Financial and Management Audit of the Moloka’i Irrigation

Report No. 08-03 February 2008
Marion M. Higa
Office of the Auditor State Auditor
465 South King Street, Room 500
State of Hawai?i Honolulu, Hawai?i 96813
(808) 587-0800 FAX (808) 587-0830

Read the Full Report Here
http://www.state.hi.us/auditor/Reports/2008/08-03.pdf

Summary

We conducted this audit in response to Senate Concurrent Resolution No. 176, of the 2007 legislative session. The Moloka’i Irrigation System provides about 1.4 billion gallons of water annually to its users. Construction was started in 1957 to bring water from the eastern end of Moloka’i to the central farming areas as part of a federal and state commitment to native Hawaiian homesteaders. The system consists of collection dams and deep wells; a transmission tunnel, pipes, and flume; a reservoir; and distribution pipes to customers. Among the customers is the Moloka’i Ranch, via a rental agreement.

We found that while the Department of Agriculture inherited a broken system, little has been done to learn about system problems or to create a plan to address them. The department received historical data on the system from the Department of Land and Natural Resources, and yet it was not clear that department personnel understood the significance of its history. Numerous studies recommended management and operational improvements. For example, problems reported in a 1987 study still exist today, unadressed.

The department?s flawed management endangers agriculture in Moloka’i. It has been unable to reconcile its responsibilities as stewards to the irrigation system and obligations to the Hawaiian homesteaders. While it recognizes the homesteaders’ two-thirds water preference accorded by Section 168-4, HRS, this is not reflected in any planning. Non-homestead farmers consume approximately 80 percent of the system’s available water. Effectively, the two seemingly complementary responsibilities have become competitors with the needs of the homesteaders subsumed to the interests of larger agricultural business.

State auditor: Molokai water system mismanaged

By CHRIS HAMILTON, Staff Writer
Maui News

WAILUKU ? The state auditor issued a blistering report last week charging the state Department of Agriculture with mismanaging the Molokai Irrigation System while simultaneously allowing it to deteriorate over a period of decades.

The irrigation system is crucial to the island?s agriculture-based economy but draws only about 4 million gallons a day ? less than 10 percent of its projected capacity when it was first planned.

?We found that while the Department of Agriculture inherited a broken system, little has been done to learn about system problems or to create a plan to address them,? state Auditor Marion Higa wrote in her 57-page report. ?The department?s flawed management endangers agriculture in Molokai.?

However, state Agriculture Chairwoman Sandra Kunimoto called most of the report?s criticisms ?overreaching? in a telephone interview Friday.

She said she felt as though the report?s dramatic statements weren?t backed up by the actual details contained within it.

Na Wai Eha effort seen as agriculture threat

Maui News
By HARRY EAGAR, Staff Writer

WAILUKU ? Steve Holaday, the former manager of Maui?s last sugar plantation, testified at Thursday?s session of the Na Wai Eha contested case that more is involved than allocated water from four West Maui watersheds.

?My fear is that no matter what happens here, it?s going to be the triggering event for what happens to use in East Maui, and the triggering event for the rest of the state. This is the tip of the iceberg.?

The result, Holaday said, could be the collapse of agriculture throughout the islands.

Read Complete Article Here

Hawaii Crop Weather Weekly Report

Here is the PDF file for the Hawaii Crop Weather (crop progress and condition) Report for the week ending October 28, 2007.

current_hi102808.pdf

Please visit the website for more information: http://www.nass.usda.gov/hi/

USDA NASS Hawaii Field Office
1421 South King Street
Honolulu, HI 96814-2512
1-800- 804-9514

Agricultural Highlights

Fruits

Bananas
Steady rain later in the week saturated most fields in windward areas of the Big Island. Most orchards were in good condition, and field work was only slightly hampered by the wet conditions. Banana Bunchy Top virus incidence remained isolated to the Puna and Kona areas. Oahu orchards were in good to fair condition. Leeward and central orchards were in good condition. Moderate to heavy irrigation levels prevailed as showers were not enough for irrigation. However, overcast conditions decreased the plant?s water needs. Windward Oahu fields were in fair to good condition with light supplies. Overall harvesting on Oahu was expected to be at moderate to heavy levels as the shorter day length and slightly cooler temperatures have slowed ripening. Kauai?s orchards were in fair to good condition. Overcast skies and cooler temperatures slowed fruit ripening slightly.

