Strong leadership and innovative partnerships were the common threads for Michigan Department of Agriculture (MDA) activities in 1998, with progress on every front.

Governor Engler and the Michigan Legislature provided Project GREEEN (Generating Research and Extension to meet Economic and Environmental Needs) with $6.5 million, to be used by Michigan State University (MSU) researchers in collaboration with MDA. The unique funding package will develop tools needed by Michigan plant agriculture producers and processors to remain competitive into the next century.

The reappearance of bovine tuberculosis (TB) in Northeast Michigan led to a strong, ongoing partnership between the state Departments of Agriculture, Natural Resources and Community Health, MSU, as well as the US Department of Agriculture (USDA), farmers, hunters and private industry. During fiscal year 1998, one cow and one captive deer herd were discovered with bovine TB, and two additional herds have since been identified. MDA and USDA began an ambitious plan to test all cattle in an 11-county core area, and laid the groundwork to achieve zonal recognition of the disease within Michigan. USDA acknowledgment that bovine TB exists in only one region of the state, would be the first zonal recognition within the US and a strong testament to Michigan's leadership on this issue.

A high priority on recruiting and retaining agricultural processors is the result of a close relationship among MDA, the Michigan Economic Development Corporation (formerly Michigan Jobs Commission) and the private sector. Packerland Packing, one of the nation's top beef processors, Boar's Head Provisions and the Thumb Oilseed Producers Cooperative all announced new plants in Michigan in 1998. These value-added endeavors will expand market opportunities, stabilize producer opportunities, support rural communities and improve profits.

The recent reorganization of the MDA Food and Dairy Division, increased resources for food safety and the newly-formed Food Safety Alliance have provided the foundation for a major revision of the Michigan food laws. The proposed recodification, called the Michigan Unified Food Law, got underway in 1998 and will likely be introduced in the State Legislature in late 1999.

Stronger ties between MDA, USDA, the US Environmental Protection Agency, and the Michigan Department of Environmental Quality set the stage for an innovative application for federal funds. The USDA is expected to fund the Conservation Resource Enhancement Program (CREP), which dovetails nicely with Michigan's Clean Michigan Initiative passed by voters in 1998. CREP provides resources to support good environmental practices on farms.

Throughout 1998, MDA never lost focus of its four bedrock priorities: Food safety, environmental stewardship, consumer protection and development of the agricultural economy.

The department has 11 divisions, each with a myriad of independent program-specific responsibilities yet committed to working together when situations cause responsibilities to overlap. The newest division, Fairs, Exhibitions and Racing, was established in 1998 to bring focus to state and county fairs on both peninsulas.

Following are some key department accomplishments of fiscal year 1998.

Disaster Assistance
Severe weather was a significant threat to agriculture in 1998. In the busiest disaster year of this decade, MDA responded to two presidential, five gubernatorial and five USDA secretarial disasters. Frosts, severe freezes, high winds, tornadoes, and a drought resulted in 71 of Michigan's 83 counties being declared a disaster during the year. MDA arranged for USDA emergency loans to be available to agricultural producers and Small Business Administration loans to be available to agricultural processors.

Northeast Michigan's 28 captive cervid herds, consisting of approximately 1,600 deer and 50 elk, are also being closely monitored. This surveillance program will ensure the animals and animal food products, including venison, remain safe and free of tuberculosis.

Michigan Animal Health Emergency Management (MAHEM) Program
MAHEM was officially established in October 1998. The goal of MAHEM is to address animal-related issues pertaining to emergency response and mitigate biosecurity issues to control animal diseases. In the event of a state of emergency, this program would help ensure a wholesome food supply, abate care and welfare issues, and control or prevent the introduction and spread of animal diseases. The MAHEM manager serves as liaison to MDA's Emergency Management Coordinator and to county and local emergency management coordinators to assist in addressing animal-related emergency management issues.

Pseudorabies Eradication
Michigan moved one step closer to pseudorabies-free certification in 1998-99, with the destruction of the last known infected swine herd. This lays the groundwork for federal recognition of pseudorabies-free status in Michigan for the first time, a move that will help farmers move swine more easily between states, increase market value and make swine farming more profitable. Barring additional detection of the disease, the USDA could confer Stage 5 pseudorabies-free certification in mid- 2000.

Scrapie Risk Reduction Program
AID has reached an agreement to recognize Michigan's Scrapie Risk Reduction Program as a pilot program for the US. The USDA will use state data to validate genetic testing on sheep. It is hoped that this type of testing will lead to the development of sheep which will be free of scrapie, a disease that affects the sheep's brain.

Equine Infectious Anemia
Six horses tested positive for EIA during 1998, and all trace-back investigations were negative and closed by year's end. The Equine Advisory Committee has begun developing requirements for negative Coggins tests for intrastate movement and/or for exhibition. Two of these cases were from Gladwin County and were discovered during the Gladwin County Fair, and one had attended a 4-H event previously. Consequently, many industry representatives and equine organizations now support this new legislation.

Eastern Equine Encephalitis (EEE)
EEE surveillance during 1998 included wild bird trapping and testing, in addition to the surveillance tools previously used in coordination with the Michigan Department of Community health, local health departments and local mosquito control programs. There were no positive horses, mosquito pools, sentinel flocks, juvenile wild birds or humans during 1998.

