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Expanding Agriculture
How the Agricultural Industry can Flourish Agriculture is an integral part of Hawaii’s economy. Synergy and connectivity must be developed between all citizens and businesses to understand the importance of agriculture.
Importance of Agriculture: Agriculture in Hawaii is part of our history and culture and has provided the foundation on which our island state was built. When sugar and pineapple were dominant economic forces, corporate agriculture provided the “big business” infrastructure for agriculture and communities. However, with the decline of plantation agriculture, we also experienced the decline of communities which depended on this structure. This Industry is Transforming: A renaissance and transformation began with the decline of sugar and pineapple. This transition adjustment bottomed out in 1997 with cash receipts totaling over $505 million to the latest 2003 figure of over $548 million. Net farm income for 2003 rose by 30 percent compared to 1997. Agriculture has become a more dynamic industry, requiring great business and marketing skills. Without plantation infra-structures, entrepreneurs emerged to occupy the vacant lands. Small farms appeared to become important contributors to the state’s economy with the use of land, water, and the year round growing environment. These agricultural entrepreneurs have helped to keep Hawaii with open green spaces, helped restore our aquifers, and helped with the plowing back and management of green and animals wastes into these acres. Other growing aspects of agriculture include crop and other research, as well as aquaculture enterprises on several islands. Agriculture is an Intangible Asset: Agriculture is important to each individual in the state and provides a lush backdrop for visitors coming to Hawaii. It provides all our needs: food, fiber, and clothing and we are all searching the quality of life which agriculture helps to provide. Tourist and consumers today, want the freshest and best food which local agriculture can provide from the land or from the ocean. Land: Act 183 of the Session Laws of Hawaii 2005 defines important agricultural lands as lands that are capable of producing sustained high agricultural yields when treated and managed according to accepted farming methods and technology. The Land Use Commission and county planning boards will determine which lands would be designated Important Agricultural Lands (ILA). This contributes to the State’s economic base and produce agricultural commodities for export or local consumption, thus improving self-sufficiency. Water: The irrigation systems sorely need capital improvements to boost efficiency, volume delivery, and reliability. Agricultural expansion is limited and cannot grow unless water systems previously maintained by private large corporations are upgraded. Financing: This is a major problem for entrepreneurs with limited resources. Limited assets and financing have been problem areas for those in agriculture. Getting good, reliable water sources on land with no leases creates major problems for limited resources entrepreneurs, rendering them un-bankable. Tax incentives for agriculture, such as enterprise zone status, have not been extended to producers of fresh and processed agricultural products. Transportation: The cost of transporting goods from the agricultural to the urban areas can be a barrier to growth. Efficient, affordable transportation is essential. Make Agriculture a Sustainable Industry: The challenge agriculture faces in an island state is sustainability. How quickly we forget the impact that 9-11 had on our economy with no incoming freight for 15 days. Production needs to target: (1) Sustainable self sufficiency for selected commodities in which Hawaii farmers can compete on price and quality with imported food. (Various locally grown crops such as pumpkins, tomatoes, cucumbers, and watermelons have exceeded 85% of the market share in recent years._ (2) Niche products where branding can be a competitive advantage (Kona coffee, Maui onions, Big Island protea and macadamia nuts, etc.)
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