DEPARTMENT OF AGRICULTURE, TRADE AND CONSUMER PROTECTION

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The Honorable James Harsdorf Secretary

Wisconsin Department of Agriculture, Trade and Consumer Protection P.O. Box 8911

Madison, WI 53708 608-224-5012 608-224-5045 (Fax)

The Wisconsin Department of Agriculture, Trade and Consumer Protection has an important mission. The department works for all the people of Wisconsin to ensure:

• The safety and quality of food • Consumer protection

• Fair business practices for the buyer and the seller

• Efficient use of agricultural resources in a quality environment • Healthy animals and plants

• The vitality of Wisconsin agriculture and commerce

The DATCP is primarily a regulatory agency, although it also provides many nonregulatory services. DATCP is the state-level equivalent of six federal agencies:

• Federal Food and Drug Administration (food safety and labeling) • Federal Trade Commission (unfair and deceptive business practices) • Consumer Product Safety Commission (consumer product safety) • Department of Agriculture (meat inspection, animal and plant health,

agricultural marketing, and land and water resources)

• Environmental Protection Agency (pesticides and groundwater)

• Department of Commerce (weights and measures, trade and commerce) In one way or another, DATCP’s jurisdiction extends to nearly every business in the state. The department has broad authority to make rules that have the force of law. DATCP also licenses over 100,000 individuals and businesses.

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DATCP’s first aim is to listen well, communicate effectively, and help producers, consumers and businesses solve problems. But DATCP also has substantial enforcement authority should that be necessary. The department may conduct hearings and investigations, perform inspections, issue subpoenas, collect and analyze samples, issue compliance orders, and suspend or revoke licenses. In cooperation with a local district attorney or the Department of Justice, DATCP may also prosecute law violations in court.

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SEERRVVIICCEESS DATCP provides many services to the people of Wisconsin, including consumer and business information, complaint handling, laboratory testing, agricultural development and marketing services, farm assistance and more.

Persons needing assistance may call the department’s toll-free hotlines. DATCP provides “grass roots” services throughout the state with regional offices in Milwaukee, Green Bay, Eau Claire and Madison; with commodity inspection offices in Stevens Point and Cambria, and at the ports of Superior, Milwaukee and Prairie du Chien. Department field staff is posted throughout the state. Source: Ann Roth, Senior Policy Analyst, Office of Outreach and Policy, Wisconsin Department of

Agriculture, Trade and Consumer Protection

Biennial Report for 1997-1999, Wisconsin Department of Agriculture, Trade and Consumer Protection

Wisconsin Department of Agriculture, Trade and Consumer Protection Home Page, http://datcp.state.wi.us/static/index.htm

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PrrooggrraammDDeessccrriippttiioon n Credit Relief Outreach Program (CROP): Provides a 90% loan guarantee for

short-term (one year) loans made by local lenders to producers for production expenses.

Agribusiness Loan Guarantee Program: Provides an 80% loan guarantee for

loans made by local lenders for developing products that use Wisconsin raw materials.

Farm Asset Reinvestment Management (FARM): Provides a 25% loan

guarantee for loans made by local lenders for farm expansions and/or modernization.

Beginning Farmer Bond Program: Provides low-interest loans for beginning

farmers.

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PrrooggrraammTTyyppee Direct Financial Support

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InnaauugguurraallDDaattee 1980s and 1990s

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TaarrggeettPPooppuullaattiioon n Producers or agribusinesses unable to secure conventional credit

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Reeqquuiirreemmeennttss Varies. See individual programs at www.wheda.com

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Feeaattuurreess These programs are administered by the Wisconsin Housing and Economic Development Authority (WHEDA.)

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SttaaffffLLeevveell((FFTTEEss)) 2 FTEs

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SoouurrcceeooffFFuunnddiinngg Application Fees ($100-$200) and Closing fees (1.5%-1.7% of the loan.)

