTREET: AN AMERICAN INSTITUTION MAY 15, 1985RURAL ECONOMIC DEVELOPMENT Printed for the use of the Joint Economic Committee U.S. GOVERNMENT PRINTINGOFFICE 52 -1120 WASHINGTON :1985 JOINT ECONOMIC COMMITTEE [Created pursuant to sec. b(a) of Public Law 304, 79thCongress] HOUSE OF REPRESENTATIVES SENATE DAVID R. OBEY, Wisconsin, Chairman JAMES ABDNOR, South Dakota, Via LEE H. HAMILTON, Indiana Chairman PARREN J. MITCHELL, Maryland WILLIAM V. ROTH, JR., Delaware AUGUSTUS F. HAWKINS, California STEVEN D. SYMMS, Idaho JAMES H. SCHEUER, New York MACK MATTINGLY, Georgia FORTNEY H. (PM) STARK, California ALFONSE M. D'AMATO, New York CHALMERS P. WYLIE, Ohio PETE WILSON, California DANIEL E. LUNGREN, California LLOYD BENTSEN, Texas OLYMPIA J. SNOWE, Maine WILLIAM PROXMIRE, Wisconsin BOBBI FIEDLER, California EDWARD M. KENNEDY, Massachusetts PAUL S. SARBANES, Maryland Scow LILLY, Executive Director Roam J. Tosnatun, Depu.y Director SUBCOMMITTEE ON AGRICULTURE AND TRANSPORTATION SENATE HOUSE OF REPRESENTATIVES JAMES ABDNOR, S,uth Dakota, Ytairman OLYMPIA J. SNOWE, Maine, Vice Chairman MACK MATTINGLY, Georgia CHALMERS P. WI_X, Ohio LLOYD BENTSEN, Texas FORTNEY H. (PETE) STARK, California JAMES H. SCHEUER, New York (R) 3 tOPY CONTENTS WITNESSES AND STATEMENTS MONDAY, FEBRUARY 11, 1985 Page Abdnor, Hon James, chairman of the Subcommittee on Agriculture and Transporte;on: Opening statement 1 Johnson, Jerry W., director, Business Research Bureau, University of South Dakota 4 Edelman, Mark A., agriculture and public policy economist, South Dakota State University, Brookings, SD 20 Smith, Russell L., director, Governmental Research Bureau, University of South Dakota 30 Ekberg, Lance, on behalf of the Americangricultura1 Movement, Inc 70 Aisenbrey, Laverne, on behalf of the South Dakota Farmers Union 71 Brick, Kent, on behalf of the South Dakota Rural Electric Association 72 Schwartz, Milton, executive vice president, South Dakota Bankers Associa- tion 73 Kurtenbach, Al, on behalf of the South Dakota Manufacturers & Processors Association 77 Schleusener, Richard A., president, South Dakota School of Mines and Tech- nology 79 Custis, David, R.N., on behalf of the Wall Clinic 89 Bergman, Bill, professor of business stat;stics, School of Business, University of South Dakota, and director, Health L dministration Program 95 Stahl, Paul 95 Mieran, Joe 96 Overweg, Pat 97 Schnieder, Bill 98 AFTERNOON SESSION Kirschenman, Lois 100 Barnes, Garth 102 Schmidt Delwin ''.06 Sorenson, Hon. Chester, mayor, Freeman, SD 107 Hillman, Dilbert 111. Neuberger, Tom 113 Clement, Dale E., dean, School of Business, University of South Dakota 116 Ellefson, Bob 118 Pig, Cecil 121 Wiens, Hon. Leonard, county commissioner, Hutchinson County, SD 123 Dobbs, Thomas L., professor and extension rural development economist, South Dakota State University 126 Skye, Clarence W., executive director, United Sioux Tribes 200 Reiners, Leon 206 Eichacker, Lyle 208 Ehrman, Ray 209 Triebwasser, Ron 211 Guthmiller, Delmar 215 WEDNESDAY, MAY 8, 1985 Abdnor, Hon. James, chairman of the Subcommittee on Agriculture and Transportation: Opening statement 341 4 BEST, CORI A,,VAJPILEt.ii IV Page Motley, John J., III, director of Federal legislation,National Federation of Independent Business 349 