Thursday, December 14, 2006

Heartland poised for entrepreneurial growth

Thanks to a booming organic market and increased communication technology, there is good reason to think the American Heartland will be the next entrepreneurial frontier, according to a new report.
The report by the New America Foundation, Rebuilding America's Productive Economy: A Heartland Development Strategy, found that increasing demand for organic alternative biofuels is creating business opportunities in the Plains states, while technology advancements and lower costs of living are driving a population shift to support these Heartland businesses.
"In contrast to the picture of emptying towns and embattled farmers so often portrayed by the media, we see the Heartland as a potential hotbed of capitalist creation and innovation," wrote co-author Joel Kotkin, who is also an Inc. contributing editor.

Kotkin and co-author Delore Zimmerman point out two booming industries that are especially dependent on Middle America's ample acreage -- organic agriculture and biofuel.
Consumer interest in organic food is on the rise, according to the report. Between 1992 and 1997, certified organic cropland in the United States doubled to 1.3 million acres. By 2003, 2.3 million acres of cropland and pasture were devoted to organic production.
The states with the most organic cropland include North Dakota, Minnesota, Montana, Wisconsin, Colorado, and Iowa.
The demand for biofuels is also rising. Between 2000 and 2005, worldwide ethanol production jumped 165 percent to 12.2 billion gallons a year, and the production of biodiesel more than tripled to 790 million gallons.
The American Heartland is well-positioned to meet that demand as well. A 2005 report from the Department of Agriculture estimated that the United States has the land to produce 1.3 billion dry tons of biomass -- enough to supply 30 percent of the nation's current demand for transportation fuels

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