10/4/2019MSU is an affirmative-action, equal-opportunity employer. Michigan State University Extension programs and materials are open to all without regard to race, color, national origin, sex, gender, gender identity, religion, age, height, weight, disability, political beliefs, sexual orientation, marital status, family status or veteran status.

Cultivating Local Farm Economies

Authors

• Mary Reilly, AICP (speaker)• MSU Extension Educator, Manistee County• Government & Community Vitality Team• reillym8@msu.edu

• Brad Neumann, AICP (speaker)• MSU Senior Extension Educator, Marquette

County• Government & Community Vitality Team• neuman36@msu.edu

3

Authors

• Harmony Gmazel, AICP • Government & Community Vitality Educator

• Washtenaw County• gmazelh@msu.edu

• Julia Darnton• MSU Extension Educator, Saginaw County• Community Food Systems, Government

& Community Vitality Team• darntonj@msu.edu

4

10/4/2019• Jae Gerhart

• MSU Extension, Washtenaw County• Local Foods Coordinator – Washtenaw County• Community Food Systems Team

• MSU Product Center• Innovation Counselor

• Gerhart1@msu.edu

5

• Dan Ochs• MSU Extension, Antrim County (formerly)

• Farm Business Management Educator• Ochsdani@msu.edu

• J Robert Sirrine, Ph.D.• MSU Extension, Leelanau County

• Senior Educator, Community Food Systems• sirrine@msu.edu

What will this workshop address?

• Why farms are looking to diversity their operations• The scope of agricultural protections under the Right to

Farm Act/GAAMPs• Local zoning ordinance language and considerations• Agritourism, agribusiness, farm markets• Adding value to buildings• On-farm energy generation (in brief)

Michigan Agriculture

7

10 million acres

> 300 commodities – leads nation tart cherries, blueberries, dry beans, floriculture, pickling cukes

$104.7 billion economic impact 47,600 farms

Data Source: Michigan Dep’t of Agriculture & Rural Development

805,000 jobs 17% of state employment

Michigan Agriculture and Food

8

Data Source: Michigan Dep’t of Agriculture & Rural Development

$459 million in direct food sales$459 million in

direct food sales

2,166 licensed food processors2,166 licensed

food processors

Agriculture, food processors, & related businesses support

923,000 jobs

Agriculture, food processors, & related businesses support

923,000 jobs

Jim

Slu

yter

10/4/2019

USDA/NASS, 2012 Census of Agriculture

Product Sales Direct to Consumer

Source: 2017 Census of Agriculture, Michigan

Number of Farms Selling Directly to Consumers in Michigan

10/4/2019Agritourism Changes 2012-2017

802

$18,995

$23,684

754

$20,989

$27,837

0

5000

10000

15000

20000

25000

30000

Number of Farms Value of Sales ($1,000) Average value per farm ($)

2012‐2017 Agritourism and Recreational Services

2012 2017

Renewable Energy 2012-2017

2012 2017Solar Panels 1464 3689

Wind Turbines 577 1589

Geothermal 401 1464

Small Hydro 17 36

Ethanol Production Systems

34 53

Source: Census of Agriculture, 2017 (Table 49)

2019 = Increased Instability• Wettest spring on record

• MI couldn’t plant 70-80% of cropland• Trade War with China

• pork, other grain exports• Cherry “dumping” from Turkey

• Significantly affected MI tart-cherry industry• New Pests and Diseases (spotted wing

drosophila and others)

What is Diversification?

When a farm branches out from traditional farming to add new money making activities.

Can be in-place-of or in-addition-to traditional farming pursuits.

Why Diversify Your Farm?• Reduced risk• Cash-flow management• Increase overall farm income so the next

generation can engage • Connect with community members

10/4/2019How?

How are farms diversifying?

AgritourismValue-Added Processing

Alternative Energy Generation

How are state and local governments managing farm diversification?

18

Placemaking? Emotional Attachment to Place

• Physical: what we see and feel.

• Activity: hear, touch, smell and taste.

• Interactions: how people and activities come together.