Papayas
On Oahu, fruit development and ripening were fair to good. Overcast skies and shorter day length were affecting the crop. Orchards on Kauai made fair to good progress during the week. Pickings continued at moderate to light levels from several fields in active harvest. Big Island orchards were in fair to good condition. Soil moisture was high due to almost daily rainfall in the Puna area. Young orchards continued to develop, and seedlings were growing rapidly. Flowering was continuous. Virus problems still plagued selected fields in Puna and some heavily infested areas appeared to be abandoned.

Vegetables

Chinese Cabbage
On the Big Island, weeds were still competing with the crop in selected fields. Planting and field activities were steady. Heavy irrigation was needed to maintain crop progress. Overall, the Big Island crop was in fair to good condition.

Head Cabbage
On Oahu, harvesting is anticipated to be light. Insect infestation was light with regular spraying keeping good controls. On the Big Island, weed growth was still competing with the crop in selected fields. Planting and field activities were steady. Heavy irrigation was needed to maintain crop progress. Overall, the Big Island crop was in fair to good condition.

Sweet Corn
Windward and central Oahu fields continued to make good progress under fair weather conditions and heavy irrigation. Production is forecast to be at moderate to heavy levels for the upcoming week. Corn plantings in windward areas of the Big Island received a boost in growth when relatively dry conditions were relieved by this week?s rain. The added soil moisture and mostly sunny days boosted growth of young seedlings. Harvesting was mostly for on-island sales.

Cucumbers
On Oahu, pressure from insect infestation was at light to moderate. Harvesting was active in several fields, and overall production levels are expected to be moderate to heavy.

Hawaii Crop Weather Weekly Report

Here is the PDF file for the Hawaii Crop Weather (crop progress and condition) Report for the week ending October 14, 2007.

current_hi101407.pdf

Please visit the website for more information: http://www.nass.usda.gov/hi/

USDA NASS Hawaii Field Office
1421 South King Street
Honolulu, HI 96814-2512
1-800- 804-9514

Agricultural Highlights

Fruits

Bananas
Big Island orchards were in generally good condition. Soil moisture was adequate. Field activities such as spraying for disease control, leaf trimming, and harvesting were on-going in Pepeekeo and Keaau. Leeward and central fields on Oahu were in good condition with moderate to heavy supplies for the market. Heavy irrigation continued as those fields remained dry. Windward fields were in fair to good condition with light supplies. Overall harvesting on Oahu was expected to be at moderate to heavy levels as the shorter day length and slightly cooler temperatures have slowed ripening. Kauai?s orchards were in fair to good condition. Passing showers provided some valuable soil moisture for most orchards. Spraying for insect infestation was on a regular schedule.

Papayas
Big Island orchards in the lower Puna area were in good to fair condition. Good soil moisture and sunny periods benefited most of the young and new orchards. Young trees in the Pohoiki area were in the seedling to first flower stage of development. Mature trees in adjacent fields had medium to full fruit columns. Mature trees in the lower Opihikao area were in generally good condition with full fruit columns. Isolated orchards in the area had young trees with heavy insect infestation. Spraying for insect control was required. Spraying for weed control was also required in some fields. On Oahu, overall harvesting was at moderate levels with some orchards being reworked for future harvest after being damaged by a wildfire. In other areas of the island, fruit development and ripening were fair to good with cooler temperatures favoring crop progress. Orchards on Kauai continued to make fair to good progress during the week. Pickings continued at moderate to light levels from several fields in active harvest.

Vegetables

Head Cabbage
The Big Island?s Waimea crop was in fair to good condition. Heavy irrigation maintained normal crop progress. Maui?s crop continued to benefit from the cooling growing conditions, even though there has been some noticeable decrease in growth and development for most fields. Insect pressure was moderate to low. Steady planting and harvesting was observed. Overall, the crop was in mostly good condition. On Oahu, insect infestations were light and being controlled by regular spraying. Harvesting will be light.

