by Don Koivisto, director, Michigan Department of Agriculture
As I travel around the state talking with farmers and promoting
Michigan’s agriculture industry, I consider all the things that can be
done to further enhance the role agriculture and farming has in the
state. With the current economic changes in Michigan, I believe
agriculture will have an even bigger role in the state’s economy as it
continues to be the second largest economic driver in the state
generating nearly $64 billion for Michigan’s economy annually. Land
is fundamental to maintaining and enhancing agriculture’s place in the
Michigan’s economy. It’s where it all begins. It makes sense to
preserve our land base so current, and future, Michigan farmers can
continue to produce the wide variety of crops already grown here.
Prior to the implementation of the state’s Farmland and Open Space
Preservation Program (PA 116) in the early 1970s, Michigan had already
lost an astounding four million acres of farmland. The tax incentives
provided by PA 116 have significantly slowed the rate of farmland loss.
In fact, the program currently protects more than 3.3 million acres of
Michigan farmland.
Although our farmland preservation program has been successful - it is
not the entire solution. Michigan is still losing on average 30,000
acres of farmland per year. No one program or activity can preserve all
of Michigan’s farmland. But a combination of activities can help keep
Michigan agriculture viable and a major player in the state’s economy.
First, one of the best ways to safeguard farmland is to enhance the
basic economic vitality of Michigan agriculture. Farms that can make
money will remain farms and the children of the farm families will stay
in the family business. We can encourage value added agriculture by
improving access to commodity markets - locally, nationally and abroad.
With today’s energy costs, buying locally produced products is
particularly important.
Secondly, expansion of programs such as PA 116, which target full time
farmers, to include land owned by part time farmers would help to
protect up to 50 percent more of Michigan’s farmland. Enhanced
funding for permanent protection programs such as the Michigan
Agricultural Preservation Fund and programs to help farmers pass their
farm on to future generations would be of great benefit.
Farms don’t just supply the food we eat and enjoy every day; they
represent the second largest industry in the state, are responsible for
1 million jobs, and provide an important “export” function for the
state - exporting crops and importing dollars back into the state and
local communities. Businesses that export a commodity and import
capital, particularly from a land based resource available year after
year, are becoming increasingly vital in an economy where many of the
new jobs are in the service sector which transfer wealth within the
state rather than import wealth from other regions.
The availability of water in Michigan places the state and agriculture
in a unique position nationally. It’s predicted that water resources
in the Great Plains and in central California will significantly
diminish in the not too distant future. Michigan’s position in the
great lakes basin, plus the availability of quality farmland, will be
the key to the state’s agricultural economic future; if we can only
hold on to the farmland we have.
In addition to economic benefits, farms also provide valuable
environmental benefits to communities, providing storm water catchment
and flood control, wildlife habitat, and open space. Farms also act as
a positive tax revenue source for local governments, since studies show
farmers typically pay more in property taxes than they use for services.
The bottom line is agriculture is good for Michigan, good for local
government, and good for communities. Preserving our existing farmland
base can positively position Michigan today, in the future, and help
secure Michigan as a major economic player in the Midwest and the
nation.
###
For more on farmland preservation, visit michigan.gov/farmland.