SB 863 (2025-2026) Michigan — Appropriations: Department of Agriculture and Rural Development; FY 2026-2027
Overview
- Purpose: Enact an appropriation act allocating funds for the Department of Agriculture and Rural Development (MDARD) for the fiscal year ending September 30, 2027, and establish related expenditure and reporting requirements.
- Structure: Part 1 (line-item appropriations) by MDARD and its bureaus; Part 2 (provisions concerning appropriations) with general policies, reporting, and program-specific directives. Includes one-time appropriations and targeted programs.
Key Provisions and Changes
- Funding and structure (Part 1):
- Gross appropriation: $157,047,700 for MDARD with 545.0 classified FTE and 6.0 unclassified FTE (plus interdepartmental transfers).
- State funds breakdown:
- State general fund/general purpose (GF/GP): $76,900,400
- Federal revenues: $20,245,000
- Special revenue and dedicated funds: $59,563,700
- Net adjusted gross appropriation: $156,709,100
- Major program areas include:
- Departmental Administration and Support: $9,997,900 (with specific line items such as executive direction, accounting, emergency management, IT, etc.)
- Information Technology: $2,832,300
- Food Safety and Animal Health: $38,358,200 (includes line items for animal disease prevention/response, feed safety, milk safety, indemnification, etc.)
- Environment and Sustainability: $31,347,400 (MAEAP, soil health, pesticide management, right-to-farm, etc.)
- Agriculture Development: $37,397,900 (e.g., agricultural preservation easement grants, food and agriculture investment program, farm-to-family, migrant housing, etc.)
- Laboratory and Consumer Protection: $21,349,800
- Fairs and Expositions: $6,764,200
- One-time appropriations: $9,000,000 (Farmer-owned meat processor grants; Michigan Animal Agriculture Alliance; Michigan local food programs)
General and local funding clarity (Sec. 201): Total state spending from state sources $136,464,100; local unit transfers $11,800,000.
Contingency and ARP reforms (Sec. 210-211, 239, 240-241):
- Contingency authorizations for federal, state restricted, local, and private funds up to specified ceilings.
- Provisions for ARP/State Fiscal Recovery Fund reallocation and expending timelines (expiring by 12/31/2026; reallocation to health/public safety programs as needed).
Program-specific directions (selected):
- Michigan Local Food, Farm, and Nutrition Programs: substantial emphasis on SNAP benefits for fresh produce access, school program funding for scratch cooking, and local procurement emphasis.
- Food and Agriculture Investment Program: grants, loans, infrastructure, with at least 1,000,000+ directed to MSU Extension/AgBioResearch partnerships; 5% cap on administrative costs; guidance on equitable/project outcomes; emphasis on socially disadvantaged groups and Michigan-based businesses.
- Local conservation districts: $3,000,000 to be distributed via grants.
- Soil health/regenerative agriculture: at least $1,000,000 to partner with MSU/extension for research and outreach; specific practices encouraged; prohibition on funded fertilizer/pesticide precision research.
- Bovine TB and animal health: ongoing TB testing costs in specified zones; quarterly status updates and coordination with USDA; surveillance and herd testing reporting requirements.
Reporting and transparency (Sec. 204, 211, 212, 239, 237):
- Public online reports of expenditures, grant awards, and program outcomes; quarterly FTE reporting; annual strategic plan submission; annual reports on federal policy changes and work projects.
Local government and ethics (Sec. 201, 205, 214-216, 229):
- Local government funding statements; procurement preferences favor Michigan-made goods and veteran-owned businesses; reporting on travel, out-of-state activity, and legislative spending.
Effective periods and one-time items
- Balances and completion timelines: Several work-project designations extend through 2027-2031 (e.g., emerging contaminants project through Sept 30, 2031; local fairs/grants completion through Sept 30, 2028; meat processing grants through Sept 30, 2029).
- One-time appropriations totaling $9,000,000 are included, with specific allocations for meat processing, Michigan Animal Agriculture Alliance, and local food/nutrition initiatives.
Impact and covered stakeholders
- MDARD and its bureaus, local conservation districts, Michigan agricultural producers, nonprofit organizations, MSU Extension/AgBioResearch partners, school districts, and SNAP participants.
- Emphasizes growing local food systems, farm-to-institution programs, soil health, regenerative agriculture, and protective measures for animal health and food safety.
- Includes reporting obligations and procurement preferences aimed at Michigan-based businesses and veterans.
Procedural/Timelines
- Annual reporting deadlines (April 1 for annual activity reports; November 1 for ARP-related funding reports; quarterly FTE updates).
- Project completion dates range from 2027 to 2031 for several work projects.
- ARP fund expending deadlines and reallocation processes required if funds risk expiration.
Note: This summary focuses on substantive appropriations, program directives, and reporting requirements embedded in SB 863 as reported by the Senate Appropriations subcommittee and related documents.