HDOA Looks to Grow Local Ag Through New Financial Initiative

Big Island Now

The Hawai`i Department of Agriculture (HDOA) is now accepting proposals for the Grow Hawai`i Agriculture Initiative 2021, an initiative to quickly scale up commercial agricultural production including the production of value-added products with the goal to increase the contribution of agriculture to the state’s gross domestic product (GDP). The GDP is the total market value of final goods and services produced that also serves as an indicator of economic health.

Under the Grow Hawai`i Initiative, HDOA expects to award about six proposals from commercial agricultural enterprises for up to $250,000 or some alternate combination deemed most advantageous to the state. This request is for local farmers, ranchers and other operators with proven track record of success but in need of urgent funding to expand their commercial production and to establish working models that can effectively contribute to growth of agriculture GDP by implementing one or more of the strategies as follows:

A. Expansion Expanding the size, diversity and/or scope of operations.

B. Input Chain Enhancement Enhance production through addressing challenges in supply/cost of inputs to an agricultural operation.

C. Technology Increasing production efficiency through use of new and emerging technologies.

D. Supply Chain Enhancement Address the supply chain bottlenecks that plague Hawai´i agriculture, i.e. lack of infrastructure (cold storage, processing, distribution challenges), establishment of cooperative ventures, etc.

E. Value-added Products Increase the value-added potential; either at their hands or by that of another business entity.

Information on the request for proposals may be found at the Hawai‘i State Procurement website.

Applications/proposals must be emailed to marci.clingan@hawaii.gov and received by noon HST, May 3, 2021. Project funds are expected to be available in July 2021.

“The goal of this initiative is to fund projects by proven commercial enterprises that can significantly move the needle for Hawai´i agriculture,” said Phyllis Shimabukuro-Geiser, chairperson of the Hawai´i Board of Agriculture. “We know that with some funding support, local agricultural businesses can overcome some of the roadblocks and barriers that challenge economic growth in agriculture, particularly during this COVID-19 pandemic environment.”

The scope of services and expectations of this proposal are to:

A. Implement business plan immediately to expand or scale-up commercial agricultural production and contribute to growth of agriculture GDP during the term of contract.

B. Develop reasonable and generally accepted business metrics (e.g. output, sales, profits, labor count, assets, etc.) to gauge progress, milestones attained and final outcomes of the project.

C. Record and compile noteworthy experiences (extraordinary progress, outcomes and/or challenges encountered).

D. Meet with the State upon request to report on the project’s status, progress and other issues or challenges that may arise during course of work.

E. Maintain proper accounting procedures and practices acceptable to the State, including, maintaining books, records, documents and other evidence related to project’s performance.

F. Provide for the State’s approval a progress report, progress fiscal report, final report and final fiscal report at specified times.

This initiative is a collaboration with the College of Tropical Agriculture and Human Resources (CTAHR), University of Hawai´i. Funds for this program totaling $1.5 million in were provided by the State Legislature last session.

Questions regarding the application process may addressed to HDOA’s Agricultural Development Division via email at: matthew.k.loke@hawaii.gov.

USAJOBS Daily Saved Search Results for Agriculture jobs for 4/8/2021

Supervisory Loan Specialist
Department: Department of Agri -culture –
Agency: Farm Service Agency
Number of Job Opportunities & Location(s): 1 vacancy – Honolulu, Hawaii –
Salary: $79,901.00 to $103,875.00 / PA
Series and Grade: GS-1165-12
Open Period: 2021-04-08 to 2021-04-22
Position Information: Permanent – Full-time
Who May Apply: Internal to an agency

Supervisory Loan Specialist (Agricultural)
Department: Department of Agriculture
Agency:Farm Service Agency
Number of Job Opportunities & Location(s): vacancies – Kahului, Hawaii
Salary: $79,901.00 to $103,875.00 / PA
Series and Grade: GS-1165-12
Open Period: 2021-04-08 to 2021-04-22
Position Information: Permanent – Full-time
Who May Apply: Internal to an agency

Case study casts doubt over ESG claims of Canadian pension fund PSP’s major agriculture investment on Maui

farmlandgrab.org

Case study casts doubt over ESG claims of Canadian pension fund PSP’s major agriculture investment on Maui, calls for greater scrutiny into the community impact of investments

Responsible Markets today published a case study of an approximately $600 million investment that the $135.59 billion Public Sector Pension Investment Board (PSP) is making in a former sugar plantation in Maui, Hawai’i. The report found evidence that the Montreal, Canada based pension plan, which invests its capital through PSP Investments, is not living up to its own environmental, social responsibility, and corporate governance (ESG) principles, resulting in adverse impacts on Maui’s environment and residents.

