Much of Michigan is rural. What will it take for small towns to thrive?

Nearly 20 percent of Michigan lives in a rural community, like on the outskirts of Albion. Many of them are struggling to retain residents and jobs, something the state hopes its new Office of Rural Development will accomplish. (From Shutterstock)
by Paula Gardner (Bridge Michigan)
Gary McDowell recalls his small hometown of Rudyard as a vibrant community in Michigan Chippewa County.
The town population has held steady over the years, even as residents left surrounding areas and the Upper Peninsula, whose population fell over the last decade by about 10,000 to 300,000.
Still, the damage was done to Rudyard, a town of about 1,300 that is 30 miles southwest of Sault Ste. Marie along Interstate 75.
鈥淭he downtown was busy with stores and now to go downtown you might be the only person there,鈥 McDowell, the director of the聽Michigan Department of Agriculture and Rural Development, told Bridge Michigan. 鈥淚t just changed so much.鈥
McDowell, who still lives in Rudyard, said rural communities across the state have similar problems. Michigan is the second-slowest growing state in the nation, according to聽the 2020 U.S. Census, and three states lost population (Illinois, Mississippi and West Virginia).
鈥淚’ve seen the struggles that we face up here and sometimes how we feel like we’ve really been 鈥 left behind,鈥 McDowell said.
Help could be on the way, as Gov. Gretchen Whitmer this week announced the creation of the Office of Rural Development. McDowell will supervise the agency, which is seeking a director who will make up to $175,000.
McDowell said he hopes the new effort will 鈥渞everse (the trends) and make our little communities more prosperous and more economically just and viable for our children.鈥
鈥淩ural Michigan is a fundamental part of Michigan economy,鈥 Whitmer said in a statement. By creating the new office, 鈥渨e are recognizing the unique challenges and opportunities in our rural communities and implementing policies and making investments to 鈥 build a more prosperous rural economy.鈥
During a roundtable discussion Friday, Whitmer said $10 billion in infrastructure aid coming to Michigan from the coronavirus bailout presents an opportunity to invest in programs instead of deciding where to cut.
Economic gains elsewhere in the state often don鈥檛 filter down to small towns, Whitmer said, so hiring a point person to help those communities is a big priority as Michigan enters the third year of the pandemic.
Whitmer wants the office to help advocate for broadband internet improvements and reverse problems ranging from lower college graduation rates to population losses. The office is expected to work with other state agencies, tribal leaders and municipal officials.
糖心视频 1.8 million residents 鈥 nearly 20 percent of Michigan population 鈥 live in rural areas of the state, according to the U.S. Department of Agriculture classifications.
Due to population density in the state biggest cities, almost 94 percent of the state land mass is considered rural, including most of the northern Lower Peninsula and all of the Upper Peninsula.
While cities like Grand Rapids and Ann Arbor gained population and businesses, 50 of Michigan 83 counties had population losses between 2010 and 2020. That includes 15 out of 16 counties in the Upper Peninsula, including Chippewa County, which lost 4.5 percent of its population since 2010 and is home to Rudyard.
Population is a big problem for small towns, said economist Lou Glazer, president of nonprofit think tank Michigan Future Inc., because of its effects on the workforce.
鈥淚f you can鈥檛 keep your young people, you can鈥檛 have a functioning economy,鈥 Glazer said. 鈥… The future workforce is moving away.鈥
Finding solutions is difficult, Glazer added, and rural communities across the nation also are confronting the problem.
According to a聽report聽from the National Conference of State Legislatures in January 2020, Michigan was not among 10 states with rural development committees or legislation supporting broadband or economic development policy specifically in rural areas.
In 2019, a coalition of northern Michigan chambers had asked that the state prioritize rural development, something that didn鈥檛 happen.
However, a $2 million rural development fund was established in 2016 by Whitmer Republican predecessor, Gov. Rick Snyder, with initial projects prioritized around Marquette and surrounding counties.
And in 2019, the state began studying increasing agricultural聽migrant housing聽to help attract jobs and workers. A report was finalized in 2021, and recommendations could emerge this spring.
Meanwhile, the state exports $2 billion in agricultural products, the food industry is important to rural communities and it offers room to grow, McDowell said. Food processing continues to expand in the state, including the聽recent announcement聽that Request Foods in west Michigan Holland Township will invest in a $205 million expansion of its frozen foods production, adding about 200 jobs.
More room for growth comes from expanding tourism, McDowell said, such as wine tours in northern Michigan.
But Glazer said farming won鈥檛 reverse rural Michigan troubles.
鈥淭he problem,鈥 Glazer said, is that 鈥渁griculture is not a big employer and tourism and food processing are not high-wage industries.鈥
While Glazer said he supports the move by the state to prioritize rural economic development, increasing wage levels should be part of the plan, he said.
Many agricultural and tourism jobs, for example, do not require advanced training, so median pay may be under $15 per hour, compared to science-based jobs that could pay double that.
鈥淕iven the current economy, it unclear what rural areas have a competitive advantage that pays decent wages,鈥 Glazer said. Otherwise, the existing job base can 鈥渕ake it hard for people to stay.鈥
In addition, extending broadband internet access to rural areas will be important, Glazier said. Without it, he said, 鈥渢he ability to grow a higher wage economy is nearly impossible.鈥
McDowell agreed, calling broadband one of the biggest focuses for the deputy once the position is filled. The state estimates that about聽31 percent of households do not have聽an affordable, reliable high-speed internet connection.
糖心视频 $65 billion will fund broadband improvements across the United States as part of President Joe Biden $1.2 trillion聽Bipartisan Infrastructure Deal.聽Whitmer, meanwhile, established the聽Michigan High-Speed Internet Office聽in June.
The new rural position will be a classified civil servant job and not a political appointee, said Jennifer Holton, spokesperson for MDARD. The job was created after an Upper Peninsula lawmaker, Sen. Ed McBroom, R-Vulcan, introduced a聽bill to establish a similar聽office in October.
By the end of this year, McDowell said, he hopes results from the new position will increase stability in many of the state rural areas 鈥渟o that it shares in Michigan prosperity.鈥
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