STAND. COM. REP. NO. 1655

Honolulu, Hawaii

RE:    H.B. No. 1221

       H.D. 2

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 1221, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose of this measure is to create a livestock revitalization and food security program to administer and disburse funds to qualified cattle, dairy, hog, and poultry farms.

     Your Committee received comments in support of this measure from the Department of Agriculture, the University of Hawaii, the Hawaii Farm Bureau Federation, the Hawaii Teamsters and Allied Workers Local 996, Kauai Kunana Dairy, and the Hawaii Egg Producers Association.  HY-Land Ranch and Ulehawa Farm, Inc. submitted comments in support of the measure with amendments.

     Your Committee finds that within the past year, two egg farms and one dairy farm have gone out of business due to production cost increases, largely attributed to the rising cost of feed for livestock animals.  Such closures increase the State's dependence on imported foods and threaten the State's food security and ability to achieve agricultural self-sufficiency.

     Closure of local dairies and poultry farms also mean local consumers can no longer buy fresh, locally produced milk, chickens, beef, pork, and eggs.  Without these local industries, these commodities would have to be imported into the State, incurring up to ten days of shipping, decreasing the overall quality of these products, especially the fresh milk and eggs.

     This measure would allow the livestock industry to invest in modern equipment, expand and improve their herds and flocks, and develop new markets and products to ultimately stabilize their operations and become more competitive with mainland suppliers.

     Your Committee has amended the measure by removing the provision requiring the Department of Agriculture to adopt rules to effectuate the purposes of this Act.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1221, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1221, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair