Executive Summary


Russell Allen is undertaking a project no one would have dreamed of doing ten years ago. He is developing a commercial shrimp farm in a suburb of Michigan's state capital of Lansing. Spurred by consumer demand for seafood and rising shrimp imports, Allen took a gamble and opened Seafood Systems, Inc. of Okemos this past spring with a goal of producing 50 million pounds of shrimp per year within 10 years.

Russell Allen is not alone. One of a new breed of agricultural entrepreneurs, he is changing the face of agriculture in Michigan. With an eye on domestic and global markets, and making use of the latest in genetics research, environmental protection measures and high technology, this new breed of farmer is helping to move the world's most important industry into the 21st century.

Agricultural entrepreneurship is only one part of the mix in the new world of agriculture. Cutting- edge technology is providing for the safest food supply American families have ever enjoyed. New packaging and better modes of transportation are supplying a dizzying array of new products for the consumer. Unprecedented alliances among private industry, government and academia are creating new opportunities in rural communities, and value-added agriculture is offering a range of possibilities never before explored in this most traditional of industries.

The Michigan Department of Agriculture is playing a key role in this change by providing leadership in critical areas such as food safety, rural economic development and agricultural expansion, environmental stewardship, and consumer protection. This is done through the use of dynamic partnerships that seek to shape the direction of agriculture. It is accomplished through the adoption of new technologies and the enhancement and training of one of state government's most effective workforces. It is also accomplished through the adoption or amending of legislation that enhances rather than diminishes agriculture's responsiveness to consumers.

This report focuses on the events of 1996, an important year in the history of the Michigan Department of Agriculture, one which brought into focus the transition occurring as a result of such change.

At the helm of today's MDA is Dan Wyant, who was appointed Director by the Michigan Commission of Agriculture effective October 1996. He had served as the department's Legislative Liaison from 1991 to 1995 before becoming Associate Director, Office of Legislative Affairs for Governor John Engler. Prior to joining state government, Director Wyant held posts with Lowe's International in Chicago and Ralston Purina Company in St. Louis, and was a partner in Wyant Farms, a cash crop and purebred swine farm in Dowagiac, Michigan.

Shortly after his appointment, Director Wyant announced that the department would continue to build on the agency's primary missions of protecting the food supply, strengthening the family farm, and enhancing opportunities for the food and agriculture industry especially in rural Michigan, protecting the environment and serving as one of the state's most important consumer advocates.

The department's accomplishments toward fulfilling these missions are detailed in the following report. The first section outlines major accomplishments of the department, followed by a more detailed description of each division and how it contributed toward the department's goals during 1996.

1996: A Year of Change

"There's an old adage that people like to avoid change because it's painful. But there comes a moment - sometimes very briefly at first - when the tide begins to turn, when pain takes a backseat to exhilaration. I think that began to happen for Michigan agriculture, especially MDA employees, in 1996. New ideas, new challenges, and new technology invigorated our workforce, helping us better fulfill our commitment to the people of Michigan."
Dan Wyant, Director

The sweep of change was highlighted by MDA's 75th anniversary celebration. The year offered many opportunities to reflect on more than seven decades of service to the people of Michigan. As was detailed in last year's annual report, the beginning of this century, when the Michigan Legislature created the Michigan Department of Agriculture, was also a time of enormous change.

Society was adjusting to the emergence of the automobile as a primary means of transportation. As an industry, manufacturing was growing and would soon surpass agriculture as the state's most important economic sector. Cities were seen as arenas of opportunity, especially for young people looking to leave the rural life of their parents and grandparents.

Technology fueled that change, just as it does today. And just as Michigan fared well during transformation to the automotive age, our state will successfully enter the next century in good stead...particularly in the application of technology to agricultural enterprise. The basics for agricultural excellence already exist in Michigan. In both statistics and reputation, Michigan is one of the nation's leading and most diverse agricultural states. The adoption of new technology has already begun in the agricultural sector and it has commenced in earnest for the employees of the Michigan Department of Agriculture.

MDA Reaches Out to World Through Internet Presence

In June 1996, the Michigan Department of Agriculture launched a World Wide Website ( http://www.mda.state.mi.us) as a way to provide information directly, and more easily, to members of the industry and to consumers. The site also became a new way for the department and its constituencies to interact. Requests from the public, through the site's e-mail function, covered everything from information about pesticide registration to animal care. Eventually, in the not too distant future, clients will be able to receive test scores, receive training and purchase licenses through the site. A year after it was launched, the website had recorded over 100,000 "hits"-- a successful startup government Internet site.

Following the lead of many private sector companies, including such giants as Levi Strauss and Microsoft, MDA began to build an Intranet system, an internal website intended to enhance communications between employees within the organization. It goes far beyond simple e-mail, and will ultimately allow employees to solve problems together in real time via computer hookup. It will also centralize and place within instantaneous reach, the volumes of critical files now in paper form at MDA's central location in Lansing.

The World Wide Website, and its companion Intranet, were just two of the technological introductions that occurred at MDA in 1996. In addition, a plan was launched to expand computer capabilities to field staff. The intent is not only to enhance their productivity but to improve the department's response to the agriculture industry by providing immediate information by computer link instead of relaying requests through traditional channels to the central office in Lansing and waiting for a response.

During 1996, the adoption of information technology became one of the most visible signs of change in the department. It represented a commitment to changing the way government works and a willingness to embrace the future.

The planning for and execution of new technology, by its very nature, forges alliances. People talk to each other more than ever before, though the manner of exchange may be different (e-mail, video conferencing, etc). As you will see by the following examples of achievement for 1996, the use of technology and the forging of alliances with business, academia and other governmental agencies figure prominently in MDA's commitment to fulfilling its mission to the people of Michigan.

Protecting the Safety and Wholesomeness of Michigan's Food Supply

Food safety is the Michigan Department of Agriculture's number one priority. From regular inspections of grocery stores, restaurants and processing plants to the testing of the state's milk supply to annually testing fruits and vegetables for the presence of chemical residues, MDA is the front-line guardian of food safety in Michigan.

Working in concert with local governmental agencies, the U.S. Department of Agriculture, the U.S. Environmental Protection Agency, and FDA, MDA's programs and policies are aimed at reducing the risk of food contamination.

In 1996, the department broadened its responsibilities by incorporating food safety programs that were transferred from another state government department, and it advanced high-technology processes that will result in preventing foodborne illness earlier in the food chain.

Food Sanitation Program Transferred to MDA

In April 1996, the Food Service Sanitation Program was transferred to MDA from the Michigan Department of Public Health, thus placing all programs responsible for assuring Michigan consumers a safe food supply in the same state department. Since joining MDA, the program has been working with the food service industry and local public health departments to initiate programs to further minimize the risk of foodborne illness. In addition, MDA also incorporated the responsibilities of the Department of Public Health's Insect and Rodent Control Program and Migrant Labor Housing Program.

High-Tech Ways to Prevent Food Contamination

New approaches to food safety, combined with high-tech methods of detecting contamination, are replacing the old "see, smell and touch" approach. One process, called the Hazard Analysis Critical Control Point System (HACCP) is being implemented in Michigan. It was first used in the 1960s by the Pillsbury Company to produce the safest and highest quality food possible for astronauts in the space program. The process will be in wide use in the agriculture industry and home kitchens as the new century begins.

HACCP identifies where hazards might occur in the food production process and puts into place stringent actions to prevent the hazards from occurring. By strictly monitoring and controlling each step of the process, there is less chance for contamination to occur.

During 1996, MDA established and expanded its partnerships with industry and academia to explore and promote the use of HACCP in Michigan. In addition, the department is working on a food safety system called Michigan Food-RAP (Risk Assessment Profile), which will help the department's Food and Dairy Division direct its resources to situations that pose the greatest risk to food safety. Detailed information about each licensed establishment by a computer model that not only categorizes the risk potential of each component but also ties in inspection history to determine how frequently each business should be inspected. The computerized information also helps the Food and Dairy Division track the distribution of hazardous products or direct specific guidance to forms that use special processing equipment.

MDA Strengthens Emergency Management Program to Protect Food Supply

During disasters such as floods, tornadoes, ice storms, even nuclear power accidents, it is the responsibility of the Michigan Department of Agriculture to safeguard the state's food supply. This includes everything from inspecting affected grocery stores (and seizing contaminated food when appropriate) to ordering the disposal of animal carcasses.