Rabies
Thirty-five animals tested positive for rabies in 1998, including 33 bats and two skunks. The Michigan Rabies Working Group, comprised of MDA, MDNR and MDCH, began developing plans for a surveillance program to assess the threat of raccoon rabies that is forecast to enter Michigan from Eastern Ohio.

Turfgrass Environmental Stewardship Program
Also funded by MGSP, the Turfgrass Environmental Stewardship Program is a first-of-its-kind certification program that encourages Michigan's public and private golf courses to adopt practices that reduce the potential for pollution and increase prevalence of wildlife habitat. The program is a partnership between MDA, MSU and the Michigan Department of Environmental Quality (MDEQ).

Clean Sweep Expands
The Clean Sweep Program collects and properly disposes of unusable or unwanted pesticides. US Environmental Protection Agency grants supported establishment of four new Clean Sweep collection sites in 1998. An additional location was added in 1999. MGSP is committed to pay for disposal costs at all 12 Clean Sweep sites.

Groundwater Monitoring Program
ES has a program to monitor private drinking water wells throughout Michigan for general chemistry, pesticides and volatile compounds. In 1998, the Groundwater Monitoring Program collected 509 samples from 455 Michigan sites for analysis at state laboratories. In addition, MDA staff analyzed 1,705 samples for atrazine, nitrate and nitrite at 17 sites statewide using a portable immunoassay lab and nitrate/nitrite screening strips.

Spill Response Program
The MDA Spill Response Program helps individuals reduce the risks associated with pesticide, fertilizer and manure spills by recovering and properly disposing of spilled chemicals. Since the program's inception in 1994, more than 165 tons of spilled pesticides have been recovered and disposed of properly. Fertilizer spill response during this same time period recovered 730 tons of product. The program had 107 reported spills in 1998, up from 18 its first year.

Generic Pesticide Management Plan
The US Environmental Protection Agency has approved Michigan's Generic Pesticide Management Plan (GPMP). Michigan has been active in developing the federal Pesticide Specific Management Plan (PSMP) rule, expected to be published in 1999. Through coordination of resources with the Groundwater Stewardship Program, Michigan is in a strong position to address concerns of pesticides in groundwater by using voluntary methods for pollution prevention.

Pollution Prevention Strategy Developed
MDA and MDEQ, working with a coalition of agricultural producers, have developed a Pollution Prevention Strategy for Michigan agriculture. The strategy was adopted at a January 1998 signing ceremony. It addresses critical on-farm environmental issues and emphasizes new ways to prevent pollution. Efforts in 1999 will focus on development and implementation of a proactive Agricultural Environmental Assurance Program. The strategy will be available to legislative, state, and local policymakers for use as a guide in developing agricultural environmental policy.

Right to Farm
ES's Right to Farm Program has investigated over 1,200 environmental and/or nuisance complaints over the past decade, and is recognized as one of the strongest producer protection laws in the US. The program is known for its common-sense approach to voluntary resolution of farm-related nuisance and pollution complaints.

Strong partnerships with local USDA Natural Resources Conservation Service offices, MSU Extension and Soil

Conservation District staff have contributed to the 99 percent success rate in resolving disputes on an individual, site-specific basis. Producer groups and farm organizations advocate adoption of Right to Farm good management practices, as a means of providing farmers with nuisance protection and to promote sound environmental practices. A recent study commissioned by the Great Lakes Commission shows a 40 percent reduction in the annual phosphorus loading rate to Michigan's agricultural soils, which is largely attributable to the education-based approach of Right to Farm.

Intercounty Drains Improved
A total of 38 major petitions for establishment of new intercounty drains, or maintenance or improvement of existing intercounty drains were administered during fiscal 1998. These petitions represent drainage systems that have a combined length of approximately 170 miles and an estimated project cost of $14 million. Twelve drain projects serving over 180,000 acres were under construction during fiscal 1998 with a total project cost of $5.4 million.

In addition, maintenance projects were completed on 92 county drains at a cost of $762,150 in 1998. These drains total approximately 322 miles in length and serve 1.25 million acres of land.

Storm Drainage Partnership Agreement
A significant partnership agreement was reached between the Michigan Association of County Drain Commissioners (MACDC), MDEQ and MDA during 1998. The agreement establishes a new standard to manage the state's vast stormwater drainage system. The agreement will increase cooperation between the groups in undertaking projects providing for stormwater management under the Michigan Drain Code and will clarify types of drainage activities requiring joint jurisdiction.

Forestry Assistance Program
ES's Forestry Assistance Program provides information and technical forestry assistance to nonindustrial private landowners and local governments, primarily through Michigan Conservation Districts (CDs). In 1998, 53 participating CDs helped 3,899 rural landowners on 165,471 acres of forest land. Additionally, CDs provided support to 1,086 urban/suburban landowners and 563 local government agencies. Forestry Assistance also helped prepare 634 resource management plans covering 39,455 acres of land; provided timber stand improvement assistance to 918 landowners covering over 38,000 acres;
and wildlife habitat improvement assistance to 1,676 landowners of 60,423 acres.

Re-greening of Detroit
In 1997, devastating storms blew through Detroit and surrounding communities uprooting trees and destroying city parks and neighborhoods. The Wayne County Conservation District took action to help replace trees in the hardest-hit areas, working with MDA, MDNR and other organizations to create the Storm Reforestation Alliance and restore the quality of life provided by trees. The Alliance used $85,000 donated from private sources to replace over 1,000 trees in city parks and along streets in Detroit during 1998.

