The importance of a diverse food and agriculture economy in Michigan of over 300 products that provides greater than $100B to the state economy cannot be understated. The Michigan food industry also employs over 800,000 workers representing greater than 15% of the state’s workforce. Michigan ranks 7^th in overall production and 2^nd behind California as to crop and produce diversity. Over 47,000 farmers conduct agricultural operations on ~ 10MM acres of farmland in Michigan. (1) A recent quote said that “Michigan would rank first in the nation in food diversity with the caveat of having access to fresh water.”

Key to the successful growth of the Michigan agricultural economy is the seasonal produce including fruits and vegetables that provide greater than $575MM of economic value in Michigan, including ~$362MM of fruit and

~$217MM of vegetable crop production. (2) The counties of Oceana, Newaygo, Muskegon, Lake, Mason, and Kent provide a majority of farmland for the growing and harvesting of the various seasonal fruit and vegetable crops. Major seasonal fruit crops include cherries, blueberries, apples, peaches, strawberries, pears, and other produce. Primary seasonal vegetable crops include onions, celery, squash, broccoli, cucumbers, asparagus, carrots, snap beans, and other produce. In some cases, such as with asparagus, Niagara grapes, and tart cherries, Michigan ranks first nationally. (3) Most of the fruit and vegetable produce is grown during a 2-3 month season during the late spring and fall. Farmers must also balance their seeding and planting for the future, as well as ensure the successful harvesting and sales of produce into accessible markets in a competitive and challenging marketplace.

A lot of planning needs to go into successful crop production as well as the implementation and use of best practices to ensure the stability and growth of the agricultural economy. However, cracks can now be seen in a number of areas including the plight of the farmer, overall resiliency and growth of the agricultural economy, and the economic impact to local communities. “Our traditional seasonal crops in West Michigan will soon become specialty crops in the next few years if we all don’t do something about it.” The new 2022 Ag Census overview is also now available. The report indicates that Michigan overall has lost 72,000 farms and ~300,000 acres of farmland since 2017.

Let us look at the farmers and what they are facing today, Many farmers are collectively experiencing significant economic and business constraints with shrinking margins and profitability. What are some of the key business related issues that have created this scenario?

• Lingering effects from COVID on their business model and farm operations
• Low labor force participation rates, especially with frontline workers
• Access to capital such as for the cost of new field equipment for tilling
• Critical shortage of pickers and farm workers
• Increasing costs of maintenance, distribution, and logistics
• Available processing, refrigeration, and freezer capacity
• Supply chain challenges, especially for access to locally grown produce as a majority of our fruit and vegetable produce leaves the state.
• Use of the H2A government program for available Michigan ranks 4^th in the nation with a wage rate of $18.50 for 2024. The farmer must pay this wage for employees to pick, and pack produce, as well as having to provide transportation and housing for workers in this program.
• Concern for regulation and compliance, such as with the use of food waste for biodigesters including the use of agriculture byproducts, and farmland wastewater runoff.
• Growing number of imports that reach our retail markets, especially during growing season at lower Examples of these imported products include asparagus and cherries.

Next, let us look at the overall supply chain and some of its challenges.

• One of the biggest concerns is the continued difficulty in accessing local available produce on a wider scale in West Senior citizens desire to eat a healthier diet but those with tight budgets find difficulty in obtaining local produce like asparagus during the growing season and milk products. Meals on Wheels, as a food bank, is having to purchase these products at retail prices because of difficulty in gaining access to them through local food retail distribution programs.
• The continued growth and availability of local seasonal food produce at retail and grocery stores, as well as the use of local produce in Today, many times farmers often look to markets outside of Michigan for the sale of their seasonal produce.
• The number of food processing and storage facilities have been shrinking, especially in the Oceana county

What looms ahead regarding the overall economic impact of the West Michigan agricultural economy and local communities?

• Farmers who have been in the business for generations are having difficulty in transitioning and handing off their business and farm operations to the next generation in their family for a variety of reasons.
• Some farms are beginning to shut down their operations and anticipate selling their farmland for rural development such as housing.
• The resulting loss of taxes, employment, and wages to the local community can be impactful. In Oceana County, the ALICE population (Asset Limited Income Constrained Employed) is ~45% that also includes those living in For a family of 4 the overall estimated total annual costs are ~$57K, about the same as the average annual median income. (4)

So what is the answer? What can we all do? One pathway is to focus on innovative AgBio technology solutions. Another is to pinpoint additional value creation at the farm level and across the supply chain. Many times public and private sector businesses, organizations, and government agencies stay only in their own lanes, develop specific strategies and action plans independently, but do not reach out to fully understand what the impact of their decisions will have on others. The Michigan agricultural economy has been under the radar screen for many years. It is time that we all had more meaningful and candid conversations that would catalyze collaborative opportunities, help build stronger working relationships, and create positive and impactful change that will lead to a more resilient and robust West Michigan food and agricultural economy. To accomplish this collective effort, it will require all of us to listen more to others and use a different lens to determine the root causes of these issues and view systemic change in new ways. These initiatives will require an all hands on deck effort from everyone!

I wish you all the best on your sustainability journey!

Norman Christopher