In March 1996, the department appointed a new Emergency Management Coordinator. David Charney, a retired captain from the Michigan State Police, served as deputy director of that agency's Emergency Management Division and was responsible for coordinating the efforts of all state government agencies in response to emergencies and disasters. Since his appointment to the MDA post, he has developed a program to strengthen MDA's program, creating a team of regional emergency management coordinators from each of MDA's seven regions, as well as emergency management liaisons from each of the department's major divisions. The Emergency Management mission, role, goals and objectives have been determined for the next two years. Training and exercising schedules have been set for 1997 to ensure the members of this team, who have assumed these duties in addition to their normal responsibilities, are prepared to direct departmental response to the next disaster. Communication systems using telephone and e-mail have been established with all team members. Technology enhancements, including a Geographic Information System, mobile telephones and portable computers, have been mapped out for future development.

The year tested the new emergency response system, when two gubernatorial, one presidential and three agricultural disaster declarations were made in response to a severe cold winter, late spring frost, flooding and drought in various parts of the state. It was the highest level of disaster activity in ten years.

Quick Responses Protect Food Chain

One measure of success is an organization's ability to head off potential disasters. MDA employees are trained to respond promptly to reports of contamination, animal disease and other potentially hazardous situations.

For instance, MDA moved swiftly to respond to an isolated PBB incident on a Huron County farm. In early 1996, the U.S. Department of Agriculture's Contamination Response System (CRS) found Polybrominated Biphenyls (PBBs) in a hog sample from the farm. With cooperation from the Food and Drug Administration, MDA immediately began an investigation to determine the scope of the contamination and its potential source. All animals on the farm were quarantined and numerous samples collected, including fat from other farm animals, feed, hay, well water, soil, manure and various scrapings of farm structures. No PBBs were detected in the other farm animals, in any of the environmental samples taken at the farm or in samples taken from other farms and feed mills in the area. All animals found to contain PBBs were destroyed.

MDA also responded quickly to reports of tuberculosis found in wild white-tailed deer in northeastern Michigan. To safeguard domestic livestock, and maintain Michigan's bovine TB-free status, the department conducted testing for the disease on all livestock located within a five-mile radius of any wild white-tailed deer found infected with bovine tuberculosis. In 1996, testing was completed in 2,837 cattle, 40 swine, 47 goats and 6 cervid herds located within the surveillance area. No evidence of the disease was detected. Surveillance efforts, in cooperation with the Michigan Departments of Natural Resources and Community Health, as well as sports clubs and deer hunters, continues.

MDA Forms Cider Advisory Committee

In response to reports of E. coli bacteria found in cider produced in other states, MDA formed a cider advisory committee to review current cider processing techniques and make recommendations that will further assure food safety.

The department also tested samples from 114 of Michigan's licensed cider producers, and found no traces of the bacteria.

Michigan's apple cider initiative is serving as a national model for other state's looking to review their cider processing techniques.

Strengthening the Family Farm and Rural Communities

Strengthening family farms and the rural communities in which they reside is not at all inconsistent with the information age. The new world we live in is a world of choices and opportunities. Working the land or simply living in a rural community for the enormous benefits it provides should continue to be a choice for Americans. However, protecting that choice in the face of today's demands on growers, and threats from continued suburban encroachment, pose challenges to the entire industry. In addition, some rural communities remain economically challenged and could benefit from effective economic development initiatives.

In 1996, MDA's programs, including its participation with the Rural Development Council of Michigan (RDCM), supported efforts to strengthen rural Michigan.

Rural Development Council of Michigan Programs Focus on Land Use and Farmland Preservation

The Rural Development Council of Michigan (RDCM) is a public/private partnership whose charge is to develop new, collaborative approaches to enhance the future of rural Michiganians. RDCM is an umbrella organization which continually promotes the membership and active participation of six partner groups: local, federal and state governments; Native American tribes; private for-profit organizations; and, non-profit interests.

In 1996, the Council was active in a number of areas to support Michigan's rural communities:

The opportunities for agricultural expansion in Michigan have never been brighter. Ask the shrimp farm entrepreneur in Okemos or the cranberry producer in southeast Michigan. Talk to the farm market operator who has just expanded the business to include on-site entertainment or the farmer who has opened a bed-and-breakfast to take advantage of the new interest in agricultural tourism. Have a slice of Detroit-made 26-calorie navy bean pizza that will dazzle your tastebuds or feel the excitement of a first-time international export "deal" made by a growing Michigan processor.

The ingredients that create opportunity are all around us--skilled workforce, strong economy, premier fresh and processed products, new technology, a willingness to work together, and, an infectious enthusiasm for success.

Whether it's issuing a license for a new agricultural entrepreneur or helping a business owner solve a problem with the exporting of nursery stock, MDA plays a crucial role in helping the agricultural industry fulfill its potential. Partnering with industry, even in its role as regulator, the department follows a philosophy of "compliance assistance" -- help industry comply with the law and regulations that govern agricultural enterprise and success follows. The redevelopment of the cranberry industry in Michigan provides one example of how this can happen.

Commission of Agriculture Approves Management Practices for Cranberry Farming

Cranberry farming practices, providing general technical and regulatory guidelines for growers, will help Michigan restore a cranberry industry that faltered at the turn of the 20th Century. When it approved and issued the practices in 1996, the Michigan Commission of Agriculture endorsed the redevelopment of the industry to capture part of the growing cranberry market in the U.S.

The practices were drafted through a partnership among MDA, MSU Extension, MSU Agriculture Experiment Station, Michigan Farm Bureau, U.S.D.A. Farm Service Agency and Natural Resources Conservation Service, Michigan United Conservation Clubs, Michigan Cranberry Council, Michigan Department of Environmental Quality (MDEQ), Clean Water Action, Michigan Association of Conservation Districts and the U.S. Army Corps of Engineers, Detroit District.

A Memorandum of Agreement on Cranberry Production and Environmental Protection was signed in 1995 between MDA and MDEQ. Michigan regulations governing the construction of cranberry beds will be administered in a manner consistent with federal regulations and guidance. The Memorandum of Agreement also stipulated that MDA and MDEQ will support funding for research, education and development of a cranberry industry in Michigan.

Michigan Pork Alliance Enhances Economic Opportunities

MDA is an active partner in the Michigan Pork Alliance, which is seeking strategic solutions to problems facing a growing pork industry. Access to capital expansion and retooling of existing production facilities, land use and zoning issues, environmentally sound, manure management and land application, and adding value along the pork marketing chain are a few of the current challenges. Members of the Michigan Pork Alliance include the Michigan Farm Bureau, Michigan Corn Growers, Michigan Soybean Promotion Committee, Michigan Pork Producers Association, Michigan State University, Michigan Agri-Business Association, Michigan Livestock Exchange and Thorn Apple Valley, Inc. -- a perfect example of a cooperative effort to expand opportunities for Michigan agriculture.

MDA Partnership Secures Brazilian Market For Michigan Apples

In the fall of 1995, the Brazilian government announced Michigan apples would not be accepted after January 1, 1996 unless they met extremely rigorous criteria, effectively blocking Michigan apple sales to that country. MDA worked cooperatively with the Michigan Apple Committee and Michigan State University entomologists to develop a "work plan" that met Brazil's pest concerns and secure Brazil's acceptance of the plan. In July 1996, MDA was notified that Brazil had reopened its market to Michigan apple shippers. Phytosanitary certificates were issued for approximately 1.5 million pounds of apples shipped to Brazil in 1996.

Looking Out for Michigan's Consumers

Throughout MDA's policies and programs, consumers come first. Certainly MDA's efforts to provide for a high-quality, healthy food supply benefit the consumer. So does livestock testing to assure a state herd of TB-free cattle or efforts to enhance the quality of life in rural communities. But there are other direct services MDA provides that add a measure of protection for the Michigan consumer.

In 1996, there were significant achievements in the arena of consumer protection, including the investigation of a highly toxic pesticide being used in some Detroit homes for pest control.

Investigation Protects City Residents From Toxic Pesticide

In 1995, MDA initiated an investigation involving two businesses where methyl parathion, a highly toxic pesticide typically used on cotton crops, was being illegally produced and distributed to unsuspecting consumers for use in controlling pests. During 1996, MDA and the U.S. Environmental Protection Agency cooperatively responded to four sites where detected levels of methyl parathion residue posed significant health threats. The four sites included three private homes and one community service facility providing food and shelter for citizens in the metropolitan Detroit area.

The EPA Superfund responded by relocating residents and restoring the sites once residue removal was completed. The remediation program included cooperation with the Detroit Health Department, Michigan Department of Community Health and Family Independence Agency.

Once the remediation process was completed, MDA focused on enforcement proceedings against the two firms known to be involved with the illegal production and distribution. MDA initiated enforcement proceedings against one of the businesses, Hudson's Pest Control, through an administrative complaint, assessing civil penalties and completing licensing and certification revocation proceedings. EPA is expected to initiate additional federal charges against Hudson's Pest Control and the second business, Morning Glory Soap Products.

