WORKING PAPER NO.  38
                 COLUMBIA RIVER BASIN PROJECT
        FOR WATER SUPPLY AND WATER QUALITY MANAGEMENT
                    CARIBOU COUNTY (IDAHO)
             PRELIMINARY ECONOMIC RECONNAISSANCE
              AND ESTIMATE OF GROWTH, 1960-2010
DATE;  December 10, 1962      DISTRIBUTION

Prepared by    RLC            Project Staff
Reviewed by           .        Cooperating Agencies,

Approved by          '         General ___________
     U. S. DEPARTMENT OF HEALTH, EDUCATION AND WELFARE
                    Public Health Service
                         Region IX

       Division of Water Supply and Pollution Control
                   Room 570 Pittock Block
                     Portland 5, Oregon

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this working paper contains  preliminary data and  information



primarily intended for internal use by the Columbia River



Basin Project staff and cooperating agencies.  The material



presented in this paper has  not been  fully evaluated and



should not be considered as  final.

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                CARIBOU COUNTY (IDAHO)
         PRELIMINARY ECONOMIC RECONNAISSANCE
          AND ESTIMATE OF GROWTH,  1960-2010
                 Table of Contents

                                                Page
SUMMARY                                            1

I.  INTRODUCTION                                   2

    A.   Purpose of This Analysis                   2

    B.   Definition of the Area                     2

    C.   Study Period                               2

    D,   Limitations of This Analysis               2

II.  PRESENT ECONOMIC BASE                         3

    A.   Population                                 3

    B.   Industry                                   3

III.  ESTIMATED FUTURE GROWTH                      6

    A.   Factors Influencing Future  Growth          6

    B.   Future Population                          9

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                          CARIBOU COUNTY (IDAHO)                          C-l
                   PRELIMINARY ECONOMIC RECONNAISSANCE
                    AND ESTIMATE OF GROWTH, 1960-2010
SUMMARY

     Caribou County, Idaho had a 1960 population of 5,976.  The main town of

the area, Soda Springs, contained 2,424 of these, or about 40 percent.

Another 1,141 persons resided in two smaller towns;  the remaining population

was largely settled in scattered farms,  The county's population grew at an

annual rate of 0.7 percent during the 1950-60 decade.

     Although agriculture is the principal source of employment in the

county, actual employment in the category declined 15 percent in the last

decade.  In contrast, employment in mining and chemical manufacturing, which

is almost entirely based on the phosphate industry, increased 145 percent,

and represented 12.5 percent of the labor force in 1960.  Development of the

phosphate industry at Soda Springs,  has been followed by pronounced expan-

sion of service industries.

     Phosphate mining and refining is estimated to be a major reason for

future growth in the county.  This development would be accompanied by an

increase in service activities and manufacturing to serve the local economy.

Based on the assumptions and limitations which are a part of this preliminary

economic reconnaissance, the population of Caribou County is forecast to be

15,000 persons in 1985 and 21,500 in 2010, with Soda Springs, the main town,

growing to 11,300 and 17,600 at those dates.

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                                                                           C-2

 I.  INTRODUCTION
     A.  Purpose of This Analysis
         This analysis is intended to provide a preliminary estimate of the
 economic potentials and anticipated growth of the subject area.
     B.  Definition of the Area
         The study area consists of Caribou County, Idaho.
     C.  Study Period
         The study period is the 50-year period 1960-2010, with an interim
 point at 1985.
     D.  Limitations of This Analysis
         Three limitations apply to this study.  The first is  that it is in-
 tended only as a preliminary estimate of the outlook for the  subject area's
 growth.  Subsequently, in connection with the Columbia River  Basin Project
 for Water Supply and Water Quality Management, an analysis will  be made on
 an industry^by-industry basis of the growth potential in the  various sub-
 basins.  At that time this preliminary estimate will be reviewed and revised
 if necessary.
           The second limitation is that this study is intended for use par-
 ticularly in assessing future water needs.  Emphasis has been placed on the
 analysis of those industries which make heavy demands upon the water resource.
 Other industries have been considered only insofar as they may have a signifi-
cant effect on future population.  For this reason, this study is not sub-
 mitted as a detailed industrial forecast.
           The third limitation is one of scope.  The study is oriented to a
 specific project and is intended for sizing purposes.  Consideration of inter-
 region relationships at a later date may require modification of conclusions.

