Hawaii’s Seed Crop Industry: Current and Potential Economic and Fiscal Contributions

Here is the PDF file for the Hawaii’s Seed Crop Industry: Current and Potential Economic and Fiscal Contributions report.
Please visit the website for more information: http://www.nass.usda.gov/hi/

Hawaii’s Seed Crop Industry
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Contact Information:
Mark E. Hudson, Director
USDA NASS Hawaii Field Office
1421 South King Street
Honolulu, HI 96814-2512

Office: (808) 973-9588 / (800) 804-9514
Fax: (808) 973-2909

The research objective of this study is to update our 2006 study of the Hawaii seed crop industry’s economic and fiscal contributions to the State of Hawaii. To this end we have provided:
• Background information about the technology used by the industry locally and internationally,
• Details of Hawaii’s seed crop industry with comparisons to other Hawaii sectors and subsectors,
• The economic contributions of the seed crop industry.

Our primary research conclusion is that Hawaii’s seed crop industry makes significant ever increasing economic and fiscal contributions to the state’s economy generally, and most particularly simultaneous contributions to the agriculture, life sciences and high technology subsectors. In so doing, the Hawaii seed crop industry generates various positive externalities to the state, the value of which has not been assessed in this study. Seed crop industry economic contributions to the state should continue to increase given anticipated industry investments in Hawaii, which will assist achievement not only of economic policy objectives but other objectives as well, the various positive side effects of this industry operating in Hawaii.

Hawaii Avocado Report.

Here is the PDF file for the Hawaii Avocado Report.

Click for complete Avocado Report

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

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Contact Information:
Mark E. Hudson, Director
USDA NASS Hawaii Field Office
1421 South King Street
Honolulu, HI 96814-2512

Office: (808) 973-9588 / (800) 804-9514
Fax: (808) 973-2909
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Hawaii avocado production declines 14 percent

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Hawaii avocado production is estimated at 1.0 million pounds for the 2008/09 season, down 14 percent from the previous season. A 6 percent decline in harvested acreage to 330 acres and a 9 percent drop in average yields to 3,000 pounds per acre contributed to the overall lower harvest.

Avocado growers noted that uneven rains and the overall dry weather were major factors for the lowering yields during the 2008/09 season.

Farm price reaches record high

Hawaii avocado growers received an average a record high 73.0 cents per pound for the 2008 harvest, 7 percent higher than the previous season’s average farm price of 68.0 cents per pound.

California’s harvest lowest since 1979/80 season

California, which produces almost 78 percent of the U.S. total, suffered its lowest avocado harvest in 29 seasons (see next page). California’s 2008/09 harvest was hurt by record high heat last June which damaged the fruit that was beginning to mature on trees. Average farm prices, however, rose to a sixseason high of $2,000 per ton.

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

Buying Farm Land on Kauai

Buying Farm Land on Kauai | Hawaii Life

How many of us haven’t at some time entertained the idea (except those who have already done so!) of running off to Kauai, buying a few acres, and “living off the land”. A potent fantasy indeed, and for the past several years, one realized only by those with considerably deep pockets – vacant agricultural land on Kauai has recently ranged from $100,000 to well over $300,000 per acre (depending on location, views, caliber of neighborhood, etc…); land with a house already on it, obviously, even more.

The recent economic travails, however, are certainly doing their part to bring farming on Kauai back from the realm of fantasy into something verging on do-able for a lot more of us. And as well, these travails are providing motivation – more and more of us just want to chuck everything and revert to a simpler, more sustainable lifestyle.

Acreage on the Big Island has always been more affordable – for one thing, there’s a whole lot more of it; for another, it comes with active lava zones, limited infrastructure, long travel distances, etc… Kauai is like a precious green jewel-box in comparison – much smaller, more accessible, more groomed. The soil is older, the distances smaller, the beaches closer. And it has been much, much more expensive.

Hawaii House Blog: Agriculture

The Rodney Dangerfield of the Economy

The room was packed, and the message came through loud and clear at the informational briefing this morning on the state of Hawaii’s agriculture industry. It was a joint meeting of the Committees on Agriculture and Water, Land & Ocean Resources.
The industry faces its more critical period ever, and without significant changes, agriculture as we know it, may cease to exist in Hawaii in the near future. Here are some of the highlights from the briefing:

Dean Okimoto – President of Hawaii Farm Bureau, Owner of Nalo Farms

Nalo Farms is at great risk. Okimoto has been working on an expansion project for a few years which he hopes to open on Monday. He has poured much of his savings into the project as he has had to pay off a loan with no incoming project revenue for the past 15 months. He says that it feels like he is losing business, not gaining business, and even the farm itself is not doing well.
The danger for the industry is that once we lose a farm, it never comes back. Nalo Farms is not alone. Several farms have closed in recent months. Part of the problem is that agriculture is like "the Rodney Dangerfield of the economy" – it gets no respect. In particular, Hawaii’s tourism industry is highly dependent on agriculture, but Okimoto believes that there is little recognition from the tourism industry, nor collaboration between the two industries.