Public-Private Partnership Keeps Air Pollution in Check

A public-private partnership between MDA and gasoline suppliers and retailers kept air pollution in check in southeast Michigan through the adoption and enforcement of two new ozone protection measures. The aim of the program, launched in 1996, is to reduce the release of air pollutants through the use of gasoline that is more "environmentally friendly" and to recapture vapors normally released during the offloading of gasoline by delivery trucks at gas stations.

Making Sure Consumers Get What They Pay For

In September 1996, construction started at a rural site near Williamston, Michigan, for one of the nation's finest weights and measures laboratories. In less than one year, the doors opened to a facility deemed so state-of-the-art, weights and measures technicians from all over the country are now being trained there.

What is most significant, however, is that the lab protects consumers by making sure the weights and measures used in manufacturing plants, stores and gas stations are accurate, and the gasoline they buy is unadulterated and contains the octane that is advertised. In 1996 alone, weights and measures staff inspected over 51,000 devices and over 37,000 packages for accuracy.

Promoting Environmental Stewardship for Michigan's Future

Farmers have always been the frontline stewards of the land. Without techniques such as crop rotation, soil would be depleted of nutrients. Without clean water, livestock could not thrive. That ethic survives today not only on the family farm but throughout the agriculture and food industry. And it is an ethic at the foundation of MDA's program initiatives aimed at protecting Michigan's environment.

Proudly, MDA's environmental stewardship programs have gained national acclaim for their ingenuity and success. One reason for that success has been and continues to be the fact they are based on partnerships with the industry, farmers, consumers, academia and environmental advocacy groups.

At conference tables and in farm fields all over Michigan, environmental policy is shaped and implemented in an atmosphere of shared vision. The Michigan Groundwater Stewardship Program is a prime example.

MDA Program Protects State's Water Resources

The Michigan Groundwater Stewardship Program, initiated in 1994, helps pesticide and nitrogen fertilizer users reduce the risk of groundwater contamination. This innovative program, funded through fees paid by pesticide manufacturers, is a cooperative effort among MDA, Soil Conservation Service, Soil and Water Conservation Districts and Michigan State University. It supports voluntary programs which use education, technical assistance, and cost-sharing and is directed not only to farmers but also golf course managers, right-of-way pesticide users and homeowners.

In 1996, over 3,000 Michigan farms received some form of assistance. Grants totally $2.4 million were provided in the areas of technical support, cost share, demonstration/education, research, and pesticide use surveys. Nearly 1,300 abandoned wells in high-risk areas were decommissioned. Technical support, cost share, and demonstration/education activities, which are designed and implemented locally, represented 78.51%. The balance of the funds were awarded for commodity- based programs. Thirty-seven local groundwater stewardship programs were funded through a competitive grant program in 1996. Through coordination with the USDA AmeriCorps program, local programs were offered throughout the Lower Peninsula and in Delta, Menominee, and Schoolcraft Counties in the Upper Peninsula.

The Michigan Groundwater Stewardship Program supported a variety of other activities which relate to pesticide and fertilizer use and groundwater protection in FY96. These include a spill response program, which provided technical assistance for individuals dealing with pesticide, fertilizer, and manure spills; a cooperative groundwater monitoring program; the Clean Sweep pesticide pick-up program, which helped dispose of unused and unwanted pesticides in an environmentally sound manner; container recycling efforts for plastic and aerosol pesticide containers; general groundwater education for technicians and pesticide and fertilizer users; supporting evaluation of the effectiveness of local, commodity, and statewide program areas; and development of models which estimate the vulnerability of the state's aquifers.

Agricultural Pollution Prevention Strategy

On June 6, 1996, Director Russell Harding, Michigan Department of Environmental Quality (MDEQ) and then Director Gordon Guyer, Michigan Department of Agriculture, issued a letter requesting the development of an industry-led pollution prevention strategy for Michigan agriculture. The directive centered on a 1995 report released by a producer driven Agricultural Nonpoint Source Task Force. The charge was to move these task force recommendations toward an implementation phase by utilizing them as a cornerstone for developing a pollution prevention strategy for Michigan agriculture.

During 1996, in a series of meetings facilitated by the MDA and MDEQ, an agricultural pollution prevention task force committee of agricultural producers developed a draft Pollution Prevention Strategy to address environmental issues confronting producers, agri-business, and agencies into the 21st century. The final strategy will be made available to the legislative, state, and local policy makers for use as a guide in developing agricultural environmental policy.

Accomplishments by Division

As specified by law, the Michigan Commission of Agriculture is comprised of five individuals appointed by the Governor, whose responsibilities are to select the department director and set policy guidelines for the department's programs.

In 1996, those programs were implemented by 13 separate divisions plus the Office of Racing Commissioner. The following are accomplishments that were achieved in 1996. They are organized by division, although in may cases, there was cross-division cooperation to achieve them.

Administrative Divisions

Executive Office

The Executive Office provides administrative and policy direction for the department, housing the Office of the Director, Deputy Director, Director of Agriculture Policy and Special Projects, Legislative Liaison, and support staff. In 1996, it also housed the department's Science Advisor and staff for the Rural Development Council of Michigan.

The Director of Agriculture Policy and Special Projects works closely with the Director to formulate new department policies and to review or revise existing policies. In addition, new and innovative programs and special programs are launched. The Legislative Liaison is MDA's link to the Michigan Legislature and federal government concerning all legislation that affects the department and the agriculture industry.

During 1996, the major change in the Executive Office occurred with the appointment of a new director, Dan Wyant, whose background in public policy development and agribusiness brought a unique perspective to the department's programs.

Executive Office Assists in Development of Cranberry Industry

In 1996, the Executive Office assisted in the development of a program to inform, educate and market cranberry growing as a profitable farm enterprise. A permanent "Site Review Team" was developed to advise growers on the feasibility of cranberry production at particular locations. The team assists potential growers on-site by answering concerns regarding wetlands and permitting. They also worked together to produce the Generally Accepted Agricultural and Management Practices for establishing successful, environmentally sound cranberry production in Michigan.

Alternative Fuels Program Underway

MDA participated in the Michigan Alternative Fueled Vehicle Inter-departmental Task Force which developed a draft Michigan State Plan for Alternative Fueled Vehicles that was submitted to Governor John Engler. The task force analyzed various issues related to the development of alternative fuels, alternative fueled vehicles and alternative fuel refueling facilities.

Michigan Attracts New Soybean Processing Plant

MDA helped Zeeland Farm Services, Inc., in Zeeland, facilitate construction of Michigan's first soybean processing plant. The $8 million facility opened in August 1996. It is expected to generate more than $10 million annually for the state's economy in payroll, taxes and other benefits. Michigan

farmers benefit by higher bid prices for soybeans and lower soy meal costs for poultry and livestock feeding. The plant is expected to purchase six to seven million bushels of Michigan soybeans each year and will process nearly 600 tons of soy meal daily.

Financial Services Division

The Financial Services Division administers MDA's business management activity such as accounting, budget, internal audits and procurement, and administers the county fair and racing programs, as well as industry audits.

Department Budget

In 1996, the division supported Michigan agriculture by facilitating the department's budget process for appropriations of over $67 million Gross and $43 million General Fund/General Purpose. There were no over expenditures and the department lapsed just over $295,695, which is approximately .6 percent of the appropriated general fund.

Audits

During the year, the Financial Services Division conducted 255 grain dealer audits with 35 follow-up visits. Some companies were audited frequently as a result of identified problems. There were no insolvencies resulting in losses to producers during this period. Thirty-two county fair audits were performed to assure that state funds were used in an appropriate manner. There are currently five fairs on probation; these fairs were given this status because they could not demonstrate the ability to adequately document the use of state funds and to provide for adequate management control. The division also provided audit services to the director to provide program performance information on selected commodity groups. This will be reoccurring yearly on two or three different groups.

New Initiatives at the U.P. State Fair

The U.P. State Fair has completed two new initiatives: the implementation of a five-year plan to make the fair self-supporting, resulting in General Fund savings of approximately $235,000, and the fair has entered into a contract to provide motor car racing in order to generate additional revenue.

Human Resources Division

The Human Resources Division is responsible for the selection, hiring and compensation of department employees, as well as the administration of employee benefits, position classification, labor relations, and training. The division houses the Office of Equal Employment Opportunity/Affirmative Action (EEO/AA), which implements programs to insure equitable representation of all groups within the department's workforce.

Student Intern Program Expands

MDA's student intern program continued to grow in 1996, with 46 students working at the department during the summer, an increase of 20 over the previous year. The program provides meaningful learning experiences for students and gives the department a new pool of talent from which to draw upon in the future.