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                                                                          C-3


II.  PRESENT ECONOMIC BASE

     A.  Population

         The population of Caribou County at the time of the 1950 and 1960

censuses is presented in Table I.  Between 1950 and 1960 extremely rapid

growth in Soda Springs, the principal town of the county, together with a

moderate drop in rural populations, changed the composition of the area from

predominantly rural - 53.5 percent of the population in 1950 - to moderately

urban (59.6%).  At the time of the I960 census, Soda Springs contained almost

41 percent of the county's total inhabitants.  Population in the two  smaller

towns in the county, Bancroft and Grace, declined as the farm-based popula-

tion of the region underwent the contraction typical of Idaho and national

agricultural areas.

                                TABLE I &

               Population Trends. Caribou County. 1950. 1960
Bancroft
Grace
Soda Springs
  Total Urban
Rural
  Total County
     B.  Industry

         Table II lists employment in major industry categories  at April,

1960.



                          (Table II on Page C-4)
1950
495
761
1,329
2,585
2,991
5,576
1960
416
725
2,424
3,565
2,411
5,976
Change
-79
-36
1,095
980
-580
400
(16.0%)
( 4.7%)
(82.4%)
(65.5%)
(19.4%)
( 7.1%)
a/  U.  S. Census of Population, 1950, 1960.

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                                TABLE II S/

                     Employment Trends, Caribou County

                                    1950             I960

                                     %                 %
                            No.  Labor Force  No.  Labor Force     Change

Agriculture                 831    ( 42.8)    705   ( 32.0)   -126  {-'15.2%)
Forestry & fisheries          7    (   .4)      4   (   .2)   -  3  (- 42.8%)
Mining                      113    (  5.8)     42   (  1.9)   - 71  (- 62.8%)
Construction                 86    (  4.4)    111   (  5.0)     25  (  29.1%)
Mfg: wood products           22    (1.1)      0   (   -     - 22  (-100. %)
     food & kindred pdts     23    (  1.1)     19   ( .-. .8)   -  4  (- 17.4%)
     chemical & allied        0       -       235   ( 10.6)    235
     all other                8    (   .4)     24   (  1.1)     16  ( 300  %)
Transportation               62    (  3;2)     67   (3-0)      5  (   8.0%)
Communications & utilities   74    (  3.8)    102   (  4.6)     28  (  37.8%)
Wholesale & retail trade    238    ( 12.2)    338   ( 15.3)    100  (  42.1%)
Financial & personal serv.  209    (10.7)    188   (  8.5)   - 21  ( -10.0%)
Educational services        102    (5.2)    128   (5.8)     26  (  25.5%)
Other professional serv.     11    (   .5)     49   (2.2)     38  ( 348.0%)
Public administration        66    (  3.4)     68   (  3.0)      2  (   2.9%)
Industry not reported        32    (1.6)      8   (   .3)   - 24  ( -75.0%)

  Total Employment        1,884    (97.0)  2,088   (94.3)    204  (  10.8%)

Unemployed                   58    (3.0)    126   (5.7)     68  ( 117,0%)

Labor force               1,942    (100.0)  2,214   (100.Q)    272  (  14.0%)

         During the ten years 1950-60 Caribou County's labor force expanded

14 percent, rising from 32.8 percent of population to 37 percent of popula-

tion.  Employment in service industries climbed from 40.6 percent of the

labor force to 42.7 percent of the labor force.  And total employment rose

10.8 percent in spite of a 13.7 percent drop in 1950's main non-service in-

dustries, agriculture, lumbering and mining.

         The interjection of the chemical industry with the location of

Monsanto Chemical Company's phosphate plant at Soda Springs, has been re-

sponsible for much of the area's development during the last decade.