Migrant Labor Housing
ES houses the Migrant Labor Housing Program to protect the health and safety of migrant workers and their families in Michigan, and to prevent the spread of communicable diseases. All sites occupied by five or more migratory laborers engaged in agricultural activities must be inspected and licensed. During 1998, 861 such sites were licensed including 4,325 living units with a total capacity for 25,076 people. These included 38 new sites that could accommodate 414 people. The Migrant Labor Housing Program administered $300,000 in construction grants during 1998, which allowed 135 units capable of housing 880 people to be built or substantially improved in 1998.

National Envirothon
MDA cohosted the 1998 National Envirothon, which was held at Michigan State University. High school students from 40 states and three Canadian provinces participated in the week-long competition. MDA has long been a supporter of this national competition, which allows students to participate in exercises that help them learn more about managing resources.

Fairs
Ninety Michigan fairs participate in MDA's Agricultural Fair Program. In addition to the Michigan State Fair and the Upper Peninsula State Fair, Michigan has 88 county or local fairs. Michigan fairs directly generate more than $38 million in revenues, and indirectly generate much more economic activity throughout the state.

The Fairs, Exhibitions and Racing Division provides significant funding and program support to Michigan fairs. Financial support provided in 1998 included:

• $47,050 for a standardbred stabling and training program;

• $120,000 in livestock competitive grants;

• $850,000 in matching funds to fair;

• $1.48 million in fair premiums; and

• $2.8 million in purses for county fair harness racing.

Volunteers
The average Michigan fair has 186 volunteers contributing a total of 5,838 hours and $59,300 of in-kind contributions annually. Statewide, Michigan fairs have approximately 16,740 volunteers, $3.1 million in donated labor (based on $6/hour), and $5.3 million of in-kind contributions. Total contributions top $8 million annually.

Training and Resources
MDA also offers workshops in conjunction with the Michigan Association of Fairs and Exhibitions (MAFE) and Michigan State University to provide fair management, staff and volunteers with instruction in fair management, educational agriculture exhibits, and effective 4-H and fair relations.

County Fair Harness Racing
MDA provides oversight to the county fair harness racing program, which provides young horses opportunities to gain racing experience and develop performance consistency before competing at the big league pari- mutuel tracks. Thirty-six Michigan fairs have harness racing programs.

The state provides $2.8 million in purse monies for these races, helping cultivate and develop the field of specially- bred racehorses in Michigan. The Standardbred Breeder Awards program provides $1,256,500 in awards to approximately 750 individual breeders annually. The Standardbred Sire Stakes program provides funding for eight races at pari-mutuel racetracks throughout the state with an estimated purse of over $100,000 for each race division.

MDA arranged for a drug detection crew to monitor 29 harness racing and animal pulling events in 1998, assuring the highest standards are followed.

Fair Time! Project
Fair Time! is a long-term collaborative effort of the Michigan Association of Fairs and Exhibitions, Michigan State University Museum and MDA to increase awareness of Michigan's unique agricultural fair history and the contribution fairs have made to agriculture, communities and families. During 1997-98 a series of three traveling Fair Time! exhibits were created utilizing a rare historic collection of fair poster art (circa 1800- 1920) as the centerpiece.

The three exhibits are:

• America's Fairs Educating Communities

• Our Livestock Heritage Serving a Nation

• Horse and Harness Racing; Early Fair Time Entertainment

The traveling exhibits are available at the MSU Museum for education and exhibition purposes. They are being used to introduce "It's Fair Time! ReDiscover Our Agriculture Roots," a major temporary exhibit at the MSU Museum that opens the Fall of 2000 and runs through May 2001.

Y2K
In 1998 Finance and Technology began inventorying all of MDA's hardware and software to assess Year 2000 compatibility. A complete overhaul has also been done to measure and correct any critical applications that might cause problems when the century ends.

Audits
The division administered audits of 129 grain dealers, including 24 follow-up visits; and 27 county fairs to insure that funds were appropriately used. Audit services were also performed on 11 internal projects, two commodity organizations and 10 special investigations.

Other Services Provided
FT managed a fleet of over 300 state vehicles that traveled over 2.7 million miles on MDA business. The division also upgraded technology in the Southfield and Grand Rapids regional offices in 1998.

MPR Committee
The Food Section created a Minimum Program Requirement (MPR) Committee in 1998 to encourage communication on proposed revisions to Food Service Sanitation Minimum Program Requirements (MPRs) for local health departments. All stakeholders were invited to participate. The committee concluded its discussion, and the proposed revisions were submitted to the Department of Community Health's Local Health Department Contract Standards Committee.

Division Business Processes
The Business Section is responsible for all of FAD's financial, purchasing, technology and licensing functions, as well as handling Freedom of Information Act (FOIA) requests.

In February 1998, the Business Section launched a process improvement workshop to redesign and streamline how it issues licenses. Forty improvement suggestions were generated including a proposal to totally redesign food service licensing, which is handled jointly by MDA and local public health departments.

The Business Section placed a heavy emphasis on technology during 1998. More than 30 laptop computers and 40 portable printers were purchased, completing the plan to provide each FAD employee with a computer. FAD staff benefitted from extensive computer training for Microsoft Office 97. The division also strengthened its ties to overall department technology by placing its technology analyst in the Finance and Technology Division under a shared responsibility arrangement.

The Michigan wine industry continues to expand, with hundreds of new acres of wine grapes planted in 1998. The industry enjoyed a record harvest estimated at 3,000 tons in 1998, positioning the state for anticipated high- quality 1998 vintage wines. Groundwork was laid for three new wineries in the Traverse City-area during the year.

