Iowa's natural resources support a highly productive agricultural system as well as an increasingly important outdoor recreation industry. A number of trends are likely to affect how well Iowa's natural resources will meet the needs of these two interests.
An increasingly urban population in Iowa expects that the quality and quantity of outdoor environmental and recreational resources will be maintained. Iowa's efforts to encourage new economic development and attract a quality work force will require recreational opportunities and amenities that can compete with those in other states.
Our recent study for the Sustainable Funding for Natural Resources Study Committee has identified the importance of a recreation industry in Iowa that is derived from the natural environment and the value that Iowans place on their natural resources. Several conclusions flow from that study:
- Opportunities for outdoor recreation are important to Iowans. Iowa state parks and lakes receive more than 25 million visits each year, and county parks receive an estimated 23 million visitor groups. Other recreation sites such as city parks, state forests and preserves, and river-based activities were not examined in detail, but they also contribute to the package of outdoor recreation enjoyed by Iowans. These sites provide opportunities for hunting, fishing, boating, swimming, wildlife viewing, hiking, riding, snowmobiling, picnicking and just relaxing.
- Outdoor recreation is a large industry in Iowa. The outdoor activities and visits to parks and lakes generate considerable spending that translates into substantial job and payroll totals For the four recreational amenities with usable data (lakes, state parks, county parks, and trails), we estimate about 50 million visits and spending levels of $2.63 billion. Including secondary or multiplier effects implies that Iowa's recreation industry generates more than 30,000 jobs and $654 million in income.
- Outdoor recreational amenities and activities in Iowa create direct economic value to users, beyond the spending impacts. This is measured by the amount of other goods and services individuals would be willing to give up to keep or improve these recreational opportunities. National studies have estimated the economic value individuals place on a day of different types of recreation, including camping, fishing, hunting, wildlife viewing, hiking, swimming, and general park activities. When these estimates are applied to the rates observed in Iowa, the aggregate economic value is over $1.1 billion annually.
- Natural resources and avenues for outdoor recreation are important to retaining and attracting skilled workers in the state. Quality-of-life factors are increasingly important considerations in recruiting and retaining entrepreneurs and workers. National and regional studies, which include Iowa, have consistently identified quality natural resources as an important factor in rates of economic growth. These findings hold true even for non-coastal and non-mountainous states.
- New investments to improve the environment and add recreational amenities generate economic benefits. Improving water quality through erosion and runoff controls is one example. The Iowa Lakes Valuation Project has identified recreational benefits related to water quality in lakes and watersheds that are substantially greater than the costs of restoration. Expanded parks and facilities also demonstrate sizeable social benefits relative to costs.
With 90 percent of Iowa's land in privately owned farmland, agriculture is and will remain an important driving force in the rural economy. While the rapid growth of corn-based ethanol and bio-based fuels is creating pressures for more intensive crop production, Iowa needs to take measures to avoid degrading the environment. Investments in Iowa to reduce soil erosion, restore lakes, provide recreational trails and expand outdoor recreational opportunities can address the needs of a changing population without diminishing the role of agriculture. With careful planning and foresight, Iowa's natural resources will allow both agriculture and outdoor recreation to thrive.
DANIEL OTTO and CATHERINE L. KLING are professors in the Department of Economics at Iowa State University, Ames.