Customer Service Academy

In 1994, Governor Engler created the Secchia Commission to make recommendations toward improving customer relations in state government, thereby instilling a more user-friendly environment. Although the report issued by the Secchia Commission commended MDA for our outstanding service to our constituents, the Department realized the need to continue to maintain and enhance that rapport. Therefore, in 1996, MDA went one step further by initiating a Customer Service Academy, in conjunction with the Department of Environmental Quality (DEQ), to further develop its partnership. The intent and focus of the Academy is to provide employees with appropriate training to better meet the needs of consumers and industry.

The division continues to work with DEQ and the Department of Civil Service on improving the Academy to assure that all areas of interest are met and that a common goal is achieved.

Internal Operations Division

The Internal Operations Division (IOD) is responsible for the planning, development, implementation and administration of the department's information technology, regional office administration and mail/inventory management. This division administers the microcomputer-based local and wide-area network, electronically enabling employees to share information, process electronic mail, and communicate through the Internet to the department's agribusiness customers and Michigan's consumers.

Specific accomplishments for 1996 included implementing the State of Michigan standard electronic mail system, converting to the Novell Network Operation System, operationally implementing the department's homepage on the Internet, and moving and upgrading the facility for a regional office.

Marketing and Promotion Divisions

Communications and Emergency Management Division

The Communications and Emergency Management (CEM) Division is responsible for providing internal and external information, education and communications programs for the public, media and MDA employees. In addition, the division now coordinates the department's emergency management response during crises that affect the farm industry and safety of Michigan's food supply. These crises include floods, drought, early and late season frost, chemical spills, even nuclear accidents.

The division houses the Customer Service Ombudsman, who responds to the department's general information hotline. The Benton Harbor Market News Service is also located in CEM. The service is the federal/state shipping point which provides daily marketing information for Michigan and the nation's fruit and vegetable industry.

MDA Responds to 1996 Disasters

MDA participated in securing two gubernatorial, one presidential and three agricultural disaster declarations in 1996. Disaster activity began with a severe cold winter and late spring frost which affected crop production in the Lake Michigan shoreline fruit belt. In May, severe flooding on the Galien River impacted Berrien County and in June, a tornado and heavy rains struck the Thumb area of Michigan. The Federal Emergency Management Agency (FEMA) provided over $15 million in public assistance, individual assistance and hazard mitigation grant programs. In December, Governor Engler requested yet another agricultural disaster declaration from USDA, this time for drought conditions which existed from late June through mid-September.

Division Coordinates Department Anniversary Activities

The Michigan Department of Agriculture was formed March 21, 1921. In honor of the 75th Anniversary of the Michigan Department of Agriculture, a year-long celebration was initiated. The celebration included a series of events to promote the department and the food and agriculture industry, while celebrating the anniversary with our various constituents: the food and agriculture industry; legislators; MDA employees; and the citizens of our state. Activities included: a "75th Birthday" celebration, essay contest and tour of the agriculture exhibits at the Michigan Library and Historical Center with fourth and fifth graders from Lansing's Walnut Street School; an Agriculture Week celebration at the Michigan Historical Center in conjunction with the Michigan Festivals and Events Association; and, a "Salute to the Michigan Agriculture Industry" reception in recognition of the important partnerships with the food and agriculture industry.

Michigan Recycles Aerosols! Program Wins Top National Award

A public information campaign to increase the number of aerosol cans being recycled in Michigan earned the department a Silver Anvil Award from the Public Relations Society of America. Through direct contact with recyclers and a public awareness campaign that included public service announcements, the number of recycling programs accepting aerosol cans tripled during a six-month period. Today more than three million Michigan consumers can include aerosol cans in their regular recycling efforts.

The success of the program will decrease the amount of steel being land filled, increase the amount of high-quality steel available for recycling, and lessen the chance that residue left in the cans migrates to groundwater supplies. The $100,000 cost of the program was funded through a grant from the Michigan Groundwater Stewardship Program.

Cherry Partnership Against Hunger

The successful Cherry Partnership Against Hunger, which brings together industry, government and the non-profit sectors to utilize surplus commodities such as cherries in the fight against hunger, continued in 1996. The program--coordinated between CEM and the Market Development Division- -was initiated in 1995 when the Food Bank Council of Michigan received over 300,000 pounds of Michigan red tart cherries from the federal government. With assistance from private industry and state government, the cherries were made into 250,000 servings of cherry crisp in 1995, and another 167,000 servings of cherry turnovers in 1996. The Michigan Department of Corrections utilized prisoners and kitchen space to do the processing and cooking.

Educational Materials for Teachers

In early 1996, the department designed a packet of educational materials that could be used by teachers, parents and child care providers to help children learn more about Michigan agriculture. The packet of materials included brochures, fact sheets and games that cover such topics as food safety, aerosol recycling and information about Michigan-grown and processed foods. Approximately 300 packets were distributed in 1996, reaching an estimated 3,000 children.

Market Development Division

The Market Development Division serves as a catalyst, coordinator and resource to provide promotional, marketing and economic development opportunities for Michigan's food and agricultural industry. Market Development works closely with industry leaders to recognize entrepreneurial opportunities and help turn them into reality. In addition, the division plays a critical role in marketing, advertising and promoting Michigan's food and agricultural products by developing markets for the products in Michigan, in other states and around the world. The Michigan Grape and Wine Industry Council, located in this division, provides wine industry information and education to consumers. Special projects include research on grape varieties and wine production, and promotion through special events.

Michigan Forms Partnership with the Michigan Jobs Commission

The Michigan Jobs Commission and MDA agreed to work cooperatively to encourage the expansion of export markets and the attraction of value-added processing to Michigan. They have also worked jointly on value-added development through a "food processing round table"; development of a "lure" brochure to aid attraction; and the pursuing of financing issues to enhance value-added opportunities. MDA's International program has continued its close working relationship with the state's export staff and overseas offices, housed in the Jobs Commission.

MDA-International Produces Economic Success

The MDA-International Program assisted 12 Michigan food companies obtain $557,000 in allocations from the federal Market Access Program for the promotion of their products in targeted foreign markets. Additionally, 24 Michigan food companies that received assistance during 1994 and 1995 generated over $12 million in sales, resulting in a positive return on state investment of $59 for every $1 invested.

Michigan Companies Participate in International Food Show

MDA coordinated its 3rd annual pavilion at the U.S. Food Export Showcase (a part of the Food Marketing Institute Show) in Chicago in May 1996. Thirteen food companies exhibited Michigan- made products to an estimated 15,000 U.S. and international food buyers. Michigan beans, fruit and vegetable products, snack foods, baked goods, butter and other products were displayed. Michigan's presence at the show, and sales generated, has continued to expand over the past three years.

Food Exporter Workshop Assists Michigan Companies Compete

Nearly two dozen Michigan food companies attended "A Workshop for Beginning Food Exporters" in September. In order to open and expand export markets, the workshop focused on logistical export issues including payment methods, international price quotations, freight forwarders and other topics. The program was jointly sponsored by the Michigan Department of Agriculture and the Michigan Jobs Commission.

Grown in Michigan Grants Promote Michigan Commodities

MDA again awarded grants to grower-funded organizations for marketing and promotion of Michigan commodities. Seven projects were funded including the Michigan Gourmet television show, shown state-wide on PBS stations; a booth at the Michigan State Fair in Detroit showcasing Michigan agriculture through a live crop display and activity center for children; promotion of October as Michigan Farm Market Month through brochures at state welcome centers; radio and newspaper promotions of apple and cherry pies for the holidays; consumer taste-testing of cherries in beef products; activity books showcasing Michigan row crops; promotion of Michigan-grown produce including a calendar listing when the commodities are in season and where to purchase them.

Program Support Divisions

Farmland Services Division

The Farmland Services Division provides assistance to soil and water conservation districts, drain commissioners and land users in the conservation and development of our soil and water resources. Programs administered by the division encourage the installation and management of sustainable resource protection practices at the local level. The division is also the archival and service center for climatological data and information for the State of Michigan.

Migrant Labor Housing Program Transferred to MDA

In 1996, the duties of the Migrant Labor Housing Section were transferred to MDA. During the year, the number of licensed housing sites increased from 854 to 862 from the previous year. The Migrant Labor Housing Construction Grant Program awarded $300,000, of which $100,000 was administered by a nonprofit organization. The remaining $200,000 resulted in over $1 million in new construction or improvements to existing housing. The continuing increase in migrant housing sites is a demonstration of the importance of having quality housing to continue to attract an adequate farm workforce to do hand labor to harvest crops. This is especially important to maintaining our national ranking as the second most diverse agricultural state in the nation.

