USDA Grants for Farmers Transitioning to Organic — Hawaii Department of Agriculture

The USDA has announced a grant program to help farmers transition to organic farming. The deadline to apply is May 29, 2009. To view the USDA news release, click on the headline.

Release No. 0146.09

Contact: Terry Bish (202) 720-5974 

AGRICULTURE DEPUTY SECRETARY MERRIGAN ANNOUNCES FUNDING FOR NEW ORGANICS INITIATIVE

$50 Million in Funding Available Nationwide

WASHINGTON, May 5, 2009— Speaking today to the USDA National Organic Standards Board (NOSB), Agriculture Deputy Secretary Kathleen Merrigan announced $50 Million for a new initiative to meet the Obama Administration’s promise to encourage more organic agriculture production. Funding for the initiative is being made available as part of the Environmental Quality Incentives Program (EQIP).

"Assisting organic producers is a priority of the 2008 Farm Bill as well as for Secretary Vilsack and the Obama Administration," said Merrigan. "The objective of this initiative is to make organic food producers eligible to compete for EQIP financial assistance."

The 2009 Organic Initiative is a nationwide special initiative to provide financial assistance to National Organic Program (NOP) certified organic producers as well as producers in the process of transitioning to organic production. Organic producers may also apply for assistance under general EQIP.

Maui Land & Pineapple Reports 2009 1st Quarter Results

Maui Land & Pineapple Company, Inc. (MLP) reported a net loss of $13.2 million or $1.65 per share for the first quarter of 2009 compared to a net loss of $414,000, or $0.05 per share for the first quarter of 2008. Consolidated revenues were $15.6 million for the first quarter of 2009 compared to $25.4 million for the first quarter of 2008, a decrease of 39%. Results in the first quarter of 2009 largely reflect the continuing impact of the national and worldwide economic uncertainty that has resulted in reduced visitor counts to Maui and the State of Hawaii and slower sales of real estate. Approximately $10.5 million of the increase in the net loss resulted from the year-over-year decrease in profit from the Company’s equity investment in Kapalua Bay Holdings LLC. The Company’s $50 million cash sale of the Plantation Golf Course in March 2009 was accounted for as a financing transaction and, accordingly, no gain was recognized in the first quarter of 2009.

The Community Development segment reported an operating loss of $3.2 million for the first quarter of 2009 compared to operating income of $8.1 million for the first quarter of 2008. Revenues from this operating segment were $2.0 million for the first quarter of 2009 compared to $4.6 million for the first quarter of 2008. The Company recorded a loss from Kapalua Bay Holdings, LLC of $1.1 million in the first quarter of 2009 compared to income of $9.4 million in the first quarter of 2008. Lower results in 2009 from the Kapalua Bay equity investment reflect reduced sales for the first quarter of 2009 compared to the first quarter of 2008. Lower results from the Community Development segment in the first quarter of 2009 were also due to no land sales in the first quarter of 2009, compared to the sale of two non-core land parcels in the first quarter of 2008.

The Resort segment reported an operating loss of $4.2 million for the first quarter of 2009 compared to an operating loss of $2.3 million for the first quarter of 2008. Resort segment revenues decreased from $11.7 million in the first quarter of 2008 to $8.6 million for the first quarter of 2009 or 26%, reflecting lower revenues from the primary Resort operations, golf, retail and villas. A reduction in visitor arrivals and occupancy at the Resort was primarily responsible for the lower results in the first quarter of 2009.

The Agriculture segment produced an operating loss of $3.5 million for the first quarter of 2009 compared to an operating loss of $5.1 million for the first quarter of 2008. Revenues from the Agriculture segment decreased by 42% from $8.5 million in the first quarter of 2008 to $4.9 million in the first quarter of 2009 due to lower case volume of fresh pineapple sales. The lower loss in the first quarter of 2009 reflects higher average prices for fresh pineapple and lower operating costs in the Agriculture segment. In addition, the operating loss for the first quarter of 2008 included approximately $0.9 million in equipment write-offs and a provision of $0.9 million for potentially uncollectible accounts receivable.

MAUI LAND & PINEAPPLE COMPANY, INC.
Report of Consolidated Operations
(Unaudited)
(in thousands except per share amounts)
mlploss1
NOTES:
The Company’s reports for interim periods utilize numerous estimates of production, general and administrative expenses, and other costs for the full year. In addition, revenues from land sales are sporadic. Consequently, amounts in the interim reports are not necessarily indicative of results for the full year.
Contacts:
For Maui Land & Pineapple Company, Inc.
Robert I. Webber, 808-877-1674
Fax: 808-877-1614