The Michigan Department of Agriculture has developed a competitive grant program the “Agricultural Innovation Program (also known as the Julian-Stille Value-Added Program)," intended to accelerate the growth of Michigan’s $63.7 billion agriculture industry. This program would establish, retain, expand, attract or develop value-added processing and production operations in Michigan through innovative financing assistance to processors, agri-businesses, producers, local units of government and legislatively-authorized commodity boards in Michigan.

In July of 2006 MDA received a total of 225 grant proposals with requests totaling more than $36 million. In October of 2006 MDA recommended the funding of 40 proposals which covered 27 of Michigan’s counties. The proposals were evaluated and scored based upon: economic impact on the community; economic impact or enhancement to agricultural product and/or service; amount of project innovation or initiative; clarity of project proposal with specific and measurable outcomes; and management team experience and expertise. Categories for grant awards included: Technical Assistance, Facility Improvements, Market Research/Development, Business Plan Development, and Facility/Land Purchase or Construction.

A list of the program's many success stories can be found below; more are added all the time, so check back often. If you have any questions please contact Mike DiBernardo at 517-373-9144 or at dibernardom@michigan.gov:

• Seafood Systems, Inc, Located in Okemos, Michigan, Seafood Systems project objectives were to develop an automated feeding system, aeration in the production tanks, and improved water filtration in the production tank system. A completely new water treatment system was designed, constructed, and is in operation in all phases of the project, including; maturation, larval rearing, nursery, and production. the production system requires post larval shrimp to be available on a year round basis. There has been to date no hatchery in the United States that has been in production 12 months per year. Seafood Systems determined they will need to be 100% self sufficient and produce our own post larvae on a year round basis.  Seafood Systems, Inc. is now positioned very well to move ahead with a commercial project in Michigan for production of marine shrimp. The two most significant achievements have been the successful development of an automated feeding system and the advances made for economical water treatment. Both of these developments are leading edge technology for the World of Aquaculture and provide key links to the establishment of a viable marine shrimp farming business in Michigan.
  
  They have created 3 new jobs.
  Total new capital Investment is $ 256,672.00

  Great job, Seafood Systems Inc.

• Entente Spirits LLC, Located in Baroda, Michigan, Entente Spirits (Round Barn Winery) established a project to purchase and install a rectification column to increase processing capacity of “micro-distilled” vodka and brandy using existing fruit capacity in Southwest Michigan. Maintaining high quality standards was an important objective of the project. Round Barn has vinified and distilled one hundred fifty tons of grapes and apples in their products over the past two years, with continued growth anticipated. Sales growth of Divine Brandy has exceeded that of any other of their products introduced by the company in the past fifteen years. Round Barn also offered brandy making classes as an adjunct to their annual wine making classes, with over two hundred people attending all classes in fall 2007.
  
  They have created 3 new jobs.
  Total new capital Investment is $ 114,974.00
  
  Great job, Entente Spirits LLC!

• Graceland Fruit Inc, Located in Frankfort, Michigan, Graceland proposed to design and install a proprietary juice extraction system for the purpose of launching a new fruit juice concentrate product line. This new process is significantly different and this new technology will allow them to create two products: infused dried products as well as juice concentrates. The fruit being used is red tart cherries, cultivated blueberries, wild blueberries, and cranberry. Markets exist for both red tart cherry concentrate and blueberry concentrate products which are consumed in beverages, sauces, salsas, fillings confectionary products etc.
  
  Total new capital Investment is $ 1,221,261.00
  
  Great job, Graceland Fruit Inc!

• Michigan Sugar Co, Located in Bay City, Michigan, Michigan Sugar proposed to purchase and install a ventilation system(s). The overall goal of the project is to increase the quality of sugar beets by improving longer term storage conditions capturing an average of 18 pounds of sugar per ton of sugar beets that would otherwise have been lost to respiration, degradation, and spoilage. As a result of the project sugar beet quality was improved by capturing and average of 28.5 pounds of sugar per ton of sugar beets that would have been lost to respiration, degradation and spoilage. The project generated an additional $2.27 million dollars in direct revenue in the 2007/2008 processing campaign for sugarbeet growers. The project contributed 5.68 million in economic activity for the Thumb and Saginaw Bay Area of Michigan.
  
  They have created 18 new part time jobs.
  Total new capital Investment is $ 2,897,328.00
  
  Great job, Michigan Sugar Co!

• Cooperative Elevator Company, located in Pigeon, Michigan, was established in 1915. Cooperative Elevator has been selling premium quality black and navy beans for many years in bulk to the Central American market. The project was designed to add a specialty packaging line to process smaller packages of premium quality black and navy beans to accommodate the Central American retail market. Cooperative Elevator Co has received additional requests for these retail packages from domestic retailers as well. Their commitment to quality is evidenced by being a nqa. ISO 9001 Registered company.
  
  They have created 3 new jobs.
  Total new capital Investment is $ 567,139.00
  
  Great job, Cooperative Elevator Company!

• Universal Grain & Biomass Heating Systems Inc., Located in Farwell, Michigan, this was a research project named “Choosing Corn Power”. The objective of the project was to increase the understanding of how the State of Michigan can maximize the different uses and advantages of corn burning appliances, as well as to gain further insight as to the motivations and decision process of the general public on the utilization of corn burning appliances.
  
  The results of the survey and analysis showed little variance to personal differences, all consumers had similar concerns including:
  The Price of energy, U.S. dependence on foreign energy, Lack of control over oil companies, and Keeping homes heated at a less then desired temperature because of high heating costs.
  
  The Universal Grain Burner staff were so excited about what they learned through their research they developed a new type of corn burning appliance to meet the needs of the consumer. The newly developed appliance won the 2007 best new product in the biomass category earning it the coveted Vesta Award and the appliance was runner up for the over-all Best in Show Vesta Award. They have added 10 new manufacturing jobs.
  
  Total new capital Investment is $ 152,594.00
  
  Great job, Universal Grain & Biomass Heating Systems Inc!

• Geerlings Hillside Farms LLC (Overisel Facility) Located in Overisel, Michigan, their project was to build a Anaerobic Digester to process hog manure from several facilities, The digester is currently being fed at the rate of 12,000 to 14,000 gallons per day (~4.5 million gallons per year), resulting in a 40-45 day retention time. On average, the on-site animals produce 8,000 gallons per day. The project has agreements to process manure from four other local farms. In addition, the manure supply agreements contain an option for contributing farms to obtain liquid digestate for use on fields during crop cultivation periods. The project expanded an existing agricultural site, resulting in an anticipated increased asset value of $1.1 million. Increased annual farm sales will depend on the selling price of fertilizer pellets and carbon credits negotiated in the contracts. The system is especially beneficial to the four local farmers whose herds are too small to consider investment in such a system. By installing a centralized system on one of the largest farms in the area rather than a centralized non-farm location, manure hauling is minimized and the trucks stay within the local farming community.
  
  The company has created 1 new job.
  Total new capital Investment is $ 1,074,347.00
  Great job, Geerlings Hillside Farms LLC!

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• Coveyou Farms LLC, Located in Petoskey, Michigan,
  
  This project explores the benefits of new highly translucent ETFE thermoplastic coverings for season extension high tunnels. The new film has a 90-95% transmisivity rating and the manufacturer warrants the film not to significantly degrade in transmisivity for 10 years. Two high tunnels were built with the new covering material and used to grow tomatoes and cucumbers during the 2007 crop year. Tomatoes and cucumbers were grown successfully with tomatoes maturing significantly earlier than similar field grown crops. The earlier maturing tomatoes were able to command a higher price in the marketplace.
  
  This primary objective has been met with this project. The first ripe fruits were harvested July 9th with production quantities sufficient to start market sales occurring on July 18th. Our market introduction on this date was clearly two weeks ahead of all other field grown tomatoes in the area and validated our expected outcome of being able to produce tomatoes earlier into the season. Additionally as field tomatoes had all but completed production our high tunnels produced reasonable quality fruit well into November.
  
  Total new capital Investment is $ 38,630.00
  Great job, Coveyou Farms LLC.!

• Anderson & Girls Orchards LLC, Located in Stanton, Michigan,
  
  This project would upgrade their apple cider production operation to meet the FDA requirements that apple cider be pasteurized before it can be sold. The company will purchase and install a FDA approved UV cider processor as well as enhance the processing area and facilities.
  
  The company has completed the installation of the UV equipment and will produce over 30,000 gallons of cider for sale. The company has reported that their production and sales have more than tripled, but a superior product is being produced using the UV technology. Heating which is the traditional pasteurization process produces a somewhat cloudy final product. The UV process produces the same level of public health protection, but it does it in a way that retains the original clarity of the cider being produced.
  
  Total new capital Investment is $ 69,945.00
  Great job, Anderson & Girls Orchards LLC!

