Economically Sustainable Options for Forest Industries in Rural - PowerPoint PPT Presentation

Ecosystem Services: Providing Economically Sustainable Options for Forest Industries in Rural Coastal Communities Priscilla Morris Graduate Research Assistant Sudipta Dasmohapatra (Associate Professor) Department of Forest Biomaterials North Carolina State University 59 th International Convention SWST, Curitiba, Brazil March 6-10, 2016 Source:https://upload.wikimedia.org/wikipedia/commons/5/51/Rain_forest_along_Olympic_Coast.jpg

Overview • Objectives • Ecosystem Services Overview • Methodology • Results • Conclusion

Objectives • Assess – Business owner perceptions of regional • Economic viability • Potential new markets • Opportunities and barriers to grow and sustain • Determine – Strategies to improve local economy utilizing • Viable/Sustainable Ecosystem services • Market options for Forest Industries in Rural Coastal Communities Source: https://encrypted-tbn3.gstatic.com/images?q=tbn:ANd9GcSOgZqVd67aCEPmfOnas9EePxRP-ZN00JBuDDrBm1So7Tr5P1oN5w

Ecosystem Services Dimensions • Definition : Human benefits from ecosystems – Provisioning – Regulating – Cultural – Supporting • Advantages: Crucial to sustaining human societies – Carbon sequestration – Water purification – Habitat for millions of species • Valuation: Payments for Ecosystem Services – Incentivize the sustainable use of forested lands Source: (Payments for Forest Ecosystem Services in the US, (Mercer & Cooley, 2011))

Methodology • Region – Albemarle-Pamlico Peninsula, North Carolina • Data Collection – Data Collection: In-person interviews (Nov/Dec 2015), 2-3 hours each (using a semi-structured questionnaire) – Sampling Frame : Randomly selected business owners – Study Region: Beaufort, Dare, Hyde, Washington and Tyrrell counties – Demographics: Avg. poverty rate (22%) vs. national avg. (14.5%) Avg. unemployment (9.6%) vs. State average (4%) – Analysis: Transcription and coding Source: (US Census Bureau, 2014)

Albemarle-Pamlico Peninsula Land Mass Utilized for Industrial Natural Resource Production North Carolina Public Timberland 15% 21% Private Timberland Agriculture Land 23% Other 41% Albemarle-Pamlico Peninsula's Natural Resources Industry Economic Contribution ($ mil) 1,200 5% Of 1,000 the 1,074.00 State 800 2% Of 3% Of $ Mil the the 600 State State 400 367.40 342.80 Source: US Geospatial Data 200 Gateway (Anonymous, 2014 b) Source: NC State Forestry Extension 0 (Anonymous, 2015) USDA AG Forestry (2012) Agriculture (2012) Tourism (2013) STATS (Anonymous, 2014a) & NC Tourism Commerce (Anonymous, 2013)

Business Owner Perceptions of Region’s Economic Viability Utilize Region Natural Health cannot Resources / Care support Ecosystem Local new Services Government business Opportunities Barriers Location Fast food Farming Poor Infrastructure Flooding

Payments for Forest-Based Services by Stakeholders % of Total Payments in 2005 2006 2007 2007 Government 378,075 380,608 365,619 19.4% Non-government Carbon Offsets 567 1,552 1,692 0.1% Conservation Easements 162,074 195,435 314,999 16.7% Hunting Lease/ Fees 404,517 404,690 410,236 21.7% Wildlife Viewing 30,559 31,569 33,537 1.8% Conservation Banks 34,000 34,000 34,000 1.8% Wetland Mitigation Banks 727,111 727,111 727,111 38.5% Total Non- Government 1,358,828 1,394,358 1,521,575 80.6% Total Payments 1,736,903 1,774,965 1,887,194 * Note: $ Value in (in 1000s of Constant 2005$) Source: Payments for Forest Ecosystem Services in the US (Mercer & Cooley, 2011)

Potential Industry and Community Benefits • Industry benefits – Increase alternative market opportunities – Market resiliency to environmental stressors – Partnership creates positive advertisement – Increased leasing opportunities • Industry supports communities – Community leases rights to utilize forested lands • Seasonally • Provides the landowner the opportunity to double income from leasing

Conclusions • Ecosystem service markets opportunities for the AP Region – Bundled Services • Partnerships with Government & Non-Government Organizations – Farm Bill, Conservation Stewardship Program, Environmental Quality Incentives Program – Nature Conservancy, Trust for Public Land, Conservation Fund, Ducks Unlimited – Major Landowners • Ecosystem Service Valuation • Potential negative impacts of increased Ecosystem utilization

Questions?

