By Chris Bardenhagen
MSU Extension and the Agriculture, Food and Resource Economics department have recently published the full report detailing their research into Michigan’s specialty crop industries. The study assessed the total economic contribution of specialty crop production in Michigan. The assessment identified the major risk factors and impacts that would happen if different crops were not produced anymore. The major points are outlined in the executive summary with further explanation in the different chapters of the report.
The research combined quantitative and qualitative analyses approaches. Chapter 1 describes industry perspectives gathered from interviews and focus groups across Michigan’s major fruit and vegetable regions. Major findings include that the crop types are very interdependent, and their profitability can be tied to one another. In other words, the loss of one commodity industry could lead to the loss of others. This is especially true for crops such as apples and asparagus which provide a spread over the year and a platform for production-related goods and services.
Chapters 2 and 3 assessed the economic value of specialty crops in Michigan. Using modeling software and data from the National Agricultural Statistics Service (NASS), AFRE researchers determined the farm gate contributions to the Michigan economy, about $3.1 billion dollars. They also looked at the total economic contribution of Michigan specialty crops. Total contributions consider downstream processing and packing activities, indirect effects and induced effects, totaling $6.3 billion dollars.
Chapter 4 details the use of the modeling software to predict the difference if Michigan specialty crop production were to be replaced with row crop production. Row crops would be the most likely alternative use for most specialty crop acres. The researchers found that 85% of the current economic contribution would be lost, amounting to a $5.2 billion loss of Michigan agricultural-based activity.
Chapter 5 further describes the labor factor and the use of modeling to determine what could happen if labor costs continue to rise. They found that a 10% rise in labor costs would lead to 6.7% loss of agricultural work and a 2.7% loss of production in Michigan.
Download a copy of the publication at Assessing the Impacts of the Loss of Specialty Crops in Michigan. For more information, feel free to contact the authors: Chris Bardenhagen, Sarah Klammer, Steve Miller or Zachariah Rutledge.
Source : msu.edu