WHEREAS, the common measure of agricultural activities is the farmgate value of agricultural production; and

WHEREAS, using the farmgate value of the sales of agricultural products does not provide an accurate or comprehensive indication of the contribution of the agricultural industry to the economy of the State; and

WHEREAS, while sugarcane production has declined and pineapple production has remained relatively stable, the sales value of diversified agriculture production has increased to make up nearly seventy per cent of total farm production; and

WHEREAS, there is a need for business and government policy makers to have information to determine the multiplier effect of increases or decreases in agricultural production on employment, purchases agricultural inputs, and consumer spending on goods and services; and

WHEREAS, there are mathematical techniques such as IMPLAN, developed by the United States Department of Agriculture, Forest Service, that can be used to measure the multiplier effect of changes in agricultural output in the economy, the impact on household income of new agricultural production, the increase in value-added production resulting from new agricultural production, and the total employment resulting from new agricultural enterprises; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2006, that the Auditor is requested to conduct a study, using any of the mathematical techniques that are available, to determine the multiplier effect of Hawaii's agricultural industry on the economy of the State of Hawaii; and

BE IT FURTHER RESOLVED that the Auditor is further requested to submit findings and recommendations, including any proposed legislation, to the Legislature not later than twenty days prior to the convening of the Regular Session of 2007; and

BE IT FURTHER RESOLVED that a certified copy of this Resolution be transmitted to the Auditor.

Report Title:

Auditor; Agriculture