Report Title:

Agricultural Research and Market Development; Appropriation

Description:

Appropriates funds for fiscal year 2004-2005 for agricultural research and market development conducted by the Hawaii Farm Bureau Federation. Also, makes an appropriation for University of Hawaii for development of new agricultural products, revitalization of Hawaii cattle industry, and bioremediation programs. (SD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

2009

TWENTY-SECOND LEGISLATURE, 2004

H.D. 1

STATE OF HAWAII

S.D. 1


 

A BILL FOR AN ACT

 

making an appropriation for agricultural research and market development.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that research and market development are critical for the continued growth of Hawaii's agricultural industry. To provide the necessary support for the transition of Hawaii's agricultural industry from once vast pineapple and sugar plantations to diversified agriculture, more resources must be directed toward agricultural research and market development.

Agricultural research is the basic foundation for Hawaii's agricultural industry. The Hawaii Agriculture Research Center and the University of Hawaii college of tropical agriculture and human resources are important research organizations that assist the entire agricultural community. Although funding for agricultural research has declined dramatically in recent years, it is critical that funding be continued to keep Hawaii's agricultural industry competitive in today's global market.

Market development is another key component in expanding the opportunities for Hawaii's agribusiness. Given Hawaii's small size and isolated location, considerable effort and funds are needed to develop new markets, expand existing markets, and support new and existing crops.

The legislature finds that the Hawaii Farm Bureau Federation is a nonprofit organization that services the agricultural industry statewide. The Hawaii Farm Bureau Federation has frequently partnered with institutions like the Hawaii Agriculture Research Center, the University of Hawaii college of tropical agriculture and human resources, and the department of agriculture on many research and market development projects. The Hawaii Farm Bureau Federation exemplifies a strong commitment to agriculture and can assure that agricultural research and marketing meet the needs of the industry.

The legislature also finds that the University of Hawaii college of tropical agriculture and human resources is committed to the preparation of students and all citizens of Hawaii for life in the global community through research and educational programs supporting tropical agricultural systems that foster viable communities, a diversified economy, and a healthy environment.

Hawaii must diversify its economic base beyond a reliance on tourism. A revived and revitalized state agricultural industry promises not only to diversify Hawaii's economy, but also to sustain and stabilize Hawaii's food supply and protect the open space and lifestyle that Hawaii residents and visitors value.

Hawaii's agriculture and value-added products contribute $2,400,000,000 to the State's economy and employ more than thirty-eight thousand people. During the past twenty years, the value of diversified agriculture in Hawaii more than doubled, reaching a record $370,900,000 in farm-level revenues in 2002. The prime agricultural lands released from sugar and pineapple production present a rare window of opportunity to further agricultural development. Currently, about one hundred thousand acres of former sugar and pineapple land lie fallow, awaiting economically viable agribusinesses. If all this land could be put to productive use in successful agricultural ventures, an additional $1,700,000,000 to $4,400,000,000 could be added to the State's economy.

Also during the past two decades, the Hawaii beef cattle industry has experienced structural shifts that have led to a significant decline in the market share of locally produced beef, from an estimated thirty per cent to less than ten per cent, and to a thirty-seven per cent decrease in the farm value of cattle and calf sales. At present, the majority of calves born in the State are exported to various markets on the United States mainland and Canada. Keeping fifty thousand of these calves in Hawaii could potentially increase the farm gate value of the beef cattle industry by $25,000,000. Both forage-based and feedlot finished beef hold great promise as import substitution products that are grown in Hawaii.

The legislature finds that for Hawaii agriculture to take advantage of current opportunities, it must generate high quality, market-driven products that offset Hawaii's high costs of land, labor, water, and transportation. This requires that agriculture have access to state-of-the-art research and outreach programs.

The college of tropical agriculture and human resources is engaged in several areas of research and outreach that have already contributed to the resurgence of agriculture in Hawaii. Among the college's contributions to the State's agricultural industry are:

(1) Identification and development of high-value plant- and animal-based food and fiber products to help Hawaii stay competitive in a global market;

(2) Development of effective and environmentally sound pest, disease, nutrient, and resource management systems; and

(3) Research that advances agricultural biotechnology, an industry that has the potential to bring billions of dollars to the State's economy.