Sweet corn
Big Hawaii fields made good progress due to sunny weather and beneficial showers providing adequate moisture. Supplies will be for local sales. Windward and central Oahu fields continued to make good progress with the sunny and dry weather during the week along with heavy irrigation. Areas affected by water use restrictions have cut back on planting activities and have experienced decreased yields. Overall supplies will be moderate to heavy.

Dry onion
Maui?s crop made steady progress. Growth and development were good with less heat stress than the previous months. Insect pressure was still present in most fields, but the crop was not adversely affected and rated in fair condition. Planting activity slowed slightly.

Other Crops

Coffee
Kauai?s fields were in good condition due to favorable weather during the week. Mostly sunny days prevailed with beneficial rains keeping the reservoirs supplied for irrigation and providing soil moisture good that ensured normal crop development. Occasional breezy trade winds and rains caused light fruit drop, however, harvesting continued very active with about a month left to the season.

Sugarcane
Sugarcane fields on Kauai were in very good condition for the last week of this season?s harvest. Planting was expected to continue until the end of the year. Favorable weather conditions including rains at the upper elevations kept reservoir levels and ditches supplied which ensured adequate irrigation for good crop progress.

Hawaii Crop Weather Weekly Report

Here is the PDF file for the Hawaii Crop Weather (crop progress and condition) Report for the week ending September 30, 2007.
Please visit the website for more information: http://www.nass.usda.gov/hi/

current_hi093007.pdf

USDA NASS Hawaii Field Office
1421 South King Street
Honolulu, HI 96814-2512
1-800- 804-9514

Agricultural Highlights

Fruits

Bananas
Light showers and some sunny periods benefited orchards in the windward areas of the Big Island. Soil moisture was ample and harvesting was active. Oahu orchards were in fair to good condition. Leeward and central Oahu fields were in good condition with heavy to moderate supplies for the market. Heavy irrigation continued as fields remained dry. Windward Oahu fields were in fair to good condition with light to moderate supplies. Overall harvesting on Oahu was expected to be at moderate to heavy levels as the shorter day length and slightly cooler temperatures have slowed ripening. Orchards were in fair to good condition on Kauai. Supplies are expected to be light to moderate, but steady, for on island sales. Spraying for insect infestation was on a regular schedule.

Papayas
Good growing conditions benefited orchard development in the lower Puna areas of the Big Island. Frequent passing showers kept soil moisture adequate. Growers were spraying to try to keep weeds under control. Harvesting in the Opihikao, Pohoiki, and Kapoho areas remained active. Fallowed fields in the Kapoho area were cleared and planting has started. Overall harvesting on Oahu was at moderate levels with some orchards being re-worked for future harvest after being damaged by a wildfire. In other areas, fruit development and ripening were fair to good with the relief from the high temperatures favoring crop progress. Orchards on Kauai continued to make good to fair progress during the week. Pickings were at moderate levels from several fields in harvest with some new fields boosting available supplies.

Vegetables

Head Cabbage
The crop in the Waimea area of Hawaii Island was in fair to good condition. Medium-sized heads were being harvested. Insect and disease damages were generally light. Heavy irrigation was required in the Waimea fields. Growing conditions improved slightly in the Volcano area. Maui?s crop continued to show good progress. However, most fields showed slightly slowed growth and development which was expected for this time of the year. Insect pressure was relatively low, but could increase over the next couple of weeks. Producers were able to control damage and keep losses to a minimum. Plantings have been steady, but the continued shortening of the day length has slowed the rate of growth and development. Overall quality of the crop was good. On Oahu, pressure from Insect infestation was very light.

Cucumbers
Harvesting from Oahu fields was expected to be at heavy levels as several fields were in active harvest. Pressure from insect infestation was light to moderate.

Sweet corn
The Big Island crop was in fair to good condition. Soil moisture was adequate and production will be mainly for on-island consumption. Windward and central Oahu fields continued to make good progress due to sunny skies and heavy irrigation. Areas affected by water use restrictions have cut back on planting activities and have experienced decreased yields.

