By SHELLY STRAUTZ-SPRINGBORN
Michigan Correspondent

LANSING, Mich. — Michigan agriculture was hit hard by a second round of state budget cuts earlier this month.

An executive order issued by Gov. Jennifer Granholm on May 5 reduced the state’s spending by nearly $350 million. It’s the second reduction in this year’s fiscal budget – the first issued in December cut $134 million in spending.

In the latest round of cuts, the Michigan Department of Agriculture is in line for budget cuts totaling more than $11 million.

Among the programs in jeopardy is Right to Farm, which has been a backbone for investment in agriculture in Michigan since 1981 and one of the strongest Right to Farm laws in the nation. The program ensures farmers and agricultural processors legal protections vital to their ability to do business in the state. It benefits the public by providing incentives for livestock farmers to adhere to scientifically based standards to site new and expanding livestock facilities.

The Michigan Agriculture Environmental Assurance Program (MAEAP) is also expected to lose funding. MAEAP is a nationally recognized program that is critical to advancing voluntary proactive environmental stewardship practices on farms and minimizing the potential for pollution.

The order also includes the elimination of $1.46 million for prizes at local, county and state fairs. Cuts to the state’s bovine tuberculosis program, conservation districts, pesticide and plant management, laboratory services, management services and other programs are also included. In addition, the agriculture department will reduce the number of workers to conduct annual inspections on migrant worker housing, which are required by state law.

Michigan Farm Bureau President Wayne Wood said the reductions threaten to undermine the investment taking place in Michigan agriculture – the state’s second largest industry behind its failing auto industry.

“Farming here is a $71.3 billion industry employing more than one million Michigan residents, making it the state’s second largest industry,” Wood said. “At a time when other sectors of Michigan’s economy have been struggling, Michigan agriculture has been growing and holding its own. We cannot continue to disinvest in the infrastructure that makes Michigan strong. With the state’s approach today, the state truly is biting the hand which feeds it.”
Granholm said the latest round of cuts was necessary to address ongoing economic challenges.

“The national recession has plunged our domestic auto industry into a severe crisis that has resulted in a sharp decline in state revenues,” Granholm explained.

“These cuts are necessary, but they will not undermine our commitment to protect citizens and work to create jobs during these very tough times.”

According to state officials, the state budget is the product of the worst economic downturn since the 1930s. State general fund revenues are projected to decline 21 percent from actual fiscal year 2008 collections. When adjusted for inflation, the decline in revenues is 23.5 percent, by far the largest one-year decline in at least 50 years and twice the 11.5 percent decline recorded in the severe recession of 1981.

“While these spending reductions are essential to meet our constitutional obligation to balance the budget, we have maintained critical services that Michigan citizens must rely on during this recession,” Granholm said.