FY08 Impact of Eliminating Agricultural Statistics
in the Michigan Department of Agriculture
February 13, 2007

The FY08 Executive Budget will eliminate the Agricultural Statistics program within the Michigan Department of Agriculture. The Agricultural Statistics program was established by legal authority in 1881 with an accompanying Cooperative Agreement signed in 1919 between the Michigan Department of Agriculture (MDA) and the United States Department of Agriculture (USDA). MDA and the National Agricultural Statistics Service of USDA for over 87 years have partnered to provide factual information on Michigan agriculture. The proposed recommendation would abolish the State of Michigan Agricultural Statistics program.

For FY08 a reduction of $261,340 is proposed from the $309,700 base program leaving less than $50,000. This is insufficient to keep the Cooperative or Rotational Survey program operational. Since 2001, the overall program has been decreased by 33 percent. One FTE was lost in FY07 with three additional full time state staff ($286,000) to be laid off under this proposal. The total Federal/State Cooperative Program totals over $2.5 million of which 13 percent is State funding. Since 2002, the State contribution has dropped by 9 percent. Michigan benefits significantly from these leveraged dollars.

Agricultural Statistics is the only source for comprehensive, current, and scientifically sound third-party data on the state’s agricultural economy, inventory, production, resources and food supply. This information serves as the baseline decision making data used to establish and evaluate economic policy, environmental impact assessments on water use, drain codes, farmland retention, land use, value added agriculture, right-to- farm, and market development of the bio-energy economy. This information is also a primary link to tracking, controlling, and preventing plant and animal diseases. It serves as the only third-party, totally confidential, and legally protected source for individual producer information. Critically important decisions are made by the Governor and industry leaders using the data provided by Agricultural Statistics.

The following examples begin to show the impact of eliminating the Cooperative Program:

1. The Michigan Agricultural Statistics Cooperative Program is the only source for an accurate and complete accounting of Michigan agriculture. It is the source for establishing the following facts used by the state leaders: agriculture generates $60.1 billion in direct and indirect linked benefit. It is the state’s second largest industry and shows solid growth. Michigan’s commodity diversity exceeds 214 commodities, second only to California. The Cooperative Program serves as the information source for Michigan’s specialty commodities. The NASS Federal program includes only commodities of national significance. Without the Cooperative Program, current and reliable information will not be available. This will make it extremely difficult for decision makers to competitively position Michigan’s agricultural industry both nationally and internationally.

2. Michigan’s fruit, vegetables, nursery and Christmas trees, and turf specialty crop industries will no longer have accurate and reliable data to evaluate, promote and enhance their industry sectors. The Rotational Survey program established by the legislature in 1991 will be discontinued. Information on markets, neglected orchards, and organic production will not be available. Current county level data will no longer be available for the dairy and hog sectors. Special tabulations for dry bean stocks, surveys for wine grapes, consultation to improve fuel sampling, inspections, milk sampling, and other program support will end.

3. Baseline information needed to establish sound economic criteria related to the bio-fuels energy/bio-economy, renaissance zones, value-added and specialty agriculture, as well as other new technologies will be lacking.

4. Bio-security measures needed to track, control, and treat plant and animal diseases will be hampered. Experts have relied on current data supplied by Agricultural Statistics to address Fire blight, and Plum Pox outbreaks. The Cooperative Program partnership with USDA provided the staffing needs for more than two years to monitor and mitigate the TB crisis. Natural disasters will occur requiring an immediate response. The cost for these emergencies will increase without sound, accurate baseline information and partners.

5. Both a Cooperative Program infrastructure and adequate funding must be in place in order to provide statistical survey program services. Funding obtained through matching funds or fees alone is not sufficient. As a result, statistical services provided to MDA will end. Similar support given to Michigan State University (MSU) will be greatly reduced, if not curtailed.

6. The Equine Survey has received broad support and funding from the MSU Animal Coalition, Michigan Equine Partnership, Michigan Horse Council, MSU Extension, the Michigan legislature, numerous horse organizations, as well as private donations. But, it will not be done without a Cooperative Program. Both a Cooperative Program and adequate funding must be in place for a viable statistical survey program.

Reliable and timely baseline facts are critical to making sound decisions. This proposal would remove the State Agricultural Statistics program cornerstone which for 125 years has served as the database and information source for Michigan’s widely diverse agricultural industry.