Appropriates funds for a grant in aid to the Hawaii Farm Bureau Federation for agricultural research and market development; appropriates funds for certain pineapple research projects. (SB540 HD2)

A BILL FOR AN ACT

PART I

SECTION 1. The legislature finds that research and market development is critical for the continued growth of Hawaii's agricultural industry. To provide the necessary support for the transition of Hawaii's agricultural industry, more resources must be directed towards agricultural research and market development.

Agricultural research is the basic foundation of Hawaii's agricultural industry. The Hawaii Agriculture Research Center and the University of Hawaii college of tropical agriculture and human resources are two very important research organizations that assist the entire agricultural community. For the past few years, however, funding for all agricultural research has declined drastically. It is critical to maintain and increase the level of funding to keep Hawaii's agricultural industry competitive in the global marketplace.

Market development is another key component in expanding opportunities for Hawaii's agricultural businesses. Hawaii's small size and isolated location provide challenges to the farmer in the global marketplace. Considerable effort and funds are needed to develop new markets, to expand existing markets, and to support new and existing crops.

The legislature finds that it is in the public interest to support and foster the growth of Hawaii's agricultural industry.

Therefore, the purpose of this part is to provide the necessary funds for agricultural research and market development.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $1 or so much thereof as may be necessary for fiscal year 2003-2004 and the sum of $1 or so much thereof as may be necessary for fiscal year 2004-2005 as a grant-in-aid to the Hawaii Farm Bureau Federation. The grant-in-aid shall be apportioned to provide:

The sums appropriated shall be expended by the department of agriculture for the purposes of this part.

PART II

SECTION 3. The legislature finds that the Hawaiian pineapple industry is a leader within Hawaii's agricultural sector and a strong component of the State's economic base. According to the Hawaii agricultural statistics service, Hawaiian pineapple production was reported at $96,300,000 in farm value and estimated at three hundred twenty-three thousand tons. The three pineapple companies pay $6,200,000 in state taxes, employ up to three thousand people with payrolls totaling more than $57,000,000, and generate $53,000,000 of ancillary support business with the airline, ocean shipping, box manufacturing, construction, and distribution industries.

The legislature also finds that losing this industry would economically damage the State as well as jeopardize the viability of our rural communities. The industry helps to preserve a "green" Hawaii, with more than twenty-two thousand acres of pineapple fields on Oahu and Maui, many of which preserve view plains as well as significant historical and archeological sites. In addition, the industry maintains and improves water systems that benefit the entire State.

The legislature further finds that Hawaii's pineapple industry has met shifts in market demands and increased its global competitiveness through value-added products like fresh chilled or cut pineapple; sweeter, low-acid premium fresh fruit; and pineapple salsa. However, Hawaii's pineapple industry continues to face increased competition with countries that have lower labor, land, and water costs and less stringent environmental requirements.

Ongoing research and development are essential in ensuring that this industry can compete effectively with outside competition. Research can also lead to improvements in the quality and quantity of pineapple production in Hawaii. In partnership with the State, the industry provides an estimated $190,000 of in-kind support to current research appropriations. In addition, the three pineapple companies conduct more than $1,410,000 of proprietary research annually.

The purpose of this part is to appropriate funds for the following pineapple research projects:

1. Evaluation of potential $  15,732 $       0

pest; harvest/pre-plant

fungicides for control of

fruit rot, mold,

and butt rot

2. Future pesticide $       0 $  30,000

screening

3. Chemical registration $ 110,000 $ 110,000

4. Biology and control of $  20,000 $  29,000

micro lepidotera in

pineapple

5. Pineapple nematode $       0 $  25,000

management

6. Development of $  71,500 $       0

strategies for

management of mealybug

wilt; viruses

7. Fruit acid metabolism $       0 $  26,000

Total funding $ 217,232 $ 220,000

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $1 or so much thereof as may be necessary for fiscal year 2003-2004 and the sum of $1 or so much thereof as may be necessary for fiscal year 2004-2005 for the specified pineapple research projects.

The sums appropriated shall be expended by the department of agriculture for the purposes of this part.

PART III

SECTION 5. This Act shall take effect on July 1, 2003.