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¦ The international trend is away from the use of agricultural policy instruments, such as price support and import quotas, and towards a competitive market system. It is important to understand that agricultural support programs were introduced to bring about an equitable distribution of income between the sectors of our economy. Since the disparity of incomes is no longer significant between the agricultural sector and other sectors of the economy, these types of subsidies are being abandoned in favor of direct income transfers. The reduction and phasing-out of agriculture subsidies and the removal oftax-funded "safety nets" in the 1996 Farm Bill is evidence of this trend. The conditions of the most recent international trade agreements are also in keeping with this international trend toward a globally competitive market. ¦ The supply of Cobalt 60 is not guaranteed. The taxpayers of Canada, out main supplier, are calling for an early retirement of the nuclear industry since its existence has depended heavily on tax subsidies (See Attachment b). According to personnel from Food Technology Services in Florida, the other two producers of Cobalt 60, Chile and Eastern Europe, are currently not producing since there is no demand for the product. Instead of focusing on export, niche markets for fresh product, we recommend that the County focus on sustainable marketing practices by encouraging investment in processing facilities to create value-added products. Promotion of sustainable, diversified agriculture through provision of grants and interest-free loans for prototype processing businesses would result in the overall volume of production and value-added goods necessary to attract lower cost transportation options. Such investment would create more new jobs for which our local work force would be qualified and provide far higher GDP multipliers than spending of County funds to promote or support a post- harvest irradiation facility. Before making a decision to expend $2 million of taxpayers' monies on food irradiation, a serious economic analysis should be done on the opportunity costs of such a subsidy (the value of alternative uses of the funds). We need a coordinated effort by the state, the university, and the counties to develop an infrastructure for sustainable and organic agriculture so that producers can provide high-quality fresh produce to local markets for import substitution. Our farmers still have many basic and unfulfilled needs such as water, energy sources, roads, marketing networks, and grower cooperatives. Investments and adoption of policies which would encourage development of the infrastructure needed to assist in the transition from plantation agriculture to sustainable, diversified agriculture would stimulate the local economy in a more equitable manner than construction of an irradiation plant. Lastly, I was asked by the Hana district of the NRCS to tell you that they voted at their last meeting to not support an irradiation facility anywhere in the state. If you need documentation of that, they will be happy to provide the minutes of the meeting. Sincerely, M. Eileen O'Hora-Weir, Vice President and East Hawaii Coordinator Hawaii Organic Farmers Association 4