Agriculture has played an historic and important role in Hawaii, beginning with its two most lucrative crops—sugarcane and pineapple. In the mid-1950s, the state’s main economic activities were defense, sugar and pineapple, all of which accounted for 40 percent of the gross state product (GSP). Today, sugar and pineapple constitute less than 1 percent of GSP. Fields that once grew sugarcane now feature a variety of crops like coffee, macadamia nuts, specialty exotic fruits and flowers that are exported to destinations worldwide.

Oahu has become increasingly urban but we cannot and should not abandon our cultural heritage. Not only does a

vibrant agriculture industry help preserve green space, it also complements tourism, the state’s number one industry. Visitors come to Hawaii expecting to view lush fields of green vegetation—not urban sprawl. Local businesses have also benefited from visitor industry trends such as eco-tourism, farm tours and other agriculture-based attractions. A thriving local agriculture industry can also serve as a buffer in the event of shipping strikes, rising fuel costs and other external factors beyond our control. Often overlooked is the added benefit of fresh and healthy foods that can boost the local economy.

A challenge facing many farmers is the availability of land, which they almost always lease from large landowners. Assistance for farmers could also come in the form of tax credits, loan guarantees, lending at below-market rates and a range of tax-credits for investment in agricultural infrastructure—all of which can help make farming more viable in the islands. Perhaps the most significant piece of ag-related legislation was Act 233, which was passed in 2008. The law set up a detailed process of compensation for landowners and established a timeline for landowners to voluntarily designate 85 percent of their holdings as important agriculture lands in exchange for what amounts to a fast-tracked development process on the remaining 15 percent. Such valuable land would be set aside in perpetuity and no longer subject to the pressures of urbanization.

To ensure a viable agricultural future for Hawaii, we urge State lawmakers to continue to support agriculture-related legislation this legislative session. There is much we can do to reverse the decline in this sector of our agriculture industry, if we have the political will.

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Gov. Abercrombie’s Budget Proposals for 2012

Last month, Gov. Neil Abercrombie unveiled a $188 million supplemental budget request for Fiscal Year 2013. The State’s annual operating budget, including the governor’s supplemental budget, amounts to $11.1 billion.

Abercrombie wants to spend some $1.2 billion on capital improvement projects for FY 2013. Part of the amount will be funded by $300 million in bond sales, in addition to another $800 million in General Obligation (GO) bonds for more capital projects. While these capital construction projects would be used for roads and other improvements that would increase economic activity, some critics, including former Linda Lingle cabinet members, are questioning whether taking on more debt is a good idea. They are also second-guessing the governor’s decision to replenish the Hurricane Relief Fund, which lawmakers raided in 2011 to balance the State budget, using money borrowed from the state’s GO bonds sale. Essentially, the Abercrombie administration will be placing borrowed money into an account only to pay interest on it—interest that taxpayers will end up paying for. Naysayers liken it to a family setting up a savings account by using a credit card. When it comes due, there is more debt to repay.

In December, the Council on Revenues predicted that Hawaii’s economy would grow by 14.5 percent in FY 2012 and 6.5 percent in FY 2013. A month later, the Council lowered its projections to 11.5 percent. By law, the governor and lawmakers must consider the Council’s projections in determining the State’s budget. The governor’s budget chief says that the downgraded projection will have little effect on the current biennial budget but could be significant in future years. Tax hikes may be needed, something which the governor is open to but lawmakers hesitant to approve given that 2012 is an election year.

The governor’s budget will face intense scrutiny by the state legislature, which opens January 18 and adjourns in May. The governor touted his budget, saying it has no furloughs, employee cutbacks or cuts to social service and welfare programs. However, one or more or a combination of the above may be needed if projections from the Council on Revenues dip any further. Let’s hope that’s not the case.