Why SGI Contributes $91.4 billion annually to the state s

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1 Michigan s Food & Agriculture Industry Strategic Growth Initiative (SGI)

2 Michigan Food and Agriculture Industry Why SGI Contributes $91.4 billion annually to the state s economy. Employs 923,000 Michigan residents. MI has 10 million acres of cropland. Food processing contribute $24.6 billion to Michigan s economy.

3 By 2050 World s population will reach 9.1 billion 34% increase Food production must increase 70%. 70% of the world s population will be urban 49% today. $2.8 billion in 2011 Michigan exports.

4 Goals Outcomes Increase economic impact of food and agriculture 2012 Status $71 billion $100 billion $91.4 billion Double agriculture exports $1.75 billion $3.5 billion $2.83 billion Increase food and agricultural jobs Improve access to healthy foods Increase sustainable food and agriculture systems 1 million 1.1 million 923,000 40% of residents 1,000 verifications 60% of residents 5,000 verifications TBD 1,331

5 Program Overview The Strategic Growth Initiative (SGI) is an outcome of the Governor s Summit on production agriculture held in August 2011 and is in response to the recommendations from the House Agriculture Subcommittee on Agricultural Processing. The SGI is a new state / Industry partnership.

6 Program Priorities This initiative has been developed to focus on removing existing barriers and leveraging opportunities identified by food processors, agribusiness, and those in agricultural production as critical to business development and growth. Additionally, a priority is to coordinate and cooperate with universities and other research organizations to bring the latest technology and information to Michigan to improve the industry.

7 Implementation Plan The MDARD Director has formed an advisory The MDARD Director has formed an advisory board consisting of food and agriculture industry representatives who have been charged with identifying barriers and opportunities for growth and establishing priorities.

8 Implementation Plan Funding The funding for SGI will be distributed through a The funding for SGI will be distributed through a competitive request for proposal (RFP) process. The RFP will focus on issues identified by the industry. This Initiative will identify ways to validate new and improved innovations for emerging issues. The sharing of information will benefit the industry and stakeholders.

9 Proposed Grant Categories Workforce Development 1. Providing Food Safety training 2. Educational programs (including distance learning) 3. Recruitment programs internships, on the job training 4. Business marketing 5. Specific technical training to meet industry needs

10 Proposed Grant Categories Technical Assistance 1. Energy efficiency/ utilities 2. Alternative energy 3. Feasibility studies 4. Implementation of facility planning and/or design (i.e. new technology, new equipment)

11 Proposed Grant Categories Applied Research and/or Commercialization 1. The improvement of electronic systems, value-added processing 2. Packaging and processing technologies 3. Assisting in the implementing renewable technology 4. Implementing and developing waste management/recycling systems as it relates to agriculture or agricultural products 5. Water technology 6. Waste treatment systems 7. New equipment systems and optimization

12 Proposed Grant Categories Value Added Processing 1. Increasing farmer revenue, production and efficiency, or reducing expenses 2. Logistics 3. Implementing approved food safety and handling techniques, enhancing product value and sales

13 Proposed Grant Categories Exporting 1. Maximum residue levels (MRL) guidelines, reporting 2. Bio-engineered products 3. Allergens

14 Proposed Criteria and Guidelines MDARD will solicit proposals for projects that enhance the competitiveness of the Michigan Food and Agriculture industry. Grant funds will not be awarded for projects that directly benefit a single organization. A Joint Evaluation Committee will review proposals and recommend projects for award to the MDARD Director. Applications for grant funds should demonstrate how the project impacts and produces measurable outcomes for the industry rather than a single organization, institution, or individual. Indirect costs are not allowable under this grant program. Organizations must be legal entities recognized by the IRS.

15 Proposed Criteria and Guidelines Grant proposal(s) - Please complete the provided application. The application format must be followed. Grant period will be October 1, 2013, through March 31, This is a cost reimbursement program. Only proposals submitted in whole dollar amounts will be considered. Failure to comply with MDARD reporting requirements may result in forfeiture of current and future grant funding. Only two applications per entity are eligible for consideration. Grants awards will be in the range from a minimum or $50,000 to a maximum of $250,000. Applications must be limited to ten (10) pages - 8½ x 11, with not less than 12-point Arial font and 1-inch margins in a word format. Letters of Support do not count toward the page count. Proposals must be received byxxxxxx and will not be accepted if received after that deadline. Applications must be sent in a WORD document electronically to MDA- Grants@michigan.gov.

16 Additional Information Projects cannot begin work and/or expend any funds until a signed grant agreement is in place. The Director of Michigan Department of Agriculture & Rural Development will have final authority to approve or not approve grant awards, based upon selection criteria, program priorities and application instructions. MDARD Contact Mike DiBernardo: dibernardom@michigan.gov

17 Agriculture Development Specialists

18 Michigan Department of g Michigan Dept. of Agriculture & Rural Development MIagricultu re