International Marketing
MDA's International Marketing Program works with food companies and commodity groups to promote the export of Michigan food products. The program holds export workshops, relays trade leads and other export information, and maintains a popular Web site (www.mdainternational.com) that includes the Michigan Food and Agriculture Export Directory of nearly 400 companies. The program organizes the Michigan Pavilion at the US Food Export Showcase, its largest export activity of the year, and administers the Market Access Program to provide grants to food exporters.

Connecting Agriculture and Urban Children
During National Agriculture Week each March, division staff coordinate visits to urban elementary schools as part of the "Agriculture Connections: Planting Seeds of Knowledge" program. Agriculture Connections partners include Michigan Farm Bureau, the Michigan departments of Community Health and Education, MSU Extension, FFA, 4-H and local farmers. The program's primary goal is to connect those who work in agriculture with urban communities and schools. Agriculture Week school visits included a school assembly on how agriculture affects students' daily lives and classroom science lessons about agriculture.

MDA's Web Site Earns Kudos
Building on past successes MDA's Web site (www.mda.state.mi.us) continued to receive national and international recognition in 1998. In July 1998, it was honored with the APEX '98 Award of Excellence from Communications Concepts, Inc., of Springfield, Virginia. The Kidz Korner section was also named one of the world's best educational Internet sites by Australia's WebMaster Project in 1998. The site was copied onto CD-ROM and distributed to schools in remote parts of Australia that lack Internet access.

Publications
MAC develops a variety of publications on MDA functions and Michigan agriculture, in general. The most popular one is the bi-annual U-Pick and Farm Market Directory, which lists nearly 250 sites. Approximately 51,000 copies of the U-Pick Directory were distributed in 1998. Food and Fiber Facts, another popular publication, is used extensively in schools to teach children about foods grown and processed in Michigan.

Other publications include:

• Guide to the MDA, which provides an overview of MDA responsibilities.

• Michigan Department of Agriculture Annual Report.

• Office of Racing Commissioner Annual Report.

MDA Video
The Communications Section updated the MDA video in 1998. The 12-minute video provides a panoramic overview of MDA's main missions and responsibilities for both internal and external audiences.

FOIA Requests
Over 680 Freedom of Information Act (FOIA) Requests were processed department-wide in 1998. Of these requests, 26 were denied, seven were withdrawn, and one denial was appealed to the director.

Hearings Summary
Three contested case hearings were scheduled in 1998, but all reached settlement prior to the hearing with the licensee agreeing to surrender his/her license. The cases involved a grocery store, a gas station and a livestock dealer. In addition, hearing officers held nine public hearings in 1998.

Disaster Summary
The Emergency Management Section responded to 18 events during 1998, including chemical fires, summer storms, frosts, freezes and a severe drought. Two of the events were declared disasters by the President of the United States; five were declared disasters by Michigan Governor Engler; and five were recognized as disasters by the Secretary of the USDA. In 1998, 71 of Michigan's 83 counties received some form of disaster aid. Disaster declarations resulted in the provision of USDA low- interest loans to producers and Small Business Administration loans to businesses affected by these events. Staff also helped county drain commissioners qualify for financial recovery assistance from the Federal Emergency Management Agency.

Pesticide Enforcement
PPPM is the state's lead agency for pesticides including supervising such areas as storage, transportation, display and disposal. The division operates under a cooperative agreement with the US EPA to ensure that pesticides in Michigan are applied in accordance with state and federal
laws and regulations and does not adversely affect humans or the environment.

In 1998, MDA investigated 269 complaints of pesticide misuse from the public, other state agencies, concerned businesses and MDA staff. Seventy of these involved agricultural situations and 199 involved indoor, urban or homeowner conditions. Violations detected by investigations included improper licensing or applicator certification, improper personal protective equipment, inappropriate vehicle issues, improper product use and inadequate documentation.

Certification and Recertification Program
MDA currently has nearly 28,000 certified or registered pesticide applicators. Applicator designations divided by category are:

PPPM administered 15,129 certification or registration exams in 1998. Certified or registered applicators may renew their credentials by examination or attending approved recertification seminars. In 1998, PPPM approved 804 seminars for recertification credit, allowing 1,341 applicators to renew credentials through seminar attendance.

Restricted-Use Pesticide Dealer Licensing
Michigan has 300 businesses selling restricted-use pesticides to growers or custom applicators, who must maintain an annual Michigan license, provide the product only to certified applicators, and submit monthly sales registers to PPPM. The division performs restricted-use pesticide sales audits, specifically auditing 110 firms and initiating an additional 72 audits. The section also made an additional 212 monitoring or licensing contacts, and recorded over 66,000 total sales to certified applicators during the 1998 fiscal year.

Commercial Pesticide Applicator Business Licensing
Over 1,500 commercial pesticide firms obtained a 1998 Michigan commercial pesticide applicator business license. PPPM grants a license when the firm meets demonstrates its applicators are certified and have appropriate experience, and has required financial liability coverage.

Pesticide Registration
Pesticides sold, distributed or offered for sale in Michigan must be registered with MDA.

MDA reviews pesticide labels; issues, denies or cancels pesticide registrations; initiates inter-agency review of pesticide labels; and petitions the EPA for special local needs and emergency exemptions for pesticide products. MDA registered 12,167 pesticide products in 1998.