• Alternative Green Energy LLC (A.G.E. LLC) Located in Gaylord, Michigan, their project was to perform a market feasibility study of opening a retail outlet for value-added agricultural products, alternative energy products and services called “The Energy Store.” Dan and Anna Tomaski are the co-founders of A.G.E. LLC. This feasibility study measured the viability of this proposed venture in terms of size, market location, supply and demand. The feasibility study does indicate “The Energy Store” is a viable project to pursue and for A.G.E. LLC to bring it to fruition. They will use the completed study to execute the implementation of the opening of “The Energy Store”. If this project is successfully completed it could add capital investment of $1,100,000.00 and add 6 new jobs. Once financing is secured they will pursue the property and equipment acquisition. The company plans to break ground on “The Energy Store” within one year.
  
  Total new capital Investment is $ 13,750.00
  Great job, Alternative Green Energy LLC.

• di Bufala Farms LLC (previously named M. C. Dairy). Located in Fremont, Michigan, their project was to perform a market feasibility study of products made from water buffalo milk at a competitive advantage. Much higher prices can be obtained via the exceptional quality of these products over similar products produced from traditional dairy cows. Mozzarella cheese and Yogurt were identified as two strategic products that can be produced with water buffalo milk at a competitive advantage. di Bufala farms intends to focus its attention on the high quality mozzarella cheese market. They purchased 156 head in May of 2006 and recently added an additional 26 water buffalo calves; by December 2008 the company will have 110 milking animals. Based on 160 lactating head by July 2009 the annual rate of milk production will be approximately 129,700 to 144,000 gallons which translates into approximately 260,000 to 288,000 pounds of Mozzarella cheese.
  
  The company has created 12 new jobs.
  Total new capital Investment is $ 5,547,103.00
  Great job, di Bufala Farms!

• Michigan Sugar Company. Located in Bay City, Michigan, Their project was to perform a feasibility study of converting the now vacant Carrollton Mi sugar beet plant into a Biodiesel plant.
  
  Michigan Sugar hired BBI (Bryan and Bryan International) to conduct the feasibility study. The results of the study were extremely positive BBI considered site infrastructure, proximity to biodiesel markets, and proximity to a supply of soy beans.
  The site received a score of excellent (a top score in BBI's grading scale) MDA does have the complete study on file.
  Based on this study Michigan Sugar would prefer to sell this site or to partner with another company in developing a biodiesel plant.
  Total new capital Investment is $ 41,046.00
  
  Great job, Michigan Sugar!

• Mid-Michigan Specialty Crops LLC, (MMSC). Located in Ithaca, Michigan, MMSC processes various types of dry edible beans and edible soybeans. They have has installed new soybean color sorting equipment and other processing related equipment, which will increase output capacity, provide higher quality control for domestic and export markets, provide improved services and marketing options for local producers. As a result of this renovation the MMSC facility has obtained JAS organic certification and is the only JAS certified processing facility in Michigan. MMSC is expected to double its processing capacity and is now able to process various types of beans and edible soybeans. MMSC is now in a position to assist producers in reaching new domestic and export markets. MMSC has added 2 new positions. Total new capital Investment is $ 332,588.00
  
  Great job, Mid-Michigan Specialty Crops LLC!

• Tandem Ciders. Located in Suttons Bay, Michigan, their goal of this project was to perform a market feasibility study using Tandem’s business plan as a model for the first hard cidery in Northwest Michigan. The final report is completed and does agree that a hard cidery in Northwest Michigan does have potential for success. As a result of this study Tandem has purchased a location in Suttons Bay within Leelanau County for a hard cider production facility and a tasting room. The results from this study allowed Tandem Ciders to validate the vialibility of this project and obtain financing for the project. Tandem ciders will share the results of this feasibility study with growers, consultants and future entrepreneurs at the Great Lakes Fruit and Vegetable Expo in Grand Rapids, MI on December 7, 2007.
  
  Total new capital Investment is $ 243,425.00
  
  Great job, Tandem Ciders!

• Nitrate Elimination Co Inc, (NECi’s). Located in Lake Linden, Michigan, NECi’s has developed a series of nitrate testing products specifically designed for agriculture that are done on site. There are four different series of test kits: Soil test kits, Water test kits, Plant test kits, and Livestock test kits. NECi’s project was to conduct a market research study to determine the most effective means of reaching out to educate and inform Michigan farmers on the latest nitrate management strategies and tools available to targeted Michigan farmers about nitrate management. This project has enabled NECi to collect and analyze information, which is being used to guide marketing efforts and business development planning. They have begun to receive new orders and technical inquires from new areas of the US. Awareness of NECi and their ag-test kit product line is more wide spread in large part due to the effects of this program.
  
