Report Title:

Agribusiness Incubator Program; College of Tropical Agriculture and Human Resources; Appropriation

Description:

Appropriates funds for the agribusiness incubator program to continue until replacement federal funding can be secured.

THE SENATE	S.B. NO.	1758
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII

A BILL FOR AN ACT

Relating to the agribusiness incubator program.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that agriculture is a culturally and community compatible industry that contributes to Hawaii's diversified economy, rural economy and job opportunities, food security, health, and natural aesthetic.  In the transition away from large commodity agriculture to diversified agriculture, Hawaii's agriculture industry is now characterized by a greater number of smaller, less business savvy enterprises.  The agribusiness incubator program was created by a federal special grant to provide business assistance to these agribusinesses in order to ensure viability and success in these agribusinesses.

     The legislature further finds that the agribusiness incubator program improves the viability of new businesses and increases the success rate of existing agribusiness expansion through a comprehensive business consulting program.  The agribusiness incubator program provides intense, hands-on assistance with the served agribusinesses (clients) and focuses on the business aspects related to running a successful agribusiness.  The agribusiness incubator program meets regularly with clients to ensure the successful implementation of their business improvement, expansion, or startup initiatives.  The agribusiness incubator program also coordinates and leverages resources from private and public organizations and utilizes project management and implementation methodologies so that success is repeatable.

     The agribusiness incubator program consultants come from some of the world's largest consulting, accounting, finance, and outsourcing firms, and apply their knowledge, experience, and skills to address agribusiness management issues.  They have experience in the areas of accounting, finance, technology, financial systems, process improvement, project management, marketing, inventory, and distribution.

In just over two years of operation, the agribusiness incubator program has had a significant positive impact on assisted agribusinesses and supporting organizations statewide.  For those clients with prior year statistics, the agribusiness incubator program has increased revenue by an average of one hundred twenty-one per cent, profits by ninety-eight per cent, and employee headcount by thirty-four per cent.  This does not include pure startup agribusinesses, which would inflate these numbers further.

     Additional significant metrics include:

     (1)  Served thirty agribusinesses and related organizations located throughout the State;

     (2)  Served eight agribusinesses with direct native Hawaiian benefit;

     (3)  Assisted with the startup of ten new agribusinesses;

     (4)  Assisted with bringing three value-added product lines to market; and

     (5)  Assisted seven agencies, programs, and organizations that serve the agricultural community.

Federal funding for this project has been eliminated as part of a wider effort to limit earmark funding.

     The agribusiness incubator program is currently entirely dependent on a federal grant and will lose funding in September of 2007.  In order for this important statewide program to continue to operate, the college of tropical agriculture and human resources seeks additional funding to continue this important program.  In the meantime, federal grants and other sources of funding will be aggressively pursued for future operating budgets.

     The purpose of this Act is to appropriate funds to continue the agribusiness incubator program until replacement federal funding can be secured.

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $          , or so much thereof as may be necessary for fiscal year 2007-2008, and the same sum, or so much thereof as may be necessary for fiscal year 2008-2009, to the college of tropical agriculture and human resources to continue the agribusiness incubator program until replacement federal funding can be secured.

     The sums appropriated shall be expended by the University of Hawaii for the purposes of this Act.

     SECTION 3.  This Act shall take effect on July 1, 2007.

INTRODUCED BY:

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