Senate Standing Committee on Agriculture and Environment

Good afternoon. Mahalo for joining us today for the AEM housing hearing. It's Monday, March 102025 and we're convened here in room 224 and video conferencing which includes the audio and video of remote participants being streamed live on YouTube.

In the unlikely event that the hearing is cut short, the Committee will reconvene to discuss any outstanding business on Wednesday, March 12th at 1:15pm here in room 224. Because of our 90 minute time limit for the hearings, there'll be a one minute time limit for all testifiers. We'll have a virtual countdown timer on the screen.

So for this first agenda 1 o'clock agenda we just have one item. It's HP 1294 HD2.2 relating to AG workforce housing establishes an Ag workforce housing working group within the Department of Ag to address the shortage and challenges of agricultural workforce housing in the state. And first up we have Department of Ag.

Chair Gabbard, Chair Chang. Members of the Committee, Earl Yamamoto, Department of Agriculture. The Department appreciates the intent offers comments in particular on the that the primary the first steps of this task force be that a study to determine the magnitude of the functional demand for housing.

As noted in our testimony, we looked at some of the statistics out of the 2022 Census of Agriculture for the income of the majority of the farmers here in the state and they tend to be under a lot of it, about 60% under $10,000.

We are not certain that that kind of income can support the employees much less housing. So that would behoove the task force to get a grasp of what is a functional demand for housing before they go off and start doing looking for solutions.

Thank you very much for your testimony. Please stick around for questions. Yes, great. Thank you. Next is Daniel Orodenker from the State Hoy Land Use Commission offers comments Mary Alice Evans from OPSD.

Good afternoon Chair Vice Chairman thank you.

Next is Kylie Watson from the Department of Hawaiian Homelands. Thank you very much. Dean Minakami from Hawaii Housing Finance and Development Corporation. Thank you. Brian Miyamoto from Hawaii Farm Bureau.

Aloha Chairs, Vice Chairs Members of the Committees. Brian Miyamoto on behalf the only Farm Bureau was down on a written testimony in support.

Thank you Brian. Hunter Hevlin from Hawaii Farmers Union on Zoom.

Well hi Chairs, Vice Chairs. Hunter Hevelin, the Advocacy Director with Hawaii Farmers Union will stand on our written testimony in strong support of this measure. It is something that has come up consistently in our outreach with our chapters across the state and we are excited to participate in the task force efforts.

Thank you for the opportunity to testify.

Thank you. That's all the testimony. Did anyone else wanting to testify? You're a person on zoo Members. Are there any questions?

Question? Yes, DHHL. Aloha. So how many farmers live on DHHL land now? And does the Department have any plans to increase housing for ag workers that work on DHHL land?

I believe we have it noted in our testimony that we have about over 1,000 agricultural leases as of December 2024. And can you repeat the second question?

So I said, how many farmers live on DHHL land now? And does the Department have any plans to increase housing for ag workers that work on DHHL land?

At this time, we do not have plans to increase housing for farmers who reside on ag lands. However, we do support this measure as a first step towards collaborative efforts to provide that.

So where are your thousand farmers that live on dhh?

Our ag leases. They cover the paa'aina everywhere from Waianae on Oahu. We have a few to Molokai.

So are they farmers or are they just holding leases to ag lands?

One of the conditions of agricultural leases is that you must grow a crop. So if you're inquiring if they're farmers, I would state that if they are growing items that can be consumed, whether it's for subsistence purposes, whether it's to provide for their own Ohana or to share with others or for commercial reasons, yes, they are farmers.

So do you know the difference between a farmer and a gardener? No. Okay. I think you should go try find out what that is. Because if you say you have a thousand farmers, I believe you guys have a thousand egg lots. Correct? That is considered agricultural lands. And that's what I'm trying to ask.

You know, what would that workmen's quarters for agriculture housing look like or housing for agriculture look like? What is your Department that you come from? From dhhl?

I serve in the NAHASA Division, Native American Housing and Self Determination Act. We, along with legislation, legislative matters, also manage and expand the federal funds encompassed by the Department.

But the NAHASA doesn't do it on ag lands. Doesn't your land manager handle the ag lots?

The development of agriculture leases are managed by both the office of the chair, which NAHASA falls under, as well as the planning office.

So wouldn't it be better to use NAHASDA monies for. I mean, are you guys considering using the NAHASA moneys for. For farmers housing?

In our last approved NAHASDA programmatic plan, housing for Ag lots was not included. However, it certainly can be included in our next approved plan. It's usually approved the draft in August and the final September, I believe.

I think that'll be a good idea since I believe the mission of Principal Hill was a pula pula. Thank you. Mahalo.

Chair, just a quick question. When you talk about the thousand agricultural leases, is that farming and ranching or is it just farming?

There is a difference between agricultural leases and pastoral leases. So for ag leases, you must grow something. For pastoral leases, that includes livestock. Much of our pastoral lessees, they will grow feed, which is kind of considered ag for their livestock.

So in your, the 1000 that you said 1105, it says here, does that include the pastoral or does that not include the pastoral?

No, in our testimony, that does not include the pastoral.

Can you get that number for us and get it to the chair, please?

I certainly can.

Thank you.

Chair, follow up, please. So you know your pastoral lots?

Yeah.

I don't believe your pastoral lots is there to grow feed. I don't know of any of your lots that grow feed. I know they raise cattle on your pastoral lots.

A few of our lessees grow feed, but it's for the livestock. I wouldn't say it's primarily agricultural.

Can you get me one list of those ranchers that are growing feed photos for the cattle on the. On their lot? That would be super helpful.

Yes. Thank you.

No problem. Thank you. Chair. Question for Farm Bureau. Brian, thank you for being here. Do you have any numbers on how many ag workers need housing?