Soil and Water Conservation Program

Across the state the Farmland Services Division has been working through Michigan's 82 Conservation Districts assisting in the implementation of diverse conservation systems. More than 65,500 customers received assistance through conservation districts which benefited a total of 162,000 acres of land. One of the star conservation practices is conservation tillage systems. These systems keep soil in place, reduce sedimentation into surface waters, lower energy use, and aid wildlife. No-till conservation tillage has increased for the 18th consecutive year. No-till soybeans enjoyed the largest growth of any conservation tillage system in 1996. No-till soybeans planted on 700,000 acres surpasses corn for the first time in history. No-till corn increased by 50,000 acres to 690,000 acres, the most ever recorded.

Energy Conservation Program

From pesticide certification workshops in Alpena to irrigation scheduling assistance in Van Buren County, the Energy Conservation Program delivered on its promise to save energy and reduce input cost for farmers. In partnership with Conservation Districts and Michigan State University, Agricultural Experiment Station, over half a million people learned about energy saving techniques and practices. Eighteen hundred farmers participated in workshops or tours discussing topics as diverse as windbreaks, conservation tillage, sprayer calibration and soil testing. Close to 100 miles of farmstead and field windbreaks were planted. Direct one-on-one technical assistance was provided to 974 farmers. The Energy Program saved 2.1 million gallons of fuel or fuel equivalents, which means farmers and forest product producers reduced input costs by approximately $2.1 million.

Soil Surveys

Soil Surveys for over 513,325 acres in ten survey areas were completed during 1996. This brought the total acreage in the state with soil surveys to 34,023,322 acres--90 percent of the state. Sixty-one counties now have published soil survey reports, two of which were printed in 1996. Eight more soil surveys are in various phases of the publication process.

Mud Creek Irrigation District Project A First

The Mud Creek Irrigation District No. 1 (Huron County) became operational in 1996 due to the efforts of the Farmland Services staff. The district is designed to demonstrate the economic, technical feasibility, and environmental impacts of large scale managed irrigation in Michigan. This is the first organized district under the Irrigation Districts Act (P.A. 205 of 1967) and will serve 2,100 acres of crop land using water from Saginaw Bay while providing 100 percent removal of zebra mussel life forms in the systems water.

Agriculture Sustainability Options Created

With funding provided by a grant from the Kellogg Foundation, the Farmland Services Division, Michigan farmers, consumers, environmental advocates and others have joined together in a new collaboration to create and support more sustainable food and farming options for farmers and the communities they serve. Currently, there are 14 operating community-based models or "demonstration sites". Each site is demonstrating an emerging or potential integrated food and farming technology or strategy. The sites range in scope from a "Protecting Farmlands from Urban Sprawl" project in Washtenaw County to a "Farmers Egg Cooperative" in Eaton County.

Forestry Assistance Program

Under division direction, 35 of the districts participated in the Forest Stewardship Program, 53 participated in the Forestry Assistance Program and 68 districts conducted reforestation programs. All of these programs resulted in 600 forest management plans on 62,264 acres to better manage forest, wildlife and soil resources. They serviced the forestry needs of over 15,000 landowners whose wood products had a market value of over $3.8 million, and in the planting of 13 million trees in Michigan leading to the reforestation of slightly over 7,000 acres.

Michigan Envirothon

The Division is providing grant funding, along with its major partners - Detroit Edison and Consumers Energy - to conduct the Michigan Envirothon Program. This is a nationwide program for high school students enabling them to gain a better understanding of and appreciation for our environment. Its mission is to provide a base for developing these students into tomorrow's leaders. The Envirothon centers on cooperation and competition and is a year-long educational event which culminates in a State Envirothon competition. In 1996, almost 400 Michigan high school youth participated in learning more about managing resources. Michigan is leading the nation in the development of several aspects of the program: we are first in the energy and ecosystem approaches, and last year we added a sustainable agriculture component. Michigan will host the 1998 Envirothon at Michigan State University.

Michigan Agricultural Statistics Service

The Michigan Agricultural Statistics Service (MASS), under a formal agreement between the U.S. Department of Agriculture's National Agricultural Statistics Service and MDA, is responsible for the official Michigan agricultural database.

MASS conducts surveys to collect data on Michigan agriculture. Forecasts and estimates are prepared on acreage, yield, and production of Michigan's field crops, fruits and vegetables. Estimates are also made on the number of head and production of livestock. MASS also keeps track of the prices for various commodities.

MASS statisticians annually prepare county estimates of major crop and livestock commodities. A part-time field enumerator staff, located throughout Michigan and employed by the National Association of State Departments of Agriculture (NASDA), assists in the collection of survey data from farmers and agribusinesses.

Michigan Rotational Surveys

In 1996, MASS completed the Michigan Rotational Vegetable Survey , a complete enumeration of all Michigan vegetable farms. A 36-page bulletin was released with details on number of farms, acreage, yields, and county locations of Michigan's vegetable crops. The Service started collecting Christmas tree and nursery data in January 1997. The results of this Nursery and Christmas Tree Survey will be published in the fall of 1997.

Tart Cherry Objective Measurement Survey

MASS also completed an annual mid-June Tart Cherry Objective Measurement Survey in which fruit counts are made on a sample of about 550 tart cherry trees across the state. These data provided current crop production statistics for the Michigan tart cherry industry . The 1996 crop was 195 million pounds, 37 percent below the large 1995 crop.

Equine Inventory Survey

During June 1996 MASS conducted a probability survey of Michigan equine owners as part of the Michigan Equine Monitoring System (MEMS). The inventory of equine in Michigan as of June 1, 1996, was an estimated 130,000 head, unchanged from 5 years earlier. The total value of Michigan's equine was estimated at more than $400 million.

Michigan County Agricultural Statistics 1996

MASS compiled county statistics from various sources and published this title for limited distribution. Although printed copies are not available, it is available on the MASS homepage. Selected county data can be printed from the homepage or print the entire report. This replaces a series titled County Food and Agricultural Development Statistics which was last printed in 1990.

Laboratory Division

The Michigan Department of Agriculture's William C. Geagley Laboratory ranks as one of the top pesticide and food safety laboratories in the nation, and serves as one of the most important consumer protection watchdogs in the state.

The laboratory examines samples of foods, beverages, pesticides, and feeds to verify labels, ensure compliance with state and federal regulations and to guarantee product quality and sanitation. The lab monitors food and feed for contaminants, tests blood and urine from winning race horses to make sure performance altering drugs were not used, and tests livestock to prevent the spread of infectious diseases.

The Motor Fuels Quality Laboratory performs octane, alcohol, lead and additional tests to insure quality of motor fuels purchased by Michigan consumers. In 1996, the laboratory performed a total of 546,729 tests on 392,405 samples.

In addition to routine samples, the lab provided analytical support in a number of other special program areas:

Equine Testing Section Receives National Accreditation

The Equine Drug Testing section of the MDA Laboratory has been granted accreditation by the American Association of Laboratory Accreditation in the field of animal drug testing. The section analyzes urine, blood, and miscellaneous samples from horses competing at Michigan's racetracks and livestock competing at Michigan's county fairs. The section is one of a very few such labs in the U.S. so accredited.

Lab Renovations Approved

Today's sophisticated analytical and computer equipment requires a controlled environment to assure the reliability of test results as well as the health and safety of lab workers. To meet these standards, MDA's Geagley Laboratory has received special funding from the Michigan Legislature for major improvements to the ventilation and mechanical systems of the 40-year old building. These renovations are expected to begin in 1997 and be completed by 1999.

Regulatory Divisions

Animal Industry Division

MDA's Animal Industry Division protects the health of domestic animals, livestock and pets. The state veterinarian is responsible for overall livestock and poultry disease control programs and toxic substance contamination concerns as they relate to animal health. The division works to eradicate animal diseases and ensures the humane treatment of animals through the licensing and regulation of animal shelters, dog pounds, pet shops, riding stables and research facilities.

Making Sure Michigan States Brucellosis and TB-Free

For centuries, bovine tuberculosis and brucellosis in cattle posed a threat to both human health and the economic viability of the cattle industry. Through the efforts of the Animal Industry Division, Michigan was declared free of these diseases enabling Michigan producers to move their cattle into international markets. This was essential in supporting Michigan's $1.5 billion livestock industry. Michigan has also been declared pullorum-typhoid clean, enabling more free trade for the state's $120 million poultry industry.

Keeping Rabies in Check

Rabies always carries a potential threat which is why MDA and communities throughout Michigan must remain vigilant about keeping the disease in check. There is new concern since rabies is reappearing among wildlife in various regions of the country. There were roughly 6,000 cases of animal rabies in the U.S. during the 1980s; now there are about 9,000 a year, the majority of them in the wild animal population. During 1996, the Animal Industry Division investigated 31 cases of rabies. Twenty-nine involved bats and two involved skunks. There were no reported cases of rabies in domestic animals or humans.