MSU Extension

Rural Placemaking

19

Jill O’Donnell

Traditional Income Generators:• Retailing products

• Farm market• Farm Store• CSA• U-pick• Internet• Wholesale

distribution

20

10/4/2019New & Innovative Strategies

• AirBnB i.e. Farm Stay USA• Farm Dinners• Yoga/Wellness events• Retreats/Meeting spaces• School Field Trips• Event centers

The Michigan Right to Farm Act

Local Zoning

Preemption 

Right to Farm Act (Law)

GAAMPS(Farm 

Practice)

SomeLocal Zoning

• Site Selection

• Farm Market

Local Zoning

RTFA – Two Purposes

• Provides affirmative defense to nuisance lawsuits against farmers• But does not prevent lawsuits

• Provides conditional preemption of certain parts of local ordinances• MDARD does not interpret or enforce

local zoning ordinances

24

10/4/2019GAAMPs (Generally Accepted Agricultural and Management Practices)• Manure management and utilization, 1988• Pesticide utilization and pest control, 1991• Nutrient utilization, 1993• Care of farm animals, 1995• Cranberry production, 1996• Site selection and odor control for new and

expanding livestock production facilities, 2000• Irrigation water use, 2003• Farm markets, 2010

25

Right to Farm: Local Government• 1st: Establish

jurisdiction• 2nd: Determine what

is covered in RTFA & GAAMPs

• 3rd: “GAAMP delegate back”

26

1st: A Four-Part 'Jurisdiction' Test• Is the activity a “farm” or “farm operation”?• Is it producing a “farm product”?• Is it engaged in “commercial production”?• Is it complying with GAAMPs?

• Party asserting RTFA as defense bears burden of showing challenged conduct is protected under RTFA.• Lima Twp. v. Bateson 302 Mich. App. 483 (2013)

27

2nd: What subjects are off limits for local regulation?• If it's covered in a GAAMP, it's 'off limits'

to local regulation• type of farm• farm markets• pesticide application

AND much, much more!

28

• manure spreading• care of animals• acres per animal

10/4/2019But if the subject is NOT in RTFA or a GAAMP, it's fair game to regulate locally

Again, RTFA is a “shield” not a “sword” for the farmer

• Sena Scholma Trust v. Ottawa Cnty. Rd. Comm'n, 303 Mich. App. 12 (2013)

29

3rd: Delegate Back (category 4 sites)

• “Site Selection and Odor Control for New and Expanding Livestock Facilities GAAMP”

• Added in 2014 “Category 4 Sites” - Sites notacceptable for livestock facilities unless regulated by local ordinance.

Kurt Schindler

30

Mary Reilly

3rd: Delegate Back (category 4 Sites)

“Primarily residential”• More than 13 non-farm

residences within 1/8 mile of the site OR

• Have any non-farm residence within 250 feet of the livestock facility, including fencing.

Google Maps and MDARD

31

Ordinance Check• All references to “zoning” were removed

from 2019 Site Selection GAAMPS

• Ordinances regulating the number of farm animals per acre or requiring a minimum acreage to keep animals are likely in conflict with the GAAMPS

• Applies only to farm operations in commercial production (but remember, the bar is low)!

Consult your Municipal Attorney

NB [2]2

Slide 32

NB [2]2 Brad to tweak and mention agri-likeNeumann, Bradley, 9/19/2019

10/4/2019• Site plan review required

by local jurisdiction• Signage, Building

Placement, Parking and Drive locations

• Delegates back to local jurisdiction a specific list of associated activities• See list in GAAMP

3rd: Delegate back (farm markets)

33

Kurt

Schi

ndle

rJi

ll O

’Don

nell

GAAMP for Farm Markets

34

Jim Sluyter

This is a 'Farm Market', not a Farmers Market.

Agritourism Right to Farm

Bed & Breakfast Winery/Brewery On the Farm Weddings Goat Yoga Public Feeding of Animals Farm Tours Cow Cuddling Horse Shows Horse Racing Rodeo

Roadside Stands

Farm Markets U-Pick Corn Maze Equine

BOTH Provides nuisance

protection Preemption of certain

local government ordnances

Source: Michigan Farm Bureau

Farm Market - Farm Products• At least 50% of gross sales dollars of

products sold must be produced on and by affiliated farm

• At least 50% of a processed products’ main ‘namesake’ ingredient must be produced on and by the affiliated farm • Apples used in apple pie, maple sap in

maple syrup, strawberries in strawberry jam, etc.