Brian Niyamoto, on behalf of the Hawaii Farm Bureau, thank you, Senator, for the question. I don't have any numbers offhand as far as what the need is. We just know that there is a need for ag workforce housing. Again, if we're going to increase agriculture or even incentivize farm workers. Farm worker housing.

Ag worker housing is critical and necessary.

So is it any housing or housing near where they were looking at?

Ideally, Senator, it's nearby. It's, you know, it doesn't make sense to have, or make a lot of sense to have agmark housings, for example, say on the windward side in Kaneohe, when the farm are located out in Kunia. Ideally it's, it's, it's nearby. The farm operations, the cut down on the travel time.

But I wouldn't say it's entirely necessary. But it's. If it is a great distance. Again, we have travel considerations. Being able to either ban or transport the workers from the farm work housing, not a Farmworker is not locked, but some don't have their own transportation.

So ideally we'd have it close enough where it would be make more sense to be a little more practical to the farmer rancher.

So, Brian. So, I mean, we've always had problems with egg designation because our gentlemen estates have put couple avocado trees. Take the ag exemption. If we were to provide housing for ag workers or farm workers, do you believe that we should make sure that if they are farming, they have that for them?

And then if they decide to vacate, do we continue to house them or do we set rules and regulations on saying, okay, this can only be for ag workers or farmers?

Yes, Senator. There should be policies that those that are living in farm worker housing are actually farm workers out in Kunia or the Kunia Ag villages where Hark is. Those are the requirements. Again, we have two different programs. One, the federal program, but both have requirements that you have to be in farming or in agriculture.

You have to be working in in the industry. If not, it's just housing.

Thank you. Thank you, Jim.

Anyone else?

Okay, we'll go right into decision making on this measure. There were 38 testimonies in support, zero opposed and two comments. The chair's recommendation for AEN will be to pass with an amendment to defect the date to July 12050. Any discussion? Chair votes.

[Roll call]

Thank you, Members. Thank you. And for the Committee on Housing, same recommendation.

[Roll call]

Thank you. Members. That concludes the one o'clock.

Foreign now we are moving into our 1:01 pm AEN only agenda. First item on the agenda is HB428HD1 relating to farm to families. Establishes the Hawaii Farm to Families program to alleviate for food shortages in the state. Requires reports that alleged prior to the regular sessions of 2026-2027. First up is Department of Ag.

Good afternoon. Chair Gabbard, Vice Chair Richards, Members of the Committee, Sharon Hurd, Department of Agriculture. The Department stands on our written testimony, but I do have an update that as of this morning, an update for the local food production and other grants that support local food. We learned that the grant programs have been rescinded for 2025.

The application that we had been preparing for $1.1 million to support the food banks and agencies here, and particularly our application was focusing on Kalo as this is the year of Kalo.

And the idea was to increase production so the we can process into POI and provide it to the food bank, which Executive Director Amy has told us is the number one requested item at the food bank and is the first thing to go.

So I'm bringing that up because this bill has appropriations and with the lack of federal funding or the rescinding of federal funding for food programs, I strongly ask that we continue with this bill and continue with the appropriations. Thank you very much.

Thank you. Next is Amy Miller from Hawaii Food Bank.

Aloha, Chair Gabbard, Vice Chair Richards. Members of the Committee, thank you so much for hearing this bill. My name is Amy Miller. I'm here representing Hawaii Food Bank. This is a really important measure for us right now. We are seeing more and more people in need of charitable food assistance.

Right now we're serving almost twice as many people as we did prior to the pandemic and hitting numbers similar to what we saw during the heights of the pandemic. On average, we're serving about 171,000 people per month through a network of about 225 partner agencies. Our numbers are up about 13% just in the last year.

The thing that we're hearing over and over is it's fresh food, it's produce. These are the first things that fall off people's grocery list when they need help. And this is something that really helps support families.

I want to just really quickly read a note that we got from a family that received local food from us this past summer. Mahalo Nui for providing fresh fruits and vegetables for my Keiki this summer. This amazing resource has allowed us to prepare delicious meals for my Keiki and family.

With the fresh produce we are able to make chicken luau with ulu chicken curry, potatoes, zucchini, eggplant, stir fry, corn chowder and many other delicious dinners. We appreciate this generous program, especially as a family that does not qualify for government benefits.

We are part of the thousands of families that do not qualify, but we still struggle with the high cost of living, inflation, increased cost of utilities, gas, etc. This farm to Philly will really help. Mahalo.

Next is Michael Munakata from Ulupono Initiative.

Good afternoon, Chair. Vice Chair, Members of the Committee, Michael Munakata here on behalf of the Ulupono Initiative. We would like to stand on our written testimony in strong support of this measure. I think more than ever we need to find ways to support our farmers and also supporting our communities that is in need.

I think we've seen many different programs come through before this Committee over the course of many years and this program continues to stand out along the lines of a great collaboration between community need and local farmers.

I think we need to find ways to make those collaborations stronger and secure those relationships moving forward to continue to support our communities. Thank you very much, Chair.

Thank you, Micah. Brian Miyamoto from Hawaii Farm Bureau.

Aloha, Chair. Vice Chair, Members of the Committee, Brian Miyamoto here on behalf of the Hawaii Farm Bureau. I first need to start off by saying how great is it that we have Michael Munakata back here.

Forgot what he looked like.

I was like, who's this guy walking in? We're in strong support of this measure. We were in strong support of it on January 152 months ago when the legislative session started. Things have changed since then. You've heard previous testifiers and you heard us testify on the uncertainty with the, with the reduction potential.

Reduction or lack of federal funding, also with the tariffs, the potential that food will be increasing cost production on the mainland, even here in Hawaii. That's meaning that our families dollar is going to go even less. We need the state to support this program.

800 partners our food banks work with in this time of need when it really looks like we're going to need a program like this more than ever. We're insurance support. We don't need to talk about how it helps our farmers and ranchers, how it helps food insecure. All of that you've heard many times.