The study entitled “From the Mountains to the Sea: When Big Money Moved in on Maui’s Agriculture” takes a comprehensive look at Mahi Pono LLC, capitalized by PSP. Mahi Pono was created in December of 2018 under management of Pomona Farming, a subsidiary of the California based private equity firm Trinitas Partners. It now owns and operates over 41,000 acres of farmland in Maui’s central plains, which it acquired from long-time plantation owner Alexander & Baldwin.

Among Responsible Markets’ findings is that the success of the Mahi Pono investment is dependent on securing water rights at exceptionally low rates, at a direct economic and cultural cost to the indigenous Hawaiian people, and on the continued diversion of water away from East Maui, a practice that undermines Hawaiian farming communities. Rather than creating local food security as the company has promised, the Mahi Pono business plan is dependent on export crops. Additionally, the company operates secretively and with little transparency, and has failed to generate the number of jobs promised.

“Through Mahi Pono, PSP is seeking to profit by exploiting the resources of the Hawaiian people,” said Shay Chan Hodges, a co-organizer of Responsible Markets’ initiative, the Maui ESG Project, and co-author of the report. “This is not an ESG investment; it is merely a new version of the extractive practices of plantation capitalism that have been so damaging to Maui’s culture, environment, and economy for over 100 years.”

“The Mahi Pono case study illustrates the importance of early community engagement and ongoing partnership in land-based investing,” says Delilah Rothenberg Founder and Executive Director of the Predistribution Initiative, a multi-stakeholder effort to improve investment structures to share more wealth and influence with workers and communities, and ultimately address systemic risks including income inequality and climate change.

“With capital flows that are so intermediated, meaningful relationship development is often overlooked by distant investors – even asset owners and allocators who are taking measures to integrate ESG. Yet this lapse jeopardizes investors’ returns and perpetuates legacies of colonialism, with foreign powers undervaluing the risk that locals take and the value they offer with their land, resources, and labor,” concluded Rothenberg.

“Large private market agricultural land acquisitions in Hawai’i are all too familiar – wealthy investors parachuting in, missing a golden opportunity to ‘build back better’ for all impacted community stakeholders,” says Lisa Kleissner, impact investment pioneer and co-founder of Hawaii Investment Ready. “While access to water is the hook in this report, the water issue serves to underscore the lack of alignment between Mahi Pono’s objectives and the community’s needs. This report comes to the rescue by laying out in clear, pragmatic terms how Mahi Pono LLC and, for that matter, any private investor in agriculture can move investor/community discourse to a new, mutually beneficial level. First, ancestral rights must be acknowledged and addressed. And secondly, the business and financial model must demonstrate evidence-based community-aligned economics.”

The report shows how investors use the language of ESG and impact investment to promote, and invest in, economic opportunities that do not necessarily have a net positive ESG benefit. Responsible Markets calls on PSP and its staff to meet directly with community members and other stakeholders on Maui to understand the problems Mahi Pono is causing as well as the missed opportunities for positive transformative investment. True community intelligence is invaluable and cannot be outsourced to investment managers and advisors.

PSP and Trinitas Accused of Greenwashing Hawaiian ESG Investment

Institutional Investor
by Julie Segal –

A Canadian pension fund and its private equity partner come under fire. –

Canada’s PSP Investments, which invests for the Public Sector Pension Investment Board, is under fire for greenwashing a sustainable investment in Hawaii. –

Responsible Markets, a 20-year-old consulting firm in Hawaii focused on the environmental, social, and governance impact of investments, has published a detailed case study arguing that PSP’s $600 million investment through a joint venture called Mahi Pono in a former sugar plantation in Maui, Hawaii is not in accord with PSP’s own ESG standards.

