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1998 Explanatory Notes

USDA, Forest Service

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Objectives

To provide technical and financial assistance to urban areas to establish, maintain, improve, expand, and protect urban and community forests and related greenspace; to assist in sustaining healthy forest ecosystems and supporting viable cities, communities and neighborhoods; and, to increase public awareness of and participation in improving the natural, social, and economic environments of the nation's urban and community areas.

Program Description

The Urban and Community Forestry (U&CF) program provides leadership in improving and expanding urban forest ecosystems in the nation's 45,000 towns and cities. Nearly 80 percent of the nation's population resides in towns and cities. The U&CF program helps local communities recognize the value of their forests, build their capacity to manage forest resources, and to support the social vitality of communities through public involvement, commitment and action. The Forest Service provides assistance to local governments and to non-profit organizations in cooperation with State Forestry agencies. Community assistance through this program is made available in a voluntary, non-regulatory manner and encourages active participation by all segments of the community.

The U&CF program provides leadership in delivering state-of-the-art technology and capacity-building grants to towns and communities across the nation to improve their quality of life through tree planting, maintenance and protection activities. These programs also improve natural environments by mitigating air, water, soil and noise pollution, reducing energy use and beautifying communities. Local also improved by increased real estate values, making communities more attractive to business, which create employment opportunities. Social environments are improved by creating opportunities for citizens

economies

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leads to improved human mental and physical health. Recent research indicates that urban forests and greenspace strengthen communities.

The U&CF program is an effective link between the financial and technical resources of government and the grassroots organizations and community dwellers who require assistance to deal with environmental issues effectively at the local, regional, and national levels. Public value for urban forests and for the role of the federal government in their management is evidenced by the participation of more than 8,000 communities and 7,000 volunteer organizations in the program, annually. The numbers of requests for federal assistance and grants exceeds the capacity of the existing program by eight times.

The program focuses technical and financial assistance to:

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1998 Explanatory Notes

USDA, Forest Service

• Objectives

To assist natural resource-dependent rural communities, and natural resource-based businesses to work toward self-sufficiency and sustainability. To help rural communities strengthen, diversify, and expand their local economies, improve their transportation networks and increase their access to technology. To help communities augment the potential of their natural and human resources and respond to social, environmental and economic changes.

• Program Description

The prime beneficiaries of the Economic Action Programs (EAP) are the rural counties which are 72 percent of the total counties in the United States. Of the rural counties, nearly 70 percent are highly dependent on natural resource-based earnings- many of which are directly associated with public lands. Many of the rural counties and their residents struggle with persistent poverty. Economic Action Programs follow a strategic approach which emphasizes the national role of catalyzing local action and bringing people together to solve their own problems. Through partnerships and public-private networks, the Economic Action Programs link communities and help them to find resources, information, or other assistance.

Local Forest Service employees work with community leaders to: facilitate community-based planning, develop skills, offer training; increase collaborative approaches and partnerships; supply professional assistance and technologies to identify income-producing opportunities; develop business plans to commercialize new and existing technology, develop and implement market strategies; and demonstrate advanced technology.

The number of rural communities receiving assistance has grown from less than 100 at the beginning of FY 1992 (first year funded) to over 1,600 in FY 1996 and the community demand continues to exceed the current Agency capacity. Over 1,285 projects were active during FY 1996; the federal dollar serving as seed

money in leveraging between six to ten dollars from other sources.

Economic Action Programs include four components: Economic Recovery (ER), Rural Development (RD), Forest Products Conservation and Recycling (FPC&R), and Wood in Transportation (WIT). Due to the complex interconnections between natural resources and the communities' economic and social needs, local Forest Service employees, key partners, and rural community leaders use a combination of these EAP components to address key challenges facing the Agency and the communities. EAP authorities provide the strategy that makes available the technical and financial assistance needed for community empowerment. This is the key to community based planning and actions.

Economic Recovery: This component assists eligible rural communities experiencing acute economic problems associated with changes in resource management policies and decisions. Assistance is directed toward communities located in or near National Forest System lands. In FY 1996, over 820 forest-dependent communities received intensive assistance from local Forest Service employees and partners in meeting their diverse economic, social, and environmental needs. An example of a Forest-based community that receives assistance is Kremmling, Colorado: The loss of a major wood products employer in November 1991 and the FY 1992 initiation of the (then) new Forest Service authority to assist forest-dependent communities encouraged Kremmling to take a strategic look at its future. Through an Economic Development Committee (EDC), with some "seed money" ($65,000 in grants) and technical assistance from the Forest Service, the town developed an extensive Action Plan, raised over $3 million, and documented 8,000 hours of volunteer time (worth over $63,000) in 3 years.

With the successful implementation of its Local Action Plan, Kremmling was able to deal with an unanticipated change that was headed their way -- population growth. The town reported in 1995, that population change did not create a significant problem, as it would have prior to

1998 Explanatory Notes

USDA Forest Service

their experience with the Forest Service's Economic Recovery process. They had a strategy that was still viable and they had learned how to work together, thus the community could adapt in a timely, effective, and positive manner to the opportunities and challenges of expected population growth.

Kremmling has increased its ability to leverage its own assets with external assistance or partnerships, but acknowledges that the real work and follow through happens from within the community. The Forest Service has played an indispensable role in the success of the Kremmling EDC through both financial assistance and interested employee participation.

Economic Recovery also prevents and resolves costly adversarial relationships between the community and federal agencies. The following is an example: Upper Swan Valley and Condon, Montana: With the down-turn in the federal timber harvest volume and the very real potential for additional conflict over environmental issues (management of grizzly bear habitat or wildfire threats to communities) and economic changes (loss of additional timber jobs), the Flathead Forestry Project in western Montana began a community stewardship program to use collaborative methods to improve local economies and sustain the larger, natural environment.