We are now confronted with some new challenges that makes a program like this that much more important and critical. We ask that the Legislature support the Farm to Families in the amount of at least $5 million. Thank you for the opportunity to testify.

Thank you, Brian. Hunter Heveland from the Hawaii Farmers Union on Zoom.

Thank you, Chair Aloha. Chair, Vice Chair, Members of the Committee, Hunter Hevelin, on behalf of Hawaii Farmers Union, I want to echo the sentiments shared. We stand on a written testimony in strong support of this measure.

It is one that we have pursued to seek state support for, for many years and as noted in some of the previous testimony, and really echoed.

I'm currently here in Oklahoma City for our national Farmers Union convention and we've been hearing about how states across the nation are addressing and seeking to change their approach based off of the drastic changes at the federal level.

And it has become critical, more critical than ever, that our state step up to address what I think will be likely a continued erosion of social safety nets and by further linking the relationship between communities and families in need and farmers who are producing for local consumption.

I think this bill does a lot and it is long overdue and we stand a strong support of this measure and the others that unfortunately, I won't be able to remain on Zoom. So thank you very much for the opportunity to testify. Happy to answer any other questions.

Thank you, Hunter. Christian Albrecht from the Food Basket, Inc. Hawaii Islands Food Bank.

They're not available on Zoom.

Chair she's not on Zoom.

No, she's not on Zoom.

Lauren Zerbo from Hawaii Food Industry Association.

Good afternoon, Chair, Vice Chair and Members of the Committee. I'm Alexis Chapman for HFIA. We stand on our testimony and support echoing any of the sentiments of the previous testifiers and I'd be happy to answer any questions.

Okay, thank you very much, Lisa Paulson from Maui Food bank on Zoom.

Aloha, Committee Members. My name is Lisa Paulson. I'm the CEO of the Maui Food Bank and I stand on my written testimony in. In strong support of HB428. Just as an example, last week we had a neighbor reach out to us in a desperate situation in need of free produce.

She suffers from acute kidney disease and relies solely on fresh fruits and vegetables for her diet. She didn't have any funds to buy groceries and was unable to consume the canned goods provided by her local pantry.

So we stepped in to help by giving her a very large box of freshly locally grown produce so that she had the nourishment nourishment that she needed. This is just a powerful example of how this bill can enhance the health and well being of our community. I am happy to answer any questions. Thank you for your.

Thank you for Allowing me to testify.

Thank you very much. Anyone else wishing to testify either in person or in zoom on this Measure? We have 163 in support, 0 opposed and 0 comments. Members, any questions?

Yeah, Food Bank.

Hi, Senator.

Hi. I know on the Big Island Kristen talked about our food insecurity is 40%. I think you guys know that. The. Need, she said, was approaching the pandemic level. And even our Alice families are running out of food two weeks into the month, not at the end of the month.

Are you seeing the same thing here on Oahu?

We are. So we are seeing more and more people who are working, working one job, two jobs, sometimes three jobs in fact. So the numbers that we're seeing are about what we saw during the height of the pandemic. And most of the increase are people that have never had to ask for help before.

They've always been able to make ends meet and they just can't do it anymore.

And this is patterned after a program we had on the Big island during the pandemic, protein was a big need. Can you answer that question? Is it more or less? Same same, just the whole volumes going up.

So protein absolutely is one of the things that people are really looking for. I know the Bridges program was just such a amazing programs modeled after Bridges. But yes, people are looking for the same things that we all look for, right? Healthy proteins, produce, milk, dairy, eggs.

On the food bank side, most of the local purchase we do is produce because we know that that's something that's harder for us to get, expensive for people. So last year, for instance, we had a food purchase budget, I'm sorry, produce purchase budget of about $1.3 million. Actually, 88% of those dollars stayed here locally.

Only provided about half the food, though, half of the produce. So we've been able to prioritize local food. One thing that we're nervous about is that we won't be able to do that as things move forward. Protein absolutely is something that we hear over and over. We have different sources.

We haven't been able to buy a lot of local protein because of the cost, but it's something that we hear a lot of interest in from those we serve.

And final question right now, the demand for food, protein and produce relative to the height of the pandemic, where are we? 50%.

Let's see, the first year of the pandemic, we distributed about 25 million pounds of food. Last year, 25 million. The first year of the pandemic, we distributed 21.2. This last year, so we're getting right up there. The demand levels are about the same.

We don't have the same level of federal support that we did during the pandemic, so we're not able to provide the same level.

Okay, thank you. Thank you, chair.

So, first of all, thank you for what you guys do. You guys have been super helpful, you know, trying to help these families. How do you. You know, I've seen many families that have come to food banks or places where it's distributed, but I also see a lot of abuse.

How do you guys address the abuse of those that have, you know, we know, the ones that really need the help. Then you have those that come and they show up in the line and they go, I don't like this. I mean, like, you know, how do you guys handle that?

Because it's really difficult when you have people that have donated, farms that have donated, and ranches that have donated. I mean, take venison, for example.

And then you get those that come to the line and go, zero, I've actually seen some people literally grab and take them right to the rubbish and throw away stuff that, like the proteins and the beans and so forth.

I'm thinking, wow, really? Yeah. That's really hard. It's really hard. And something that we think about a lot. We think obviously there are people that take advantage of the system. We think it's pretty limited, actually, that there's a small number of people that do.

But the vast majority of people that seek food assistance do need help or they might be there for somebody else. So I know sometimes we know neighbors will pick up for Kupuna that lives down the street. So they may not need food assistance themselves, but they're helping out a neighbor that isn't able to get transportation.

We also really try to work with our agencies to provide wraparound services, too, so that people, they're accessing food, they can then get access to other resources, too. And sometimes I think that really helps the people that need it step forward.

