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The West Michigan Agricultural Economy: All Hands on Deck
Norman Christopher, past REI Innovation Fellow
The agricultural economy in West Michigan is a cornerstone of the region’s identity and economic strength. With more than 300 distinct products contributing over $100 billion to the state’s economy, Michigan’s food and agriculture industry supports over 800,000 jobs- more than 15% of the state’s workforce. Ranking 7th nationally in overall production and second in crop and product diversity, Michigan is home to more than 47,000 farms operating on approximately 10 million acres.
A key driver of this success is seasonal fruit and vegetable production, valued at more than $575 million annually. Of this, roughly $362 million comes from fruits and $217 million from vegetables. Counties such as Oceana, Newaygo, Muskegon, Lake, Mason, and Kent supply much of the farmland that supports the production of cherries, blueberries, apples, asparagus, cucumbers, carrots, and more. In fact, Michigan leads the nation in the production of asparagus, Niagara grapes, and tart cherries. However, most fruit and vegetable production is concentrated within a tight 2–3 month season in late spring and fall, making effective planning and marketing essential.
Yet despite its strengths, Michigan’s agricultural sector is facing mounting challenges. Farmers must navigate shrinking margins, rising input costs, and increasing pressure from imports and development. The 2022 Ag Census reveals troubling trends: Michigan has lost 72,000 farms and approximately 300,000 acres of farmland since 2017. Without collective action, traditional crops in West Michigan may soon become niche specialties rather than economic staples.
A number of critical issues are driving these changes: Lingering impacts of COVID-19 on farm operations and business models; Declining labor participation rates, especially in frontline roles; High costs of field equipment and limited access to capital; A critical shortage of pickers and farm workers; Rising logistics, maintenance, and transportation expenses; Insufficient capacity for processing, refrigeration, and freezing; Supply chain bottlenecks that push local produce out of state; Regulatory and compliance concerns, including waste and water management; Reliance on the H2A worker program, which brings additional costs; and increased imports during Michigan’s peak growing seasons.
These challenges are mirrored in the supply chain. Senior citizens and low-income residents face difficulty accessing local produce such as asparagus and milk due to distribution issues and pricing. Farmers often sell outside Michigan to find reliable markets. Meanwhile, local food processing and storage capacity has diminished, particularly in Oceana County.
The implications are significant. Farmers are struggling to transition operations to the next generation, and some are preparing to sell farmland for residential development. Local economies are impacted by lost wages, employment, and tax revenue. In Oceana County alone, approximately 45% of residents fall under the ALICE threshold (Asset Limited, Income Constrained, Employed), with average family expenses nearly matching annual income.
So what can be done?
The path forward includes embracing innovation, especially in AgBio technology, and creating value throughout the supply chain. But most importantly, it calls for intentional, cross-sector collaboration. Public and private entities must move beyond working in silos and toward shared strategies that address root causes and promote resilience. These challenges will not be solved without an “all hands on deck” approach.
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