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1999999AAnnnnuuaallBBuuddggeett Administration: $170,000

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PrrooggrraammSSuucccceessss 1999 statistics:

CROP: Guaranteed 758 loans totaling $12.5 million. (Guarantee amt. is $11.2

million)

FARM: Guaranteed 31 loans totaling $5 million (guarantee amt. is $1.4 million).

There are currently 78 active loans ($3.5 million in guarantee amt.) Loan periods vary from 5-10 years.

Agribusiness: Guaranteed 1 loan of $750,000. (Guarantee amt. is $600,000).

There are currently 4 active loans ($1.3 million in guarantees.) Loan period maximum is 15 years.

Beginning Farmer: Facilitated 9 loans, totaling $1.9 million. Have 51 active

loans.

Source: Ann Roth, Senior Policy Analyst, Office of Outreach and Policy, Wisconsin Department of Agriculture, Trade and Consumer Protection

Wisconsin Department of Agriculture, Trade and Consumer Protection Home Page, http://datcp.state.wi.us/static/index.htm

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PrrooggrraammDDeessccrriippttiioon n DATCP creates agricultural marketing orders and oversees the administration and regulation of farmer-elected marketing boards for eight commodities: cherries, corn, cranberries, ginseng, milk, mint, potatoes and soybeans. The largest marketing board, the Wisconsin Milk Marketing Board, annually collects and spends over $23 million in farmer assessments for market promotion and research.

The marketing orders help farmers and agri-businesses maintain and expand national and international markets. Through funding and coordinating research and development, producers enable their industries to grow and change with consumer demands. For a marketing order to be created, farmers must vote and approve the order. Producers of the commodity elect fellow farmers to serve on a governing board. DATCP’s role in marketing order includes:

• Conducting proceedings to establish, amend or terminate orders • Monitoring the operation of marketing order boards for compliance with

statutes and rules; reviewing boards’ budgets for compliance • Enforcing assessment collection

• Conducting rule-making procedures

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TaarrggeettPPooppuullaattiioon n Producers of Wisconsin agricultural commodities

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Reeqquuiirreemmeennttss Wisconsin Producer of the commodity for which an order is being established

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SttaaffffLLeevveell((FFTTEEss)) 1.0 FTE at DATCP. Each Market Order may have additional staff

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SoouurrcceeooffFFuunnddiinngg Producer Assessments

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1999999AAnnnnuuaallBBuuddggeett $75,000 (DATCP for administration)

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PrrooggrraammSSuucccceessss Approximately 57,000 Wisconsin producers of eight commodities (cherries, corn, cranberries, ginseng, milk, mint, potatoes and soybeans) have state agricultural marketing orders

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PrrooggrraammDDeessccrriippttiioon n Through a cooperative agreement with the USDA Agricultural Marketing Service, the DATCP inspects and grades the quality of fruits and vegetables, primarily potatoes, cranberries, apples, cherries, onions, and cabbage. This service facilitates interstate shipment under the USDA-Perishable Agricultural

Commodities Act, gives producers quality control, provides uniform standards of product identity, and protects against product misbranding.

Under a cooperative agreement with the USDA Federal Grain Inspection Service, the DATCP grades, inspects and certifies the quality and condition of bulk grain and processed grain commodities sold in both the domestic and international markets. The primary grain commodities inspected are barley, corn, flax, oats, rye, soybeans, sunflowers, canola, and wheat.

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PrrooggrraammTTyyppee Marketing Support

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TaarrggeettPPooppuullaattiioon n Producers and marketers of grains and vegetables

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Feeaattuurreess Working with USDA and other state departments of agriculture, the program has implemented USDA’s Quality Management System, which consolidated federal supervision resulting in stabilizing federal oversight costs to the producers. Positive lot labeling and identification of inspected product was implemented to protect the producer and consumer from mislabeling and reduce cost of inspection.