So I know during COVID when you folks, like, you know, people wanted to donate funds, and I wasn't aware until we had this chunk of money that when we were giving it, they were like, zero, this will be super helpful. Do you guys still have agreements with Costco that will do matching?

Yeah. So we have lots of really great relationships. So food rescue is a big part of our work. So in addition to food purchase, we go to Costco and seafood and Target. Every. Actually, every morning our trucks go and they donate food to us. That's nearing the end of its shelf life.

Last year we had about almost 12 million pounds of food that came through our processes that way. So it's great. We're keeping food out of the waste stream and we're making sure it's safe and getting it out.

And then many companies, in fact Costco is one of them, they donate matching funds so that we are able to also go pick up foods that we need there too.

So when they donate and those matching funds are they also used for some of the fresh produce that are put into Costco that you guys can also receive as part of the match monies?

Mostly it's either donated product that they give to us directly and then when we get funds through Costco, we actually mostly use that to buy snacks for our school pantry program. So there are certain food items that are a little bit harder for us to source or are more expensive.

Then we might utilize some of those Costco funds for that. Thank you.

Thank you. I have a question for you and maybe if Lisa Paulson from the Maui Food bank, if she's still online for both of you, if not, then Amy. Amy, right, yes. So in the bill it says that the food banks are partnering with 575 local farms and food hubs and also that you're connecting with the schools.

So I'd like to find out what is exactly, what is your connection with the schools? How are you interfacing?

Sure. So we actually have an MOU with DOE. This is Hawaii Food bank. So we directly serve the islands of Oahu and Kauai. And you know that Maui Food bank lead if she's there. And then also the Big Island Food basket also has programs with DOE. Our programs, we have 56 school pantries now in DOE schools.

Every school on Kauai, every DOE school in Kauai and then about 35 here on Oahu. There's different models. Almost every single one, the kids can have a place where they can get a healthy snack. So if they didn't get to eat breakfast, a lot of kids that might be their only meals right.

At school they come so they can get a healthy snack during the day. Most of them, they can take a five pound bag of food home over the weekend. Because we know a lot of times kids, if they're at school, they may have trouble getting healthy food or food at all in the evenings and weekends.

And then some of our pantries, we also have a choice model. So we opened one recently at Wahiawa Middle where the parents can actually come at pickup on Wednesdays and they can take the foods that they, that they need.

We like that model because especially for older kids, they might be a little bit embarrassed to stand in line and everyone kind of knows it's happening. So you just go, you take what you need and then it helps reduce food waste also. So those are the kinds of ways that they work.

And our goal is to get into every school where kids have need.

You know, I know it's. Lisa, did you want to add anything to that?

Just echo everything that Amy has said. We work with 31 schools in Maui County and we're just starting a snack program. We support our children with the backpack buddies for evenings and weekends as well.

So I appreciate all you do force.

I think that, and I realize that this is a DOE issue, but it seems to me that the most effective way to deal with this whole issue is to interact with the farmers who surround the schools and then finding out, well, let's see, we need know, 200 pounds of carrots or corn or whatever.

And then the farmers are growing specific so they can have that relationship with the schools in their area. So I'm hoping so since you guys are already doing this, I want you to be a part of that conversation. I think that would love that.

So hopefully with a DOE that we'll be working more closely with them to make sure that that happens. So. Yeah. Thank you very much.

Thank you so much.

Okay, sure.

I got a question for Senators doa.

Thank you. Sharon, is there a need to set up this program in doa?

I think the need is there. Whether it's in DOA or DOE is up to you. But I think what we can add to this mix is that we know the supply chain is broken at the farmer level. The farmer level. I think if it's the payment schedule, what we can provide is like an escrow account.

If the farmers would bring food to the food bank and they could have a check right there.

If it's not a donation or to the DOE and they could have a check right there, I think you'd have people lined up outside the door to drop off food because they know that currently there's a six month wait period before you get reimbursement.

But if the Department of Ag, through our ag loan Department or through a third party, we can help with that. You know, provide. Let's say you give us a $2.0 million working fund.

We thought about this and then the farmer comes, drops out their food, we check it out, make sure it's fine and then we write Them a check. I think that would really enhance the process of donations to the food bank or to the kitchens.

So yeah, I think we would be better served in the Department of Ag because we have the fiscal piece in place. I'm not saying DOE doesn't.

So you believe that? I mean, because you gotta imagine according to the woman from DHHL, to get 1000 farmers, can you imagine a thousand of those farmers showing up, One farmer bring 10 pounds of eggplant, the next farmer come and bring 5 pounds of tomato.

I mean you can you imagine what that would be like, try and intake that. And I mean that would be like one line out the door wrapped around this building couple times and then taking off time to come there and bring that vehicle.

Wouldn't it be easier if you just had on grants program and like gave them straight to the food bank or.

You're speaking my language. Absolutely. But to your point, and let me just turn around and ask Amy a question. Executive Director, do you guys have to be food safety certified for your dentist?

Amy, why don't you come on up?

Because that's the thing, right? The Hawaiian homesteaders would be happy to do that, but they don't want to get involved with food safety.

Zero yeah, I know they don't like it.

So I'm just asking.

So we actually, we do work with and I think this program would work well as a grants program because we are able to give dollars right away. We have relationships with farmers already where we're purchasing. And the nice thing about the food bank is we can be kind of like a customer of last resort.

It doesn't have to be pretty. It doesn't have to. You might have, you know, hey, we are planning on selling this to this one customer.

All your farmers are food safety certified?

No. So we can take farm packed donations.

So. So nobody checks for food safety when the food go to you guys?

We do at the food bank. So we have very strict food safety guidelines. At the food bank itself, every item that's donated is inspected to make sure it's food safe before it goes out.

So you guys do trace back and all that too? Yes. Wow.

And that's the barrier to donations from the public that are not food safety certified.

So how many farmers you do it?

