2009 Testimony to State Legislature

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The Honorable Donna Mercado Kim, Chair The Honorable Marcus R. Oshiro, Chair Page 5 January 13,2009 If farmers and ranchers are forced out of business in the current economic downturn,we lose more than just farming and its supporting sectors. We also lose the economic"ripple effect" from keeping food expenditures in state;we risk the deterioration of agricultural infrastructure that will be too expensive to replace; and ultimately irreplaceable crop lands will be given up to urban and other uses. We ask that you keep Hawai'i's farmers in mind this session, and help transform Hawai'i's agricultural sector to increase our food and energy self-sufficiency. Purchasing Preference Hawai'i Department of Agriculture has proposed amendments to the state Procurement Code to afford Hawai'i grown and raised products a 15 percent price preference when competing to provide food products to state agencies. That would be an increase from the current 10 percent preference. We support this change as a way to make Hawaii farmers and ranchers more competitive with outside suppliers,keep dollars in the local economy, and advance our efforts at food security. Agricultural Shipping Rates We understand the Hawaii Farm Bureau has proposed giving the Public Utilities Commission authority to set discounted agricultural rates for industries that are regulated by the PUC, including transportation industries that serve agricultural areas by importing feed, fiber or fertilizer. The discounted rates would be designed to benefit Hawai'i agricultural producers. We believe this proposal deserves serious consideration by the Legislature as one way to provide meaningful assistance to our farmers at a time when the state has few resources. The County of Hawai'i looks forward to working with all of you, our distinguished state legislators, as we navigate the challenging and uncertain economic obstacles that lie ahead. I would like to thank all of you for your support and your commitment to our children, our families, and our community. Billy Kenoi Mayor County of Hawaii is an Equal Opportunity Provider and Employer.