What’s at Stake
Rural areas across the nation have seen job losses, outmigration and general decline. Rural communities continue to lose young human capital to more developed communities in the Southeast with better job prospects. As family farming has declined in the face of global competition, rural businesses have suffered, further reducing available job opportunities.
The decline of rural economic opportunities makes highly polluting industries that jeopardize public health, like the coal plant proposed by Santee Cooper, attractive to rural areas. Perceiving that they lack other opportunities for economic development, rural leaders sometimes believe that they have no choice other than to welcome polluting industries that create jobs. Often, for these communities, environmental and farmland protection are considered luxuries; they would be nice but are economically unavailable under the status quo.
Challenges
Providing new paths to responsible economic development is a challenge for rural areas. Making loans, job training and other services more available to rural entrepreneurs and small farmers remain areas in need of attention by state policymakers.
Small farmers attempting to branch into new businesses often struggle to obtain small business training necessary to develop new opportunities. This problem can be particularly damaging to new and young farmers.
Farmers attempting to pursue new opportunities in value-added agriculture, agro-tourism and chemical-free agriculture face obstacles in securing financing. Lenders are unfamiliar and unwilling to extend loans to these new business opportunities. While conventional agricultural practices and large-scale manufacturing are well understood, little market data exists for innovative rural business ideas and agriculture. As a result, perceived risk to investors in rural development is high.
Next Steps
Build the capacity of non-profits, local business organizations and community groups in rural areas to provide training, networking and market information for small businesses and entrepreneurs, including farmers.
Increase the number of workshops by agricultural extension on new farming ideas and value-added products so small farmers can develop new business models.
Form a commission to study innovative, non-traditional agriculture financing in South Carolina to educate farmers about how to find loans and lenders who provide responsible lending products for strong innovative ideas.
Invest more resources in rural development projects and recognize that rural development can benefit all South Carolina business. Support program, that connect farmers directly to citizens and businesses looking for agricultural products.
For more information:
Emile DeFelice, Columbia’s All-Local Market, 803-917-0794
Alex Dadok, Coastal Conservation League, 843-723-8035
Fast Facts
A substantial body of evidence suggests that the small business sector has yielded the bulk of new jobs in the United States, contradicting the idea that attracting big business is necessary for economic development.
Farmers can make more money by adding value to their crops. A recent study in North Carolina showed a farmer could increase returns on his corn from $2 per bushel to $80 by grinding and sorting the corn into meal and grits.
Several studies have concluded that passing comprehensive energy-efficiency and renewable energy legislation can help create a market that provides 22,000 new jobs in SC.