Resources • Anonymous. (2015). Economic Impact Data. NC State University A&T State University Cooperative Extension. 2013. Available at: http://forestry.ces.ncsu.edu/economic-impact-data/ • Anonymous. (2014)a. Agricultural Statistics - Summary of Commodities by County. NCDA&CS. Available at: http://www.ncagr.gov/stats/codata/ • Anonymous, (2014)b. United States Department of Agriculture National Resources Conservation Service. Geo-spatial Data Gateway. USDA, Available at: http://www.nrcs.usda.gov/wps/portal/nrcs/main/national/technical/nra/geo/ • Anonymous, (2013).Tourism, Department of Commerce. NC Tourism Research NC Fast Facts. Available at: https://www.nccommerce.com/tourism/research/economic-impact • Carpenter, Dean E., and Lindsay Dubbs. 2012 Albemarle-Pamlico Ecosystem Assessment . Raleigh, NC: Albemarle-Pamlico National Estuary Partnership, 2012. Print. • Krieger, Douglas J. (2001). The Economic Value of Forest Ecosystem Services: A Review . Washington, D.C.: Wilderness Society. • Mercer, D. Evan., David M. Cooley, and Katherine Hamilton. (2011). Taking Stock: Payments for Forest Ecosystem Services in the United States . Washington, D.C.: Forest Trends. • United States Census Bureau. (2014). Available at: http://quickfacts.census.gov/qfd/states/37/37013.html

Estimated Ecosystem Service Market Values U.S. Forests Source: (Economic Value of Forest Ecosystem Services, (Krieger, 2001))

Ecosystem Service Payments Source: (Payments for Forest Ecosystem Services in the US, (Mercer & Cooley, 2011))

North Carolina Source: US Geospatial Data Gateway (Anonymous, 2014 b)

Region’s Natural Resource Base Land Mass Utilized for Industrial Natural Resource Production Public Timberland 15% 21% Private Timberland Agriculture Land 23% 41% Other Albemarle-Pamlico Peninsula's Natural Resources Industry Economic Contribution ($ mil) 1,200 5% Of 1,000 1,074.00 the State 800 $ Mil 2% Of 3% Of 600 the the State 400 State 367.40 342.80 200 0 Source: NC State Forestry Extension (Anonymous, 2015) USDA AG STATS (Anonymous, 2014a) & NC Tourism Commerce Forestry (2012) Agriculture (2012) Tourism (2013) (Anonymous, 2013)

Change in Land Cover Over Time on the AP Peninsula *Note: 1982 Data Source US Soil Conservation Service National Resource Inventory, (Carpenter & Dubbs, 2012), 2006 & 2011 Data Source USDA National Land Cover Data: USDA Geospatial Data Gateway (Anonymous, 2013b)

Potential Partnerships • Government – Farm Bill – Conservation Stewardship Program – Environmental Quality Incentives Program • Non-Government Organizations – Nature Conservancy – Trusts for Public Land – Conservation Fund – North Carolina Coastal Federation – Ducks Unlimited and Similar Organizations – Major Landowners

Business Owner Perceptions of Region’s Economic Viability Interview Viable Business In this Region Advantages of the Location Disadvantages Utilized Marketing Strategies Only one way in and out of the area , storms shut Don't impact the environment , retail down the road , 1 such as payless shoes and dollar Insurance , can't rely on general, parks, tourist attractions local employment, local such as nature tours, beaches to Ability to accommodate hunters, government doesn't look access , fast food fishers, outer banks visitors out for residents Word of mouth and good business Direct access to the lake and Flooding problems from 2 No faith in new business success , no boat ramp , accommodate the lake, rural location is people to support it hunters, fishers, campers sometimes hard to find Word of mouth and social media Medical care is over 60 miles away , water is 3 Plenty of farm land , good people under control so far but Main grainery in the area, did not need Fast food around, safety could become a problem marketing strategies Ecotourism if the infrastructure was Remoteness, lack of there to support it, bird watching, Close to the lake, the outer infrastructure , cell 4 bear tours, refuge visitation, hunting banks, and the natural resources service, internet, lack of and fishing, quality guide service in the area proximal health care Word of mouth No business is profitable in this Close to water, easy access for 5 region boats Daily aggravation No marketing Marina already established. Internet, website with a link to financing, newspaper, radio, word 6 of mouth, welcome bags for boaters traveling into the area. Scuppernong river produces Convenience of more 7 No infrastucture, very poor, cant good grapes, Winery next to the urban areas such as fast support new business visitors center food and other services Community acceptance, word of mouth Close to the water, easy access 8 for boats , 7-15 boats a week Small community, and it is Farming during shrimp season getting smaller No real marketing strategies Natural Resource Based Terminology, Natural Resource Utilizers, Infrastructure related issues, Risks to their region and business