What You Need to Know About Hawai‘i Constitutional Amendment 2

honolulu

Next Tuesday, voters statewide will face five constitutional amendments, two of which relate to agriculture. Get to know what these amendment questions mean before heading to the polls so you can choose either Yes or No, since a blank vote counts as a No. Here’s what you need to know about Amendment 2, which would support the local food industry and agriculture.

What it says:

CON AMEND: Relating to Agricultural Enterprises

“Shall the State be authorized to issue special purpose revenue bonds and use the proceeds from the bonds to assist agricultural enterprises on any type of land, rather than only important agricultural lands?”

What it means:

Special purpose revenue bonds are issued to allow private investors to give loans to borrowers—say, a farmer. The investor, not the state, is responsible for paying back the funds if the borrower falls short. These loans come with a lower interest rate, which benefits the borrower, and the interest is tax-free, which benefits the investor. The state does nothing other than facilitate, meaning no taxpayer money is spent, and the state’s credit is not affected if the borrower doesn’t make payments.

Right now, only 6 percent of Hawai‘i is designated as important agricultural lands. It’s a lengthy and complicated process to apply, says Brandon Lee of Ulupono Initiative, and the designation requires the lands must be used only as ag lands, never for any other purpose, such as development. Farmers on these lands are allowed to seek special purpose revenue bonds; though, according to Lee, none has been granted in the past four years.

“There is an allocation [of bonds],” Lee says. Because the state can’t allow the special bonds for every single project, there are designated categories, such as early childhood education and nonprofit healthcare facilities. “But, roughly, in four years, four or five projects have been approved as special purpose revenue bonds, and none of them under agriculture. Ag hasn’t gotten its fair share.”

Broadening the category from important agricultural lands to ag enterprises on any lands will increase the chances that farmers, ranchers and other ag businesses can get the money they need to update their operations, improve facilities and, ultimately, grow more food.

A Yes vote is a vote for local food

Farmers, lawmakers braced for cuts in subsidies

A program that puts billions of dollars in the pockets of farmers whether or not they plant a crop may disappear with hardly a protest from farm groups and the politicians who look out for their interests.

The Senate is expected to begin debate this week on a five-year farm and food aid bill that would save $9.3 billion by ending direct payments to farmers and replacing them with subsidized insurance programs for when the weather turns bad or prices go south.

The details have yet to be worked out. But there’s rare agreement that fixed annual subsidies of $5 billion a year for farmers are no longer feasible when budgets are tight and farmers in general are enjoying record prosperity.

About 80 percent of the bill’s half-trillion-dollar cost over the next five years represents nutrition programs, primarily food stamps that go to some 46 million people. About $100 billion would be devoted to crop subsidies and other farm programs.

The Senate Agriculture, Nutrition and Forestry Committee last month approved a bill that would save $23 billion over the next decade by ending direct payments and consolidating other programs. The bill would strengthen the subsidized crop insurance program and create a program to compensate farmers for smaller, or “shallow,” revenue losses, based on a five-year average, for acres actually planted.

Getting a bill to the president’s desk will be a challenge. Most of the bill’s spending is on the Supplemental Nutrition Assistance Program, or food stamps, at an annual cost now of about $75 billion. The Republican-led House is looking for greater cuts to this program than the Democratic Senate will accept.

The House also is more sympathetic to Southern rice and peanut farmers who say that the shallow-loss program would hurt them.

Farmers, ranchers brace for dry times

Rainfall levels in Upcountry areas are below normal this year, and there’s a bleak outlook for rain for ranchers and farmers as the islands head into the normally dry summer months, a hydrologist said Thursday.

“We’re headed out of our wet season. The outlook is not too good,” said Kevin Kodama, a hydrologist with the National Weather Service on Oahu.

From January through March, Kula received 5.5 inches of rain. Normally, it gets around 8.7 inches, Kodama said. Pukalani received 4 inches in the same time period while it normally gets around 16 inches. Ulupalakua received a little under 5 inches, and it usually gets about 10.

“We’re in really bad shape,” said Sumner Erdman, president of Ulupalakua Ranch. “The economic impacts have already hit.”