Pseudorabies Eradication Program Achieving Its Goals

Although it is not related to rabies, "pseudorabies" (whose symptoms mimic rabies) is a serious herpes disease of swine that attacks their central nervous system. This disease has a substantial impact on the economics of the swine industry because infection in a herd results in smaller litter sizes and slow weight gain. Based on a 1993 study conducted by MDA and the Michigan State University Departments of Agricultural Economics and Large Animal Clinical Sciences, it is estimated that the Michigan swine industry loses more than $2.5 million each year due to pseudorabies.

Proactive Program Tracks EEE

Eastern Equine Encephalitis (EEE) is a disease that is usually fatal in horses and can also affect humans. Every year, the Animal Industry Division, in cooperation with other agencies and Michigan State University, conducts a proactive surveillance program to identify EEE cases in the state's horse population. In 1996, MDA tracked only two cases of the neurological disease, all in southwest or south central Michigan. This low number is a variation in the normal occurrence of cases of this poorly understood disease. The general public and equine industry are kept aware of the disease through news releases and direct contacts with veterinarians and public health officials.

MDA Works Cooperatively to Control Sheep Scrapie

The division is currently working cooperatively on a new scrapie control/eradication program with the Michigan sheep industry and Michigan State University. This state-of-the-art program will incorporate new molecular genetics technology to test sheep to predict the risk of infection. There is significant interest in reducing scrapie, as it has been associated with Bovine Spongiform Encephalopathy (BSE) and variant Cruetzfeldt-Jakob Disease (CJD) in Great Britain.

Drug Residue Investigations Decreased

In 1989, the Animal Industry Division signed a formal contract with the Food and Drug Administration (FDA) to perform certain investigations of meat animal drug residue violations. In 1989, 292 investigations were assigned to MDA field veterinarians. As a result of the division's on- farm education program, this number decreased to 24 in 1994, and further decreased to 15 in 1996.

In July 1996, a four-year MDA/FDA cooperative investigation culminated in the prosecution and conviction of a large livestock dealer operation for knowingly introducing livestock contaminated with antibiotic residue into the human food supply. This was the first such case in the U.S.

The MDA and FDA initiated a formal partnership agreement in 1996 to enhance cooperative efforts in the future. The partnership will benefit all shareholders through improved information sharing, resulting in decreased response time to violations, and enhanced resource utilization.

Dairy Division

Through the efforts of the Dairy Division, Michigan consumers are assured the safest and most wholesome milk supply available in the world. Michigan dairy farmers produce about 5.5 billion pounds of milk and 20 million pounds of butter per year.

By inspecting Michigan's 4,000 Grade A milk producing farms on a regular basis, the division insures that all fluid milk for bottling in the state meets stringent standards. In addition, cheese factories, butter plants and ice cream factories are checked for sanitation. Over 6,000 samples of dairy products are analyzed each year at the department's laboratory to assure that standards are met. The division also protects the public from false labeling of dairy products so consumers can buy with confidence.

In addition, division personnel participated in joint efforts with the dairy industry to improve milk quality and reduce the amount of enforcement activity necessary to achieve acceptable compliance levels. The division also held educational sessions for training industry personnel in safe milk handling and processing techniques, as well as in the avoidance of drug residues.

Division Monitors For Drug Residues In Milk

The division implemented a comprehensive drug residue monitoring program in 1996, which included the testing and monitoring of milk for antibiotics and other drugs. More than 4.3 million pounds of milk were found to contain some drug residues and were not allowed for sale.

Detecting Stray Voltage Problems on Dairy Farms

A pilot program is now underway that will help identify and resolve electrical problems on dairy farms. The Dairy Division is working cooperatively with Michigan State University and the Michigan Agricultural Electric Council (MAEC) to make Michigan dairy farms even safer.

With a voltage screening twice a year, MDA inspectors can help detect voltage conditions on dairy farms before they become problems which can then be resolved by members of the MAEC.

Food Division

The Food Division has responsibility for the regulation of food and food products, weights and measures and the quality of motor fuels. Consumer safety and product wholesomeness are accomplished through four major programs. The Food Safety Assurance Program enforces laws that govern the manufacture, storage, handling and "offering for sale" of foods and beverages, and it enforces sanitation and food safety standards in all food establishments. To prevent economic fraud and deception, the Weights and Measures Program enforces laws and regulations applying to weighing and measuring devices. The Farm Produce Program regulates the commercial handling of farm produce, and the Motor Fuels Quality Program regulates the sale and quality of motor fuels to ensure the fuels consumers buy contain the proper materials and meet legal standards.

Food Safety Assurance Program

Michigan was one of the first states in the nation to adopt laws protecting the safety and wholesomeness of its food supply with the 1881 passage of Public Act 254, which made it unlawful to adulterate food, drink or medicine. In 1968, that law was replaced by Public Act 39, the "Michigan Food Law", which further regulates the manufacture, distribution and sale of food.

During 1996, the role of the Food Division broadened when Governor John Engler transferred the Food Service Sanitation Program from the Michigan Department of Public Health. The program staff work with 49 local health departments to reduce the risk of foodborne illness in restaurants and other establishments that prepare and/or serve food for immediate consumption. Program staff prepare the licenses for more than 48,000 food establishments in Michigan. The staff also train local health department staff and food service operators in safe food handling techniques.

Division Seizes Over 4 Million Pounds of Unusable Food

Inspectors seized 4,127,454 pounds of food valued at over $5.2 million. Food is seized because it is contaminated by chemicals or bacteria, adulterated, damaged by fire, stored in insanitary conditions, misbranded, outdated, processed in unlicensed facilities or is insect infested, among other things.

MDA Investigates Foodborne Illness Incidents

In 1996, several incidents of foodborne illness were investigated by MDA. Among the most serious were:

Smoked Fish Regulation Adopted

At the industry's request, the department revised the smoked fish rules last modified in 1965 to reflect advances in the science and processing of smoked fish while incorporating food safety principles. Hazard Analysis Critical Control Points (HACCP) is a well-defined food safety system which has been built into the new rules as an industry requirement under certain critical processing and packaging conditions. The rules allow for Michigan food industries to better compete economically and safely in an increasingly competitive market.

Weights and Measures Program

This program acts as the "third person" in commercial transactions between buyers and sellers, assuring that both parties are protected, while supporting a fair and competitive marketplace. The diversity and increasing sophistication of weighing and measuring devices, packaged commodities and methods of sale all combine to provide unique challenges to the weights and measures staff.

From the testing and inspecting of gasoline dispensers and grocery store scales to the certification of 200,000 pound capacity vehicle scales and 500 gallon per minute terminal meters, inspectors ensure that these commercial devices are within state tolerances. Inspectors also inspect packaged commodities ranging from everyday grocery store products to cylinders of compressed and liquid propane gases to verify that consumers get what they pay for.

The scope of the Weights and Measures Program continues to grow. In late December 1995, Washtenaw County ceased its weights and measures inspection operations. The responsibility for the county was immediately assumed by regional MDA inspectors.

New Metrology Laboratory Construction Began in 1996

During 1996, one of the nation's most advanced weights and measures laboratories broke ground just outside Williamston, Michigan. Replacing the current weights and measures laboratory, the new building will help the state maintain its accreditation with the National Institute of Standards and Technology (NIST) and will meet the growing need of industry for highly precision inspection, testing, and calibration.

The laboratory will be named the "E. C. Heffron Metrology Laboratory" in honor of the late Dr. Edward C. Heffron who served as Food Division Director since 1976 and who dedicated his leadership to seeing that the building be constructed. Dr. Heffron was a national leader in the field of food safety and weights and measures, and established a number of regulatory standards within MDA which became national models.

Farm Produce Program

Producers selling or storing farm produce such as dry edible beans, soybeans, corn, other grains and potatoes rely on the credibility of the marketplace for over $1 billion in income. Assuring a credible market is a goal of the Farm Produce Enforcement Program, which regulates dealers of these products under the authority of Public Act 141 of 1939, as amended, the Michigan Grain Dealers Act, and Public Act 158 of 1965, as amended, the Michigan Wholesale Potato Dealers Act.

During 1996, more than 360 licenses were issued to grain elevators, truckers, merchandisers and potato dealers. In addition, staff reviewed 253 audit reports and initiated enforcement action as a result of 20 of those reports.

During the year, staff identified four new grain dealers that required licensure, and assisted nine new owners of existing grain facilities to meet compliance. Six grain dealers and five potato dealers discontinued operation. One grain dealer had a cash flow problem and could not immediately satisfy grain being relocated or ultimately paid. Attention to closures and ownership changes gives more certainty to the dealer's discharge of obligations.

Motor Fuels Quality Program

The Motor Fuels Quality Program has continued to grow and expand to meet industry and consumer gasoline quality needs since it began in 1985. In 1996, the program expanded in a different direction and assumed responsibility for environmental gasoline control measures.