Phosphate refining has provided sufficient employment to more than balance

loss of farm jobs, and has provided the income to spur a considerable growth
a?U. S. Census of Population, 1950, 1960

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                                                                          C-5





of service activities and construction in the area.



          Mining in Caribou County consists of the strip-mining of phosphate



deposits at three locations.  The phosphate rock is largely processed at



Soda Springs and nearby Montpelier and Pocatello.  Because mining operations



are the first step in integrated manufacturing operations, employment is



fairly stable.



          The agricultural economy is based increasingly on grazing.  High



elevation, a short growing season, moderate precipitation, and broken



terrain interpose difficulties to many types of farming.  The principal



crops of the area are grains and hay, with a moderate amount of potatoes



and sugar beets also cultivated.  Farm consolidation has progressed far



more slowly than in most parts of Idaho, due, perhaps, to the fact that



the average size of farms in Caribou County is twice that of the state as



a whole, with a consequent limit on the attainment of economies of scale



available from consolidation.  Although irrigation increased markedly be-



tween 1954 and 1959, there was little effect on either crop production or



size of herds:  in physical volume, grain output rose 2.2 percent;  forage



output rose 18.4 percent;  potato output jumped 45 percent, but amounted



to only 258,313 hundredweight in 1959;  sugar beet output rose 7.5 percent;



cattle and sheep herds rose very moderately, with a 7.2 percent rise in the



number of milk cows accounting for the total increase in cattle numbers,



testimony to increasing attention to dairying.  Table III described signi-



ficant trends in the agricultural economy of the area.










                          (Table III on Page C-6)

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                                                                          C-6

                                 TABLE III -f

               Caribou County Agricultural Trends.  1949-1959
                                                                   1949-1959
                                   1949        1954        1959     Change

 No.  of farms                       593^       579        545        -8.1%
 Average size of farm(acres)         699.2 V     889.1       1052.1      50.5%
 Pasture (acres)                 166,986    251,293      305,298       80.3%
 Land irrigated(acres)            41,360     51,451       51,882       25.4%
 Cropland harvested(acres)       145,992    152,927      150,485       3.0%
 Value of crops sold         $3,856,177 $3,825,607   $3,999,749       3.6%
 Value of livestock & prdts   $2,583,014 $2,527,614   $3,487,870       23.4%
   sold
 Dairy products sold         $   396,262 $  498,091   $   633,441       57.3%

 III.  ESTIMATED  FUTURE GROWTH

       A,  Factors  Influencing Future  Growth

           Further  development of the  phosphate industry  is the crucial ele-

 ment in assessing  growth prospects  of Caribou  County.  Largely due to rapid

acceptance of detergents, demand for phosphate  has  increased at a better

 than ten percent average annual rate  since World War  II;  and though  main-

 tenance of the rate of growth is unlikely, a still healthy rise in demand may

 be anticipated.  The U. S. Department of Commerce  has suggested a 4%  percent

 growth rate from 1965 to 1980.  -'

           Idaho  and Utah, perhaps Wyoming, have substantial deposits  of this

 raw  material.  Growth of the western  phosphate Industry,  however, must be re-

 lated to high freight  costs  for coke  used in processing  and for shipment of

 finished materials to  major  markets - the East Coast  for  industrial chemicals,

 the  Midwest for  fertilizers.  This  competitive disadvantage has slowed de-

 velopment of the western phosphate  industry, and makes it a somewhat  marginal

 portion of the national industry.   Discovery of substantial commercially
 a/   U.  S.  Census  of Agriculture,  1950,  1960.
 b/   1950
 \J   Current Industrial  Reports. Inorganic Chemicals.  Series M 28 A.

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                                                                          C-7



utilizable phosphate deposits closer to major markets would impede,  perhaps




preclude, growth of the Idaho industry for some years.




