Contact: Bridget Medina 517-373-1104
Agency: Agriculture
LANSING, January 11, 2006 –Governor Jennifer M. Granholm today said the findings of a study she requested are confirmation that Michigan's investment in agriculture, as well as alternative energy and bio-technology sectors, will be high-yield. The Michigan State University report estimates the current and potential impact of Michigan agriculture on the economy to be $60.1 billion annually and growing. The sector also employs over 1 million Michigan residents.
"Agriculture is an industry ripe with opportunity and support from the 21st Century Jobs Fund will position them to be a leader in the alternative energy and bio-technology arenas," said Granholm. "Michigan is committed to cultivating an economic climate that allows all business to prosper."
The study found that over the last five years, agriculture received $8.6 billion in public and private investment. Experts predict that over the next three to five years, the agriculture and food system will continue contributing significantly to Michigan's economic development–whether investment activity remains at current or increased levels.
The study covered all economic activity associated with supply chains for food and non-food uses of agricultural commodities, such as leather, food, floriculture, ornamentals, turfgrass, and bio-energy industries. The report concludes with discussions on both agri-tourism and the potential of a "bio-economy." Both of these areas for economic development need additional study before estimates can be made of their potential economic impact. The potential of the bio-economy may be especially large and cause the report's other estimates of future economic impact to be substantially underestimated.