Grain inspection and condition results are provided to the grain industry on-line through computers at the inspection laboratories. A Quality Assurance

Monitoring program was implemented with USDA to measure the department’s inspectors levels of expertise in applying US grain standards.

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SoouurrcceeooffFFuunnddiinngg Grading and inspection services are provided on a user fee basis.

1 1999999AAnnnnuuaallBBuuddggeett $ 4.2 million M Meeaassuurreessooff P

PrrooggrraammSSuucccceessss Wisconsin produces 3.1 billion pounds of potatoes annually, ranking third in the nation. The department grades and certifies approximately 65 percent of the total production according to USDA quality standards. The value of the product inspected is approximately $100 million to Wisconsin’s farmers.

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The total value of grain and grain commodities graded this past year amounted to $1.3 billion in cash receipts to farmers.

Biennial Report for 1997-1999, Wisconsin Department of Agriculture, Trade and Consumer Protection

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PrrooggrraammDDeessccrriippttiioon n Governor Tommy G. Thompson created the Dairy 2020 Initiative in 1993 to recommend and implement actions needed to revitalize the dairy industry and enhance opportunities for profitability. Dairy 2020 is a partnership of the state, higher-education institutions, and the private sector. Many of the challenges facing the industry are identified as economic development issues, similar to those faced by the manufacturing sector in the 1980's. The Wisconsin Department of Commerce is the lead agency for the Dairy 2020 Initiative. In addition to the Dairy 2020 program, the Department of Commerce has a variety of financing programs available to businesses in the agricultural sector. The Department of Commerce puts a concerted effort into working with

agribusiness, in particular on the processing sector, to fund projects.

The Wisconsin Department of Agriculture, Trade and Consumer Protection works collaboratively with the Wisconsin Department of Commerce on agricultural development projects in the state.

Program Goal

The primary goal of the Dairy 2020 Initiative is to make Wisconsin the best place to produce and market milk and dairy products.

Dairy 2020’s Key Action Areas

Through the Dairy 2020 Council, the initiative is focusing on key issues influencing producer profitability, the attractiveness of the industry for new and continuing dairy sector investment, and overall industry competitiveness. Key action areas of the Dairy 2020 Council include:

• Supporting industry coordination and communication; • Increasing access to, and coordination of, available services;

• Developing programs to encourage business management and skills training; • Increasing environmental awareness among producers;

• Increasing magnitude of and investment in the dairy sector; • Supporting equitable farm taxation ; and

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Dairy 2020 Initiative/Rural Economic Development Program Financial Assistance

The Dairy 2020 Initiative/Rural Economic Development Program, administered by the Department of Commerce, helps rural entrepreneurs attract private capital for business endeavors. These businesses are eligible for Early Planning Grants of up to $3,000 to develop comprehensive business plans. Applicants are

required to contribute at least 50% of the total project costs from sources other than the State of Wisconsin.

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TaarrggeettPPooppuullaattiioon n Wisconsin Dairy Farmers (Dairy 2020)

Wisconsin Agricultural Producers and Processors (other Economic Development Programs) E Elliiggiibbiilliittyy R Reeqquuiirreemmeennttss Varies A Addmmiinniissttrraattiivvee F

Feeaattuurreess Dairy 2020 and other financing programs are administered by the Wisconsin Department of Commerce. The Wisconsin Department of Agriculture, Trade and Consumer Protection and the University of Wisconsin Extension and the College of Agriculture and Life Sciences may collaborate with the Department of

Commerce on agriculturally based projects.

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SttaaffffLLeevveell((FFTTEEss)) 1 FTE (Dairy 2020)

(Additional Staff also work on other ag-related development projects.)

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SoouurrcceeooffFFuunnddiinngg State general tax revenues

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1999999AAnnnnuuaallBBuuddggeett $656,500 (Dairy 2020 and Rural Economic Development Programs)

(Additional costs and funding are associated with other ag-related projects.)