Erdman said this will be the fourth year his ranch has been impacted by dry conditions.

The economic losses amount in the “hundreds of thousands of dollars,” he said.

The ranch has had to sell cattle. It now also sees cattle with lower weights because less rain means cows have less grass to feed on. The ranch also has lower reproduction rates because there are fewer cows to breed, Erdman said.

Over four years, the number of breeding cows has gone from 2,300 to 1,500, as the ranch sells them off to deal with the drought conditions, Erdman said.

The ranch currently has 3,800 head of cattle, with preparations under way to sell more, he said.

Warren Watanabe, executive director of the Maui County Farm Bureau, said the dry weather trend seems to follow the long-term prediction of scientists.

Because areas of extreme drought in Hawaii have increased in the past few months, with the hardest hit being the pasture areas on the Big Island, Maui and portions of Molokai, the farm bureau’s priority during this legislative session has been to fund drought mitigation projects.

Farmers say tax changes pose threat

MAKAWAO – Upcountry farmers said this week that they have concerns about proposals to change the way agricultural lands are taxed.

A number of landowners said any changes that increased what they pay in property taxes could put small farmers and ranchers out of business. Others questioned how the proposal would affect people who stop farming because of old age.

“I’m retired, and I’m worried about how we’re going to afford this,” said former persimmon farmer Blanche Ito. “All of a sudden, we’re faced with this new bill that might increase my taxes, and that concerns me.”

Ito was among around 40 residents who attended a special meeting of the Maui County Council Budget and Finance Committee on Monday night at Kalama Intermediate School in Makawao.

The committee is considering legislation that would tax the land under a home on an agricultural lot in the same way as a regular residential property.

Currently, an agricultural house lot is taxed as a percentage of the larger parcel’s total value, often resulting in a significantly lower amount than what a similar lot in a residential neighborhood would be worth. Council members have said the measure would be a first step in bringing more equity to the property tax system.

But several testifiers questioned that idea.

Farmers urge more review of tax system

WAILUKU – Maui County Council members heard from farmers this week asking them to take more time before making changes to the county’s agricultural property tax laws.

The council Budget and Finance Committee met Tuesday to discuss a proposal that would carve out the land under a home on agricultural property and require it to be taxed in the same way as any other residential lot. Council members supporting the measure said it would make the property tax system more fair and equal for all residents.

But many farmers said they were concerned about any changes that would likely increase what they pay in property taxes.

“We have a tax equity issue,” said Darren Strand, president of the Maui County Farm Bureau and Haliimaile Pineapple Co. “As a business operator, that’s not my issue. My issue is, any increase in taxes is going to hurt my bottom line.”

He echoed others in calling for more review.

“There just hasn’t been enough time for us to process (this) and really get the information out,” he said.

Council members agreed, deciding to defer discussion of the issue and schedule nighttime meetings in the community before taking action.

“There’s a lot of concern out there, and I’d like to take a little extra time to have people get their questions answered,” said Council Member Mike White, who introduced the legislation and has spearheaded discussion of disparities in the agricultural property tax system.

Under White’s proposal, the county would tax the “house lot” on agricultural property based on its fair market value, as if it were a stand-alone lot.

That would be a significant change from the current system, in which the county estimates the value of the house lot only as a percentage of what the entire property is worth.

The change would likely increase property taxes on a number of agricultural house lots, which under the current system often pay less in taxes than lots of the same size in residential areas.

“It gets back to a fairness issue,” White said.

Maui County Farm Bureau Presents Maui Ag Day

The Maui County Farm Bureau (MCFB) will present the second annual Maui Ag Day with a focus on “Understanding Food Safety Certification” on Friday, Aug. 26, from 8 a.m. to 1 p.m. at Hāli‘imaile Pineapple Company located at 872 Hāli‘imaile Road.

The trade show, panel discussion, tour and parking are free and open to the general public.

The day opens with the trade show and continental breakfast. At 9 a.m., the event will feature a Food Safety Certification Panel Presentation by three Maui farmers who have completed the Food Safety Certification process: Heidi Watanabe of Watanabe Processing, Geoff Haines of Pacific Produce and Brian Igersheim of Hāli‘imaile Pineapple Co. At 10:30 a.m., tour of Hāli‘imaile Pineapple Company facilities and pineapple fields. A Grown on Maui lunch will be provided to MCFB members at 11:45 a.m.; non-members may purchase lunch.

