June 16, 2009

LANSING, Mich. - The Michigan departments of Agriculture (MDA) and Environmental Quality (MDEQ) are stepping up their efforts in partnership with the Michigan Cranberry Council to expand the state's cranberry industry with the "Michigan Agricultural Advantages" Program.  The program makes Michigan as one of the prime areas to expand cranberry production here compared to any other state in the United States or in Canada; and serves as a model for environmentally sound cranberry production.

"Our state has the opportunity to establish a strong cranberry industry that is both economically viable and environmentally sound," said Don Koivisto, MDA Director. "With the Michigan Agricultural Advantages Plan, I'm confident that we can accelerate more cranberry production and processing development here, growing the economic impact of our state's $71.3 billion food and ag industry."

Consumers, food processors, and handlers want more cranberries.  At the Great Lakes Expo in December 2008, Ocean Spray Cranberries, Inc., the largest handler of cranberries in the United States, announced that they need 6,000 additional acres of cranberry production.  Another food processor, Graceland Fruit of Frankfort, Mich., stated their need for more Michigan-grown cranberries to meet market needs with growth spurred by the health and nutritional benefits of this "super fruit." 

"If companies are interested in expanding existing cranberry production sites or developing new sites, I encourage them to contact me," said Erik Johnson, MDA Soil Scientist. "Our site review team can provide producers with one-on-one guidance and technical assistance."

The "Michigan Agricultural Advantages" offers a potential cranberry producer:

- The MDA and the Department of Treasury offer either state income tax credits or Michigan Business Tax credits to farmers who enroll their farmland into Public Act 116 of 1974, as amended, the Farmland and Open Space Preservation Act, for a minimum of 10 years. As cranberry farm production is usually considered a long-term agricultural investment, the tax benefits with the Farmland Open Space Preservation Act are valuable.  Participating farmers are also offered exemption from special assessments for sewer, water, lights, and non-farm drainage. More than three million acres of farmland is currently voluntarily enrolled in Public Act 116.

- The MDEQ and Department of Treasury offer property tax abatement to growers who install environmental quality devices and water conservation systems for the control of surface and groundwater pollution as they design and construct their cranberry farm.  Agriculture-related facilities associated with cranberry farms that could be exempt provided they are primarily for water pollution control, may include:

• Pesticide or fertilizer secondary containment structures.
• Certain land use changes such as green belts and filter strips that are installed and maintained to prevent water pollution.
• Detention pond and related equipment designed to collect wastewater for recycling and reuse and not allow it to escape to a nearby waterway, provided its primary purpose is not related to production, but primarily for water pollution control and water conservation.
• Other items installed or used primary for water pollution control.

- MDA offers two publications, Generally Accepted Agricultural and Management Practices (GAAMPs) for Cranberry Production and GAAMPs for Irrigation Water Use.  The publications provide valuable technical and regulatory guidelines for the cranberry industry and are available at www.michigan.gov/gaamps.

- The Michigan Economic Development Corporation and MDA have an impressive array of incentives and economic development tools available for food processing companies that either locate a new processing plant here or expand an existing agricultural processing facility in Michigan, including an Agricultural Processing Renaissance Zone designation. 

For additional information contact the Michigan Cranberry Site Review Team, Erik Johnson at 231-357-4323 or email at JohnsonE9@michigan.gov.  The review team offers guidance, technical assistance, and on site reviews of potential properties for new cranberry farm development.

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