New Program Protects Air Quality

On July 1, 1996, the department implemented Stage I Vapor Recovery controls and a requirement for lower vapor pressure gasoline sales and distribution in southeast Michigan. These measures are necessary to ensure Michigan continues to maintain its attainment status with the National Ambient Air Quality Standards in Wayne, Oakland, Macomb, St. Clair, Monroe, Livingston and Washtenaw counties.

Both environmental control measures prevent or lessen the release of gasoline vapors into the atmosphere. The Stage I Vapor Recovery controls produce an air-tight dispensing system and retain the gasoline vapors within the delivery tanker and underground storage tanks. Lower vapor pressure gasoline evaporates slower than conventional gasoline. The lower vapor pressure gasoline is limited to no more than 7.8 psi (pounds per square inch) to prevent losses during vehicle refueling.

During part of the peak ozone period (July 1 to September 15, 1996), the Motor Fuels Quality staff audited the gasoline at 536 dispensing facilities in the seven county area for vapor pressure. The new control measure prevented an estimated 26.8 tons of emissions per day for a total reduction of over 2,063 tons.

In addition to the vapor pressure audits, a year-round inspection program was instituted in 1996 for Stage I compliance at gasoline dispensing facilities. The Stage I Vapor Recovery controls prevent an estimated 8.6 tons of emissions per day.

Pesticide & Plant Pest Management Division

The Pesticide & Plant Pest Management Division (PPPMD) is responsible for the implementation of programs and enforcement of laws dealing with agricultural products, pesticide management, pest management and groundwater protection. PPPMD programs are designed to protect both the user and the environment from the unnecessary risks associated with improper pesticide application.

The division is actively involved in developing the necessary response to insure Michigan's groundwater is protected from adverse affects from pesticides and fertilizers. Active inspection and sampling programs are conducted to assure the continued safety and integrity of agricultural products such as animal feeds, remedies, agricultural fertilizers, pesticides and seeds.

As part of the plant pest program, all nursery stock grown in Michigan is inspected by PPPMD to insure freedom from harmful insects and diseases. Certificates of various plant materials, including fresh produce and lumber destined for export to foreign markets, are provided throughout the year by division inspectors. Various state and federal quarantine programs, including regulatory and suppression activities aimed at the gypsy moth, are also managed through this wide-ranging branch of MDA.

Office of Pollution Prevention

Michigan Groundwater Stewardship Program The Michigan Groundwater Stewardship Program is administered under the authority of the Groundwater and Freshwater Protection Act - P.A. 247 of 1993, and is funded by fees paid by

pesticide manufacturers. Cooperating agencies include the U.S.D.A. Natural Resources Conservation Service, Michigan State University Extension and Soil Conservation Districts.

The program's mission is backed by a belief that the Michigan Groundwater Stewardship program should be voluntary, locally driven, address the concerns of individuals, and maintain a focus on realistic solutions and the financial and technical constraints which drive real-world decisions. The program addresses risks to groundwater associated with pesticide and nitrogen fertilizer use.

Local Programs

In 1996, the program supported local efforts through $2.4 million in grants, accounting for 78.5 percent of all grant-funded projects. Included were Farm*A*Syst evaluations, a cornerstone of the Groundwater Program. The voluntary Farm*A*Syst procedure allows producers to identify potential risks to groundwater on their farms, such as recognizing abandoned wells in high risk areas and identifying improper pesticide and nitrogen fertilizer storage practices. Once the evaluation is completed, the landowner is able to access cost-share dollars to correct the problem.


Local Groundwater Stewardship Program
Practices Implemented in 1996
Farm*A*Syst
3,083
Abandoned Well Decommissioning
1,294
Pre-Sidedress Nitrogen Test
24,479 acres
Intensive Rotational Grazing
460 acres
Nurse Tanks/Transfer Pump System
45
Portable Mix-Load Pad
64
Pesticide Sprayer Foam Marker
35
Pesticide Sprayer Rate Controller/Injection System
41
Nitrogen Delivery Rate Controller
5
Pesticide Sprayer Calibration
39
Manure Spreader Calibration
9
Manure Nutrient Analysis
119
Well Water Nitrate Test
226
Leaf Tissue Analysis
83
Anti-Backflow Device
1,360
Emergency Pesticide Spill Kit
15
Pesticide Containment Facility
4
Permanent Mix-Load Pad
11
Bulk Liquid Fertilizer Secondary Containment Facility
17

Commodity Programs

The Michigan Groundwater Stewardship Program also supported a variety of specific commodity- based programs for orchards, vegetable production, rights-of-way, Christmas tree production, turfgrass, corn producers, and household pesticide and nitrogen fertilizer users. These programs include:

Spill Response Program Doubles Involvement

MDA instituted the Agriculture Pollution Emergency (APE) hotline in late 1995 to address the need to provide immediate, realistic, and cost-effective spill response assistance for Michigan's agriculture industry. During 1996, the department nearly doubled its involvement in pesticide and fertilizer spill incidents leading to the recovery and proper disposal of almost 44,000 gallons of liquid and 11 tons of dry product. Twenty-nine farm, 15 commercial agriculture, and 13 commercial non-agriculture spills were reported and acted upon by MDA while utilizing only $4,200 in Groundwater Fund money for cleanup.

Clean Sweep Program Establishes Permanent Sites

During 1996, the Michigan Clean Sweep Program - a national model in pesticide collection and disposal - initiated construction of seven permanent hazardous waste collection centers located in Ionia, Kalamazoo, Lapeer, Isabella, Berrien, Ottawa and Oakland Counties. Grants of $30,000 were made to each site under the agreement to maintain the facilities for ten years. The Oakland County site is funded through a special EPA program.

According to the agreement, grantees will establish and maintain a permanent collection and storage site and assure that workers participate in training offered by MDA in the safe handling and packaging of pesticides, site coordination, participant survey of needs and establishment of licensed waste hauling contracts.

Pesticide Container Recycling Program

During 1996, MDA provided groundwater grant funding to the Michigan Agri-Business Association to facilitate the continued program of collecting and recycling empty, clean pesticide containers.

Michigan's Right to Farm Program

The Right to Farm (RTF) Environmental Complaint Response Program addressed a total of 107 new farm-related environmental and nuisance complaints during 1996, compared to 143 complaints during the previous year. All were resolved voluntarily.

As with previous years, a large majority of the new complaints concerned manure management practices at livestock and poultry facilities throughout Michigan. Complaints were reported in 40 of Michigan's 83 counties and were concentrated in the southern half of the state's lower peninsula.

Pesticide Section

The pesticide program is responsible for applicator certification and registered technicians, pesticide enforcement, commercial applicator licensing, worker protection, endangered species, pesticide registration and restricted use pesticide dealer licensing.

Inspection activities include use/misuse investigations, inspections of producer establishments and marketplaces, monitoring and auditing restricted use pesticide dealer sales, commercial applicator records and planned use inspections.

Insect and Rodent Control Program Transferred to PPPMD

In 1996, under Executive Order of the Governor of Michigan, MDA received the Insect and Rodent Control Program from the Michigan Department of Public Health. The program, now referred to as the Insect & Rodent Management Program, administers the state public health program designed to monitor human health disease vectors, including Lyme Disease, Eastern Equine Encephalitis, St. Louis Encephalitis, and Hantavirus, among others.

Inspections

The Pesticide and Plant Pest Management Division conducted the following inspections during 1996:

Enforcement Activities

A total of 287 complaints of pesticide misuse were investigated in 1996. As in previous years, the greatest number of complaints were generated in the urban community. Complaints in the lawn care and ornamental industries reflect a violative rate of 30 percent and 10 percent respectively. Complaints in the indoor pest control industry reflect a violative rate of six percent. Agricultural complaints reflect a violative rate of eight percent.

The misuse complaints in the urban, non-agricultural community continue to be attributed to a wide scope of use issues, including licensing of commercial application businesses, Regulation 637 requirements related to notification, posting, consent to service, commercial records and other related matters.

MDA Action Protects Health of Detroit Consumers

In 1995, PPPMD staff initiated a pesticide use investigation involving two businesses in Detroit where methyl parathion, a highly toxic agricultural pesticide, was being illegally produced and distributed to consumers for pest control in the home. The investigation was largely completed in 1995 but continued into 1996 to provide education and site remediation of four contaminated buildings.

Once the remediation process was completed, MDA initiated enforcement actions against Hudson's Pest Control through an administrative complaint process, assessing civil penalties and initiating licensing and certification revocation proceedings. PPPMD anticipates that an EPA criminal investigator will initiate additional federal charges against Hudson's Pest Control and Morning Glory Soap Products.