Buddy Nobriga – President of Nobriga Ranch

Nobriga contends that the Hawaii Department of Agriculture is one of the smallest Ag Departments in the nation. The state needs a larger, stronger department that can help the farmers and ranchers. There are not enough inspectors to monitor the quality of imported milk. We don’t have strong relationships with the USDA. We don’t have the land to establish dairies.
We need agriculture in order to be sustainable. In a way, agriculture and farmers are like the "security" of the state.

Meredith Ching – Alexander and Baldwin (large landowner)

Large landowners face the same problems as small farms. The lack of rainfall in the past decade has had a cumulative effect on island crops. 2008 was the driest year over the past 85 years. In addition, the state has been in a prolonged drought for the past decade, with the past two years being exceptionally dry.

Yvonne Izu – Hawaii Farm Bureau, former state water commissioner

The legislature needs to amend the state water code law. The East Maui decision is a perfect example of how the water code does not support agriculture. This is one way the legislature can help farmers without spending money. Farmers do not have hope that agriculture can survive in this state.

Richard Ha – President, Hamakua Springs

The world has changed. He has had to lay off 20 workers recently. He says you can tell that farming is bad when fertilizer sales go down. Fertilizer sales have been going down since last spring. There is, however, an opportunity to use agricultural lands for energy crops. A bill passed last year allows farmers to finance loans for energy projects, although this may not be quite enough incentive to bring more people into farming.
He has a blog now. "These days, you gotta blog if you’re a farmer."

Eric Tanouye – Greenpoint Nursery
Tanouye’s 20-year-old son is in college and has said that he wants to work in the family business. This excites Tanouye because it would mean three generations working in the business. Tanouye is also the President of the Florists and Shippers Association and he has visited members across the state on all the islands. All of them face very difficult times. It is unprecedented.

Kylie Matsuda – Matsuda and Fukuyama Farms in Kahuku

She represents the 4th generation of farmers in Kahuku. She has a degree in Tourism Industry Management, but wanted to go back and be part of the family farm business. Her parents did not want her to do it, but she wanted to use her tourism expertise and expand the business into agri-tourism. She had to fight to get her job at the farm. She feels that farming can become viable again if you consider value-added products which will bring additional dollars.
For example, tourists can’t take home fresh fruits and vegetables, but they take back dried fruit, jams and jellies, and other products. There are also farm-related activities to market.
What can be done? Some suggestions:
*Clarify the state policy on water. The East Maui decision seemed to put farmers at a lower level of beneficiary than others. The water commission needs to understand the importance and value of the agriculture industry to the state.
*Provide tax credits for new farmers. Incent farmers to start farming.
*Support more farmers’ markets. It provides more revenue and forces farmers to interface with their market and the public, and through dialog, they can improve their product and have fun talking to people.
*Dean Okimoto summarized: He wanted to make it clear that the farmers are not looking to the legislature to solve all their problems. However, the legislature can be helpful in making other industries and the general public more aware that farming is critical to our state. Right now, tourism does not appreciate or support agriculture. Someone needs to hold their (tourism’s) feet to the fire in helping agriculture.
Chair Clift Tsuji and Chair Ken Ito expressed their appreciation to the farmers for coming today; they understood the gravity of the situation. They will be using the information from the briefing to propose legislation for the 2009 session.

Hawaii House Blog: Agriculture

Arbor Day Maui

August 2008
PRESS RELEASE
Arbor Day 2008
Lawn & Garden Fair and Hawaiian Tree Give-away

On November 8th 9am-2pm 2007 Maui Nui Botanical Gardens (MNBG) in partnership with the Maui Association of Landscape Professionals (MALP) will for the second year combine their efforts to create a must attend event full of educational activities and demonstrations. In addition to the annual free 1,000 Hawaiian tree give-away there will be . . .

CLICK HERE to read the complete PRESS RELEASE

Native Hawaiian Plant Horticulture Website

Nursery Owners and other plant professionals,

We will be on Maui on May 27th and may be able to visit some of you. Hopefully you can come to our evening meeting on May 27th at 5pm at Maui Community College at Laulima, room 107 where we can explain this program in more detail.

We are supported by a federal grant from the US Department of Agriculture, so we are able to provide the online database on the horticultural of native plants, and web space for any business growing native plants without cost.

If you have any questions, please feel free to contact me.

Priscilla S. Millen

Professor of Botany, Leeward Community College
*Phone: 808-455-0285
*Fax: 808-455-0509,
e-mail: pmillen@hawaii.edu
Dept. of Math and Sciences: 96-045 Ala Ike, Pearl City, Hawaii 96782

Priscilla Millen, Botany professor at Leeward Community College who has a grant from USDA to increase training and businesses in plant related fields. Her focus is to increase the numbers of native plant used in Hawai?i?s landscape. It provides environmental advantages and helps with education and conservation.

Shari Tamashiro of Kapi?olani Community College is the technological professional developing the website and database to go online.

David Eickhoff is a native plant specialist inputting the data and has a long experience with growing natives.

Any one growing natives on the islands will be able to put their business information and native plant inventory into the database. The website will be: nativeplants.hawaii.edu and will be active on August 1st. The site is designed to be user friendly.

A large part of the database will include native plant horticultural information, designed in view for usage by landscape architects, landscape contractors and installers. It should be useful for restoration work and homeowner?s application.

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.

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