HB935 SD1

PART I

SECTION 1. The legislature finds that as the state has moved away from plantation agriculture, diversified agriculture has become an essential component of our overall agriculture industry. Aquaculture, which reached $28,400,000 in wholesale product value in 2005, represents one of the fastest growing sectors of diversified agriculture in the state and has a future brimming with potential. One of the most essential resources for the aquaculture industry has been statewide technical assistance provided by the University of Hawaii sea grant extension service (UH/SGES). Both state and federal funds are used to fund this important program.

However, over the years, state and federal funding for UH/SGES has declined while costs for materials, supplies, and salaries have increased, thereby eroding the buying power of the funds remaining for the program. In addition, UH/SGES agents will be receiving significant salary increases over the upcoming fiscal biennium. Additional funding is needed to pay for these costs and to provide state matching funds to attract federal funds for UH/SGES.

The purpose of this part is to restore funding to UH/SGES by appropriating funds to pay for increased costs and to provide state matching funds to attract federal funding.

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 2008-2009 to pay for the increased costs of the University of Hawaii sea grant extension service and to provide for state matching funds to attract federal funding for the program.

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

PART II

SECTION 3. The future of animal agriculture in Hawaii is being threatened by rising costs of imported feeds and the absence of a feed mill industry to develop local ingredients as viable alternatives to imported feeds. High feed prices have driven the beef cattle industry to feedlot in Canada and California and are challenging the viability of Hawaii's hog, poultry, and dairy cattle industries. Similarly, the promise of a nascent, yet growing offshore aquaculture industry in the State is being dampened by high feed costs. Unless innovative solutions are found, the animal agriculture industry in Hawaii is destined to collapse and ultimately threaten the food supply and security of the State. As Hawaii becomes more dependent on imported food products, consumers throughout the State will have less options to select fresh, locally grown food products.

The ultimate solution to sustaining Hawaii's animal agriculture industry is to develop feeds using local products. The Hawaii Feed Mill project, being undertaken by the Oceanic Institute at the University of Hawaii at Hilo research farm at Panaewa, Hawaii, will engage in pilot-scale testing and development of local ingredients and feeds under commercial processing conditions to improve the competitiveness and help the long-term sustainability of animal agriculture in the State.

SECTION 4. 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 2008-2009 for the completion of the Hawaii Feed Mill project by the Oceanic Institute.

The sum appropriated shall be expended by the University of Hawaii at Hilo, College of Agriculture, Forestry, and Natural Resource Management.

PART III

SECTION 5. This Act shall take effect on July 1, 2020.

HOUSE OF REPRESENTATIVES	H.B. NO.	935
TWENTY-FOURTH LEGISLATURE, 2007		H.D. 2
STATE OF HAWAII		S.D. 1