The findings from the year-long research project comes as a critical mass of pensions, endowments, and other institutions publicly commit to investments that meet comprehensive ESG and sustainability goals as well as financial returns. Asset managers, especially those in the U.S, are scrambling to keep up.

The allegations of greenwashing illustrate the complexity of sustainable and ESG investing, particularly when external managers are used.

Mahi Pono, a farming venture between the Public Sector Pension Investment Board and Pomona Farming, a subsidiary of private equity firm Trinitas Partners, purchased the 41,000 acres of farmland in Hawaii in December 2018. At the time, PSP said that, among other things, the deal would ensure that the land would continue to be used for agriculture, that green space would be preserved in Central Maui, and that the acreage would be a long-term source of revenue for the local economy. The project was also intended to create food security for residents and local jobs.

But Responsible Markets argues that Mahi Pono depends on securing water at rates that are exploitative to indigenous Hawaiians and diverts water from local farmland.

“Rather than creating local food security as the company has promised, the Mahi Pono business plan is dependent on export crops,” wrote Shay Chan Hodges, a co-organizer of Responsible Markets’ initiative, the Maui ESG Project, and co-author of the report. “Additionally, the company operates secretively and with little transparency, and has failed to generate the number of jobs promised.”

According to the report, called “From the Mountains to the Sea: When Big Money Moved in on Maui’s Agriculture,” PSP Investments and its external manager use the language of ESG and impact investments, but the results haven’t yielded benefits in line with that narrative.

Ryon Paton, president of Pomona Farming and Executive Chairman of Mahi Pono, said the project is enormously complex and still in its infancy. For example, the project involves investing $30 million to upgrade an old gravity-fed water system that was in disrepair. “The overarching goal is to provide clean foods to the local Hawaiian market and for export,” he said. Paton added that rates paid for water are determined in a public forum and the manager has filed an environmental impact statement. The manager is now in the process of responding to 500 comments it has received from the public. “The long-term lease rationalization process is public and anybody can bid on the right to the water. We don’t negotiate that directly,” he said.

[II Deep Dive: ‘I Will Get Very Serious About ESG — But Not Yet,’ Allocators Claim]

Responsible Markets wants PSP to meet with the community in Maui to understand the problems that the project is causing, as well as what it calls missed opportunities. It also lays part of the blame on PSP’s engagement of an external manager. “True community intelligence is invaluable and cannot be outsourced to investment managers and advisors,” according to the report.

The case study alleges that Trinitas has a history of making questionable sustainable investments, particularly when it comes to water. According to the report, “Trinitas Partners and their affiliates have shown themselves to be masters of sustainable investment rhetoric, [but] the on the ground realities of their agricultural investments show a much more complex picture.” The case study outlines a deal that the partners executed in California, which converted land from vineyards and other crops into almond farms. Almond farming has become a hot button issue in California as these farms use significant amounts of water. Paton stressed that its orchards in California have received the highest level of sustainable certifications.

“Capital markets have become so intermediated that it’s difficult for investment professionals within a large institution to understand what’s happening on the ground,” Delilah Rothenberg, founder of Development Capital Strategies, an advisory firm specializing in sustainable and responsible investment, told II. “A lot of investors do hide behind the excuse of using external managers until there’s enough of a backlash where they have to address the issues,” she added. Rothenberg isn’t familiar with PSP’s Maui investments and couldn’t comment on the case study in particular.

USAJOBS Daily Saved Search Results for Agriculture jobs for 4/5/2021

Import Specialist
Department: Department of Homeland Security –
Agency: Customs and Border Protection –
Hiring Organization: Office of Field Operations –
Number of Job Opportunities & Location(s): Many vacancies – Multiple Locations
Salary: $53,433.00 to $69,462.00 / PA
Series and Grade: GS-1889-9
Open Period: 2021-04-05 to 2021-04-09
Position Information: Permanent – Full-time
Who May Apply: Internal to an agency

Some jobs listed here may no longer be available-the job may have been canceled or may have closed. Click the link for each job to see the full job announcement.