Section 18 of the Federal Insecticide, Fungicide and Rodenticide Act allows states to request EPA approval for the use of an unregistered pesticide to control an emergency pest problem within the state. MDA evaluates the situation, and if certain criteria are met, works with MSU Extension to develop the request. In 1998, MDA compiled and submitted 15 exemption requests. EPA granted 14 requests and one was withdrawn.

Insect and Rodent Control Program
In 1998, PPPM continued the Eastern Equine Encephalitis (EEE) program through a mosquito larvae surveillance program. This program is aimed at monitoring mosquito populations, species and the presence of EEE, a disease that poses a significant threat to horses and humans. One human death in Saginaw County in August 1997 was attributed to EEE.

In addition, the Lyme disease testing and tick identification program continued in 1998, with public education, tick testing, site inspections and consultation with local health departments. Staff also worked on other programs such as swimmer's itch, mosquito control, gypsy moth surveillance and control, rodent control at food establishments and cider mills, and a variety of public health activities.

Arbovirus Emergency Response Plan
PPPM began coordinating an emergency response plan for potential outbreaks of any arboviral diseases, including Eastern Equine Encephalitis and Saint Louis Encephalitis. These diseases are spread by mosquitoes and have the potential to cause death to humans and horses. PPPM works with MDA's Animal Industry Division to develop the plan. A work group consisting of county health agencies, county mosquito control districts, commercial aerial and terrestrial pesticide applicators and the Michigan Department of Community Health are near completion in developing the draft plan.

Integrated Pest Management
MDA's Integrated Pest Management (IPM) program was developed to assist pesticide applicators in complying with the law and to promote the use of equally effective alternative pest control methods. Regulation 637, Pesticide Use, Rule 14, requires a pesticide applicator to participate in IPM training and have an IPM program in place for the building before any pesticide applications are made in schools, public buildings and health care facilities.

MDA cooperated with the Michigan Pest Control Association to provide a free opportunity for employees of schools, public buildings and health care facilities to attend an approved IPM training program. The 1998 activities resulted in 16 seminars hosting 730 participants.

Integrated Pest Management Cass Tech Project
MDA is sponsoring an integrated pest management (IPM) program managed by a group of student leaders at Cass Technical High School in Detroit. The purpose of the program is to increase student awareness of pest problems and health issues in the school, involve them in developing a pest-control plan and exposing them to career opportunities in agriculture.

The program began in Spring 1998. It seeks to increase student awareness of health and environmental concerns related to pesticide applications and cockroaches, monitor insect pest populations at the school, conduct research on pests discovered, and determine optimum methods for their control. The program is a pilot project that should be expanded to other schools within the Detroit Public School system, as well as around the state.

Students have released parasitic wasps and nematodes as a biological control for the roaches, and are working with their custodial staff to improve sanitation and make structural repairs in the school. The students successfully presented their program at a MSU Extension training workshop for county extension agents and MDA staff in 1998.

Food Safety/Farm Gate Sampling
During fiscal 1998, MDA, EPA and MSU began collecting data on pesticide use and potential food residues. Additionally, information on pesticide use and residue information for targeted commodities (especially minor crops) at risk under the federal Food Quality Protection Act (FQPA) was developed and forwarded to EPA. MDA and MSU also initiated a three_year process of reviewing available alternatives to organophosphate, carbamate, and B2 carcinogen pesticides. The alternative information helps identify significant pests on crops, reviews available pesticide alternatives, and illustrates the impact of pesticide loss in the overall pest management system. Michigan has the only pesticide use and residue system in the nation that provides this information, which is crucial to insure FQPA decisions are made on sound, scientific data.

The fiscal 1998 program designed a system of collecting pesticide use data and resulting raw and processed residue data on the treated crops. Through MSU's new "Crops at Risk" data set, MDA was able to target commodities most likely affected by the cancellation of organophosphates, carbamates and B2 pesticides. This information was used to target crops for the 1998 growing season. The sampling of raw and processed commodities provided information that helped define the residue reduction that occurs in processing.

By combining information on pesticide use, resulting residues, and the limitation of available alternatives, MDA and MSU have created a system to provide input into the EPA tolerance review process.

MDA analyzed 245 samples for residues. Samples were collected from both grower farms and MSU research plots. Pesticide spray application records have also been obtained for most commodities. Staff looked at a range of pest management strategies, and are evaluating how they might affect the potential for pesticide residues. Preliminary analysis of sampling data indicates no residues were found to be above FDA tolerances.

Biocontrol_Niles Laboratory
Due to budget constraints, USDA-APHIS announced closure of its Biological Control Laboratory at Niles in 1998. Recognizing the value of the facility and the relationship of biocontrols to FQPA, MDA began pursuing partnerships with MSU, USDA-APHIS and commodity groups to better utilize this laboratory in developing bio-control solutions. As of December 1998, MDA, MSU, and several commodity groups agreed to support research to provide bio-control agents to control Japanese Beetle, Obliquebanded Leafroller, Purple Loosestrife, and Colorado Potato Beetle. This partnership represents a huge step toward addressing the loss of crop protection chemicals, developing safer solutions, maintaining a valuable regional laboratory and meeting the needs of Michigan producers.

Plant Industry Section
Plant Industry Program activities can be found in three distinct areas: Agriculture Products - Quality Assurance, Plant Pest, and Fruit and Vegetable Inspection.

