By Andi Anderson
The Michigan Legislature and Governor Gretchen Whitmer reached a budget agreement for fiscal year 2026 in early October, passing a bipartisan plan that addresses several key agricultural priorities while averting a state government shutdown. The budget legislation, approved by both the House and Senate, now awaits the Governor’s signature.
The Michigan Agri-Business Association (MABA) praised the budget, calling it a “welcome development” that balances industry stability with responsible fiscal policy. The agreement maintains essential funding for agriculture programs and provides much-needed infrastructure support for rural communities.
Agriculture Industry Fees and Stewardship Programs
The new budget extends current pesticide registration and fertilizer tonnage fees through October 1, 2029, ensuring continued support for the Michigan Agriculture Environmental Assurance Program (MAEAP). The decision to hold fees steady, rather than increase them, provides financial relief for farmers facing economic uncertainty.
Pesticide and Plant Pest Management (PPPM)
MABA successfully advocated for full funding of the MDARD Pesticide and Plant Pest Management (PPPM) program, which oversees pesticide regulations, crop input safety, and export inspections. Lawmakers retained funding at current-year levels, signaling their commitment to maintaining strong regulatory and inspection systems.
Michigan State University (MSU) Initiatives
While funding for the Michigan Alliance for Animal Agriculture and Agriculture Resiliency Program was partially restored, MABA emphasized ongoing efforts to secure full support for Michigan State University’s agricultural research and Extension programs. Collaboration between MSU’s College of Agriculture and Natural Resources, AgBioResearch, and the industry remains a top priority.
Road and Infrastructure Funding
The FY2026 plan dedicates $1.5 to $2 billion for road improvements over the coming years. It includes a 24% wholesale cannabis tax, decouples state and federal tax structures, and implements a “fuel tax swap,” replacing the 6% sales tax on fuel with a 20-cent-per-gallon fuel tax. This adjustment ensures that all collected funds are directed toward road and bridge maintenance.
EGLE Accountability Measures
The budget also enhances transparency within the Department of Environment, Great Lakes, and Energy (EGLE) by requiring the agency to report the number of permit application appeals and processing times at multiple intervals.
Overall, the FY2026 Michigan budget underscores bipartisan cooperation and a shared commitment to supporting farmers, maintaining infrastructure, and promoting environmental stewardship across the state.
Photo Credit: gettyimages-zoran-zeremski
Categories: Michigan, Government & Policy