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PrrooggrraammSSuucccceessss Dairy 2020 has awarded about $1.6 million to nearly 600 dairy farmers. Award recipients have increased their combined milk production by nearly 800 million pounds per year.

For every dollar invested in Dairy 2020 Early Planning Grants, recipients have invested as additional $169 in their businesses.

In addition to the Dairy 2020 Program, the Department of Commerce has a variety of financing programs that fund economic development projects related to Wisconsin agri-business. In the last 10 years, over $125 million has been awarded to agricultural businesses undertaking modernization and expansion projects throughout the state. Nearly every program administered by the Department of Commerce has made an award to an agricultural business.

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Source: Tim Griswold, Director, Dairy 2020 Program, Wisconsin Department of Commerce Dairy 2020 Initiative Home Page, http://www.commerce.state.wi.us/MT/MT-FAX-0912.html

Printed Materials:

“Dairy 2020 Early Planning Grant Program”, Wisconsin Department of Commerce”, August 2000

“Dairy 2020 Early Planning Grant Program Final Report Analysis”, Wisconsin Department of Commerce, June 19, 2000

“Financial Resources for Businesses and Communities”, Wisconsin Department of Commerce, April 5, 2000

“Technical Resources for Businesses and Communities”, Wisconsin Department of Commerce, April 21, 2000

Ann Roth, Senior Policy Analyst, Office of Outreach and Policy, Wisconsin Department of Agriculture, Trade and Consumer Protection

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PrrooggrraammDDeessccrriippttiioonn Staff help to promote and develop markets for Wisconsin agricultural products through one-to-one market consulting, conducting marketing seminars and workshops, helping food companies participate in trade shows, providing information through product directories and other publications, and assisting in various promotional events.

Staff also provide assistance and administer a grant program related to value-added agriculture.

Specific programs include:

Agricultural Development and Diversification Grants: A $400,000 per year

grant program to support the development of new products, technologies and markets that will aid agricultural development and diversification.

This program also provides information and referral services to prospective entrepreneurs who are looking to start new enterprises in Wisconsin agriculture.

Alice in Dairyland Program: A public relations program to promote Wisconsin

agriculture.

Something Special from Wisconsin Logo Program: A trademark program for producers and processors of Wisconsin products, which is run on a small budget from fees collected from members.

County and District Fairs Program: Technical and financial assistance (aids for

exhibitor premiums) to agricultural fairs.

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PrrooggrraammTTyyppee Direct Financial Assistance Technical Support

Marketing Support

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TaarrggeettPPooppuullaattiioon n Producers, processors and marketers and consumers of Wisconsin Agricultural products

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Reeqquuiirreemmeennttss Tend to work with small and medium sized businesses that are entering new markets.

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Feeaattuurreess Registration and fee for using the SSFW logo.

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SoouurrcceeooffFFuunnddiinngg State Tax Revenues, Program Fees

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1999999AAnnnnuuaallBBuuddggeett $400,000 for staff and operating budgets. Additional direct aids to

Individuals/organizations of $585,000 are distributed for County Fairs. In addition, $400,000 is distributed annually for ADD grants. Small amounts are distributed to The World Dairy Exposition (the largest dairy trade show in the world) and the Livestock Breeders Association.

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PrrooggrraammSSuucccceessss Since 1989, the ADD program has distributed $3.3 million in grants to 173 projects. The economic benefit from this “seed” money is estimated at $60 million.

From June 1998 to 1999, Alice in Dairyland generated $3,075,070 worth of print, television and radio coverage promoting Wisconsin agriculture.

Over 200 Wisconsin companies are currently enrolled in the Something Special

from Wisconsin logo program. Since January of 1998, 74 new companies were

added to the program list.

In 1998, $650,000 was distributed to county and district fairs for fair premiums for Junior, Open and Senior Citizen exhibitors. DATCP distributes 30,000 fair entertainment brochures annually. During the 1998 fair season, more than 3 million people attended a county fair.

