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1 , f} <br /> f !p p <br /> L~.J~I fIJU ~ f~~.1 U ~I <br /> 1 <br /> ~~1 ~ I <br /> July I, 2002 <br /> <br /> Mr. William Takaba, Finance Director <br /> <br /> County of Hawaii <br /> 25 Aupuni Street, Room 1 18 <br /> Hilo, HI 96725 <br /> Re: Discussion of Gross Revenue <br /> Production Per Acre of Pasture <br /> As a follow-up to topics discussed with you at our meeting on June 14, please find <br /> attached our discussion paper and supporting calculations that reflect the very wide range <br /> <br /> of gross revenue per acre which a Hawaii rancher can expect to realize. The key <br /> variables we included in our analysis were the quality and carrying capacity of the <br /> pasture land (Good, Average or Poor), weather/feed conditions (which affect calf crop <br /> and marketable weights), and market price. <br /> We were asked to provide data on annual gross (not net) ag revenue per acre and <br /> we have done so, however we feel more emphasis needs to be placed on the fact that <br /> most commercial scale cattle ranches in Hawaii are usually, if not always, operating at a <br /> loss where expenses (even before real pronert taxes) exceed revenues. <br /> After you and your staff have had an opportunity to review and digest this <br /> information, we would be pleased to reconvene our group to answer any questions and <br /> assist you in finalizing your policy proposals relative to assessing pasture land for real <br /> property tax purposes. <br /> Sinccrcly, <br /> James S. Greenwell, Chair. <br /> Land Issues Committee <br /> JSG:sm <br /> attach. <br /> Comm. No. ~ ~ 8 <br /> Ref. To: P?e+e~t~d <br /> Ref. Uate <br /> <br />