We personally work with about 40 different farmers and food hubs amongst all of us together. I know Maui, out of the thousand.

Farmers at DHHL Chelsea, we get. We only work with 40.

We. Yeah. Hawaii Food bank works about 40. I think all together. All of the food banks, it's about half. About. Well, about 500 farmers. The food Basket does a lot of work with farmers. I think they have something like 300. Yeah.

Easier to bring them in and then go from there.

Yeah, we work with the food hubs also.

I do have one more comment, if you don't mind. Chair. There's a lot of talk these days about food insecurity. Right. And the last conference that I went to was very telling in that they said we are three meals away from chaos. You know, if you want.

Thank you.

If we don't feed everyone that needs to be fed, we don't feed everyone.

It's very clear the sky is falling around us right now. Speaking to the choir. Thank you. Thank you.

Thank you. Okay, so moving on to the next measure. HB 773 HD1, appropriating funds for grant specialist positions to assist farmers and ranchers in meeting the requirements to receive grants offered by the USDA, state counties or private entities. First up is Department of Ag.

Chair, Vice Chair, Members of the Committee, Sharon Heard, Department of Agriculture. We strongly support this bill. And I know it seems contradictory to say that the sky is falling, grants are not being funded, and yet we're asking for support. But that is because there are grants out there. The language of the grant, the intent of the grant.

We do need grant technical support so that the grants get to the people that really want to benefit from it. We know what the buzzwords are and we know what to avoid. And we hope to be successful with this program. Thank you for your consideration.

Thank you, Sharon. Next is Micah Munakata, Ulupono.

Thank you, Chair, Vice Chair, Members of the Committee, Mike Munakata here on behalf of Ulupono Initiative. We stand on our testimony of strong support. Really appreciate the Legislature putting forward a bill. I know we've been before this body before kind of explaining the importance of grant writing.

I think what I'd like to just hit on real quick, and it might be reiterating some of the stuff I've said in previous years, is around some of the successes that have been seen on the private sector side.

Ulupono, through some of its work with close partners like the Farm Bureau, the Kohala Centers, Oahu Ag Conservation Association, we funded about $1.4 million in grant writing over 10 years that brought in $140 million back into the state. So in our eyes, we've proven out that, you know, private side can.

Can really show that investment really pays off hundred times return on investment on the private side, I think that's definitely Led to a lot of support from the Legislature to establish a grant writer position within the Department of Ag, who's currently a warm body.

The grant writer we have in place is working very hard and very closely across departments and agencies to really find opportunities that exist out there. It's our understanding that she's already identified about $22 million in new grant monies. So that's an investment into one position at about 100 grand that's being privately funded currently.

We'd like to see that General funded moving forward. But again, $100,000 position, that's going to go after 22 million on top of the 6 million that the Department already administers. So $28 million for 100 grand. Again, the return on investment is massive.

Thank you, Mike.

Thank you, CH Appreciate it.

Young O from the local food coalition. In support, Brian Miyamoto, Hawaii Farm Bureau.

Thank you, Chair, Vice Chair, Members of the Committee, Brian Miyamoto here on behalf of the HOY Foreign Bureau. You have our written testimony. So part I'm just here again emphasizing the importance of trying to access as many grants as we can because the sky is falling and the federal funding is limited again on opening day.

This is a great idea. Last year, this is a great idea. Something that you heard. Farm Bill was recipient of funds from Ulupono as well as other organizations.

There is a true roi, but now with limited funding, we've got to try to get as much as we can, identify those that we are qualified for, eligible for and go after them.

And with some technical assistance that that these positions can offer, I think we'll be able to maximize the limited amount of funding that we believe will be available. Thank you for the opportunity to find.

Thank you, Brian. Hunter Hevelin on Zoom Hawaii Farmers Union.

Unfortunately, he had to leave, so he's not available on Zoom.

Okay. And support. Lauren Zirbel, Hawaii Food Industry Association.

Good afternoon again, Chair, Vice Chair, Members of the Committee, I'm Alexis Chapman for hfia. We stand on our testimony and support and I'd be happy to answer any questions. Thank you.

Thank you. Anyone else wishing to testify on this measure? Members, any questions? Question? Fine. PR please. Senator Decoy.

Hey, Brian. You know, I mean, a lot of the, you know, there's places where, you know, people come, they doing grand and they go, zero, you know, we sustainable. What's your definition of sustainable?

Brian Yamoto? Yeah. For the Hawaii Farm Bureau. Thank you, Senator. I prefer the question of what is farming or a farmer sustainable?

Being able, as far as when we're talking about Grants and even with the granted aid program that you do hit the Legislature, my understanding is maybe some startup funding, some funding to get them through a certain point and then they as an organization be able to fund themselves through, through whatever income generating or the services that they provide.

So being able to be sustainable with out continuing or non stop funding from grant sources, now that's not always achievable I believe with certain NGOs and some nonprofits. And so they do go after other grant fundings.

But again, if we were more sustainable as a state as far as agriculture is concerned, I don't think we'd have the anxiety that we're having right now with the loss of so many different farmers funds and grants and programs that we're not sure if we're going to be able to sustain.

So as the Farm Bureau of President, I mean you've been there a long time, you know, lucky you're only 23 years old right now. But you know, you've seen us use that word, sustainable and you know, we've depended on grants.

How many of those organizations still depend on it or startup grants that you've seen, we start them up, we approve these grants and then the thing, the thing belly up and it, and you know, the comment was, zero, we ran out of, we ran out of money.

You know, at what point, you know, and I say we, you know, food, water, food, shelter, right, that's a necessity. How much of those grants do you believe we should continue to fund at a level that we should be sustainable? Like we say we should stop depending on imports, which you and I know that will never happen.

