Vermont

:This article is about the U.S. state. For other meanings, see Vermont (disambiguation).

Economy

Over the past two centuries, Vermont has seen both population explosions and population busts. First settled by farmers, loggers and hunters, Vermont lost much of its population as farmers moved West into the Great Plains in search of abundant, easily tilled land. Logging similarly fell off as over-cutting and the exploitation of other forests made Vermont's forest less attractive. Although these population shifts devastated Vermont's economy, the early loss of population had the beneficial effect of allowing Vermont's land and forest to recover from the excesses of human beings. The accompanying lack of industry has allowed Vermont to avoid many of the ill-effects of 20th century industrial busts, effects that still plague neighboring states. Today, much of Vermont's forest consists of second-growth.

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Of the remaining industries, dairy farming is the primary source of agricultural income.

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A unique part of Vermont's economy is the manufacture and sale of novelty goods and foods for cottage industries and niche markets. Examples of these are such exports as Cabot Cheese, the Vermont Teddy Bear Company, Burton Snowboards, King Arthur Flour, and Ben and Jerry's Ice Cream (headquartered in South Burlington).

Related Topics:
Cottage industries - Niche markets - Cabot Cheese - Vermont Teddy Bear Company - Burton Snowboards - King Arthur Flour - Ben and Jerry's Ice Cream - South Burlington

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Captive insurance plays an increasingly large role in Vermont's economy. With this form of alternative insurance, large corporations or industry associations form standalone insurance companies to insure their own risks, thereby substantially reducing their insurance premiums and gaining a significant measure of control over types of risks to be covered. There are also significant tax advantages to be gained from the formation and operation of captive insurance companies. According to the Insurance Information Institute, Vermont in 2004 was the world's third-largest domicile for captive insurance companies, following Bermuda and the Cayman Islands.

Related Topics:
Bermuda - Cayman Islands

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Numerous summer camps, furniture-making and skiing also make up a large component of Vermont's income. Trout fishing, lake fishing and even ice fishing draw the outdoorsman to the state as does the excellent hiking on the Long Trail. Several noteworthy horse shows are annual events. Golf courses are springing up with spas to service the weary client. One major fashion outlet mall isn't really a mall but the old town of Manchester gentrified.

Related Topics:
Furniture - Skiing - Trout - Ice fishing - Long Trail - Horse - Golf - Spa - Manchester

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In the winter, the mountains in Vermont have enough snow to make skiing a viable industry.

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The towns of Rutland and Barre are the traditional centers of marble quarrying and marble shaping in the USA. For many years Vermont was also the headquarters of the smallest union in the USA, the Stonecutters Association, of about 500 members.

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In recent years, Vermont has been deluged with plans to build condos and houses on what was relatively inexpensive, untouched land. Vermont's government has responded with a series of laws controlling development and with some pioneering initiatives to prevent the loss of Vermont's dairy industry.

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In 2001, Vermont produced 1,040,000 liters of maple syrup, about a quarter of the U.S. production.

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