Funding from the Economic Recovery program supported this group of diverse individuals, communities, and agencies associated with the Flathead National Forest. Specifically, the Flathead group activated a management strategy for approximately 30 acres of National Forest land near the community of Condon.

This ponderosa pine restoration project ended in July 1996; the grant funding is exhausted but the group continues to work together and plan more projects. Project results include a process that builds trust and leadership, pioneered innovative public-private approaches to resource management, and engaged the whole community in an active role in the management of its forests and natural resources. This is one of many examples of a rural community that

became an active participant, when it felt disenfranchised in decisions affecting its future.

Rural Development: This component addresses the long-term health of rural areas, by pursuing ways to stimulate improvements in the economic, environmental, or social well-being of rural citizens. The current emphasis is on the needs and opportunities of National Forest resource-dependent communities. Rural Development assists communities to develop opportunities and enterprises through a diverse use of forest resources including wood, recreation, wildlife, cultural and heritage resources, minerals, and scenic quality. Through cooperative partnerships the Forest Service emphasizes two main themes: community-based efforts and technology transfer.

Rural Development supports entrepreneurial efforts based on community strategies and long-term goals. In FY 1996, over 755 communities received financial or technical assistance.

Helping rural people and communities use natural resources in a sustainable way to overcome persistent poverty is a challenge. In 1992, in Newton County, Arkansas a Local Action Team was formed, led by the Newton County Resource Council and the Forest Service. This county has a population of less than 8,000 and a per capita income of $6,900 which is less than 60% of the national average. Although Newton County is very rural and poor, it has substantial timber resources and the local economy has been heavily dependent on timber harvesting. The Team developed a broad Local Action Plan and with the help of a Forest Service grant, the community conducted a feasibility study to determine where economic diversification could occur. Based on several options identified by the study, the Action Team chose to pursue ecotourism development.

Based on the community Action Plan, the following has occurred in Newton County: an ecotourism industry is operational - guides have been trained and over 20 are employed, an ecotourism manual is under production (for use locally and nationally), and with an increased use of custom outings and package

1998 Explanatory Notes

USDA, Forest Service

from 14 in the spring of 1994 to 21 in the spring of 1996. The County is well on its way to a stronger, diversified economy while continuing to maintain and enhance the quality of life in their community. The continued work of local leaders has resulted in Newton County being recognized as a Champion Community by USDA.

Numerous State Agencies have reported that the Rural Development program is an excellent investment. The following examples of economic impacts provide some insight as to the benefits derived from Rural Development.

The Iowa Rural Development Through Forestry Program began in 1990. Although Iowa is not extensively forested, there is a substantial interest in how renewable natural resources, including forests, can be used to diversify Iowa's economy. From 1990 through 1994 the Forest Service provided a little more than $4.0 million to the State to implement Rural Development Through Forestry in Iowa. The amount was matched with $4.76 million of State, local, and private funds. From these monies, 210 new jobs were created, generating $2.97 million in wages and salaries are generated annually.

In Clarion County, Pennsylvania, the Forest Service provided funds for the analysis for siting a new wood products manufacturing facility. This money was matched by State and local funds. Federal income tax on the wages and salaries paid at this plant will be approximately $680,000 per year.

Potential returns to the Treasury on these investments are surprising, based on data from the States. Iowa has indicated by 2005 that the federal investment will yield a rate of return of 16.4 percent based on federal income tax returns of the employees who are employed because of the Iowa Demonstration Project. This is more than double long-term interest rates. Pennsylvania indicated that the federal income tax revenues generated from the wages and salaries paid at this plant will yield a rate of return of 127 percent ($10.5 million by 2007) on the federal investment, when compared to that same amount of money invested in T-Bills at 7.79 percent, which would only be $110,700 by 2007.

Forest Products Conservation & Recycling (FPC&R): The FPC&R component is guided by a national strategy which integrates environmental protection with forest-based economic growth. It is dedicated to the premise that productive, competitive and sustainable domestic forest-based industries are essential to meet the growing national demand for forest products. Many challenges and opportunities exist to improve the contributions forest products industries can make to strengthen local economies through value-added processing, new technologies and recycling.

FPC&R supports a national network of experts who provide technical assistance to State counterparts. Eleven federal specialists facilitate the work of some 100 State specialists and 60 State Extension specialists. Together, they provide technologies and guidance to community businesses to build sound, sustainable forest-based economies. No funds are transferred to states.

The following example depicts the opportunities and challenges in meeting the increased demand for natural resource-related technologies. For 3 years the Forest Service has collaborated with the Menominee Nation in Wisconsin to encourage sustainable economic development. During this time over $150,000 in technical assistance was used to develop a strategy for the improvement of value-added processing by the Tribe's forestry enterprise. An advisory group worked with tribal members to identify a matrix of activities that needed to be accomplished to support sustainable forestry and economic development. This activity led to Menominee Tribal Enterprises (MTE) a forestry business, leveraging over $500,000 in loans and grants which were used to: (1) communicate the importance of sustainable forestry practices; (2) market the availability of "green certified" wood products from MTE; (3) improve the productivity, energy efficiency, and safety at MTE facilities; and (4) develop demonstration areas for public education regarding sustainable forestry as practiced by the Menominee people.

Wood in Transportation (WIT): This component addresses the nationwide needs for improved transportation infrastructures (posts, guardrails, sound barriers, retaining walls, docks, marine facilities, short to medium span

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