Dry onion
Maui?s younger fields showed good progress under cooler growing conditions. There were reports of increased insect pressure throughout the growing area which could affect production for older developing fields. Producers were trying to control insect pressure, but it has been challenging. Harvesting has been light. Overall, the dry onion crop was in fair condition. Other Crops

Coffee
Coffee orchards in the upper areas of Kona were in fair to good condition. Soil moisture was adequate. Cherry harvest was in progress. Most of the coffee trees in the Ka?u district have branches full of still green cherries. Harvesting is expected to begin soon. Orchards on Kauai were in good condition with active harvesting anticipated to continue. Sunny days and moderate trade winds kept fields in good condition for harvesting. Beneficial rains in the upper elevations increased the water levels of reservoirs used for irrigation.

Hawaii Weekly Crop Weather Report

Here is the PDF file for the *Hawaii Crop Weather* (crop progress and condition) Report for the week ending *September 23, 2007*.

current_hi092307.pdf

Please visit the website for more information: http://www.nass.usda.gov/hi/

USDA NASS Hawaii Field Office
1421 South King Street
Honolulu, HI 96814-2512
1-800- 804-9514

Agricultural Highlights

Fruits

Bananas
Orchards in eastern sections of the Big Island were in generally good condition. Favorable showers provided good moisture. Spraying and leaf trimming helped to minimize Black Leaf Streak disease incidences. Bunchy Top incidences remained localized in the Puna and Kona districts. Oahu orchards were in fair to good condition. Leeward and central Oahu fields were in good condition with heavy to moderate supplies for the market. Heavy irrigation continued as the fields remained dry. Windward fields were in fair to good condition with light to moderate supplies. Overall harvesting on Oahu was expected to be at moderate to heavy levels as the shorter day length and slightly cooler temperatures have slowed ripening. Kauai?s orchards were in fair to good condition. Spraying for insect infestation was on a regular schedule.

Papayas
Orchards in the lower Puna area of Hawaii County were in good to fair condition. Ample soil moisture and sunny periods helped to boost flowering and fruit development. Field activities such as spraying for disease control and fertilizing were active. Young and new orchards made steady progress. On Oahu, some orchards were re-worked for future harvest after being damaged by a wildfire. In other areas, fruit development and ripening were fair to good with the high temperatures slowing crop progress. Ring spot virus and wild pig damage in some fields lowered yields. Orchards on Kauai continued to make good to fair progress during the week. Pickings were at moderate levels from several fields in harvest with some new fields in active harvest boosting available supplies.

Vegetables

Head Cabbage
The Big Island?s Waimea crop made good progress with heavy irrigation. Young plantings made steady growth. Light production was expected from Volcano fields. Supplies were mainly for the local markets. On Maui, insect pressure in most of the major growing areas has decreased and damage also declined. Weather conditions have cooled and producers noted that this was beneficial for the crop. Relief from the hot daytime temperatures and the cool evening temperatures allowed some improvement in the quality of the crop. Growth and development was steady, but may soon begin to show signs of slowing down as day length begins to shorten. Planting has been steady and production was expected to stay at current levels. The head cabbage crop was in fair to good condition.

Sweet corn
Windward and central Oahu fields continued to make good progress with the sunny, dry weather and heavy irrigation. Areas affected by water use restrictions have cut back on planting activities and have experienced decreased yields. The Big Island?s young corn crop continued to make good progress. Harvesting was active and supplies were for local sales.

Other Crops

Coffee
On Kauai, orchards were in good condition with active harvesting anticipated to continue. Sunny days and moderate trade winds kept fields in good condition for harvesting. Rainfall has been light and reservoir levels continued to decrease causing some concern.

Ginger root
The Big Island?s crop made good growth during the week. Very damp conditions, however, slowed fieldwork.

Persimmon
Maui?s persimmon crop was in good condition. There were some reports of deer entering the field, but so far damage has been minimal. Insect pressure has also been minimal. At the current rate of development, the crop is expected to reach maturity in October with harvesting to begin shortly there after.