FY 2024-25: AGRICULTURE AND RURAL DEVELOPMENT
Summary: As Passed by the House
House Bill 5511 (H-1)
Analyst: William E. Hamilton
Difference: House
FY 2023-24 From FY 2023-24
Enacted FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25 Enacted
as of 2/7/24 Executive House Senate Conference Amount %
IDG/IDT $327,000 $332,400 $332,400 $ $ $5,400 1.7
Federal 29,762,700 20,357,900 20,357,900 (9,404,800) (31.6)
Local 0 0 0 0 --
Private 21,300 21,300 21,300 0 0.0
Restricted 45,719,900 46,450,900 47,170,900 1,451,000 3.2
GF/GP 92,781,800 77,056,400 82,056,400 (10,725,400) (11.6)
Gross $168,612,700 $144,218,900 $149,938,900 $ $ ($18,673,800) (11.1)
FTEs 550.0 579.0 555.0 5.0 0.9
Note: Appropriation figures for FY 2024-25 include all proposed appropriation amounts, including amounts designated as "one-
time."
Overview
Michigan Department of Agriculture and Rural Development (MDARD) key programs and priorities include ensuring food
safety and security, protecting animal health and welfare, managing invasive exotic species, regulating pesticide use,
certifying agricultural commodities, ensuring environmental stewardship, consumer protection, and promoting the state's
agricultural economy.
Note: The Governor's proposed budget reflects MDARD's internal reorganization effective January 1, 2024. However,
the analysis of major budget changes below compares like programs and line items in current year and FY 2024-25 and
does not show changes associated with MDARD's reorganization or related proposed changes in budget structure.
FY 2023-24 FY 2024-25
Enacted House
Major Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
1. Unclassified Salaries FTE 6.0 0.0
The department indicates that the current budget does not provide Gross $664,900 $335,100
sufficient funding to support all 6.0 authorized unclassified FTE Restricted 0 335,100
positions. Executive includes increase of $335,100 Gross ($0 GF/GP) GF/GP $664,900 $0
to support all 6.0 authorized unclassified FTE positions. House concurs
with Executive.
2. Emerging Contaminates in Food and Agriculture FTE 6.0 0.0
Executive retains $2.1 million GF/GP in ongoing funding for program Gross $4,079,900 ($1,999,800)
intended to identify, respond to, and mitigate emerging contaminates, GF/GP $4,079,900 ($1,999,800)
including PFAS, affecting agriculture and related food industries, but
does not retain $2.0 million one-time. House concurs with Executive.
3. Federal USDA Emergency Management Grant FTE 8.0 0.0
Executive includes $600,000 federal funds increase in Emergency Gross $2,918,000 $600,000
Management to recognize United State Department of Agriculture Federal 432,300 600,000
(USDA) Animal and Plant and Health Inspection Service (APHIS) grant GF/GP $2,485,700 $0
awarded to the department for incident command training and other
services. House concurs with Executive.
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 FY 2023-24 FY 2024-25
Enacted House
Major Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
4. Environmental Stewardship/MAEAP – Staffing FTE 26.0 0.0
Executive requests increase of 24.0 FTE positions for the Michigan Gross $11,744,500 $0
Agriculture Environmental Assurance Program (MAEAP). The increase Federal 1,982,600 0
would allow the department to shift program delivery from Local Restricted 8,328,900 0
Conservation District contract technicians to classified MDARD GF/GP $1,433,000 $0
employees. There is no funding impact associated with this change in
program delivery. House concurs with Executive with respect to
program funding but does not include the 24.0 FTE position increase.
5. Agricultural Climate Resiliency Gross $7,000,000 ($1,000,000)
Executive retains $1.0 million GF/GP in ongoing funding for grant GF/GP $7,000,000 ($1,000,000)
program to promote the principles of regenerative agriculture as defined
in boilerplate section 503, but does not retain $6.0 million in one-time
funding. House includes $6.0 million GF/GP in part 1 funding ($1.0
million ongoing and $5.0 million one-time) – $1.0 million less than current
year. House also provides additional $3.0 million GF/GP through
boilerplate appropriation (Section 901) repurposing a work project
balance.
6. Soil Health and Regenerative Agriculture FTE 5.0 0.0
Executive retains $1.0 million GF/GP in ongoing funding but does not Gross $6,000,000 ($5,000,000)
retain $5.0 million shown as one-time, a net decrease of $5.0 million. GF/GP $6,000,000 ($5,000,000)
Program, defined in boilerplate section 504, is intended to promote the
principles of regenerative agriculture. House concurs with Executive.