  NECi has added 1and half positions.
  Total new capital Investment is $ 62,798.00
  
  Great job, Nitrate Elimination Co Inc!

• Fremont Cooperative Produce Company located in Fremont, Michigan. This project the Cooperative conducted was titled “Research the Market Potential and Pilot Test Incremental Michigan Fresh Fruit into Commercial Pipeline”. The Cooperative and its partners in this project identified an opportunity to research the interest in the fresh market for fresh produce and to pilot test moving more fresh produce through food service channels with commercial partners.
  
  This study has identified a wide range of opportunity and has brought together the participants in a pilot test that will begin to move a selection of local fresh fruits, vegetables, and dairy products to market beginning this summer. Capturing the opportunities will require an on going facilitated process as we foster a new appreciation for the benefits of local, fresh, seasonal produce from Michigan. Enhancing the branding and awareness of local food is as important to the success of this effort as creating the supply chain linkages. Total capital Investment is $56,359.60
  
  Great job, Fremont Cooperative Produce Company!

• Michigan Meat Processing Inc. located in Escanaba, Michigan purchased three new pieces of equipment with their Ag Innovation grant that has enabled them to produce meat and sausage products that are consistent in size and weight and to vacuum pack the products. This will allow Michigan Meats products to be more competitive with larger out-of-state companies. The new equipment has enabled them to develop several new products in which they have received very good response from their retail and wholesale customers.
  
  As a result of this program they are now currently wholesaling their meat and sausage products to two retail establishments and several restaurants. This is new business they would not have been able to obtain with out this program. Total capital Investment is $171,684.
  
  Great job, Michigan Meat Processing!

• Heartland Ingredients, LLC, of Hillman, Michigan produces dry bean flour which is gluten free. Heartland Ingredients was organized in February 2004 as an extension of the Michigan Edible Bean Cooperative (MEBC). MEBC was started in 1999 by a group of Michigan dry bean producers seeking alternative markets for their dry beans. Heartland produces flour, baking mixes and now a line of pastas. Using Ag Innovation grant funds, they purchased equipment that has increased their blending, mixing, and packaging efficiency and capacity. They also have secured additional customers who request custom blending and packaging of baking mixes.
  
  In the fall of 2006, Heartland products were accepted into Whole Foods Markets in southern California. Heartland’s Finest (brand product) was approved to be placed in the Vitamin Cottage chain of 39 stores in Colorado and New Mexico in February, and the Sprouts chain of 20 stores in Arizona and California. With the Whole Foods business, Heartland’s products were accepted into the United Natural Foods distribution network on the West Coast. Heartland is now negotiating with three other major chains for acceptance into their systems. Total capital investment is $342,288.
  
  Great job, Heartland Ingredients!
  

• Terrace Hill Vineyards in Watervliet, reviewed and field tested mechanical pruning technology for wine grape production as a component of the production system for the Michigan wine grape industry. A Pellenc pruner was purchased and tested in March through May 2007 at Terrace Hill Vineyards as part of the commercial dormant pruning process at this farm. A time study comparison of manual pruning and mechanical pruning, these initial time studies indicate the mechanical pruning reduced the labor requirement for dormant pruning of wine grapes 4.8 to 14.7 hours per acre or 12 to 30% savings.
  
  It was anticipated that there would be considerable interest in the topic of mechanical pruning of wine grapes in Michigan because there is a dwindling availability of labor to perform this task and the cost of that labor is steadily increasing. Mechanical pruning offers not only a cost savings when compared to manual, but it also may be preformed over a greater range of weather conditions compared to manual pruning. This is a major advantage in the Michigan climate. Total capital investment is $33,974.
  
  Great job, Terrace Hill Vineyards!

• Michigan Turkey Producers Co-op Inc (MTPC). Located in Wyoming, Michigan, MTPC's project was the purchase and installation of equipment that will continue to expand value added production of cooked turkey. One new process is a continuous oil fried product that is processed and packaged in this facility. This type of pre-cooked turkey product is being requested by leading food service providers. Additional cooked production capacity was also needed where several ovens and related chilling units were incorporated in this facility. Because of this increase in production capacity, the sales to food service providers, retailers and wholesalers has increased. Also, the MTPC has added 31 positions at this facility. Total new capital Investment is $1,127,399.
  
  Great job, Michigan Turkey Producers Co-op Inc!