Michigan Ag Connection - Leaders United to Defend Ag Department, Urge Broad Reforms

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Leaders United to Defend Ag Department, Urge Broad Reforms
Michigan Ag Connection - 03/08/2010

In hammering out the 2011 budget for the Michigan Department of Agriculture (MDA) legislators need to consider the crippling budget cuts MDA has repeatedly endured, sacrifices the department already has made--and at what costs--and the good faith the agriculture industry has shown in helping to pick up the tab for services that benefit all Michigan residents, not just farmers.

They'll then be able to conclude that MDA is operating on a shoestring budget as it is, and further cuts or schemes to generate additional revenue from the department will only hurt Michigan's economy and not even put a dent in the state's budget deficit. It'd be wiser to use MDA as a role model for how to reform other state departments that haven't made the same concessions.

These were just some of the points that agricultural leaders raised with legislators on Tuesday at a joint hearing of the Senate and House Agriculture Appropriations Subcommittee--the first in a series of budget hearings that will continue next week.

To demonstrate the industry's unified concerns, the Michigan Farm Bureau (MFB) provided joint testimony with leaders from other sectors of Michigan's diverse agriculture industry, including the Michigan Agri-Business Association, Michigan Milk Producers Association (MMPA), Michigan Potato and Carrot Industry Commission, and GreenStone Farm Credit Services. Highlighted here are some of the main points raised.

"MDA currently represents 0.4 percent of the state's general fund/general purpose budget. Big picture, we're a blip on the radar and continuing to hack away at MDA is not going to solve Michigan's $1.7 billion budget deficit," said Wood. "The Legislature must make reforms to other state departments similar to what MDA has experienced over the last 10 years, and a good place to start would be to look at where most of our state's spending goes.

"An easy analysis shows that about 86 percent of the state's general fund/general purpose budget goes toward corrections, human service programs and higher education. It makes sense for the state to implement reforms there first and seek other options as a last resort."

So what's there to lose? One of Michigan's only growth sectors, the agricultural leaders said.

The agriculture industry, including the agri-food and agri-energy sectors and all the supporting industries, is a $71.3 billion industry in Michigan employing 25 percent of Michigan's work force. The agriculture economy has been expanding at a rate five times faster than the general economy.

"Why pull the rug out from under one of the few good things Michigan has going? That doesn't make any sense and is the last thing the Legislature should do," said Wood.