Trade leads/ new sales resulting from trade shows and public events are determined through follow up surveys. Annual Survey of Marketing Orders, Councils and Commissions

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PrrooggrraammDDeessccrriippttiioon n The financial security programs help protect agricultural producers from

warehouse or dealer financial defaults. Staff in the Bureau of Trade Practices at the Wisconsin Department of Agriculture, Trade and Consumer Protection license and regulate grain dealers and grain warehouses, dairy plants, and vegetable processors and handlers. Entities that fail to meet minimum financial standards must file security with the Department. In the event of a financial default, the Department converts security to pay claims and conducts various legal actions as necessary.

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PrrooggrraammTTyyppee Direct Financial Assistance

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TaarrggeettPPooppuullaattiioon n Wisconsin Producers of grain, milk and processing vegetables

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Feeaattuurreess DATCP is currently working with the dairy, grain, and vegetable industries to convert the current security programs to an indemnity trust fund and risk pool concept which would release approximately $200 million in working capital and speed up payment to producers if a default should occur.

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SoouurrcceeooffFFuunnddiinngg State revenues (15%), industry fees (85%)

1 1999999AAnnnnuuaallBBuuddggeett $ 1 million M Meeaassuurreessooff P

PrrooggrraammSSuucccceessss The Department monitors financial statements for 150 grain dealers and 119 grain warehouses and holds more than $31.7 million in security.

The Department monitors financial statements for 100 dairy plants and holds $116.5 million in security. The Department monitors the financial statements for 35 vegetable processors and holds approximately $30.7 million in security. Source: Ann Roth, Senior Policy Analyst, Office of Outreach and Policy, Wisconsin Department of

Agriculture, Trade and Consumer Protection

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PrrooggrraammDDeessccrriippttiioon n The International AgriBusiness Center (IABC) provides a range of educational and matchmaking services designed to educate Wisconsin companies and producers about export opportunities and put overseas buyers in direct contact with Wisconsin suppliers. IABC conducts individual export consultations, organizes export seminars, disseminates trade leads, administers state and federal export funding programs, coordinates Wisconsin company participation in domestic and international trade shows, organizes trade missions, publishes an export directory and coordinates the visit of overseas buyers to Wisconsin.

P PrrooggrraammTTyyppee Technical Support Marketing Support I InnaauugguurraallDDaattee 1965 T

TaarrggeettPPooppuullaattiioon n Wisconsin agribusiness companies/producers, domestic buyers, international buyers, consumers E Elliiggiibbiilliittyy R Reeqquuiirreemmeennttss Wisconsin-based company A Addmmiinniissttrraattiivvee F

Feeaattuurreess IABC serves as the conduit for federal marketing assistance funds.

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SoouurrcceeooffFFuunnddiinngg State general tax revenues, program fees, federal marketing assistance funds/grants.

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1999999AAnnnnuuaallBBuuddggeett Administration: $906,000 (salaries, rent etc) $300,000 (discretionary funding) Aids to individuals

and organizations: $1.982 million (federal funding administered through IABC including generic and branded funding under the Market Access Program)

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PrrooggrraammSSuucccceessss For each activity it conducts, IABC measures the following: • Number of participants

• Number of first-time participants • Average activity evaluation rating • Number of new contacts generated • Number of trade leads

• Number of actual contract signed • Number of expected contracts

• Number of new distributor relationships • Actual sales

• Projected sales

• First export sale

DATCP promotes exporting to nearly 1,500 Wisconsin agricultural, food, forestry, fishery, biotechnology and agricultural equipment companies.

During the 1997-99 biennium, DATCP coordinated a combined total of 83 trade missions, seminars, reverse buyers’ missions, and trade shows to promote the export of Wisconsin food, livestock, agricultural equipment, and farm related products. Total export sales generated from these activities totaled more than ten million dollars. Foreign countries targeted include Canada, Mexico, Japan, Turkey, Brazil, Spain, China, Korea, Japan, Germany, Belgium, France, Australia, Argentina, South Africa and New Zealand.

