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Sustaining Business in Rural Oregon

AIR DATE: Thursday, June 24th 2010
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Cave Junction, from the north end of town.
Photo credit: Illinois Valley News
Cave Junction, from the north end of town.

Here's what Mayor of Cave Junction Don Moore says about the past couple years:

When the US goes into recession, it gets a cold. Oregon gets pneumonia. And Josephine County dies of complications.

Josephine County is of couse not dead. But like many rural areas, it has felt economic pain particularly sharply.

It started when lumber from federal timber lands became difficult — sometimes impossible — for mills to obtain locally. Logging had been the backbone of the area for decades. Now there is just one mill left in Josephine County.

Retirees, especially from California, brought in new money as the area turned into a hotspot for seniors. But that rush slowed with stock market volitility and the sale prices of homes in many parts of the West plummeting.

What is the key to keeping rural communities in southwest Oregon strong and vibrant? Think Out Loud is going to Cave Junction to get the view from one small town. You can be a part of the live audience Wednesday night! Details are below.

We'll talk to a range of business owners on this program: from those that have been around for decades to those that are just starting up, from small manufacturers who sell worldwide to service oriented outfits catering to local needs.

If you are from Josephine or a neighboring county, what are the particular strengths of small communities in your area? If you live in a rural area somewhere else in Oregon, what challenges have your community faced in providing jobs? What tips can you share?

We'll be at Wild River Brewing and Pizza in Cave Junction. The show starts at 7pm. Join us at 6pm for complimentary food and drinks.

Note: This show is part of our Rural Economy Project.

GUESTS:

Tagged as: business · rural economy · southern oregon

Photo credit: Illinois Valley News

In the past 2 years, the face of Cave Junction (and other small towns in Josephine County) has changed drastically. Many restaurants, gift shops, auto repair shops, salons and other small businesses have gone out of business. Residential and commercial developments went into foreclosure. Horses and other livestock have been sold, given away or abandoned, giving rise to increased demand for animal rescue facilities.

People have been struggling to find food, shelter, transportation and other basic necessities from community services. More residents are growing produce, raising chickens and goats and trading with neighbors for food items. People are doing skill trades too. Since cash is less available due to income losses, the barter system is flourishing in Josephine County.

More people than ever are now on food stamps, energy assistance and other state assistance programs, keeping the local DHS office swamped with applicants.

It's gotten really tough for everyone. Many of us who retired here from other states are struggling with less income and higher costs. Some of us have been lucky enough to find part time jobs through Experience Works or on our own, just to help make ends meet.

Most of us don't have health, dental or vision coverage and so we have done without health care. Some have qualified for "sliding scale" discounted prices at the Siskiyou Community Health Center in Cave Junction. Those with children have gotten on the Oregon Health Plan, but everyone is struggling to have health care needs met.

We have the best climate, many recreational places, and a beautiful region in the Siskiyou Mountains. We have vineyards anbd wineries, the Oregon Caves and rivers for fishing and boating. But it's a remote rural place, far from airports, malls, interstates and high traffic business centers.

Many people have gotten creative as entrepreneurs, selling produce, wild mushrooms, doing care giving, working in the service industries through agencies or on their own, starting computer services, and whatever else residents seem to need.

Why doesn't the state of Oregon value & support the Illinois Valley and Josephine County as highly as other regions of the state? It's got as much or more to recommend it for natural beauty and great weather!

Linda

We are becoming the New Appalachia: rural, impoverished, poorly educated and with little prospects.  We would be susceptible to companies that come in under the guise of providing jobs, to do enviorment exploitations as the coal mining companies do to West Virginia Communities.  The LNG companies  for example, see us as a backdoor to import gas through a rural corridor to the lucrative markets in California.  But they promised  38 jobs at Bradwood!  We need to use our  minds and skills, not just resource extraction.

We have to take a long horizon.  And look realistically at how we can fit in a global market.  What can we sell to the world in products and services?  What are our markets?  Where are we uniquely strong?  How can we achieve the future we want?

We need to make it easier for entrepreneurs to start a business.  Only 2% of Americans own a business that actually employs  one employee.  We have a paucity of business experience and few really want to work hard  and long hours for a remote reward. 

The Internet enables virtual business, but selling and generating revenue on the net is a difficult business model.  Low risk but also low yield.  Know the difference between NEED and WANT.  Think of a business that your community NEEDS.  Consider what can turn a profit with $100k seed money and a 1 year time line;  I can think of 5 businesses off the top of my head.

Allow movie, video and media companies free access to shooting locations.  Forks, WA made itself a tourist destination by its link with the Twilight Movie series...Tourism brought in more money than the actual filming.  NOT just Hollywood, Bollywood makes 3 times as many films.

Think of the future.  And place bets on it if you are certain.  I think world economy is changing, and China will play a larger role.  Find out what the vast Chinese nation needs and make it.  1 billion people can have a multitude of hobbies and knick knack collections like Beany Babies. 