36

10/4/2019Farm Market - Farm Products Processing• packing • washing • cleaning • grading• sorting • pitting• pressing • fermenting• distilling

• packaging • cooling• storage • Canning• drying • freezing • or otherwise

preparing the product for sale Ji

m S

luyt

er

37

Michigan Agricultural Processing Act (MCL 289.821 et seq.)

Farm Market - GAAMPS

38

Setbacks

Building-permits

Drive and Parking - but not surfacing

SIGNSIGN

Farm Market - Marketing Activities

39

Jae Gerhart

• May include marketing activities and services to attract and entertain customers and facilitate retail trade

• U-Pick and Community Supported Agriculture (CSA) may be used as marketing for a Farm Market.

• But…

Marketing Activities (OTHER)• The Farm Market GAAMPs includes a list of

marketing activities that are “beyond the scope of these management practices” and may be regulated by other governmental bodies.

40

Jim Sluyter Jill O’Donnell

10/4/2019Farm Market - Marketing Activities (Local Zoning Applies)

41

• Bakery• B&Bs• Beer Breweries• Bonfires • Camping • Carnival Rides• Cider Mill• Concerts • Cooking Demos• Corn Mazes • Distilleries• Festivals

• Fishing Pond • Food Service• Haunted Barns/Trails• Hunting Preserves • Mud Runs• Petting Farms• Play-scapes• Processing• Riding Stables • Social Events• Winery/Hard Cider

The list is not all-inclusive!

IT GETS BLURRY! What subjects are off limits for local regulation?

• A gardener grows and sells herbs and kale to the local health food store. He is allowed to construct a rather handsome building for agricultural use (growing, processing, packaging product).

42

• Two years later, he rents the building for weddings and small gatherings (found out on Instagram).

Wik

imed

ia C

omm

ons

Schi

ndle

r

Zoning & Permitting for Diversification

43

St. Ambrose Cellars,Beulah, MI

M. Reilly

M. Reilly

ZONING OPTIONS

• Permitted use • Special land use (specific restrictions)• Select some/not others- hybrid approach• Allow only those uses listed in GAAMPs

(Farm Markets, CSA, U-picks) but none of the marketing options “beyond the scope”.

44

10/4/2019

45GreenbushTownship Zoning Ordinance

Event Centers/ Wedding Barns/Wineries

• These are unique uses different from a pumpkin patch or hay ride!

46

Wikimedia Commons

Sample Agritourism Regulations• Setbacks • Signs • Lighting • Parking surfacing• Dust control• Access from paved road• Temporary structures: dumpsters, porta

john, tents, bonfire area47

Sample Regulations for Special Events • Number of patrons (over 50

requires temporary permit)• Hours (closed by 9-11 pm)

• Parking (limiting factor?)• Trespassing: attractive nuisance

– creek, pond, neighboring animals?

• Outdoor vs. indoor venue• Screening

48

Mar

y R

eilly

10/4/2019Sample Agritourism Regulations

• Minimum acreage lot: a local decision• Minimum acreage in active production

(fruit, grain, vegetable or ‘principal ingredient’)

49

Sound Amplified Events Sound may be the most likely source of conflict

Sound can travel for miles• Limit # of evening events• Require music off at 9-10 PM• Outdoors = more restrictive

hours/number of events• Topography: Valleys and lakes

carry sound• Site plan required to include

speaker location and direction

50 Resource: Suttons Bay Township Ordinance

Zoning for Agribusiness

51

Credit: D. Smeltzer

IT GETS BLURRY! What subjects are off limits for local regulation? • A farmer has 5 acres of hops and packages her

hops in a building on the same parcel. Permitted through zoning as an agriculture building.

• Township learns (on Facebook) that the business is now packaging hops from 6 area growers and has 3 employees.

• Change from Agriculture (RTFA preemption) to agribusiness/processor (RTFA does not apply).

52

10/4/2019

53

NB [2]4

Agribusiness (Class 1, Class 2)• Exempt from Permit: Under a certain square

footage or within the home? • Class 1: A permitted use (up to certain square

footage) to allow for start-ups or small operations.

• Class 2: Special land use• Too large or intensive for Agriculture district–

belongs in Industrial?