7. Local Conservation Districts Gross $3,000,000 $0
Executive retains $2.0 million GF/GP in ongoing funding but does not GF/GP $3,000,000 $0
retain $1.0 million in one-time support, a net decrease of $1.0 million.
House retains current year funding of $3.0 million GF/GP, all shown as
ongoing.
8. Farm to Family Program – NEW FTE 0.0 6.0
Executive recommends $4.0 million GF/GP, and 6.0 FTE authorization, Gross $0 $1,000,000
for a new ongoing program to support regenerative farming, agriculture GF/GP $0 $1,000,000
supply chains, and the promotion of Michigan food products. House
includes $1.0 million GF/GP and shifts $1.0 million to Local conservation
districts and $2.0 million to Fair Food Network – Double up food bucks.
9. Fair Food Network – Double Up Food Bucks Gross $2,000,000 $2,000,000
Executive retains $2.0 million GF/GP in ongoing support for program that GF/GP $2,000,000 $2,000,000
provides a supplemental benefit to SNAP recipients for the purchase of
fresh fruits and vegetables. House includes an additional $2.0 million
GF/GP by shifting from Farm to Family Program. House also includes
$1.0 million through a boilerplate appropriation (Section 901)
repurposing a work project balance.
10. Food and Agriculture Supply Chain Investment FTE 1.0 0.0
Executive retains $800,000 GF/GP in ongoing funding for program Gross $1,800,000 ($1,000,000)
intended to address issues related to agriculture and food industry GF/GP $1,800,000 ($1,000,000)
supply chain, including accessibility of cold storage, distribution and
processing facilities, and implementation of advanced technologies.
Executive does not retain $1.0 million GF/GP in one-time funding.
House concurs with Executive.
11. Office of Rural Development Transfer FTE 1.0 (1.0)
Executive reflects Executive Order 2023-6 transfer of the Office of Rural Gross $678,000 ($678,000)
Development to the Department of Labor and Economic Opportunity GF/GP $678,000 ($678,000)
(LEO). House concurs with Executive.
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 FY 2023-24 FY 2024-25
Enacted House
Major Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
12. County Fairs, Shows, and Expositions Gross $2,500,000 ($2,000,000)
Executive retains $500,000 GF/GP in ongoing support for grant program GF/GP $2,500,000 ($2,000,000)
but does not retain $2.0 million in one-time funding. House concurs with
Executive.
13. Standardbred Racing Program Gross $3,794,200 $720,000
Executive retains current year funding of $3.8 million from the restricted Restricted 3,794,200 720,000
Agriculture Equine Industry Development Fund (AEIDF) for GF/GP $0 $0
standardbred horse racing programs. House includes additional
$720,000 (AEIDF) for new line item, Michigan sired championship
stakes, defined in Sec. 803, to allow for a standardbred sire stakes race
at a county fair. This line item would only be used if there is no licensed
race meeting/track to host the event.
14. Removal of FY 2023-24 One-Time Appropriations # Gross $13,600,200 ($13,600,200)
Executive removes the following one-time items, totaling $13.6 million Federal 10,100,000 (10,100,000)
Gross ($3.5 million GF/GP), that had been included in the FY 2023-24 GF/GP $3,500,200 ($3,500,200)
budget:
• Laboratory Animal Welfare, $500,000 GF/GP.
• Minority-owned Food and Agriculture Ventures, $2.9 million GF/GP.
• Northern Michigan Herd Protection, $100 GF/GP.
• Rural Venture Capital Program, $100 GF/GP.
• Washtenaw conservation district - MiFarmLink pilot project,
$100,000 GF/GP.
• ARP - Resilient Food Systems Infrastructure, $10.1 million federal.
House concurs with Executive and removes the above FY 2023-24
items.
# Note that One-time items in the FY 2023-24 budget total $30.6 million
Gross ($20.5 million GF/GP). Item #13 does not discuss one-time items,
totaling $17.0 million, that were discussed above, specifically:
• Emerging Contaminates in Food and Agriculture, $2.0 million
GF/GP. (See Item #2, above.)
• Agricultural Climate Resiliency, $6.0 million GF/GP. (See Item #5,
above.
