LANSING — Chuck Lipstrew, president of the Michigan Agribusiness Association, told the House Agriculture Committee that Michigan’s farm economy is facing increased uncertainty and that state support and regulatory certainty will be important as producers and rural businesses navigate 2026.

Lipstrew, whose association represents roughly 300 business members across seed and fertilizer retailers, grain handlers, input manufacturers, logistics providers and professional services, said commodity prices and export-market uncertainty have tightened conditions for many farmers and the businesses that serve them. “Things are uncertain for farmers and rural businesses,” Lipstrew said.

The association highlighted three priority areas for lawmakers: the health of the agricultural economy, the importance of exports and continued investment in agricultural technology. Lipstrew noted that Michigan reached a record export number in the past year and thanked legislators for fully funding the Michigan Department of Agriculture & Rural Development’s (MDARD) export inspection programs and the pesticide and plant-pest management functions in the FY26 budget. He said those programs support exporters and help maintain access to markets.

Scott Gordon, president and CEO of Cooperative Elevator Company, described his farmer-owned cooperative, founded in 1915 and headquartered in Pigeon, Michigan, which serves roughly 1,100 family farms in the state’s Thumb region. Gordon said the cooperative markets corn, wheat, soybeans and multiple classes of dry edible beans to customers in North America, Mexico, Europe and beyond, and moves product by rail and truck. He said the cooperative exports about 400 railcars to Mexico annually and that strong logistics and timely export certification are competitive strengths for Michigan.

In questions that followed, lawmakers pressed presenters on insurance and risk for grain storage, whether export flows could be redirected to feed Michigan food banks during SNAP disruptions, prospects for small and organic farms, and competition from Brazil and China.

On insurance and elevator bankruptcy risk, Lipstrew described two separate issues: property insurance for storage facilities (fire and physical loss) and a state-level backstop, the Farm Products Insurance Authority, which he said is administered by MDARD and maintains a fund to address the unlikely event of an elevator bankruptcy. He said the authority’s board is appointed by the governor and confirmed by the Senate and that Michigan has not recently needed to invoke the fund.

When asked whether export volumes could be diverted to food banks while SNAP benefits were disrupted, Lipstrew and Gordon said diversion options are limited by existing trade commitments and the need to meet customer contracts, though they noted government programs do support packaged goods and certain dry-bean domestic programs. They urged a swift reopening of federal services that affect SNAP and other programs.

On small farms and organics, both presenters said small farms remain viable and that cooperative business models and specialty or organic markets can provide opportunities. Gordon said some organic production is shifting toward organic feed markets for dairy and poultry amid tighter consumer spending on premium products.

Lawmakers also asked about international competition. Lipstrew and Gordon said Brazil and other South American producers have increased capacity in recent years, but emphasized Michigan’s logistics, MDARD export services and the ability to move product quickly as assets. Lipstrew noted a recent positive signal that China booked soybean cargos, which could help soybean growers.

Several members asked about new market opportunities. Lipstrew identified sustainable aviation fuel as a priority area where state policy could help Michigan producers capture a growing market for bio-based jet fuel.

The witnesses repeatedly asked for early and frequent consultation with regulators to avoid surprises that could impede investment and market access. “What we don’t want in an uncertain time is surprises and new variables to manage as a business,” Lipstrew said.

No formal committee action was taken on the presentation itself; the session included two separate motions earlier in the meeting to refer House Bills 4881 and 4882 to the House Rules Committee that were voted on before the presentation.