Michigan lawmakers recently approved a nearly $76 billion state budget that reduces General Fund spending by 4%. Michigan Farm Bureau worked with representatives, senators and industry partners throughout the months long process, focused on ensuring the budget meets the needs of the food and agriculture industry and the organization’s member-driven priorities.
"Many of the reductions reflect efforts by the House and Senate to better align appropriations with actual spending levels from prior years," said Rebecca Park, Michigan Farm Bureau legislative counsel. "While overall funding was tighter this year, we were successful in protecting many of the programs our members rely on."
Agriculture program impacts
The Michigan Department of Agriculture and Rural Development’s General Fund appropriation declined by nearly 7%, but several key programs remain funded.
The budget continues:
- More than $10 million for the Michigan Agriculture Environmental Assurance Program, despite a $500,000 reduction in General Fund support.
- $3 million for Conservation Districts.
- $1 million for agricultural resiliency efforts through a partnership among MDARD, Michigan State University and industry organizations.
- $1.3 million for the Craft Beverage Council.
The budget also reduces funding for Double Up Food Bucks by $1 million while creating a new $500,000 Fresh Food in Schools scratch-cooking pilot program.
One funding issue remains unresolved. Due to an error during final budget negotiations, funding for the Michigan Alliance for Animal Agriculture was reduced to $500,000 instead of the intended $3 million.
"The Legislature intended to fund the Michigan Alliance for Animal Agriculture at $3 million, but an error reduced that appropriation to $500,000," Park said. "We're working with lawmakers and our partners to correct the mistake because this is a critical program for Michigan's livestock industry. By leveraging that investment, the alliance has been able to generate more than $53.6 million in industry investment and nearly $960 million in economic impact."
Local food, research and education investments
The state budget also makes several education investments important to Michigan agriculture.
Notably, lawmakers restored $4 million for the 10 Cents a Meal program after funding was eliminated in last year's budget. The program helps schools purchase Michigan-grown fruits, vegetables and legumes while creating new markets for local farmers.
For Northwest Michigan Farm Bureau member and fruit grower Jim Bardenhagen, restoring 10 Cents a Meal was critical after growers lost an important local market when funding was eliminated last year.
"Our co-op has taken a real hit in lost sales since the program was dropped," Bardenhagen told lawmakers earlier this year. "10 Cents a Meal gave schools the incentive to purchase locally grown food."
The budget also provides $1.5 million in additional funding for MSU AgBioResearch and $1.3 million for MSU Extension — 4% increases for both programs — and continues incentive funding to public schools for Career and Technical Education programs.
Environmental and natural resource issues
Michigan Farm Bureau also helped secure another year of improvements to environmental permitting through the Department of Environment, Great Lakes and Energy budget. The budget requires EGLE to keep groundwater discharge permitting guidebooks updated and available in print while providing permit fee discounts when statutory review deadlines are missed.
"This is the second consecutive budget in which Michigan Farm Bureau has partnered with legislators to secure meaningful improvements to EGLE's permitting process," said Associate Legislative Counsel Josh Scramlin. "Our members have consistently told lawmakers the permitting process needs to reflect the realities they face every day on the farm. There's still more work to be done, but these reforms are another step in the right direction."
The budget also preserves $4.4 million in Department of Natural Resources funding typically used for bovine tuberculosis and chronic wasting disease testing.
"With bovine TB continuing to persist in Michigan, preserving this funding was important," said Associate Legislative Counsel Justin Tomei. "It ensures the department can continue disease surveillance, sample collection and leverage available federal matching funds."
Additional items of interest
The budget maintains funding for the Office of Rural Prosperity within the Department of Labor and Economic Opportunity and the Rural Development Fund Grant Program, which supports land-based industries and infrastructure investments that strengthen rural communities.
The budget also continues $12 million for the Michigan Agricultural Surplus System, which purchases surplus products from Michigan farmers for distribution through local food banks.
As implementation of the budget begins, Michigan Farm Bureau will continue working with lawmakers to correct the Michigan Alliance for Animal Agriculture funding error and advocate for future budget priorities.
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Rebecca Park
Josh Scramlin
