LANSING, Mich. — Gov. Rick Snyder’s 2016 budget proposal shows support for the state’s food and agriculture sector; weighing in at $54 billion, it represents a continued commitment toward sound financial planning through the 2016 fiscal year. The budget earmarks $84.1 million for the Michigan Department of Agriculture and Rural Development (MDARD) to directly support programs and services that impact the state’s agriculture industry. Snyder presented his budget recommendations on Feb. 11 during a joint session of state House and Senate appropriations committees.
Cuts made for the upcoming fiscal year were spread among multiple departments, with the governor citing significant fund shortfalls for the 2014-15 and 2015-16 fiscal years on a surge in corporations cashing in on tax credits, which were issued by prior administrations.
The proposed budget is centered on continuing Mich-igan’s growth, with a strong economy and unemployment at its lowest rate in 12 years. The state’s agriculture sector surpassed the $100 billion mark in 2014, up from $71.3 billion in 2009.
"I am proud of this budget and all the ways we are focused on creating an even stronger Michigan," Snyder said. "It reflects an emphasis on areas I know we can not only improve upon, but lead the nation."
The Governor recommended a 7.7 per-cent budget decrease in the MDARD budget. Department Director Jamie Clover Adams said the decrease is "manageable," and the reductions will be taken primarily from the department’s grant programs.
"There will be some money for grants, just not as much as we’ve had in the past," she explained. "I don’t think we’re going to see a big impact.
"These are not the core functions of the agency. Underneath those grant functions is an infrastructure of folks that are out helping businesses and farmers. They are still here."
She said if funding returns in the future, the agency will be able to restore funding to this sector "right away."
"I kind of look upon it as a pause," she said, adding some of the grant funding will remain intact for the next budget year. Funding for core programs is maintained, including food safety and consumer protection programs, as well as plant and animal health, and disease response.
Snyder also proposed to increase pesticide registration and fertilizer inspection fees in order to stabilize funding in both regulatory programs. The additional $1.2 million in restricted revenue will ensure safe storage of agrichemicals through routine inspections of pesticide and fertilizer operations. The additional revenue will also support enhanced assistance to the industry through increased sampling processes, ensuring proper application of pesticides and timely response to complaints.
In addition, the state’s commercial feed industry has grown significantly, and fee increases are necessary to make programmatic improvements to adequately address consumer protection, animal feed contamination, laboratory operations and emergency preparedness. Snyder proposes to increase tonnage and license fees under the Commercial Feed Act to generate an additional $500,000 annually in restricted revenue.
Clover Adams said fees in the animal feed and fertilizer areas have not been raised in more than 40 years, and the last increase in pesticide-related registration fees was 15 years ago.
"When you look at those programs and the value they provide to farmers and agribusiness, we’re just not able to do the kinds of things we should be able to do to help our businesses compete," she said – adding animal feed, for example, is shifting to more of a food safety focus.
"Listeria, salmonella – that is the focus that the federal food safety act is going in," she said. "With these fees, we’ll be able to work with our feed manufacturers to comply with the new federal rules."
In his proposal, Snyder also recommended an increase in retail food establishment fees. An additional $1.5 million will be generated in restricted revenue to implement Phase II of the Food Safety Improvement Initiative, while providing a sustainable revenue source for food safety programs.
Clover Adams said with the additional support, MDARD will be able to meet the growing demand for business compliance assistance at new or expanding food businesses while maintaining adequate evaluations of licensees in order to ensure public safety.
"This is critical to providing good service to our customers," she said, adding that ensuring a safe and wholesome food supply and reducing foodborne illnesses "is critical" to the health and wellness of Michigan residents.
In order to focus available revenues on high-priority programs, the budget proposal reduces general fund support for other discretionary programs, including the elimination of funding for a forestry audit, eliminating grants for local agricultural shows and expositions, reducing capital grant improvements at county fairs and reducing support for rural development grants.
Lt. Gov. Brian Calley and State Budget Director John Roberts joined Snyder in outlining the budget recommendations. "This budget strikes the right balance and makes smart, strategic investments while being fiscally responsible," he said.