Never. How far do we go with grants? Believing in one. And you know, the challenge we have with the toolbox stuff being removed and then it's grants, grants, grants. And I have no problem giving out grants. I just have one problem. Keep funding grants that become abusive.

Thank you, Senator. And again, we're not opposed to grants. They fill a necessary gap. Farm Bureau, as you heard, receive private grants, we receive state grants. We do apply resolve into the Legislature for granting needs. So it does feel specific needs for specific programs. There is a risk.

And again, we believe that grants are necessary to fill gaps. Some of these NGOs, these nonprofits, they do fill gaps. But there is that risk that we're seeing now when funding is not going to be available or for whatever reason.

You know, the example right now is with a new Administration change, there are some organizations that potentially could lose their funding. And we've already heard that some are letting some of their staff go because of the uncertainty.

So as far as grants, I don't want to sit and have to explain or not explain, give an opinion on what grants are more important than other grants. What organization is more important than another organization. There. There is limited funding and I'm not sure if that's where you're going, Senator. There is limited funding.

There always have been, even before the situation we have that we see ourselves in now. So responsible allocation of these limited funds are necessary. And again, I believe that's a policy decision for private. That's private.

But from the Legislature and from Congress, from a federal level, that's a policy decision on what the current Administration, the current Legislature, Congress feels is most important in that particular time or in their projections of what's important for agriculture going in the future.

So do you think that we should add more grant writers versus just one? I think that would help, don't you think?

Absolutely. I believe it's his positions. And I think our initial ask through Ulupono several years ago was to, as Ulupono had mentioned in her testimony, they funded three positions concurrently. And that's where with Mr.

Munakata's testimony, you see that large number, that return on investment on those funds that they did allocate to a few of us private organizations. And that's why we're asking for multiple positions. Again, we're very mindful and cognizant of the situation we're in. But as we said in our testimony, to be able to.

Or we want the ability to go after the limited funds that are. That we believe is available and to have multiple positions. Absolutely. Can, can look at maybe different areas, not, not overlapping in what the positions do. But we are state with multiple islands, different size farms, different needs, different commodities.

So again, having multiple grant writer positions or specialists, they can specialize in certain areas that can maximize our access to federal funds.

Thank you. Thank you, Chair. Okay, thank you. And for the record, on HB773 there were 10 in support and 0 opposed with 0 comments. Moving on to the next measure, HB858HD1 requires the Department of Agriculture to revitalize and enhance the Agricultural Statistics program to collect data on local ag interests. First up is Department of Ag.

Chair, Vice Chair, Members of the Committee, Sharon Hurd, Department of Agriculture. The Department strongly supports this bill and want to point out that this month we have the results of the Ag Crime Statistics survey that was taken in January. We expect to have that those results published this month.

However, with the sky falling on The Ag Statistics program nationally, the release of the staff locally, we may have a delay in the publication of that, although we have not heard additional reports and statistics that, you know, you can't manage. What you don't measure. AgTech Mellon reports, all those statistics are very important to the State of Hawaii.

So we do strongly support this. May I comment on the previous testimony, previous bill to the Senator from Molokai? The reason for additional staff is that once you get the grant, that's the first step. It's a wonderful step and it's a tough step to overcome.

But then you have to monitor it, you have to administer it, you have to collect reports, you have to draw down the funds, you have to rely on support staff. Some of the grant specialist positions would then take that grant and then administer it, manage it, collect the data, make sure we have a good report.

And the ones while it is tough, to your earlier point, the sky is falling. But there are some block grants out there that the states will get as long as you apply for it. One of them is thanks to ulupono is a $220 million grant that was awarded of, you know, for eight small states.

We're one of the small states and our share of it can be anywhere from 10 to 27 $1.0 million. So once we get that, whatever we get, we're going to need somebody to administer it. You know, our grant writer has done a great job.

I get that point. So we like talk back to the autobiography. I'll just say this, of all those grants that we got, how many of those farms are basically off of your programs or are they still alive, those farms today, that the grants that you're.

Talking about, the special crop block Grant program.

Yes, the one that you talked about having to administer.

The paperwork and stuff. Can I get the data for all of that?

Zero, okay.

Yeah, in fact, I'm late in getting it to you. But the micro grants for food security was like 500 plus grants that we did a lot of that. They touched everybody's district.

Can you tell me where all those 500 grants are today? Yes. Okay.

Where are they today?

Yeah, when you have time. Okay. Because I know we got full agenda, but if you can give me that information, maybe Mr. Gates can send it over.

Sure, sure. No, actually the Market Development Branch has it. I just requested it. Thanks.

Thank you very much. Moving on is Micah Munakata.

Thank you, Chair.

Thank you, Micah. Brian Miyamoto, Farm Bureau.

Thank you, General. Oy farm was down on the 20.

Thank you, Brian. Hunter Hevlin, Hawaii Farmers Union on Zoom.

He's not available on Zoom.

Thank you. Anyone else wishing to testify on HB858 Members, any questions? Moving on. HB984HD2 updates the Agricultural loan program by lowering interest rates, increasing and standardizing loan limits and reducing the number of credit denials. Includes Food Hubs as an eligible entity for Class E loans.

Authorizes the Ag loan program to issue lines of credit and creates a new class of loans to encourage large scale agriculture of import replacement crops grown for the farm to State program. And first up is Department of Ag.

Good afternoon Chair Gabbard, Dee Matsukawa, Deputy providing testimony on behalf of Sharon Hurt. Department's done strongly in support of this bill. The Department is trying to overhaul the program and make it much more useful because access to affordable credit is critical for our farmers.

The Department had just hired a new administrator for the program from the federal program, so. And we also hired a new supervisor for the program also. So the program is fully staffed right now and we're looking forward to moving this program forward.

The only thing we would like to respectfully request is that the loan limits be increased as was originally proposed to account for inflation, the larger scale of operations that we seek to Fund and possible reductions in federal loan programs. Thank you for the opportunity to test very much.