Commercial Feed Program
By accomplishing its primary goal of safeguarding animal health and protecting consumers from deceptive practices, Michigan's Commercial Feed Program indirectly helps to assure that our own food supply is safe and wholesome. PPPM strives to accomplish this goal by inspecting commercial feeds and the processes involved in their production, distribution and storage.

Because it is common for therapeutic and production drugs to be administered in commercial feeds, PPPM scrutinizes the manufacturers of these products for compliance with regulations designed to prevent unsafe drug residues in human food. PPPM also investigates reports of animal deaths or illnesses where feed may be a factor. Swift action assures the protection of the food supply.

Michigan's meat, milk, egg, fish and pelt industries provide about $1.34 billion in annual revenue to the state, while their producers spend approximately $383.6 million for livestock feed. Michigan households spent an estimated $314.2 million on dog and cat food in 1998.

PPPM issued 1,075 licenses to manufacturers and distributors of commercial feeds in 1998. Plant Industry inspectors conducted 683 feed inspections, detecting 399 violations. The ensuing regulatory actions resulted in $144,825 worth of unsuitable and/or misbranded feeds being removed from the marketplace.

Approximately 1,375 samples of commercial feeds were collected and analyzed between during fiscal 1998. Of the feed samples tested, 75 percent met all declared guarantees.

PPPM staff conducted 156 inspections at 121 medicated feed manufacturing facilities to ensure compliance with good manufacturing practice regulations. Of these, seven were FDA-licensed establishments inspected by PPPMD inspectors holding FDA credentials. Seventy-three of the inspected firms were found to be in full compliance with requirements.

Animal Remedy Program
The MDA Animal Remedy Program provides assurance that drugs and vaccines used to treat livestock and pets are properly labeled and safe and effective for their intended use. Modern animal agricultural practices often necessitate the use of drugs and vaccines to treat or prevent diseases since unhealthy animals can increase the risk of food borne disease in humans. In 1998, Plant Industry inspectors made 79 inspections, looking for unlicensed or misbranded remedies. They reported 123 violations, and removed $23,413 worth of violative products from sale. In addition to the inspections MDA issued 1,453 animal remedy product licenses and denied eight due to unresolved safety concerns about the products.

Grain Elevator Sanitation Program
Michigan farmers grew 20 million tons of field crops valued at nearly $2 billion in 1998. A significant amount of that production, around 200 million bushels, is in the form of grain that is stored in approximately 270 grain elevators throughout the state. This grain is exported and used domestically in food for human consumption, animal feed, alternative fuels or many other uses.

Grain pests have a significant impact on the fitness of the grain for its intended purpose. Some estimates indicate that pests destroy about a third of the world's food crops every year. If that estimate were applied directly to Michigan's field crop production, the loss to field crops would about to about $650 million. They would damage around 67 million bushels of grain.

Program statistics for 1998 include:

• Plant Industry inspectors made a total of 530 inspections to look for insanitary conditions in 358 (74 percent) of 494 grain elevators, feed mills and feed dealers.

• PPPM sent 11 warning letters were sent to companies that failed to correct insanitary conditions in a timely manner. Hearings were conducted with another three firms with repeated compliance failures.

Commercial Plant Food Program
The Commercial Plant Food Program regulates the manufacture, distribution, sale, labeling and advertising of fertilizers, soil conditions and liming materials. Regulatory activities in this program assure Michigan residents these products are safe for their intended use and meet the label guarantees.

This program regulates over 700 manufacturers and distributors of over 1.5 million tons of fertilizer and liming materials for both agricultural and non-agricultural uses. Approximately 52,000 farms in Michigan utilize 10.5 million acres of land to produce approximately $2 billion worth of crops for food and livestock feed. Michigan farmers and residents of the state rely on this quality assurance and consumer protection program to maximize yields and maintain a profitable farm operation. In addition, millions of state residents depend on this program to protect them from fraud when purchasing fertilizer for home and garden use.

In 1998, division field staff collected 731 samples resulting in 138 violations. This represents a violation rate of 19 percent.

• A total of 411 licenses were issued to manufacture or distribute fertilizer.

• Over 3,300 specialty products (fertilizers and soil conditioners) were registered for sale in Michigan in 1998. Liming materials licensed for sale in Michigan decreased by 16 to 93.

• The total amount of fertilizer distributed in Michigan was reported at over 1.5 million tons.

Seed Program
The seed program serves more than 600 seed labelers who process and distribute approximately 170,000 tons of agriculture and non-agricultural seed annually in Michigan. Approximately 59,000 farmers, who produce an estimated two billion worth of food and feed, also benefit from this program. Homeowners depend on this program to ensure that the seed they purchase for lawn and garden use is reliable quality. Through routine seed sampling, inspectors can intercept violative seed products before they reach buyers.

• During 1998, inspectors conducted 486 inspections and collected 1,200 seed samples.

• Over 300 violations were reported and over $554,293 worth of violative products were removed from sale.

This program also has the responsibility to oversee the certification of seed, operated by the Michigan Crop Improvement Association. It provides a system for bringing high-quality seed of outstanding field crop varieties to farmers and seedsmen. This certification program is based on varietal purity, which is comparable to pedigree in animals. It promotes seed with the genetic potential to produce high crop yields. In addition, this program oversees the genetic purity, and adherence to mechanical standards for sale and distribution of seed potatoes for both domestic and international markets.