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PrrooggrraammDDeessccrriippttiioon n Farmers’ Assistance

• An information clearinghouse providing links to financing and other resources; information on government programs; marketing options; entrepreneurial possibilities; and farm safety and health issues • Legal Information from staff attorneys on a variety of topics including

farm business organization, restructuring options, taxes, reorganization and estate planning, legal procedures.

• Financial counseling and analysis; enterprise analysis; feasibility analysis; cash flow projections; debt analysis and restructuring • Volunteer farm advisors trained to assist with analyzing the farm

business; identifying business options; finding local resources; locating sources of credit.

• Employment and training options, including career change counseling, small business development, information about training programs, tuition assistance, job hunting strategies.

Farm Link

• Program helps farmers who want to retire, change careers, or relocate by identifying options, developing a linkage plan, finding a match for retiring/beginning farmers, and providing support through the transfer process.

Farm Mediation and Arbitration

Provides conflict resolution services through the use of trained volunteer mediators to resolve disputes involving

• Creditor/debtor issues • USDA program benefits • Contracts with food processors • Landlord/tenant issues • Environmental concerns • Family conflicts

Rural Electric Power Services

Offers farmers and rural electric power distributors assistance relating to electric power issues by providing

• Information about stray voltage and power quality

• On-farm investigation by a technical team including an electrician and a veterinarian

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• A format for dispute resolution

• Research data on relevant electrical issues

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PrrooggrraammTTyyppee Direct Financial Assistance

Technical Support

Marketing Support

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InnaauugguurraallDDaattee Mid 1980s

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TaarrggeettPPooppuullaattiioon n Wisconsin farmers and their families

E Elliiggiibbiilliittyy R Reeqquuiirreemmeennttss None A Addmmiinniissttrraattiivvee Toll-free telephone F

Feeaattuurreess Extensive network of volunteer farm advisors

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SoouurrcceeooffFFuunnddiinngg State funds, public utility fee for REPS, federal funds for mediation program

1 1999999AAnnnnuuaallBBuuddggeett $748,000 (State: $ 265,000; Utility Fees: $276,000; Federal Funds: $207,000) M Meeaassuurreessooff P

PrrooggrraammSSuucccceessss Key accomplishments of the Farm Center during the 1997-99 biennium included: • Assisted with the development of the Youth Apprenticeship in Production

Agriculture, the first such apprenticeship in the nation

• Developed a logical career path model for production agriculture. The Ag Career and Farm Transition Working Group is defining the options available to enter, progress through, change career focus and exit production

agriculture, providing a road map for prospective and current agricultural workers.

• Completed on-going responsibilities associated with the Wisconsin Rural Partners program which brings together local, state and federal government representative, private non-profit groups, citizens and private industry to address social and economic issues faced by Wisconsin’s rural

communities (Forums organized by the group have focused on issues such as the dairy industry and the Governor’s Rural Summit)

• Assisted with the Future Fields Project that helps to retrain farmers for careers outside of production agriculture. Approximately 300 farmers were enrolled in the program and 104 farmers were placed in jobs with an average hourly wage of $10.17

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• Hosted nine workshops for farmers and key professionals involved in farm transfers – held in locations around the state. Provided a series of monthly articles on farm transfer issues for state agriculture press. Responded to 30-60 calls monthly on farm transfer issues.

• Conducted a Stray Voltage Summit and six workshops on stray voltage, including An Introduction to Stray Voltage; a Stray Voltage Investigators

Training Course; and an Advanced Stray Voltage Short Course. Staff made

over 240 visits to farms regarding stray voltage from July ’98 to May ‘99. • Opened approximately 135 farm mediation cases from January 1998 to May

1999.

• Responded to approximately 570 calls monthly to the Center’s toll-free hotline, on a variety of issues. Fifty percent of the calls are related to three issues: farm financial concerns, mediation issues and legal concerns.