• Soil Health and Regenerative Agriculture, $5.0 million GF/GP. (See
Item # 6, above).
• Local Conservation Districts, $1.0 million GF/GP. (See Item #7,
above).
• Food and Agriculture Supply Chain Investment, $1.0 million GF/GP.
(See Item #10 above).
• County Fairs, Shows, and Expositions, $2.0 million GF/GP. (See
Item #12, above).
15. Economic Adjustments Gross NA $1,968,500
Executive reflects increased costs of $2.0 million Gross ($1.5 million IDG/IDT NA 5,400
GF/GP) for negotiated salary and wage increases (5.0% on October 1, Federal NA 95,200
2024), actuarially required retirement contributions, worker's Restricted NA 395,900
compensation, building occupancy charges, rent, and other economic GF/GP NA $1,472,000
adjustments. House concurs with Executive.
Major Boilerplate Changes from FY 2023-24
Sec. 207. Communication with the Legislature – REVISED
Executive deletes section that prohibits department from taking disciplinary action against an employee for communicating
with the Legislature. House retains with technical changes to reflect new standard language; renumbered as Sec. 206.
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Major Boilerplate Changes from FY 2023-24
Sec. 212. Transparency Website – REVISED
Executive deletes section that requires the department to cooperate with the Department of Technology, Management
and Budget to maintain a searchable website, accessible by the public, that provides expenditure and staffing information.
House retains with technical changes to reflect new standard language; renumbered as Sec. 211.
Sec. 213. Restricted Fund Report – REVISED
Executive deletes section that requires the department to work with the State Budget Office to provide a report on
restricted fund revenues, expenditures, and fund balances; renumbered as Sec. 212. [This report is currently included in
the annual Budget Presentation.] House retains with technical changes to reflect new standard language.
Sec. 214. Key Metrics – DELETED
Executive deletes section that requires the department to maintain on a publicly accessible website information on key
metrics and performance measures. House concurs with Executive and does not include.
Sec. 218. Remote Work Policy – REVISED
Executive deletes section that indicates legislative intent that the department maximize the efficiency of the state
workforce and, where possible, prioritize in-person work and post its in-person, remote, or hybrid work policy on its
website. House retains with technical changes to reflect new standard language; renumbered as Sec. 216.
Sec. 219. State Administrative Board Transfers – DELETED
Executive deletes section that authorizes the legislature to intertransfer funds within budget if the State Administrative
Board transfers funds from an appropriation within this budget. House deletes section.
Sec. 221. Record Retention Policy – REVISED
Executive deletes section that prescribes the department's record retention policy. House retains with technical changes
to reflect new standard language; renumbered as Sec. 218.
Sec. 222. Impact of New Legislation – REVISED
Executive deletes section that requires a report on specific policy changes made to implement new public acts enacted
in prior calendar year. House retains with technical changes to reflect new standard language; renumbered as Sec. 219.
Sec. 223. Severance Pay Report – DELETED
Executive deletes section that established reporting requirements related to severance pay paid to department personnel
upon the termination of employment. House concurs with Executive and does not include.
Sec. 225. Work Project Expenditures – REVISED
Executive deletes section that requires that work project balances be exhausted before expenditure from part 1
appropriations. House retains with technical changes to reflect new standard language; renumbered as Sec. 221.
Secs. 503 and 504. Agricultural Climate Resiliency – REVISED
Executive combines the two sections that define the part 1 line items but generally retains current year language. House
maintains both sections but revises Sec. 503 to direct that the department to use not less than $9.0 million to partner with
a state land-grant university (Michigan State University) for program activities.
Sec. 802. Agriculture Equine Industry Development Fund Reductions – REVISED
Executive retains section that defines priority of AEIDF appropriations. House makes technical changes.
Sec. 803. Standardbred Sire Stakes at County Fairs – NEW
House includes new section to define the new Michigan sired champion stakes item to allow for a standardbred sire stakes
awards in the event there is no licensed race meeting/track to host the event.
Sec. 901. Work Project Repurpose – NEW
House includes new section to repurpose $5.0 million in unexpended and unobligated funds from a work project
established for the FY 2021-22 agricultural nutrient best management voluntary practices program. Specifically, the
boilerplate would repurpose $1.0 million for the Fair food network - double up food bucks program; $3.0 million for
Agricultural climate resiliency; $850,000 to the Michigan craft beverage council, and $150,000 to the Flint farmer's market.
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