Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Water, Land, and Agriculture, to which was referred S.B. No. 2249 entitled:

begs leave to report as follows:

The purpose of this measure is to appropriate funds for a grant-in-aid to the Hawaii Farm Bureau Federation for agricultural research and market development.

Testimony in favor of the measure was submitted by the Board of Agriculture, University of Hawaii, Hawaii Farm Bureau Federation, Maui County Farm Bureau, Hawaiian Commercial and Sugar Company, Maui Cattlemen's Association, East Kauai Water Users' Cooperative, Gay & Robinson, Kauai Coffee, Agro Resources, Inc., Hawaii Agriculture Research Center, Pineapple Growers Association of Hawaii, and Hawai‘i Forest Industry Association.

Your Committee finds that agricultural research is the foundation for Hawaii's agricultural industry to remain competitive in the global market. However, state funding has dramatically declined from $6 million in the early 1990s to the current $1 million funding. Furthermore, agricultural marketing is also critical to the competitiveness of Hawaii in the world market. At one time, Hawaii held a sizable share of the market for pineapple, macadamia nut, and anthuriums. However, other regions with similar climatic conditions have taken away a large portion of these markets. It is necessary to provide adequate funding to ensure Hawaii's success in the agricultural industry.

As affirmed by the record of votes of the members of your Committee on Water, Land, and Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2249 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.