THE SENATE

S.B. NO.

2293

TWENTY-SEVENTH LEGISLATURE, 2014

S.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO AGRICULTURE.

 

 

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

 


     SECTION 1.  The cost of feed for livestock production in Hawaii can constitute up to seventy per cent of total production costs, whereas feed costs for mainland producers amount to nearly fifty per cent of total production costs.  In 2007, there were five dairies and six egg farms of significant size in Hawaii, with combined gross annual revenues of $26,400,000.  Currently, there are only two dairies and four egg farms of significant size, with combined gross annual revenues of $16,250,000.  Since 2007, two dairies and four egg farms have gone out of business, primarily due to the rising cost of feed for livestock animals and the resulting increase in production costs.  Since October 2010, the cost of poultry feed alone has increased approximately $60 per ton and is expected to rise even further.

     Currently, one dairy and the four remaining egg farms are threatened by closure.  These closures heighten the State's dependence on imported foods and threaten the State's food security and ability to achieve adequate levels of agricultural self-sufficiency.  Self-sufficiency is critical to Hawaii's food security and its ability to respond effectively in the event of natural disasters or disruptions in transportation.

     The closure of local dairies and poultry farms also means that children and adults throughout the State will no longer have the option of selecting fresh, locally produced milk and eggs.  Consumers have often expressed interest in obtaining locally produced milk but, unfortunately, the dairies do not produce enough milk to meet consumer demand.  The public has expressed a similar interest in island-fresh beef, pork, sheep, lamb, chicken, eggs, and seafood.

     Locally produced fresh beef, milk, pork, lamb, chicken, eggs, and seafood provide essential nutrition to consumers.  Transport times from offshore farms to Hawaii consumers create a greater risk of food spoilage and resultant food-borne illnesses due to the highly perishable nature of these products.  Without these local agricultural businesses, all beef, milk, pork, lamb, chicken, and eggs would have to be imported into the State, requiring up to ten days of shipping before being sold to consumers.  This increased shipping time reduces the expected shelf life of fresh milk and eggs in particular.

     The legislature finds that, with financial support, the livestock industry will be able to continue to make investments in modern equipment, expand and improve herds and flocks, and develop new markets and products.  The legislature further finds that financial support for these agricultural producers will serve a public purpose by enabling the livestock industry to stabilize its operations, thereby contributing to food security and increasing the competitiveness of the local livestock industry with mainland suppliers.

     The purpose of this Act is to:

     (1)  Provide moneys to allow qualified beef cattle, dairy, hog, poultry, goat, sheep, fish, and crustacean farms to apply for and receive a reimbursement for a percentage of each farm's feed expenses; and

     (2)  Provide funding for the administrative costs of the livestock revitalization program.

     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 2014-2015 for the agricultural development division of the department of agriculture to:

     (1)  Reimburse qualified producers of milk, pork, eggs, poultry, beef, lamb, goats, and seafood, for the cost of feed for beef cattle, dairy cows or milking goats, goats raised for meat, sheep, hogs, fish, crustaceans, and poultry pursuant to chapter 155D, Hawaii Revised Statutes; and

     (2)  Provide funding for the administrative costs of the livestock revitalization program.

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

     SECTION 3.  The appropriation made for the purpose authorized under section 2 shall not lapse at the end of the fiscal year for which the appropriations are made; provided that any balance of any appropriation that is not encumbered as of June 30, 2016, shall lapse as of that date.

SECTION 4.  This Act shall take effect on July 1, 2050.


 


 

Report Title:

Agriculture; Livestock Industry; Appropriation

 

Description:

Appropriates moneys to reimburse qualified producers for a percentage of each farm's feed expenses.  Provides moneys for the administrative costs of the livestock revitalization program.  Effective 7/1/2050.  (SD1)

 

 

 

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