STAND. COM. REP. NO. 72

Honolulu, Hawaii

RE:    S.B. No. 1758

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Water, Land, Agriculture, and Hawaiian Affairs, to which was referred S.B. No. 1758 entitled:

"A BILL FOR AN ACT RELATING TO THE AGRIBUSINESS INCUBATOR PROGRAM,"

begs leave to report as follows:

     The purpose of this measure is to support and expand a diversified agricultural industry in Hawaii by appropriating funds for the Agribusiness Incubator Program at the College of Tropical Agriculture and Human Resources at the University of Hawaii to continue its operations and services until replacement federal funding can be secured.

     Testimony in support of this measure was submitted by the Department of Agriculture; the College of Tropical Agriculture and Human Resources, University of Hawaii; the Agribusiness Incubator Program; Mana Ulu Kalo Company LLC; Big Island Plants and Foliage, Inc.; Green Point Nurseries, Inc.; Maui Land and Pineapple Company, Inc.; Matsuda-Fukuyama Farms, Inc.; Kahuku Farmers, Inc.; Nalo Farms Inc.; Green Growers, Inc.; Grove Farm Co., Inc.; Hawaii Cooperative of Organic Farmers; Hawaii Farm Bureau Federation; and five private individuals.

     The University of Hawaii's Agribusiness Incubator Program provides hands-on business consulting services to agribusinesses that might not otherwise have access to these types of assistance.  The Program improves the viability of new businesses and increases the success rate of existing agribusiness expansion through a comprehensive business consulting program.  To date, the Program has served thirty-one clients, including farming and value-added businesses located statewide.  On average, clients have increased their revenues by one hundred twenty-one per cent, increased their operating profits by ninety per cent, and increased their workforce by thirty-four per cent.

     Currently, the Agribusiness Incubator Program is entirely dependent upon funding though a special grant from the United States Department of Agriculture to institutions, which serve Native Alaskans and Native Hawaiians.  This year, the Program will lose funding in September of 2007.

     Your Committee finds that additional state funding will allow the Program to continue to provide agribusinesses with valuable services and resources until alternative sources of funding are found to cover future operating budgets.  Your Committee believes that appropriating funds to the Agribusiness Incubator Program fulfills the intent of this measure, which is to support and expand a diversified agricultural industry in Hawaii.

     As affirmed by the record of votes of the members of your Committee on Water, Land, Agriculture, and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1758 and recommends that it pass Second Reading and be referred to the Committee on Economic Development and Taxation.

Respectfully submitted on behalf of the members of the Committee on Water, Land, Agriculture, and Hawaiian Affairs,

____________________________

RUSSELL S. KOKUBUN, Chair