54

Remember Non-Agricultural Districts

55

Might include manufacturing/processing of food products, commercial/catering kitchens, or wineries/brewers/distilleries• Permitted use in industrial district • Permitted or special land use in a

commercial district• Scale of the operation and

available infrastructure may determine zoning district.

To Do List

• Understand RTFA and preemption of local authority

• Update your master plan to reflect intent• Amend your zoning to reflect master

plan AND RTFA/GAAMP preemption

MSU Extension offers additional training on RTFA

I wonder what the 

Master Plan says? 

I wonder what the 

Master Plan says? 

Snappygoat.com

Slide 53

NB [2]4 Add source and find, add companion materialNeumann, Bradley, 9/19/2019

10/4/2019

Adding Value to Buildings

Special Events – Barn Venues

58

Kurt Schindler

• Building permits• Required after change in use• No longer qualifies for agricultural

exemption• Bathrooms• Fire prevention• Emergency exit• Work with Building Official

Agriculture to Commercial• The business of retail trade – could mean a

horse arena, brewery, winery, retreat center, meditation center, farm-to-table, food processing, etc.

• Once the public is invited in a building for retail trade the building is no longer considered an agricultural building. (Source: Michigan Farm Bureau)

59

Phot

o: M

ary

Rei

lly

General Considerations• Change of Use• Structural Elements and loads

• First floor, loft? Designed for human loads?• Handicap access• Food safety/sanitary conditions• Fire Suppression• Ingress/Egress• Accessible Bathrooms

60

Wik

imed

ia C

omm

ons

10/4/2019Cultivating Renewable Energy

Contributors: Wayne Beyea, AICP, JD, Senior Outreach SpecialistBrad Neumann, AICP, Senior Extension EducatorHarmony Gmazel, AICP, Extension EducatorCharles Gould, Extension Educator

EarthWISE

Consumers Energy 2019 IRP

Proactive Planning vs. Reaction• Like other community changes, solar has the

potential to generate opposition if siting causes conflicts with surrounding land uses or interests.

• Planning ahead and engaging the public proactively to identify the best sites (utility-scale) will minimize conflict and opposition.

10/4/2019Suitable Land

• Generally flat or slopes within 20-30 degrees of due south

• Gradual slopes of 2-3% are ideal for PV systems, especially when constructed to face south, thereby increasing sunlight exposure

Suitable Land

• Land of sufficient size for project to minimize land assembly

• Utility-scale solar requires approximately 5 acres per 1 MW• More important to be

sized to capacity of transmission or distribution lines.

DTE Energy

Zoning ConsiderationsLocal government should minimally:1. Differentiate between on-site, accessory-use

systems and utility-scale systems, which are new principal uses of land.

2. Allow on-site use systems that are accessory to the principal or main use of the property by-right in virtually all districts with minimal review by the zoning administrator.

Zoning ConsiderationsLocal government should minimally:3. Allow utility-scale solar systems by-right in only a couple of zoning districts, such as industrial.

4. List utility-scale solar as a special land use subject to siting review by the planning commission in those zoning districts where there might be land use conflicts (such as productive ag lands). Then develop the special land use standards that you’ll use to review proposals.

10/4/2019On-Site Use vs. Utility-ScaleZoning Approach:• Accessory, Permitted

Use in all districts as appropriate

• Minimal review = expediency

Zoning Approach: Principal, Special

Land Use in certain districts as appropriate

More review = siting based on standards

Categories of low impact solar development• Solar centric

• Minimal changes to solar configuration.• Low-lying vegetation for ground cover and habitat.

• Vegetation centric• Minimal changes to vegetation design.• Large spacing in solar technologies.

• Co-location and Co-optimization• Solar and vegetation configurations are designed

jointly for maximum dual output.

70Source: Jordan Macknick, National Renewable Energy Laboratory.

Co-location and Co-optimization

71Source: Rob Davis, Center for Pollinators in Energy, Fresh Energy

Solar permitted on PA 116 landAs of 6/19, utility-scale solar may be permitted on PA 116 land under certain circumstances:• The placement has been approved by the

zoning jurisdiction and MDARD;• Landowner agrees to:

• Not claim PA 116 tax credits during the time of solar power production;

• Plant a cover crop including pollinator habitat under panels to reduce erosion and maintain soil fertility;

• Maintain the existing drainage on the property; among others

10/4/2019Thank you!Questions and Discussion

Photos: M. Reilly