Can markets improve water allocation in rural America?

Water, one of the most fundamental resources for economic activity, covers about three-fourths of the earth’s surface--but only 2.5 percent of that amount is considered fresh water. While freshwater supplies in the United States are relatively abundant, increasing demand and drought, especially in the Great Plains, have left some states wondering whether there is enough fresh water to go around. ; The drive for greater efficiency in the use of water has led to the emergence of water markets. These markets allow for the equitable transfer of water rights from lower-value agricultural uses to higher-value uses, such as for emerging industries and growing municipalities. Many rural communities, though, view water markets as a threat to their economic foundation and future growth. ; Henderson and Akers examine how water markets affect both water right holders and their rural communities. They conclude that other mechanisms, in combination with water markets, may be needed to improve the efficiency of water allocation and compensate rural communities for lost economic activity.

Farm spending surges with record incomes

Farm income ; Agriculture - Economic aspects ; Federal Reserve District, 10th

Will the rebound in farm financial conditions continue?

Farm income ; Agriculture ; Federal Reserve District, 10th ; Farms - Valuation

Recession catches rural America

As the recession intensified in 2008, rural economies held firm. Through the first half of the year, strong commodity prices supported robust farm incomes and contributed to relatively stronger gains on Main Street. Moreover, the housing correction was less intense than in urban areas, and the financial crisis was less severe than on Wall Street. ; While these factors shielded the rural economy from the worst of the recession, rural America was not immune. The foundations of rural economic strength in 2008--high commodity prices, robust export activity, and rising ethanol demand--were crumbling. Consequently, the booming farm economy began to slow, and, following national trends, the nonfarm economy continued to falter. ; Henderson and Akers review the state of the rural economy and explore how the recession could affect the rural economy in 2009. They suggest that a rural rebound will rest on whether the fiscal and monetary stimulus packages spark demand for rural goods and services.

A rural rebound in 2010

In 2010, rural America was at the forefront of the economic recovery. As sluggish job growth reined in the U.S. economy, rural firms harnessed stronger global commodity demand and raced ahead of their metro peers. In fact, rural job growth sped up in the second half of the year with jobs stretching 2 percent above year-ago levels in the third quarter, outpacing metro gains. In addition, rising exports of farm commodities and manufactured goods spurred job and income gains in rural communities, fueling optimism for economic prospects in 2011.

Will energy markets refuel the rural economy?

The rural economy began 2006 facing an uncertain outlook. For two years, rural growth had been unusually strong. But rising energy prices threatened to stall the expansion. Many businesses had already been weakened by high input costs, and many households were feeling squeezed by higher costs for gas and heating fuel. As the year progressed, however, some rural communities were able to harness the power of high energy prices by taking part in its production. ; Energy activity helped boost the fortunes of many rural places, but the rural economy as a whole slowed in 2006. Nonfarm economic growth moderated as production costs increased and construction activity cooled. Farm incomes also declined as severe drought limited production and higher energy prices cut profits. Still, rising crop prices fueled by ethanol production kindled optimism for new economic engines in rural America. ; Henderson and Akers review the state of the rural economy. First, they discuss the slower, but steadier, expansion on Main Streets. Then they examine the health of the farm economy. Finally, they explore rural prospects for 2007 and discuss the influences of robust energy activity on the rural economy.Rural areas ; Rural development

Coming home to rural America: demographic shifts in the Tenth District

Sweeping demographic shifts are challenging the growth of many rural communities in the Tenth District. The retirement of the baby boomers, coupled with the exodus of young adults, threatens to leave rural areas with a rapidly aging population and a shrinking local workforce. The strength of these demographic changes could hinder economic growth for many rural communities in the future. ; Rural communities in the district, however, are quietly enjoying another demographic shift—a return of middle-aged residents to rural places. This shift may be a promising sign for economic growth and wealth generation. Rural areas, of course, must continue to face the challenges of an aging population and the loss of young adults. But the in-migration of middle-aged residents and their families could raise a new question for economic development. Instead of simply trying to stem the tide of young adult out-migration, should rural areas focus more on the recent trend of middle-aged families coming home to rural America? ; Henderson and Akers discuss the economic implications of aging populations and migration patterns on rural Tenth District communities. They find that while rural communities in the Tenth District will struggle with aging populations and the loss of young adults, enhancing quality-of-life amenities appear to be a way for rural communities to benefit from the return of middle-aged families.