The legislature further finds that work in these areas must be expanded to develop and promote high-value products, including:

(1) New and improved plant varieties that resist disease and environmental stress and tolerate pesticides;

(2) Plants and plant cell culture systems that produce high-value chemicals, fragrances, vaccines, or specific nutrients;

(3) Biotechnological innovations that permit rapid analysis to screen for valuable molecular products, evaluate environmental and process chemistry, and identify pest species; and

(4) Resource- and herd-management approaches and market research that maximize the yield and profitability of, and expand demand for, Hawaii-finished beef.

Expansion of ongoing research by the College in the areas of obesity prevention and children and family resources can improve the health and well being of Hawaii residents.

The legislature recognizes that poor diet and physical inactivity diminish quality of life and exact huge financial costs. In 2000, the United States spent an estimated $117,000,000,000, nearly ten per cent of the United States health care expenditure, on obesity and its complications. Diseases related to obesity--heart disease, cancer, stroke, hypertension, and diabetes--are the main killers of our era. Obesity and its related diseases are very common among native Hawaiian and Pacific islander populations: the 2001 Hawaii Health Survey found almost sixty-five per cent of native Hawaiians to be obese, and a recent college of tropical agriculture and human resources nutritional assessment in American Samoa found that fifty-five per cent of children ages five to ten have elevated cholesterol and nine per cent have elevated blood sugar levels, a marker for Type II diabetes. The poor success rate of conventional weight loss programs has led health professionals to recognize the benefits of community-based lifestyle approaches that respect Pacific island cultures. There is evidence that modern lifestyles and diets contribute to obesity and that returning to cultural roots improves the diet and health of Pacific peoples.

The college is well positioned to address this critical public health issue and has a statewide network of research and agricultural facilities that works closely with colleges of agriculture throughout the United States-affiliated Pacific, and has active research programs in:

(1) Obesity prevention and weight management;

(2) Nutritional properties of tropical plants and foods of the Pacific region;

(3) New food products that can be grown locally and recipes; and

(4) Tropical food production.

The legislature further finds that natural, noninvasive, and less costly clean up methods are needed to effectively and efficiently clean Hawaii's waterways of contaminants. The college is presently engaged in research to explore biological methods for cleaning contaminated waters and sediments ("bioremediation") by utilizing the uptake processes of native plant species, natural microbial processes, and other natural remediation processes.

The legislature finds that the college of tropical agriculture and human resources has submitted a proposal to conduct research and small scale testing for the treatment of contaminated sediment from local waterways. The proposal includes:

(1) A biotreatability evaluation;

(2) Additional research on the bioremediation of contaminated sediments;

(3) A twelve-month screening program for plant species to remediate polycyclic aromatic hydrocarbons, halogenated hydrocarbons, and heavy metals; and

(4) Small-scale field-testing.

The successful completion of the research and small-scale testing is essential to the development of full-scale commercial application of bioremediation technologies for the treatment of contaminated sediments in statewide waterways. Performance, operation, and maintenance factors and cost of various biological treatment processes will be identified in the research and small-scale testing phase. The United States Army Corps of Engineers will provide technical assistance in the testing and evaluation effort.

The purpose of this Act is to provide funding for the Hawaii Farm Bureau Federation to conduct agricultural research and market development and to appropriate funds to the University of Hawaii college of tropical agriculture and human resources for research and instructional programs to further its mission and actively help Hawaii diversify its economy and ensure a sustainable environment.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $1, or so much thereof as may be necessary for fiscal year 2004-2005, for the Hawaii Farm Bureau Federation to pursue efforts in agricultural research and market development; provided that the sum of $    , shall be used for agricultural research and the sum of $    , shall be used for market development.

The sum appropriated shall be expended by the department of agriculture for the purposes of this Act.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $1, or so much thereof as may be necessary for fiscal year 2004-2005, for the University of Hawaii college of tropical agriculture and human resources' research and instructional programs to further its mission and actively help Hawaii diversify its economy and ensure a sustainable environment; provided that the funds shall be added to the base budget of the University of Hawaii.

The sums appropriated shall be expended by the University of Hawaii for the purposes of this Act.

As a component of the bioremediation program, the University of Hawaii college of tropical agriculture and human resources shall submit an interim report of its research findings, and an evaluation of the feasibility of scaling up the technology, to the legislature not later than twenty days prior to the convening of the 2005 regular session and a final report upon the completion of the project or not later than twenty days prior to the convening of the 2006 regular session, whichever occurs first.

SECTION 3. This Act shall take effect on July 1, 2004.