EAST LANSING, Mich. — Michigan State University Product Center Director Chris Peterson told guests at the Ag Expo VIP breakfast last week agricultural leaders remain optimistic about the state’s economy.

It’s the third Michigan Agriculture and Food Index (MAFI), a semi-annual survey taken of approximately 100 agricultural and food leaders to gauge their views on the state’s economy. A rating of 100 on the index is considered neutral. Ratings above 100 signal an overall positive outlook and ratings below 100 signal an overall negative outlook.

The MAFI for the overall state of the food and agriculture sectors has remained steady at 145 or higher since the initial survey was conducted in April 2013. "The MAFI has stayed dead steady at a very high level; 150 is about as realistically high as it would ever go," Peterson explained.

The index rating for the overall state of Michigan’s economy, not just food and agriculture, continues to grow – from 115 in April 2013 to 120 in January 2014, all the way up to 133 in the most recent survey.

"We hope to build a consistent time series over time," Peterson said. "For the first time now we have a complete series for a whole year. We can see that these ag and food leaders are feeling optimistic about the state’s economy overall.

"The predominant answer is very confident. Part of our optimism, quite frankly, is that world food demand is up due to an expanding middle class and we see that continuing for some time."

In addition to the two overall scores, the MAFI rates three aspects of the food and ag system in Michigan. These include the current sales outlook, which is up slightly to 133; the job outlook, which is steady at 126; and the investment outlook, which is up to 116, up significantly from where it was at in January 2013 at 107.

Peterson believes the general economy is catching up to agriculture. One lender in the ag industry told him bankers are "very bullish" on the ag sector and competition is keen across the country. He was told lenders that do not usually make agricultural loans are starting to do so, as they are seeing food and ag as great places in which to invest.

The members of the survey "roundtable" – those who are filling out the surveys – include farmers, food processors, leaders of groups such as the Michigan Food Processors Assoc. and various other industry groups.

When asked, "What keeps you up at night?" roundtable members responded with: government regulation and policy, 32 responses; various management concerns, 27; labor, 22; and infrastructure, including roads, Internet connectivity and more, 10. Potential new U.S. EPA regulations are of particular concern to the respondents, according to the survey investigators.

The next roundtable survey will be conducted in December and the results will be released in March 2015.