      Several factors, however, suggest continuing robust growth.  (1) Growth




of western population favors revision of freight rates, as does the increasing




willingness of regulatory bodies to allow greater flexibility in rate determi-




nation.  (2)  Export markets in the Orient and Latin America offer huge




potential to the western phosphate industry.  Foreign aid policies and




economic growth in such undeveloped areas may well enable the western phos-




phate industry to share fully in growing world markets.  (3)  Development of




regional sources of coke is being pursued, and could afford an important




cost relief.  (4)  Most important, the highest production cost of phosphate




is electricity.  Public policies fostering the provision of low-cost electri-




cal power such as is now available in other parts of the Pacific Northwest,




could result in a flowering of the western phosphate industry analogous to




that of the Northwest aluminum industry in the late 1940's and early 1950's.




      For the purposes of this paper, it is assumed that the phosphate




industry will experience employment growth on the order of four percent




annually through the study period.




      Agriculture, the county's largest employer, offers little prospect




for growth.  The present large size of the average farm,growth of dairying,




and some easing of the uncertainty of agriculture through provision of




supplementary irrigation, should permit farm employment and rural population




to hold constant through the study period.




      Services and construction should expand healthily in the frame-




work provided by a vigorously growing phosphate industry.  For design




purposes, it is assumed that service employment will rise to sixty percent

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                                                                          C-8


of total employment by 1985, and maintain this ratio through the later stages

of the study period.  (In 1960, services  .'provided 59 percent of all employ-

ment nationally.  In 1962 the national ratio was well over sixty percent)

Construction is estimated to maintain the 1950-60 rate of growth, 2.4 per-

cent.  Non-chemical manufacturing is assigned a two percent annual growth

rate, somewhat arbitrarily, the reasoning being that expanding population

and economic activity normally brings forth a number of manufacturing

activities - e.g. bakeries, bottlers, metal and woodworking shops - serving

a local market, and that such activities, accounting for only 1.9 percent

of the 1960 labor force, are underdeveloped in the area.

           The design economy, in employment terms, for 1985 and 2010 is

contrasted with 1960 in Table IV.

                                 TABLE IV

              Prelected Employment. Caribou County. 1960-2010
Agriculture
Mining
Construction
Mfg: chemical
     all other
Services

  Total Employed

Unemployed




& allied
»

'ed

Force
1960
705
42
111
235
43
952
2088
126
2214
1985
700
120
200
635
70
2600
5325
220 if
5545
2010
700
325
360
1715
115
4835
8050
335 •£
8385
&l  Projected at four percent of the labor force.

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           (A stringent limitation on this forecast should be noted.  Develop-




ment of the phosphate industry is the principal basis for predicting the




growth of Caribou County;  and in drawing the economic design it is assumed




that growth will be centered proportionately in regions where the industry




has already developed.  It must be noted, however, that a large portion of




eastern Idaho - roughly from Idaho Falls to Montpelier - offers the




conditions for phosphate plant location.)




      B.  Future Population




          The estimate of future population in Caribou County is based on




the economic design drawn above and on the assumption that the labor force




as a percent of the population will remain near 1960 levels.  While a




greater portion of the county's population was drawn into the labor force




between 1950 and 1960, national trends in recent years suggest that the




pool of labor is being drawn from an increasingly smaller part of the total




population.  It is possible, then, that before 2010 the labor force of




Caribou County will consist of a smaller, rather than a larger, percentage




of the area's numbers.  Assuming, for the purposes of this paper, that the




labor- force remains constant at 37 percent of population, the forecast level




of economic activity would permit Caribou County to accommodate a population




of 15,000 in 1985 and of 21,500 in 2010.  To reach these population levels




would require average annual growth rates of 3.7 percent to 1985, 1,6 percent




from 1985 to 2010.




          Distribution of the future population would, logically, require




assigning the bulk of growth to Soda Springs.  Assuming that a much higher




level of economic activity in this portion of Idaho permits an ancillary

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                                                                         010
growth of .5 percent annually in other towns,  and that rural populations

remain near I960 levels, a design pattern of population distribution is

presented in Table V.

                                 TABLE V

              Estimated Population. Caribou County.  1960-2010

                                    1960          1985          2010

Soda Springs                       2,424        11,300        17,600
Other urban                        1,141         1,300         1,500
Rural                              2,411         2,400         2,400

  Total                            5,976        15,000        21,500

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