Agriculture, Farm and Small Business Grants Announced

(July 7, 2020 12:03 PM) Fifteen million dollars in economic assistance for Michigan farms and agricultural processors, to mitigate risks of the COVID-19 virus across the state’s food production industry, gained approval from the Michigan Strategic Fund, the Michigan Economic Development Corporation (MEDC) and the Michigan Department of Agriculture and Rural Development (MDARD) announced today.

“Michigan’s food and agriculture sector has been especially hard hit by the COVID-19 virus, and this investment will provide critical resources to ensure the safety of the state’s food production industry and its workforce,” said Gov. Gretchen Whitmer. “We can further our economic recovery in the state by putting federal dollars through the CARES Act to work for the people and business across Michigan through efforts like these grants to farms and food processors.”

In response to the economic impact of COVID-19, the State of Michigan has appropriated $15 million of federal CARES Act funding through SB 690, signed into law by Governor Whitmer last week, to implement the Michigan Agricultural Safety Grant Program. These grants will provide much needed funding to Michigan’s agricultural processors and farms in support of this critical industry in the state.

The Michigan Agricultural Safety Grants are divided between agricultural processors and farms:

$10 million in grants will be provided to processors statewide, with a minimum grant of $10,000 and a maximum grant of $200,000.
$5 million in grants will be available to farms statewide, with a minimum grant of $10,000 and a maximum grant of $50,000.

Applicants must apply as either a processor or a farm – but not both – and funds will provide grants of up to $1,000 per employee to fund COVID-19 mitigation costs, including but not limited to testing costs, personal protection equipment, facility needs, increased sanitation costs, employee training, and upgraded safety procedures for farm-provided housing.

“Employee testing and PPE continue to be a great need both on the farm and in the processing industry,” said MDARD Director Gary McDowell. “These financial resources will provide much-needed services and equipment to an already struggling sector. Having adequate testing and PPE is critical to ensuring the safety of Michigan’s food and agriculture workforce—whether domestic or migrant labor—as well as maintaining a safe and wholesome food supply.”

The program will cover costs incurred from June 1, 2020 through September 15, 2020 and eligible applicants will be able to apply for funding beginning on July 15, 2020. Grants will be awarded on a first come, first serve basis until all funding has been awarded.

Applications will be processed by East Lansing-based GreenStone Farm Credit Services.

To qualify for grant support, applicants must be a farm or agricultural processor located in Michigan and meet the following requirements:

A minimum of 10 employees in Michigan, with supporting documentation.
Provide proof of good standing with the state of Michigan, as applicable (Certificate of Good Standing).
Attest that the business is current on all state, local and real estate taxes, or is otherwise contesting them in good faith.

“We are continuing to leverage every resource available – whether federal, state or local – to ensure our small businesses across Michigan are able to receive the support they need to not only survive COVID-19, but be in a position to thrive and drive economic recovery moving forward,” said Mark A. Burton, CEO of the Michigan Economic Development Corporation. “Working in partnership with MDARD and GreenStone, we are confident we can get this critical support into the hands our farms and agricultural processors quickly and effectively to keep our workers and our food supply safe.”

According to MDARD, food and agriculture contributes $104.7 billion annually to Michigan’s economy, and represents 805,000 jobs statewide. Additionally, Michigan exports approximately $1.8 billion of food and agriculture products each year.

“The health and well-being of employees is the top priority for Michigan’s agribusinesses, and these new grants support ongoing safety efforts across our state’s agriculture sector,” said Chuck Lippstreu, president of the Michigan Agri-Business Association. “We applaud the Governor and leaders in the Legislature for working together on a bipartisan basis to secure this critical funding, providing welcome assistance for businesses across Michigan agriculture.”

The Michigan Strategic Fund today also approved the Michigan Small Business Restart Program, which will provide a total of $100 million to small businesses in Michigan as they work to reduce the negative economic impact of the ongoing COVID-19 crisis. The grants will be administrated by 15 regional economic development organizations throughout the state, which combined cover all 83 counties in Michigan. To learn more, visit here: https://www.michiganbusiness.org/press-releases/2020/07/michigan-small-business-restart-program-to-provide-$100-million-in-grants-for-covid-19-recovery-efforts.

With today’s action by the MSF Board, the MEDC has launched 17 COVID-19 relief and recovery programs supporting more than 3,100 business in the state and helping to retain more than 12,400 jobs across all 83 counties. To learn more about MEDC’s COVID-19 response programs and the impact they are having on economic recovery efforts, visit michiganbusiness.org/covid19response. Other resources for economic reopening efforts as well as businesses across Michigan struggling with economic losses as a result of the COVID-19 virus can be found online at michiganbusiness.org/covid19. The MEDC has also developed a FAQ for Michigan businesses and communities at michiganbusiness.org/covid19-faq.

Information around this outbreak is changing rapidly. The latest information is available at Michigan.gov/Coronavirus and CDC.gov/Coronavirus.