Mike Amuna cocktail. Thank you, Micah. Brian Niyamoto from the Farm Bureau. Thank you. Anyone else wishing to testify on this measure? Showing 9 in support 0 opposed 0 comments? Any questions?

Met Members question for Doe Terr. Thank you. So how much in ag loans do you guys award per year?

We average about 3 to 4 million per year.

And how many people for the 3 to 4 million or how many farms?

Roughly about maybe 17 to 20 operations.

And then how long are the loans?

Our operating loans can go up to 10 years. The farm ownership or capital improvement, we can go up to 40. But normally they're 30 for land purchase and 20 for capital improvement, like building, construction and that type of things.

If this bill, if this bill passes, how much more you guys expect to award in loans?

Currently our cap is at that 5 million per fiscal year, a budgetary ceiling. So we can actually ask for an increase in the ceiling. So we kind of wanted to run through this year and if we needed a permanent increase in the expenditure ceiling, we would be coming in for that.

So since you guys had 3 million that you guys awarded 17 to 20. So if you had another 2, maybe 10 more. 10 more, give or take, depending on the loan average.

Yeah, they Normally average about 100,000, give or take.

Do you guys see any problems with loan defaults?

Yes, we don't have. We don't usually write off too many loans because we normally work with the farmer to either liquidate the assets or. But what we normally do is kind of stretch out the terms to even to fit what they can cash flow. So we'll work with them through the whole process.

What is your guys interest rate on your loans?

7 and a half right now. So through this bill we hope to reduce it to 4%. Right now it depends on when you apply. We reset the loans twice a year on the interest rate. So it depends on.

Maybe in December you would have one rate but by January the rate might have jumped on you or it might have been reduced. So it kind of. If we get a flat rate, it would make it fair for everybody.

No matter when you got it, it would be a set rate and then it's much easier to plan instead of rushing.

Most people come to you guys because they cannot get on bank loan or is that why most farms come to you guys on bank loan or normally?

Yeah. So now we're doing a lot of guarantees of loans for the smaller lenders. They want to lend up bigger amounts. So by getting our guarantee they're able to increase the amount they can lend. But commercial banks hasn't been too interested in helping out.

So how much of an impact has this federal shakedown been with those that are, you know, like Farm Service Agency, which is federal, they running about a 2 and 3 quarter percent interest on their loans for operations as well. Operations as well as home ownership loans. You see anybody coming towards you guys or has it impacted?

I think right now the Feds have a lot more money than us, so they've been doing a lot more loans. Right. But what we do find where we partner up with them is when they need larger amounts. The federal program can lend up to 600,000. Maximum loan amount we can do 800,000.

But some people come in with like $1.0 million project or 1.2. So we both take a share of the loan and the federal program allows them to go second, which allows the state to take the first position.

Because I've seen the FSA loan go up to $5 million on home ownership.

Yeah, I think the Farm Direct loans are lower, the guarantees are much higher. Yeah.

Okay, now this is curious. Thank you, Chair.

Okay, Chair, follow up. You piqued my interest. So you said we were fully staffed. Yes. Did that staff come from the Feds because of the layoffs and all that?

And they're taking out that early retirement thing. Retirement. So we got the farm loan chief from Fsa. Buddy. Yeah, we got Buddy. So he came over. Another one was. Yeah, he was on one of those other type of programs, you know, the DEI type programs. He came over, but he's working out really well for us.

Okay, so. So the. The loan section is fully staffed now. Is that what I learned?

Correct.

Okay. And is this the funding? Is it revolving Fund or how do. We deal with General Fund? General Fund. Okay, thank you.

Okay, thank you. Next up, HB 1149 HD1, relating to General excise tax exemptions, repeals the General excise tax exemption for amounts received by independent sugar cane farmers. Appeals the General Excise Tax Axemption for amounts received by contractors of the Patient Centered Community Care program that is established by the U.S.

Department of Veterans affairs pursuant to Title 38, U.S. code Section 8153. 3. First up, Department of Taxation, Gary Suganuma.

Good afternoon, Chair, Vice Chair and Committee Members. Gary Suganuma, Director of Taxation. The Department supports this Administration measure which seeks to repeal two get exemptions or General excise tax exemptions that have rarely if rarely been claimed in the past several years.

So with regard to the independent tax exemption for, you know, pertaining to independent sugarcane farmers, there are no claims for the exemption in tax years 2020 and 2021.

And in 2022 and 2023, there are so few claims for the exemption that we're not even allowed to let you know how many claim for fear that you'd be able to identify who the taxpayers are. And with regard to the other GT exemption pertaining to contractors of patient centered community care programs established under the U.S.

Department of Veterans affairs, no one has claimed that exemption since. I think the last time was in 2018. So from 20, I mean 2019 up to the most recent year we have data for is 2023. There are no claims for that exemption. Thank you very much. Thank you.

Tom Yamachika from the Tax Foundation Hawaii on Zoom.

Good afternoon, Chair, Members of the Committee, this is Jane Mcmillan. On behalf of Foundation of Hawaii, we have submitted some comments on the measure. Our comments note that we don't doubt the exemptions have been rarely used. So thank you very much.

Thank you. And Robert Dawson is opposed. Anyone else wishing to testify on this measure? Okay, any questions?

I just get one for Door Tax Charity. Coy. Gary, thank you. Just are there any other tax credits that no one else has claimed? No one claiming them?

Yeah, I think in preparation for this session, we did review and so these jumped out at us as being underutilized, to say the least. So then I think it's a continuing effort by us to identify these as they come up. But for now, these are the ones that we spotted. Okay, thank you. Thank you, Chair.

Thank you. All right, Moving on to HP1450HD2 relating to ag crime resiliency establishes a three year climate resilient Food Systems Grant Pilot Program to be administered by the Department of Ag. And first up, Department of Ag.

