Inspection fees are used to help pay for the fertilizer and soil conditioner inspection and sampling activities of the Michigan Department of Agriculture (MDA). MDA routinely inspects manufacturers and distributors of agricultural and specialty (non farm use) fertilizers for compliance with labeling, storage and other requirements that protect consumers and the environment and enable fair competition. The MDA Inspection staff also collects fertilizer samples that are tested for nutrient guarantees on labels.
The inspection fees assessed to fertilizer and soil conditioner manufacturers and distributors in Michigan are based on the quantity of fertilizer distributed, rather than the number of products in a company's line. Twice a year, every licensee must pay the Department an inspection fee. The fee is levied on each ton of fertilizer manufactured or distributed in this state. The inspection fee and statement of fertilizers and soil conditioners manufactured or distributed in Michigan must be reported on forms provided by MDA. Reporting forms are automatically mailed to all licensees and registrants near the end of each reporting period.
In response to popular demand, MDA is now providing the fertilizer industry with a new electronic fertilizer tonnage reporting form in Excel spreadsheet format. When completed properly, this new form will automatically calculate the total quantity of fertilizers and soil conditioners manufactured and/or distributed by your company in Michigan, as well as the appropriate inspection and groundwater protection fees.
Exemptions
Tonnage fees do not need to be paid on:
- Specialty fertilizer or soil conditioner products sold or distributed only in packages of 10 pounds or less;
- Fertilizer materials that are used as ingredients for the further manufacture of fertilizers on which a tonnage fee is to be paid;
- A fertilizer if payment was made by the previous manufacturer/distributor. NOTE: The previous manufacturer/distributor must attach to the report form a listing of the companies reporting and paying tonnage on their behalf.
Inspection Fees
- All licensees and registrants are required to pay a tonnage-based inspection fee of $0.10 levied on each ton of specialty fertilizers, soil conditioners, and agricultural use fertilizers manufactured or distributed in Michigan.
- For peat and peat moss products, the inspection fee is $0.02 per cubic yard.
- All agricultural use fertilizer must also pay a groundwater protection fee of $0.015 per percent of nitrogen in the fertilizer for each ton sold.
Filing Deadlines
- Reports and payments are due not more than 30 days after June 30 and not more than 30 days after December 31, respectively.
- Licensees and registrants who have not received their semiannual reporting form by July 15 or January 15, respectively, should immediately contact MDA at (517) 373-1087.
- Completion and return of the fee payment report is required even if the licensee or registrant incurs no inspection fees.
Penalty for Late Reports/Fees
- A late fee will be assessed if the fee payment report is not postmarked by the filing deadline. The late fee is 10% of the inspection fee or $50.00, whichever is greater. The late fee is assessed on all late reports.