Natural resource-based economy at risk

AUGUSTA – Natural resource-based businesses are pivotal for the Maine economy, yet the long-term future of agriculture, forestry and ecotourism is at risk, according to two reports presented to Gov. John Baldacci on Thursday afternoon.

Last November, fresh from paper mill bankruptcies and fisheries lawsuits, Baldacci convened the state’s first conference on natural resource industries, calling the embattled resource industries “the heart and soul of Maine” as well as “the backbone of our economy.”

Natural resource industries collectively make up 11.3 percent of Maine’s economy, but that figure has been declining over the past decade, sapping jobs and vitality from rural communities. Hundreds of those whose livelihoods depend on nature turned out for the conference, and they developed a list of 75 ways the state could help their businesses thrive.

As of Thursday, some effort has been made on 90 percent of those goals, said Dick Davies, the governor’s adviser on natural resource issues, and co-chairman of the steering committee created to continue the debate, as he presented a progress report to the governor Thursday.

Among the work in progress cited by Davies are a recent proposal that waterfront property owners pay taxes based on the property’s current use rather than its development potential; an effort spearheaded by first lady Karen Baldacci to encourage the purchase of locally grown foods; and a University of Maine System and Maine Community College System collaboration to develop an ecotourism curriculum.

But challenges persist, said Richard Barringer, Davies’ co-chairman and a professor at the University of Southern Maine’s Muskie School for Public Service.

The governor also received Thursday an analysis of the health of natural resource industries, prepared by the Maine Development Foundation in cooperation with the steering committee. The document, overflowing with statistical trends, both positive and negative, is “a dashboard picture of the health and well-being of our natural resource-based industries,” Barringer said Thursday.

Overall, natural resource industries as a portion of the economy have been declining since the mid-1990s. Jobs are on the rise, but with nearly all that growth in tourism, the statistics are less than encouraging:

. Net farm income has declined 77 percent since its 1992 peak, the number of farms has plummeted, and more than 33,000 acres annually were developed over an eight-year period in the 1990s.

. The average value of Maine fisheries has peaked, but that growth has been almost entirely because of a boom in the lobster industry. Meanwhile several groundfish species continue to decline, and have been placed off-limits by federal fisheries regulators.

. Employment in forest industries fell from 26,000 in 1991 to 18,900 in 2003. However, timber supplies have stabilized and Maine’s paper mills have continued to attract capital investment.

. Tourism is thriving, supporting more than 9 percent of all Maine jobs, but both the numbers of hunting and fishing licenses sold and the number of overnight trips have stagnated in recent years.

Many of the challenges – such as tax burdens for small-business owners, foreign competition, and the loss of wild places to development – cut across the whole natural resource sector. It’s expected that the Baldacci administration will put its support behind broad programs, such as tax reform and funding for the Land for Maine’s Future conservation grant program.

A full list of the administration’s legislative priorities will be released as the 122nd Legislature begins its work in the new year, Davies said.

Both reports are available online at http://www.state.me.us/spo/natural/gov/