Miller, Robert H., executive director, South DakotaMunicipal League 391 Stone, Kenneth E., extension economist, Iowa StateUniversity 394 Hardy, Stuart B., manager, food and agriculture policy,Chamber of Com- merce of the United States, accompanied by William D. Kelleher,manager, Community Resources Section 405 WEDNESDAY, MAY 15, 1985 Abdnor, Hon. James, chairman of the Subcommitteeon Agriculture and Transportation: Opening statement 665 Howard, John R., president and chief executive officer, BlackHills Packing Co. and Black Hills Trucking Co., Rapid City, SD 666 Cope, Jim, president, Morgen Manufacturing Co., Yankton, SD 669 Tweeten, Luther, regents professor, Department of AgriculturalEconomics, Oklahoma State University 678 Deaton, Brady J., professor, Department of AgriculturalEconomics, Virginia Polytechnic Institute and State University, Blacksburg, VA 693 SUBMISSIONS FOR THE RECORD MONDAY, FEBRUARY 11, 1985 Custis, David: Prepared statement 92 Dobbs, Thomas L.: Prepared statement, together withadditional material 127 Edelman, Mark A.: Prepared statement 23 Ellefson, Bob: Prepared statement 120 Guthmiller, Delmar: Prepared statement, together with charts 219 Johnson, Jerry W.: Prepared statement 24 Schleusener, Richard A.: Prepared statement 82 Skye, Clarence W.: Prepared statement 202 Smith, Rusbe 11 L: Prepared statement 34 Sorenson, Hon. Chaster: Prepared statement 109 Appendix Various articles, letters, and statements regardingthe outlook for the South Dakota economy 229 WEDNESDAY, MAY 8, 1985 Abdnor, Hon. James: Written opening statement 344 D'Amato, Hon. Alfonse M.: Written openingstatement 439 Hardy, Stuart B., et al.: Prepared statement, togetherwith an 'appendix 409 Motley, John J., III: Prepared statement, togetherwith an attached report Stone, Kenneth E.: Prepared statement 352 397 Appendix Letter to the Joint Economic Committee from GlenC. Pulver, community development specialist, University of Wisconsin, dated May16, 1985, togeth- er with enclosures relative to rural main street businesses and theeconomy 453 WEDNESDAY, MAY 15, 1985 Cope, Jim: Table: Population trends, 1970-90 673 Article entitled "Our Town," by John Merv/in,from Forbes magazine, May 20, 1985 674 D'Amato, Hon. Alfonse M.: Written openingstatement 725 Deaton, Brady J.: Prepared statement 697 Tweeten, Luther: Prepared statement 682 Appendix Professional papers relevant to rural economic development 741 5 BEST COPY AVAILABLE THE OUTLOOK FOR THE SOUTH DAKOTA ECONOMY MONDAY, FEBRUARY 11, 1985 CONGRESS OF THE UNITED STATES, SUBCOMMITTEE ON AGRICULTURE AND TRANSPORTATION OF THE JOINT ECONOMIC COMIYHTTEE, Washington, DC The subcommittee met, pursuant to notice, at 10 a.m., in Free- man, SD, Hon. James Abdnor (chairman of the subcommittee) pre- siding. Present: Senator Abdnor. Also present: Dale Jahr, professional staff member. OPENING STATEMENT OF SENATOR ABDNOR, CHAIRMAN Senator ABDNOR. The subcommittee meeting will come to order. I am very pleased to see this large turnout and interest in the hear- ing we are holding. This is a pleasure to welcome you all to this kickoff meeting of our rural initiative program that we will be car- rying on for over 1Y2 years. I see we still have people coming in,
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