Rhonda (and Jerry),
I stopped by this website last night and came upon your "conversation." I do this every few days although I left Jackson 51 years ago but I grew up there. My maternal ancestors were German farmers over in Petersburg.
I have the two volumes of Jackson County history, 1910 and 1979, as well as a small leaflet from the Historical Society listing cemeteries in Jackson County.
First, let's deal with the church. The 1979 volume has a brief description of the Loon Lake Baptist Church. It was started by Sylvanus Allen, a Civil War veteran, who came to the area in 1867. He had invited folk to come to his cabin for worship. It then used school houses. They built a church in 1891 and shared it with Methodists. The Baptists built their own church in 1910. Ministers included Sylvanus's son-in-law John Chandler and grandson Raymond Allen. They dissolved in 1956 and the building became the store. The earlier building burned at some point.
According to the 1910 volume, Middletown Township where Sylvanus lived was organized in 1869. Sylvanus was granted government patents to land in Section 30 and a William Allen land in Section 32 in 1873. The cemetery leaflet states that the Loon Lake Cemetery is in Section 30 so perhaps Sylvanus donated the land for the cemetery.
There is a Jackson County website on USGENWEB and has information that you may be interested in. They call it the Loon Lake Baptist Cemetery.Under the Surname topic there, it lists a Diane Lavender who is researching the Allen family.
It has the address and telephone number for the historical society.http://www.usgenweb.com
That's it for now. I may come across more later. Forgive me if I have duplicated "stuff" that you already have. My motto is: "Double is better than nothing."