Jacqui Fatka 1
Rural communities have not fully recovered from the Great Recession and face a unique set of economic challenges. Wednesday the Joint Economic Committee Democrats released a new report that examines the current state of the rural economy, and proposes policies that could revitalize rural communities and help them thrive in the 21st century.
The report, “Investing in Rural America,” looks at several aspects of the rural economy including infrastructure, family financial security, housing, clean energy and public lands, health care, and agriculture.
Rural Americans make up 14% of the U.S. population, while 72% of the nation’s total land areas are considered rural according to the Office of Management and Budget.
The new report details how these 46 million residents play an essential role in the overall economy, starting new businesses and supplying our country’s food.
The demographics of rural America are changing, however, with fewer workers in rural counties than in 2007. While urban areas have long since recovered to prerecession employment levels, rural America has yet to reach that milestone. The report examines opportunities for innovation and growth to help rural communities thrive.
Sen. Martin Heinrich (D., N.M.) ranking member of the JEC, said he hopes this report serves as a roadmap for progress. “Far too many rural communities have been held back from the economic growth others have enjoyed since the recovery from the Great Recession,” he said. “We owe it to all Americans to enact smart, forward looking policies that will help rural communities reap the benefits from a growing economy.”
Heinrich said millions of rural residents lack access to rural broadband. “No other policy does as much to open doors than ensuring all Americans have access to high speed.” He added that a real and robust investment is needed. The report suggests expanding broadband access through a one-time infusion of capital as well as targeted efforts to boost access on tribal lands and increase utilization by farmers.
Cheri Bustos (D., Ill.), co-chair of the House Democratic Policy and Communications Committee, added 23 million residents don’t have access to high speed internet. House Democrats currently have proposed a $40 billion investment in rural broadband expansion.
She also said the Trump Administration’s infrastructure plan fails to deliver as it relies heavily on public-private partnerships which don’t work well in small towns that “don’t have revenue streams to offer the needed return on investments” to encourage private investments.
Heinrich said many of the proposals in the report are offered in the Senate’s farm bill proposal including a rural energy program and investment in broadband. “It may not be as robust as I would push for in a vacuum, but it is going to be meaningful and make a difference in our communities,” Heinrich said.
He added he’ll continue to “find opportunities to make a real investment and over time really move the needed on these issues.”
Rural families on average earn 25% less than their urban counterparts but live in areas with some of the highest rates of upward economic mobility in the nation. Following the Great Recession, rural counties experienced a slower growth rate in net new establishments compared to urban areas. Access to capital is a critical barrier for any young company and a particular challenge in rural America. “Ensuring rural inventors have access to capital would better enable them to build their ideas into successful businesses that create good jobs in their communities,” the report noted.
Telecommuting, or working remotely over the internet, allows rural workers to pursue opportunities that otherwise might be too far of a commute. Between 2005 and 2015, telecommuting in American more than doubled, expanding job opportunities for workers while meeting the needs of employers.
In addition, jobs in education and health, government, trade, transportation and utilities make up the largest industries in rural America. Jobs in education and health account for a significant portion of the growth over the last decade and a half. “When looking to the future, jobs in education and health services are expected to lead, followed by jobs in construction and professional and business services. These new sectors present novel opportunities for rural America to create jobs and build businesses,” the report noted.
The report also noted that rural communities are well-positioned to lead in clean energy infrastructure. Ninety-nine percent of wind projects are in rural areas.
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