Maui small businesses have no choice but to change

Maui News
By Kehaulani Cerizo

Despite the many uncertainties Maui County residents face amid a global pandemic, perhaps two things have remained the same: strawberry and pineapple guri-guri.

Iconic mom-and-pop business Tasaka Guri-Guri — which dates back more than a century — is still going strong, and its flavors are produced with the same popular taste and texture as they were decades ago.

Gail Saito, who runs the family’s shop with sister Cindy Tasaka-Ing, said Thursday that the business’ income is similar to pre-pandemic levels. She credits a local base, which is helping the store weather COVID-19’s economic downturn.

“People of Maui, they come,” Saito said. “They’re the ones that kept us going.”

The multigenerational Maui company is one of a handful of legacy small businesses that have survived 2020, a hopeful sign for Maui’s cultural and economic climate, according to Frank De Rego Jr., Maui Economic Development Board director of business development projects.

Ron Williams, former Hawaii Tourism Authority chairman, said small businesses like Tasaka Guri-Guri are essential to Hawaii’s economy; they’re what cultivate culture and community.

“Small business is the backbone, it’s what Hawaii’s economy is made of,” he said Friday. “As we see with Love’s Bakery, we’re at the risk of losing that.”

The U.S. Small Business Administration reports that 99.3 percent of Hawaii businesses are small businesses, defined as those with 500 or fewer employees. Nearly 98 percent of the state’s small businesses have fewer than 20 employees; about 82 percent have no employees at all.

While state projections show recent signs of hope for a faster economic recovery than anticipated due to the vaccination rollout, tourism reopening and federal aid, local business leaders agree that it’s too early to tell how much damage has been done.

“The challenge is we still don’t have great data on how many businesses were actually lost,” Maui Chamber of Commerce President Pamela Tumpap said.

SHIFTING GEARS TO RESTART, KEEP BUSINESS

Many small businesses, already reeling from leases and other expenses that didn’t stop with the shutdowns a year ago, were forced to find ways to pivot to stay afloat.

The median income for self-employed individuals at their own incorporated businesses was $48,073 in 2018. For self-employed individuals at their own unincorporated firms, median income was $25,445, according to the U.S. Census Bureau’s American Community Survey.

Marla Mings of Wailuku said last year that the pandemic wasn’t how she envisioned the end of her 14-year-old clothing store, Details Boutique, in the Queen Ka’ahumanu Center.

She closed her shop in June, only to find months later that customers would not let go of the brand, often expressing interest when they would see her.

In January, she hesitantly launched an online retail shop at detailsboutiquehawaii.com and said Thursday that she’s shocked it’s going so well.

“I’m surprised — this is not the same thing I used to do at all — but it’s going really good,” Mings said. “I was able to have enough of a following of people and enough interest in my brand, so that was a really big deal for me.”

The entrepreneur admits switching to technology platforms requires a high learning curve. But she’s up for the challenge, especially since she’s seeing customers enjoy shopping with her again.

“I’m really grateful that my customers love the brand,” she said.

Other business owners, such as local maternity photographer Kristy Copperfield, also drastically changed their approach during the pandemic.

From May to January, Copperfield got COVID-19 tested before newborn sessions, organized clients in one-week groupings and would self-quarantine until her shoots were done, typically seven to 10 days out of a month.

She rearranged her studio so clients sat about 15 feet away, wore two masks during shooting and invested in lots of Lysol and Clorox. Copperfield added that she did lots of laundry during that time.

“I needed to ensure I was doing all I could to avoid getting a baby sick,” the Makawao resident said. “The hardest part by far was isolating for seven to 10 days per month.”

The Maui Economic Development Board helped Maui County administer the Maui County Adaptability Fund, which provided federal money to support small businesses in their switch to health and social distancing guidelines. The fund also allowed small businesses to invest in technology to expand their virtual platforms, web-based marketing and e-commerce.

