Section 285.351. Definitions.

Rule 1.  (1) As used in these rules:

(a)  "Act" means sections 1 and 2 of 2000 PA322, MCL 285.301 and 285.302.

(b)   "Applicant" means any 1 of the following entities that does, or applies to do, value- added agricultural processing or related agricultural production operations, or both, in the state of Michigan:

(i)   An individual.

(ii)   A farmer-owned cooperative.

(iii)   A partnership.

(iv)   A limited liability company.

(v)   A private or public corporation.

(vi)   A local unit of government.

(vii)      A  producer-funded   commodity  organization   that  is  legislatively authorized in Michigan.

(c)     "Application instructions" means the document issued by the department to applicants that describes information required to participate in the agricultural development fund program in the given state fiscal year.

(d)   "Business plan" means the documents that define the business, identify the goals, and serve as the firm's resume. The basic components include a current and pro forma balance sheet, an income statement,  and  a cash  flow analysis.

(e)   "Department" means the Michigan department of agriculture.

(f)  "Director" means the director of the department or his or her designee.

(g)     "Feasibility study"   means  a  written  study  document  that  consists  of  an  expert analysis of all of the following elements of the proposed venture:

(i)   Economic feasibility.

(ii)   Market feasibility.

(iii)   Technical feasibility.

(iv)   Financial feasibility.

(v)   Management feasibility.

(h)   "Grantee" means any applicant to whom the director has awarded a grant from the agricultural development fund on the project proposal.

(i)   "Job" means a direct employment position with the grantee created or retained as a result of the completion of the project and expressed in terms of a full-time equivalent as defined by the United States department of labor.

(j)       "Public notification" means 1 or  more   press  releases  sent  to appropriate Michigan  news  media  outlets  and a public posting on the department's web site.

(k)   "Project" means a venture or an activity, which is funded or proposed to be funded from the agriculture development fund.

(l)   "Risk management" means the level at which the applicant minimizes exposure to financial risk.

(2)     Any financial terms or definitions shall be consistent with generally accepted accounting principles, unless otherwise defined in these rules.

(3)   The terms defined in the act have the same meanings when used in these rules.

History: 2002 AACS; 2006 AACS.