Michigan food, ag confidence level dips

Michigan’s food and agriculture leaders’ overall confidence in the food and agriculture system has dipped slightly for the first time in three years. Some speculate that this is due in part to sharply declining commodity prices, as well as the need to educate consumers about agricultural technology such as genetically modified organisms (GMOs).

That’s according to the Michigan Agriculture and Food Index (MAFI), a biannual survey of the industry’s movers and shakers that gauges their confidence in the health of the industry.

Chris Peterson, director of the Michigan State University Product Center and lead investigator on the project, said that, despite a 14-point drop, ag leaders’ impression of the industry is still positive.

“Their confidence level in the state of the food and agriculture system dropped from an all-time high of 147 to 133 in the latest survey,” he said in a news release. “Despite the decline, 133 is still an upbeat rating.”

The MAFI, based on a survey that concluded in September and released this month  (December 2015), is the fifth of its kind. It gauges the current business climate of the state’s food and agriculture system by surveying 100 influential players in food and agriculture businesses. A rating of 100 on the index is considered neutral; ratings above 100 signal an overall positive outlook, and below 100, an overall negative outlook.

Though perceptions on Michigan’s overall economy held steady with a rating of 138, all other factors surveyed fell slightly. Sales dropped from a rating of 136 in November 2014 to 125, and confidence in investment and employment dropped to 102 and 128, respectively. It is the first time since the survey began that confidence in the state’s overall economy was more upbeat than ag leaders’ impression of the food and agriculture system.

Bill Knudson, MSU professor and technician on the project, who crunched the numbers, said the survey also asks respondents, “What keeps you up at night?” to help surface specific issues. Genetically modified organisms (GMOs) became a factor for the first time since the index’s inception in 2013.

Peterson and Knudson sat down with a select group of the respondents in October to discuss the findings. Their appraisal was that consumers’ lack of understanding of the scientific principles that drive modern agriculture are a threat to food production.

“Consumers don’t seem to appreciate how far agriculture has moved to reducing the use of crop protection products through GMO technology,” one roundtable member said. “Farmers want to be good stewards of their land, and this is another tool we can use to help continue to feed a hungry world. We need scientific institutions to help us spread this message.”

Another participant said that the issue isn’t limited to GMOs but also includes the use of pesticides and other crop protection products.

“Consumers have a lot of misinformation about the types and amounts of products that are used in agriculture,” she said. “I’m not sure how to help them understand that we use sound, replicated research to drive our choices.”

Other hotspots on the survey included the need for high-speed Internet access in rural areas, labor shortages and a declining infrastructure – specifically, poor roads and railways that make it difficult to ship commodities where they are needed.

The MSU Product Center has been conducting the survey every six months since April 2013. Results are compiled and the MAFI results are released twice a year.