Businesses adapted to employ contactless point-of-sale technologies; Plexiglas enclosures; mechanical upgrades to include COVID-19 mitigation technology; e-commerce platforms; website development with online sales capability, including search engine optimization; use of graphics, photography and videography to highlight products and services; disinfection of equipment and supplies; creation of outdoor spaces to serve clients and customers; modifications to indoor work spaces and customer spaces to incorporate social distancing requirements, De Rego said.

“We have all experienced the uptick in the use of technology and its impact in all our lives due to the pandemic,” he said. “For many of these businesses the technological learning curve was steep, but one they were willing to undertake. For some businesses, the movement to online service and e-commerce opened new possibilities and an expansion of their reach beyond the shores of Maui Nui.”

DEVASTATING LOSSES HARD TO QUANTIFY

Some businesses weren’t able to pivot.

When nonessential business came to a screeching halt a year ago with mandatory shutdowns, many never reopened.

After the pandemic hit, a craftsman leasing from Maui Land and Pineapple Co. in Haliimaile who relied on the tourism industry defaulted on rent for months, packed up his rental, left his unit in disarray and moved to back to the Mainland.

Other small business owners let customers know about their closures. Vacant commercial spaces around Maui leave a tangible reminder of loss.

Tumpap said that when the stay-at-home order went into effect last March, businesses were frantically calling.

“There was panic, anger, frustration, crying,” she said. “It continued in April, May and June as businesses had to make impossible decisions, including laying off their valued employees. They were heartbroken. They would frantically call trying to help their employees get their unemployment when the state’s UI system collapsed and desperately needed unemployment was delayed.”

Hawaii in 2020 was down 8 percent for real gross domestic product growth, the biggest decline in the country, according to the University of Hawaii Economic Research Organization, or UHERO. The next closest were Wyoming (7 percent decline), Oklahoma (6.1 percent) and New York (5.9 percent).

The economic devastation is still being tallied, UHERO said, as many people have moved out of the state.

Tumpap said the number of businesses lost during the pandemic is difficult to quantify for a number of reasons.

“Those who publicly announced their closing, like Love’s Bakery recently, are known and we have a list of those, but that is far from the full story,” she said. “It’s devastating to close your business, lay off employees, lose your investment and income to support your family. That is why countless businesses go out silently without notifying anyone other than their employees.”

Other companies closed temporarily and have reopened, she added. Some are still considering whether to reopen, cautiously watching the economy for indicators on what may be ahead.

CAUTIOUS OPTIMISM, RESILIENCE IN FORECAST

One of the state’s top economists, Carl Bonham, said Thursday that despite Hawaii having the weakest economy in the entire country in 2020, better recovery than anticipated may be in store.

“The optimistic tone that we took in our first-quarter report is almost certainly going to be replaced by an even more optimistic tone in our second-quarter report,” said Bonham, UHERO’s executive director, during a Hawaii Economic Association event.

Bonham said Maui and Kauai were the hardest-hit counties in the state for job losses due to their “very dominant” tourism sectors. Almost half of the jobs in accommodations and food services and more than 30 percent in transportation and utilities were lost.

“They may also see some of the more rapid, in terms of percentage change, bounce back — not only because of the nature of math, but because we know Maui is seeing a large increase in visitor traffic and that will help to draw those jobs back, obviously,” he said.

Bonham said the nationwide vaccination rollout, Hawaii’s Safe Travels program that reopened tourism, the state’s work to bring the virus under control and federal aid that buoyed Hawaii are factors contributing to a more positive economic outlook.

One of the biggest factors improving the forecast is vaccinations. With the vaccination rollout, possibly 60 to 70 percent of the U.S. population could be vaccinated by the summer, and many will be thinking of a Hawaii trip, he said.

Also, an increase in consumer confidence for Hawaii is a good sign.

“Hawaii’s confidence has been on a relatively steady uptick, which bodes well for the local economy, for the sort of non-tourism-centric recovery,” he said.

However, this week’s closure of Love’s Bakery — along with other shutdowns of small businesses since the pandemic onset, such as Da Kitchen, Valley Isle Seafood and Horses R Us in Kahului; Sea La Vie and Sailboards Maui in Paia; and Afterglow Yoga in Kihei and Lahaina — is evidence that irreversible damage has already been done.