Fruit and Vegetable Inspection Program
The Fruit and Vegetable Inspection Program (FV) offers grading and verification of produce using government standards and/or processor specifications. It provides growers, shippers, packers, processors, and brokers with an unbiased, third party inspection service. With the exception of federal programs and exports, this program is voluntary. During 1998:

• Inspectors conducted 2,553 shipping point inspections, assuring that the produce met the grade marked. USDA grades are used nationwide to buy and sell produce.

• Staff conducted inspections on 1,739 lots of produce and issued 1,382 certificates on produce coming from other states or countries.

• The value of the wholesale produce inspected for the fresh market totaled over $21.1 million. The value of produce failing to meet the USDA standards or buyer specifications totaled over $2.3 million.

• FV inspectors issued 31,905 certificates on over 440 million pounds of produce destined for processing. Michigan's processing season begins in June and ends in late November. FV inspected the following number of pounds of produce for processing: 204,243,558 apples; 3,148,258 blueberries; 168,954,716 cherries; 144,029,013 grapes; 2,972,102 peppers; 16,970,000 potatoes; 7,437,400 tomatoes; and 233,140 miscellaneous vegetables.

• Inspectors visited 215 controlled atmosphere (CA) storage rooms containing 157,245,440 pounds of apples.

• FV staff inspected 35,401,688 pounds and performed approximately 1,189 inspections for seed potatoes prior to shipment as part of the certification process.

• The FV Program served over 315 clients who received produce from several thousand growers. FV staff inspected 898,855,622 pounds of produce.

Wholesale Potato Dealer's Program
This program protects Michigan farmers from losses when a wholesale potato dealer fails to pay for potatoes purchased. All dealers who are licensed are required to post a bond or letter of credit with the department. Thirty-five dealers were licensed in 1998.

Nursery Program
Michigan-grown nursery stock and Christmas tree shipments continue to be free of gypsy moth infestation. However, due to a 10-fold increase in the number of acres defoliated by gypsy moth in Michiganin 1998, certification of nursery stock and Christmas trees continues to be a challenge and a high priority for PPPM.

Pine Shoot Beetle
Since detection of the Pine Shoot Beetle (PSB) in Michigan in 1992, MDA has been conducting annual surveys to facilitate the movement of nursery stock and Christmas trees in compliance with the Federal Pine Shoot Beetle Quarantine. The number of counties infested with Pine Shoot Beetle continued to increase, with a current total of 70 counties. The addition of five counties to the quarantined area in 1998 translates into more intensive inspections of pine nursery stock and Christmas trees before allowing their movement to nonquarantined areas.

An alternate plan was developed to allow intrastate movement of pine logs from quarantined areas to mills in nonquarantined areas. Under this plan, micro-regulated areas were created around the mills to minimize the negative impact of the quarantine while facilitating year- round movement of commodities. The following efforts were made to control this pest in 1998:

• 102 sites located in 18 counties in the Lower Peninsula were surveyed to monitor the distribution of PSB. As a result, five additional counties were added to the list of PSB-quarantined areas in Michigan: Chippewa, Delta, Leelanau, Marquette and Schoolcraft.

• Implementation of the PSB Compliance Management Plan for Christmas tree growers, with over 100 fields enrolled in the program.

Japanese Beetle
MDA conducted both county-wide and site specific surveys for Japanese Beetle. Surveys were set up using a grid to determine placement of traps. All of the Upper Peninsula, and two counties in the northern Lower Peninsula, were involved in the county-wide grid trapping.

Site-specific trapping was employed at exporting nurseries in support of the Japanese Beetle Harmonization Plan. Both county-wide and site-specific Japanese Beetle trapping resulted in the declaration of Montcalm County as "generally infested." With some data still out, it's estimated that over 660 sites in 13 counties were trapped.

Export
MDA issued more than 2,500 federal phytosanitary certificates to facilitate the export of Michigan commodities. These goods were shipped to nearly 70 countries worldwide. The vast majority went to trading partners in Canada and Mexico, as well as to Europe and South America.

National Plant Board Annual Meeting
MDA hosted the 72^nd National Plant Board Annual Meeting in Grand Rapids during 1998. The National Plant Board is an organization comprised of the plant pest regulatory agencies of all 50 states and Puerto Rico. Also in attendance were representatives from USDA-APHIS, Canada, Mexico and private industry. The primary goal of Plant Board members is to bring greater uniformity and efficiency to declaring and enforcing plant quarantines, plant inspection policies and practices in the various states.

New Pest Survey Initiatives
As Michigan agriculture increases production and export activities, PPPM has seen a greater demand for phytosanitary certification services and a change in the way export certification is handled. Recent export initiatives, such as apples to Brazil and blueberries to Canada, have required a system-based approach to meet the requirements of importing countries. The new approach requires a season-long commitment from MDA to conduct negotiations with USDA, train industry cooperators, monitor trapping, review producer pest management and spray records, and inspect market-ready commodities. This new comprehensive approach is key to securing new markets in Mexico and Asia for apples, cherries, dry beans, seed potatoes and horticultural materials.

To support a systems approach to export certification and the traditional phytosanitary process, PPPM's Plant Industry Section initiated a series of proactive pest survey activities. The tremendous amount of commodities entering the U.S. through Michigan ports places the state's food, fiber, and horticultural production industries at risk. The surveys will provide early detection of such destructive pests as the Asian longhorned beetle and apple ermine moth. Early detection, eradication and localized pest management will ensure continued export certification for foreign and interstate markets.

