May 22, 2009

State Spending Cuts Affect Michigan Agriculture

The Michigan Department of Agriculture (MDA), responding to Gov. Jennifer Granholm’s executive order to cut state government spending, on May 21 laid off 14 employees in its Environmental Stewardship Division, cutting to four the number of inspectors available.

That sparked reports that farmers would not be able to open their migrant labor camps and house migrant workers this year.

That is not true, according to MDA information officer Jennifer Holton.

Current law states that the camps need to be inspected, she said, but lack of inspection doesn’t preclude them from opening as long as growers have made an application.

“We will get to as many places as we can, but obviously we won’t be able to get to them all,” she said.

MDA director Don Koivisto had earlier said that cutting migrant labor housing inspection might affect the state’s produce growers’ ability to attract workers, but not that growers could not legally house them.

The executive order on May 5 revised state spending downward to match it to declining revenues. The fiscal year must end with a balanced budget. Total cuts of $348 million were ordered, with MDA to see a $6.8 million reduction. This will result in program eliminations and potential staff reductions in Animal Industry; Environmental Stewardship; Fairs, Racing and Exhibition; Laboratory Services; and Pesticide and Plant Pest Management along with cuts to the Office of Racing Commissioner.

Another $5 million was cut from the agriculture development fund, eliminating MDA’s Agriculture Innovation (Julian-Stille) Grant program.

MDA’s Environmental Stewardship Division was hardest hit in areas such as Right-to-Farm, Migrant Labor Housing and the Michigan Agricultural Environmental Assurance Program.

The state’s seed quality testing program was eliminated.

Reductions in nursery and export inspections would delay exports of Michigan nursery and agriculture products, Koivisto said.

MDA also was impacted by the allocation of rent costs ($513,200) across the
department, which will also cause program funding reductions, he said.

Premium payments to Michigan’s 86 state, county and local fairs will be eliminated. This represents a funding cut ranging from $1,000 to $45,000 per fair.

Cuts were also made in funding to local conservation districts.

– Dick Lehnert