Based on state projections, Tumpap and De Rego say that recovery may not happen until 2023 and 2024. They acknowledged that much uncertainty remains.

Regardless of near-term or long-term outcomes, the two expressed confidence in the strength of local small business owners, who often gauge success beyond just the financials.

“One cannot discount the resilience of our people as a factor in the recovery of small businesses,” De Rego said. “For this inspiration, we don’t need to look to the West or the East, but within to our own local culture and our First Nation. The depths of malama (care) and aloha ‘aina (love for the land) that are rooted in the foundation of local culture are there for all to share, which invites us to see our notions of progress and prosperity in a different way.”

Even during the worst of times, Saito said that Tasaka Guri-Guri family members had never thought about shutting down.

“Every so often people come in and say, ‘Are you guys closing?’ And we’re like no. It was never in the back of mind,” she said.

But for their family, staying open wasn’t just about the bottom line.

“For us, it wasn’t to make money,” Saito said Thursday. “It’s really to serve, or to give back.”

USAJOBS Daily Saved Search Results for Agriculture jobs for 4/2/2021

Tractor Operator
Department: Department of Agriculture –
Agency: Agricultural Research Service –
Number of Job Opportunities & Location(s): 1 vacancy – Hilo, Hawaii –
Salary: $51,022.40 to $59,529.60 / PH
Series and Grade: WG-5705-6
Open Period: 2021-04-02 to 2021-04-08
Position Information: Permanent – Full-time
Who May Apply: Career transition (CTAP, ICTAP, RPL), Open to the public

Some jobs listed here may no longer be available-the job may have been canceled or may have closed. Click the link for each job to see the full job announcement.

A Fifth of Food-Output Growth Has Been Lost to Climate Change

Bloomberg Green
By Breanna T Bradham –

Climate change has been holding back food production for decades, with a new study showing that about 21% of growth for agricultural output was lost since the 1960s.

That’s equal to losing the last seven years of productivity growth, according to research led by Cornell University and published in the journal Nature Climate Change. The study was funded by a unit of the U.S. Department of Agriculture.

The revelation comes as the United Nations’ World Food Programme warns of a “looming catastrophe” with about 34 million people globally on the brink of famine. The group has cited climate change as a major factor contributing to the sharp increase in hunger around the world. Food inflation is also on the rise as farmers deal with the impact of extreme weather at a time of robust demand.

This is the first study to look at how climate change has historically affected agricultural production on a global scale, using econometrics and climate models to figure out how much of the sector’s total productivity has been affected, across crops and livestock.

The loss of productivity comes even as billions has been poured into improving agricultural production through the development of new seeds, sophisticated farm machinery and other technological advances.

“Even though globally agriculture is more productive, that greater productivity on average doesn’t translate into more climate resilience,” said Ariel Ortiz-Bobea, an author of the paper and associate professor at Cornell’s Charles H. Dyson School of Applied Economics and Management.

The damages to productivity growth aren’t evenly spread across regions. Warmer areas — especially those in the tropics — are more detrimentally affected. Ortiz-Bobea said that coincides with many countries where agriculture makes up a bigger share of the economy.

He was also warned that current research into improving production may not enough consider the pace of climate change.

“I worry that we’re breeding or preparing ourselves for the climate we’re in now, not what is coming up in the next couple of decades.”

USAJOBS Daily Saved Search Results for Agriculture jobs for 4/1/2021

Plant Protection and Quarantine Officer (Plant Health Safeguarding Specialist – Predeparture Ops)
Department: Department of Agriculture
Agency:Animal and Plant Health Inspection Service
Number of Job Opportunities & Location(s): Many vacancies – Multiple Locations
Salary: $36,363.00 to $47,274.00 / PA
Series and Grade: GS-0401-5
Open Period: 2021-04-01 to 2021-04-07
Position Information: Permanent – Full-time
Who May Apply: Career transition (CTAP, ICTAP, RPL), Open to the public

Some jobs listed here may no longer be available-the job may have been canceled or may have closed. Click the link for each job to see the full job announcement.