Food sustainability: a Kona-vore’s dilemma

by Diana Duff
Special To West Hawaii Today

Those of us in attendance at the November Kona Town Meeting on food sustainability were not surprised to see Ken Love as one of the speakers. A vigilant supporter of “buying local” and a long-time champion of growing exotic fruit for local consumption, his low blood pressure was obviously raised as he talked about the charade he finds in some local stores. Sellers anxious to join the “buy local” campaign are sometimes stretching the limits and confusing consumers who really want to eat food grown as close to home as possible.

Ken’s main prop was a box of “Hawaii Ginger” with “Produce of China” in smaller type on the same box. “So, is this local produce?” he asked. A resounding “no” echoed through the Makaeo Events Pavilion.

Ken advised those present to look for the COOL, or Country of Origin Label, stickers on produce. These can help you choose fruit and vegetables grown in locations that match your buying preferences. If you don’t see the stickers, ask for them.

Research shows that consumers often prefer locally grown produce, but they can be confused if produce is labeled incorrectly or not at all. Shoppers looking for local products are often deceived by misleading signage. Locally grown crops need to be marked clearly and correctly. “Hawaii Grown” stickers could really help.

Safety costs criticized – Hawaii News – Staradvertiser.com

Many Hawaii farmers and ranchers say the cost of complying with proposed safety rules regulating dams and reservoirs will be more than they can afford and that they’ll be turning to the state Legislature for financial aid.

“We’re talking about hundreds of millions of dollars,” said Alan Gottlieb, a past president of the Hawaii Cattlemen’s Council.

The proposed administrative rules were approved by the state land board Monday and forwarded to Gov. Linda Lingle. The governor’s approval is required before they take effect.

The rules would regulate 138 reservoirs in Hawaii that have the capacity to hold 5 million gallons or more.

State officials said the increases in fees would pay for costs of enforcing the new safety rules.

Critics say that besides the high cost, the regulations would discourage the operation of existing reservoirs, many of which operate on narrow profit margins.

One of the largest regulated reservoirs is at the city’s Ho’omaluhia Botanical Garden in Kaneohe.

The reservoir, built as a flood-control project, usually stores 84.7 million gallons but has a capacity of 1.4 billion gallons, according to the state.

Farmers and ranchers say that while they support safety regulations in light of the 2006 Koloko Reservoir dam break on Kauai that killed seven people, the proposed rules place an unreasonable burden on businesses.

Farm Fair features foods made locally

The 2010 Hawaii State Farm Fair, at Bishop Museum this weekend, will feature a celebrity cook-off and the Ag-Tastic Expo.

The cook-off will involve an Island Beef Stir-fry, starting at 12:15 p.m. Saturday. The beef comes courtesy of Michelle Galimba’s Kuahiwi Ranch in Kau, and all other food ingredients will come directly from the fair’s farmers market.

The expo will showcase samples of Hawaii-grown and locally made products from farm bureau members on Oahu, Maui, the Big Island and Kauai. They include Naked Cow Dairy; Hanalei Taro and Juice Co.; Maui’s Ono, producer of specialty dressings; honey producers from Molokai; Haliimaile Pineapple Co.; Lorie Obra, producer of award-winning Rusty’s Hawaiian coffee; and Will Tabios of Rising Sun coffee, another award winner.

The farm fair features a 4-H livestock exhibit with competition in lamb and beef categories, agriculture displays, the farmers market and exotic tropical plant displays and sales.

Admission is $7, $3 for children ages 4 to 12. The event runs from 9 a.m. to 8 p.m. Saturday and 9 a.m. to 5 p.m. Sunday. Purchase tickets at the door or beforehand at the museum box office or the Hawaii Farm Bureau office, 2343 Rose St. in Kalihi. Call 848-2074 or visit www.hfbf.org.

Farm Fair features foods made locally – Hawaii News – Staradvertiser.com