Apple Exports to Brazil
A comprehensive certification process to expedite the movement of apples into Brazil was continued for the third year in 1998. This was a cooperative effort between MDA, USDA, MSU and the Michigan Apple Committee. The acceptance of this protocol by Brazil opened a $5 million market for Michigan apples, resulting in higher values for apples in general, and increased profits for producers.

Biotechnology
USDA-APHIS, in cooperation with MDA, issued 60 permits to conduct research on sugar beets, canola, soybeans, poplar, potatoes and corn in Michigan. Among these, 38 permits were issued for field trials on 113 sites, and 22 for interstate movement of genetically engineered plants to assess insect and disease resistance, herbicide tolerance, improved oil contents, altered carbohydrate metabolism, and lignin biosynthesis. Field trials were conducted in 25 Michigan counties on 115 acres by 12 multi-national companies or universities.

Michigan farmers planted approximately 650,000 acres of Roundup-ready soybeans, 55,000 acres of Roundup- ready corn, and 47,200 acres of Yield Guard Bt-corn for commercial trade. In addition, 11,600 acres of Roundup- ready soybeans were planted for commercial seed production.

Virus-Free Certification
MDA is actively involved in improving the quality of pome and stone fruit trees through an innovative program at Hilltop Nurseries, Inc., in Hartford. The nursery maintains 13,700 fruit trees in four scionwood blocks for certification of budwood as virus-free. This year the nursery sold 1.3 million certified fruit trees. MDA also offers virus-free certification of blueberry plants to help growers obtain disease-free vigorous plants for export and planting. More than 161,000 blueberry plants were tested for five plant viruses and 113,400 certified plants were sold to growers.

Post-Entry/Import
To facilitate introduction of foreign genetic material to improve the quality of fruit trees and landscape material, MDA authorized six permits to import 12,584 plants (Malus, Acer and Hibiscus) under the post-entry quarantine program. In 1998, MDA released quarantine on 87,910 Malus, Salix and Aesculus plants after an intensive screening for exotic pests. At present MDA has 29,059 trees under quarantine.

MDA reviewed 57 plant pest permit request for importation of microorganisms, plant pests, insects, and biocontrol agents for research, exhibition, and integrated pest management. USDA, in cooperation with MDA, approved 49 permits for 636 organisms and denied eight permits.

The dry bean industry is a very important component of Michigan's agricultural economy. To maintain the quality of dry bean seed and meet seed certification and export requirements, MDA has been testing bean samples for seed borne diseases (anthracnose, common bean mosaic virus, and common bean blight). In 1998, MDA tested 391 samples and found 118 samples of noncertified seed infected with common bean mosaic virus. One sample of certified and 22 samples of noncertified seed were also found to be infected with common bean blight; and eight samples of non-certified seed infected with anthracnose.

Seed Corn Certification
Six seed companies requested phytosanitary certification for 11,900 acres of seed corn. MDA inspected 207 fields for bacterial, fungal and viral diseases. Forty-two cornfields, representing 1,500 acres, were infested with Erwinia stewartii and four fields representing 287 acres contained Goss' wilt. All were denied certification.

Cooperative Gypsy Moth Suppression Project
Gypsy Moth continues to be the most serious plant pest in Michigan, impacting production of wood fiber and Christmas trees, and creating a nuisance for homeowners and visitors to parks and recreational areas. The Michigan Cooperative Gypsy Moth Suppression Project has three main goals:

• Protecting trees for aesthetic and wood fiber production purposes.

• Reducing larval numbers in residential and recreational areas.

• Reducing the improper use of pesticides for gypsy moth control.

In May 1998, approximately 80,000 acres in 19 Lower Peninsula counties were treated as part of the voluntary gypsy moth suppression program. MDA supervised and directed this cooperative program, which is supported by the United States Department of Agriculture-Forest Service (USDA-FS), and local funds. The counties involved were:

This program, undertaken to provide relief to residents in heavily infested areas, protected shade trees and landscaping for more than 100,000 citizens. The treatment also protected parks and recreational areas that receive 2.5 million visitors each year. The defoliation trend in Michigan has increased since 1996, when it was at a "low" of 3,200 acres.

More than 300,000 acres were defoliated in 1998. Some increase in defoliation acres is expected as gypsy moths move into new areas. This expansion is now taking place across the southern four tiers of counties from the Jackson area toward the southwest corner of the state. There is also a resurgence of the gypsy moth population in the northern half of the Lower Peninsula.

Gypsy Moth Slow-the-Spread (STS) Project
Gypsy Moth continues to spread to new areas in Michigan and other states. Though stopping this spread is currently impractical, slowing the rate of spread is possible. The value of forest land protected during the delayed spread, including the value of timber for paper pulp, totaling $8.5 million. The STS project has demonstrated that, on average, spread can be slowed from 13 to three miles per year. STS is being adopted by other states on the leading edge of gypsy moth infestation from the Atlantic Coast through Wisconsin and Michigan.

Many people are surprised to learn how great a role the Michigan Department of Agriculture plays in their daily lives. The Department and its broad scope of responsibilities touch virtually every Michigan citizen and visitor every day.

This report has detailed not only the significant accomplishments of 1998, but it has outlined the daily accomplishments of each division as well. The men and women of the Michigan Department of Agriculture are dedicated to and truly believe in our slogan, "We're Watching Out For You."

We hope you have found this report helpful. For more information about MDA, write to us at P.O. Box 30017, Lansing, Michigan 48909, or visit our World Wide Web Site at http://www.mda.state.mi.us.