Perhaps our kids should learn Mandarin;  it is a rare skill but may have a critical advantage.  Think of exporting unique American goods to China.  To them Hamburgers, Fried Chicken and Coca-Cola were exotic enough to be successful.  But the Chinese have not tried Mexican Food, Cajun Food or even Pizza.  Kettle Corn, Elephant Ears, or Burritos.   Introduce Gourmet Dutch Bros coffees  to Shanghai.  Introduce the natural wonders of Oregon to Chinese tourist:  Crater Lake, Mt Hood, the Columbia Gorge.  Tillamook cheese and Umpqua Ice Cream.

How will we deal with declining petroleum supplies?  Oregon is becoming a center of electric motorcycles with Brammo.  Electric bicycles  are a big hit overseas but  have yet to see success in America.  Oregon could be a laboratory for such experimental vehicles with our extensive bicycling lanes and networks.  Can we make a successful city or town  based bike rental model that can be franchised elsewhere?

Global warming and rising CO2 levels.  Forrested countries and states are not rewarded for carbon sequestration.  Can we be paid to NOT CUT forrests as Carbon Stewards?

If you can think creatively, know that Business  depend on it as much as hard work.

Hilarious you really have not a clue.

Thanks!-)

Hello my name is Greg and my wife and I are small business owners here in Cave Junction.

I want to thank you for coming down to our community to get a detailed picture of what our town is going through is this economic downturn and to provide some insight to what our future may hold.

Your online article begins with the downturn in our lumber industry , which is not only here but western Oregon also. This is not a new thought. There have been several articles and information available that point to our having a “recessed” economy here over the past 30 + years. This also has played out in any region wholly dependent on resource extractive industries. In the short term these provide a fairly robust economy, but the long term affects are seen by having an economy largely dependent on a host welfare programs and government subsidies. Additionally, this pushes our high school graduates and our youth to leave the area for better opportunities in an increasingly competitive marketplace

 Many communities have slowly overcome this by diversifying their economy and recognizing any and all assets the region can provide. This is important because people may wonder why we, as a community have not come together and are locked in these polarizing debates on how best to utilize our surrounding landscape that makes our area appealing to both visitors and residents, new and old. It is very difficult to find a balance in this given the area having been heavily mined and cut over, yet we still seem to have some level of intact ecosystems that both can provide clean water and natural beauty to the region. This also provides insight on why the environmental community feels that there is not a lot of room for compromise given what has occurred here in the past sixty plus years of resource extractive practices.

The vexing issue I personally see here is our ability as a community to come together and market ourselves as a desirable place to visit as a junction to our Oregon Caves National Monument and all of the possibilities that this major draw to the area can do for us.

 To be cont.

It starts here, because from that we, as a community can build upon, market and take advantage of the many other resources we have here. This is also currently our biggest draw to the area and one that I feel has been under-recognized by our own community for its potential not only as a draw, but also as a place to invite future residents and businesses alike for the natural appeal our area of Oregon can provide.

This can also include a timber based economy that can really define the value in sustainability and not be dependent on logging the remaining tracts of native old growth trees from our valued public lands

            In closing, I want to visit the idea of how do we, (or can we) come together as a community to market ourselves as a desirable place for people to locate to that provides the requisite services for a healthy, diverse economy.

                        Thank you,

                                    Greg

I left Cave Junction for Corvallis in 1984, after graduating from Illinois Valley High School in 1983, to attend OSU.  There were no healthy prospects for a career in the Illinois Valley at that time, nearly 30 years ago.  The area has stagnated severely since.

However, I still have family there, and property.  I'll likely retire there.  Further, I go there to recreate as frequently as I can.  I dearly love the Illinois Valley.  And frankly, probably selfishly, I'd prefer that it not "grow" economically more than it has (which, really, it hasn't).  The increase in population in the last 25 years has only served to diminish those factors that make the area special to me.  To my way of thinking, efforts to improve the economic health of the area will only draw in more people, and further harm what makes the area special, eventually making it less special that it could be.

I am not a no-growth person, and I generally deride NIMBY attitudes.  But if I get a vote on things, I'd prefer that the Illinois Valley return to what I remember it being 30 years ago.

Here's my little bit...  I was looking to lower my overhead and purchase property instead of renting a warehouse a couple years ago and actually purchased land in Klamath County to build on.  The only reason we haven't made the move is because of the downturn in the economy and without the added income my wife provides we would not be able to make ends meet if we were to relocate to a rural area instead of our urban/suburban location in Clackamas (SE PDX).  Luckily UPS, FEDEX, and USPS make it possible to compete in the ever growing global market...  I am surprised that more people are NOT moving to less expensive areas to run their "online" businesses, especially with the weakening economy which encourages lean business practices.  It has also spurred some of my family members to change their lifestyles in order to be more self sufficient by planting gardens, cutting energy costs, renting out un-used rooms in their house, etc.  I have also noticed more co-op buying groups sprouting up in the past few years as well, it seems that the independent business owner is FINALLY starting to compete with large corporations, those of us who are still in business...... ;-)

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