Chair, Vice Chair, Members of the Committee, Sharon Heard, Department of Agriculture. We stand on our submitted testimony again falling on the federal situation. This would replace some of the programs that they are rescinding or on the shopping block. Thank you for this opportunity.

Micah Munakata from Ulupono. Thank you, Micah. Brian Miyamoto from Hawaii Farm Bureau.

Thank you, Chair.

The Hawaii Farm Bureau was done. It's written testimony in support.

Thank you very much. Hunter Heveland, Hawaii Farmers Union on Zoom.

Now available on Zoom. Chair.

Okay, Hawaii Food Industry Association.

Thank you, Chair. Vice Chair. Members of the Committee, Alexis Chapman for HFIA.

We're in support of this measure and we hope that as this proves successful and as it moves forward that it could eventually be expanded or a similar program that could be created that would also benefit a larger segment of our food systems, including, you know, different sizes of agricultural producers, local food manufacturers, food distrib distributors, suppliers, and local retailers as well.

So I'm happy to answer any questions and thank you for the opportunity to testify.

Thank you very much. Next is Angelica Malone on Zoom.

Hello, Chair Gabard, Vice Chair Richards and Members of the Committee. I, Angelica Malone, strongly support this measure. I've submitted written testimony, but just would like to highlight a few points with you today. Healthy soils are essential for continued food production in Hawaii. When managed properly, agriculture can support environmental stewardship.

And this bill offers critical support for both farmers and ranchers working to improve soil health and production. I am current staff on the Partnerships for Climate Smart Commodities grant, which is a federal grant. This initiative supports farmers and ranchers adopting climate smart practices such as prescribed grazing, fencing, tree establishment, as well as herbaceous weed control and others.

These practices not only boost our local food production, but also enhance the resilience of both the ecological system and the communities that depend on them. However, the current federal Administration has shifted focus, putting funding for this critical grant at risk.

We have producers who are implementing projects on the ground and unsure if there will be continued support given the growing importance of local.

Thank you.

Mahalo. Anyone else wishing to testify on this measure? There were 15 in favor, 0 opposed, 0 comments. Members, are there any questions? And then. Okay, moving on to the last measure on this agenda: HB 1497 HD1 acquires and appropriates funds for the Department of Ag to develop an online reporting tool for restricted use pesticide report reporting.

Appropriates funds to convert temporary Environmental Health specialist three positions into permanent positions. First up, Department of Ag.

Thank you, Chair, Vice Chair. Members of the committee, we stand in strong support as in written testimony and happy to take questions at your digress.

Thank you, Sharon. Brian Miyamoto, Hawaii Farm Bureau.

Thank you, Chair. The Hawaii Farm Bureau was down on his written testimony and support.

Thank you, Brian. Hunter Helen, Hawaii Farmers Union on Zoom. In support; and Frederick from the Hawaii Alliance for Progressive Action on Zoom.

He's also not available on Zoom, Chair.

In support and see if anyone else - anyone else wishing to testify on this measure. There are 33 in support, zero opposed, and zero comments. Okay. Members, any questions?

Question for DOA.

DOA, please. So, Sharon, you know we had a prior bill on reporting. Since your previous testimony stated that you already developed an online reporting tool and this bill asked that you guys do this, please clarify what else still needs to be done?

Senator Decoy.

I'm going to ask that I get back to you with that. The subject matter expert, Greg Takeshima from Pesticides is not available today. So, the question is what else would the duties of the staff be? Sure.

The prior one.

Fair question.

Can you also - are you confident, if that you will be able to hire people, if you converted the environmental health specialist positions from temporary to permanent? Did the people who left their positions do so because the positions were temporary?

I know that we can hire. The report is that for these positions that Act 231 provided for. Thank you very much. Even as they are temporary because there is so much wind behind making them permanent. We have quite a few applications, so I'm confident that we can get the people.

I just don't have the previous answer for you.

Okay, thank you. Thank you. Chair.

Okay, thank you. We'll go into decision making on the first measure, HB428 relating to farm to families. The Chair's recommendation will be to pass with an amendment to defect the date to July 12050 and also to note in the Committee report for the $2 million for funding for consideration. Any discussion? Chair votes aye.

[Roll call]

Thank you. Members on HB773 to grant specialist positions. Chair's recommendation be to pass with an amendment to defect the date to July 12050. Also note in the Committee report for the two full time positions as well as the $200,000 for consideration. Any discussion? Chair votes I.

[Roll call]

Thank you. Members. HB 858 requiring the Department of Ag to revitalize and enhance their Ag statistics program. On 858, the recommendation will be to pass with amendments to defect the date to July 12050. Also noting in the Committee report the appropriations and the FTE from the original measure. Any discussion? Chair votes Aye.

[Roll call]

Thank you Members on ACB 984 updating the AG loan program Chair's recommendation we to pass with amendment to defect the date to 07-01-2050. Any discussion?

[Roll call]

Okay, and then thank you. Members on HP 1149 about repealing the General excise tax exemptions for sugar cane farmers, the Chair's recommendation is going to be to defer indefinitely. Our feeling is even if just a handful of farmers can benefit, we want to continue that support.

So Moving on to HB 1450 HD2 relating to AG climate resiliency the Chair's recommendation we pass with an amendment to defect the date to 07-01-2050 and tech amendments. Also we want to note in the Committee report the request for $3 million for consideration. Any discussion? Chair votes aye.

[Roll call]

Thank you Members. And on the final the agenda, the final measure, HP 1497 HD1 requiring and appropriating funds for DOA to develop online reports reporting tool for RUP reporting. Chair's recommendation with a pass with amendment to defect the date to 07-01-2050 and also noting in the Committee report the request for two full time positions for consideration.

Any discussion?

[Roll call]

Thank you Members. And that concludes the 101 Agenda of AM.