Urban Education and Outreach Initiative

MDA received funding from EPA to initiate the development of educational materials aimed at public awareness of pesticide use and the dangers associated with the use of pesticides. This pilot initiative will eventually result in the development of materials aimed at educating consumers on the safe and effective use of pesticides and the concept of integrated pest management, including the use of alternatives to pesticide use for the control of pests. To date, MDA has worked with commercial pesticide applicator associations, MSU and the Eastern Michigan Environmental Action Council to develop materials for use in the metropolitan Detroit area.

Certification and Recertification Programs

Currently there are over 28,000 pesticide applicators who are either certified or registered in Michigan. To receive certification or registration, an applicant must successfully pass a pesticide applicator exam. During 1996, 19,661 first time and renewal exams were administered in the following categories: commercial-13,916; private-4,667; and, registered technician-1,078.

During 1996, 750 recertification seminars were offered nationally and within the state. In Michigan, over 1,500 applicators renewed their credentials by attending seminars for credit.

Pesticide Registration

Approximately 11,000 section 3 (federally registered) pesticides were registered for the 1996-97 registration year. Registration of a section 3 product in Michigan requires collection and review of a product label, and collection of a registration and a groundwater protection fee.

Section 18 of FIFRA (Federal Insecticide Fungicide and Rodenticide Act) allows the states to request from EPA the use of an unregistered pesticide to control an emergency pest problem within the state. When such a situation develops, MDA is petitioned by an MSU Extension specialist for a section 18 emergency exemption. MDA evaluates the situation to see if it meets section 18 criteria, and if so, works with the Extension specialist to develop the request.

Ten section 18 exemption requests were compiled and submitted to EPA in 1996. Nine of the requests were granted and the tenth denied due to the issuance of a tolerance which made the product eligible for a section 24(c) registration. In situations where there is not enough time to request a section 18 specific exemption from EPA, MDA can issue a section 18 crisis exemption which allows use of the pesticide for 15 days. MDA must assure that the pesticide is covered by a food tolerance and the situation is urgent and non-routine. No crisis exemptions were issued in 1996.

Six FIFRA section 24(c)(special local needs) registrations were reviewed and issued by MDA in 1996. A 24(c) registration is issued or denied by MDA and then submitted to EPA for concurrence. If EPA does not request revocation of the registration, it is valid for five years.

Plant Industry Section

Agricultural Products/Quality Assurance

Commercial Feed Program

The most recent statistics available show that cash receipts by Michigan livestock producers of meat, fish, milk, eggs and pelts totaled about $1.3 billion in 1995. During the same year, livestock producers spent approximately $370 million for livestock feed. Additionally, with approximately 1.9 million dogs and 2 million cats, Michigan pet owners spent over $200 million on dog food and another $134 million on cat food.

Within this framework, the primary goal of Michigan's Commercial Feed Program is to safeguard human and animal health through inspection of commercial feed products and the processes involved in their production, distribution and storage. Because therapeutic and production drugs are often administered via commercial feeds, MDA closely monitors the manufacturers of these products for compliance with current good manufacturing practice regulations. In addition, reports of animal deaths or illnesses where feed may be implicated are investigated promptly.

Another important goal is to protect the feed industry from unfair competition and deceptive advertising practices. False or misleading claims can hurt not only animals and their owners but honest and reputable manufacturers.

There has been a slow but steady increase in the number of companies obtaining feed licenses in the past five years. In 1992, MDA licensed 950 feed manufacturers and distributors. By mid-December 1996, the number of licenses increased to 1,118. Total commercial feed tonnage has increased from just over one million tons in 1990 to 1.23 million tons in 1995.

Grain Elevator Sanitation Program

The goals of the Grain Elevator Sanitation Program are to assure that food grains are safe, wholesome and free of contamination, and to help prevent the loss of grain and animal feed to pests.

There are approximately 270 grain elevators in Michigan, storing approximately 200 million bushels of grain and beans.

MDA also participated with MSU and the Michigan Agri-Business Association (MABA) in informational meetings, issued informational news releases, and organized a session to develop strategies for dealing with future outbreaks. Wheat growers, processors, seedsmen, and research and extension leaders participated. A major outcome of this meeting was a vomitoxin conference and research symposium held in conjunction with the MABA Convention held in January 1997, in which MDA was an active partner and participant.

Animal Remedy Program

MDA's Animal Remedy Program provides assurance that animal drugs and vaccines used in both food production and companion animals are properly labeled and safe for their intended use. Product label review and enforcement of licensing provisions helps insure that illegal and unsafe drugs are not used for animals intended for slaughter.

Plant Food Program

This cornerstone agricultural program regulates over 700 manufacturers and distributors of over 1.4 million tons of fertilizer and over 20,000 tons of lime in Michigan each year for both agricultural and non-agricultural use. Approximately 50,000 farmers, using 11 million acres of land to produce $1 billion worth of field crops for food and livestock feed, depend upon this quality assurance and consumer protection program to maximize yields and insure their economic survival. In addition, millions of state residents depend upon the program to protect them from fraud when purchasing fertilizer for home and garden use.

Seed Program

Michigan's 50,000 farmers and thousands of home gardeners depend upon this program to insure that the seed they buy is viable and accurately labeled. This program protects them and serves over 600 seed labelers who process and distribute approximately 170,000 tons of seed annually in Michigan for agricultural and non-agricultural use.

During 1996, important steps in protecting Michigan's field bean industry were authorized by amendments to Michigan's Seed Law, P.A. 329 of 1965, which require that field bean destined for Michigan markets be field inspected and laboratory tested for disease. Michigan Crop Improvement Association was selected to be the agent to conduct the inspections and sampling.

MDA revised the Rhizomania Quarantine prohibiting the importation of host material and soil from sugar beet growing infected areas. Caused by beet necrotic yellow vein virus, Rhizomania attacks the roots of sugar beets, causing a proliferation of fine fibrous roots and preventing the development of a taproot. Inspectors intercepted and took action against product valued at $127,560 which was in violation of the quarantine.

Plant Pest Programs

Nursery Program

The two most significant developments in this program during 1996 were the shipment of gypsy moth-free nursery stock and the enhanced ability of MDA to serve its customers due to industry- supported and legislatively-approved inspection fee increases. The fee increases allowed MDA to hire additional field staff.

Gypsy Moth Program

Currently, all of the lower peninsula and the three east counties of the upper peninsula are quarantined for gypsy moth. The following efforts were made during 1996 to manage the gypsy moth infestation:

Pine Shoot Beetle

Fifty-two counties in Michigan's lower peninsula are regulated for pine shoot beetle. The following efforts were made in 1996 to combat this pest:

Japanese Beetle Currently 31 counties are regulated for Japanese Beetle infestations. During 1996:

Export Inspections

The number of export inspections continued to increase, a trend seen in the past few years. Such inspections are vital to Michigan's agriculture and food industry, as seen in the following data:


Export Facts

(FY 1995 data)

Commodity

Quantity Exported

Apples

12,878,595 lbs.
Beans
88,113,940 lbs.
Corn
72,600 lbs.
Fruit
49,996 lbs.
Lumber
1,614,479 bd. ft.
Nursery Stock
340,386 pieces
Perennials
112,660 pieces
Popcorn
3,765,650 lbs.
Christmas trees
16,725 pieces

As a result of a cooperative effort between MDA, USDA, MSU and the Michigan Apple Committee, a "Systems Approach" protocol was developed to facilitate the shipment of Michigan apples to Brazil. The acceptance of this protocol by Brazil has opened another lucrative market for Michigan apples which would otherwise be used by the U.S. processing market, bringing in lower values. To date, over 200 Michigan apple growers have registered with MDA as potential exporters of apples to the South American country.

Fruit & Vegetable Inspection Program

MDA's Fruit & Vegetable Inspection Program offers grading services and verification of produce quality using government standards and/or producer specifications. Inspectors provide growers, shippers, packers, processors and brokers with an unbiased, third-party inspection service. The program is voluntary; only those clients requesting service actually participate in the program.

In 1995, the program became responsible for the Controlled Atmosphere Storage Licensing Program, which involves the inspection and sealing of approximately 200 to 300 CA apple storage rooms each year.

In 1996, F&V staff who have six years experience or more were commissioned to inspect and issue final Phytosanitary certificates on the commodities for which they are licensed.

Conclusion

People are often surprised to learn what role the Michigan Department of Agriculture plays in Michigan's second most important industry and the broad scope of responsibilities its staff are charged with performing.

This report has detailed not only the significant accomplishments of the department during 1996, but has outlined the daily activities of each division during that year.

We hope you have found it informative and helpful. For more information about the Michigan Department of Agriculture, write to us at: P.O. Box 30017, Lansing, Michigan 48909, or visit our World Wide Website at http://www.mda.state.mi.us.