Member legislative concerns: Ron Weidenbach

Hawaii Fish Company, Inc. supports the entire list of 2013 HFBF Legislative Priorities, with
six of the eleven priorities directly benefiting our small family-owned North Shore fish farm. I
have re-ordered the list to reflect our farm’s priorities, as requested, and have also offered minor
wording amendments to the Justification statements of two priorities so as to be inclusive of
animal protein production and to recognize that much of Hawaii’s agricultural activities actually
occur within the conservation district, not just in the agricultural district, and that this reality
should be recognized and addressed in legislation supporting or benefitting Hawaii’s agriculture
industry. I will provide a brief summary below of how our top six legislative priorities would
benefit our fish farm as well as other agricultural producers across the State.

Our top legislative priority is to address DLNR’s lease rates for agriculture, and their appraisal
process and allocation of appraisal costs. Currently rents are based on a vague policy of “highest
and best use”, with staff interpretation typically being a rate that generates the most income for
DLNR and the State without factoring in other important considerations such as the societal
and economic values of local food production, care of our natural resources, preservation of
open space or green space, public health and safety, etc., and without considering historic and
projected market trends and the economics of local farm production and sales.

For our own farm, the current rent appraisal process recently resulted in an outside appraisal
charge equal to five years annual rent, based on the rental rate recommended by DLNR staff and
approved by the BLNR in 2010, and which in turn resulted in appraised rent and performance
bond increases of 1220 percent above the 2010-approved rates, and are in excess of our recent
annual IRS adjusted gross income and taxable income. However, the cost to appeal this outside
appraisal under current statute was estimated by another appraiser to be an amount equal to
or exceeding approximately twenty years annual rent at our 2010 BLNR-approved lease rate.
As it currently stands, these increases could force the closure of our farm, which has been in
operation at our current site since 1992, and, potentially, the loss of the oldest fish farm on the
island, established in 1978. Similar situations have been reported by farms in Waimanalo and by
ranches on the Big Island. The proposed legislation would put safeguards in statute that would
hopefully prevent such devastating occurrences in the future, thereby helping to support the long-
term viability of agricultural activities on DLNR lands.

Our next two legislative priorities would exempt certain low-risk, non-residential, agricultural
structures from county building codes, and provide a temporary livestock feed subsidy for the
duration of the current Midwest drought that has dramatically impacted the cost of imported
livestock feeds. The proposed building code exemptions would reduce the cost and speed the
construction process for many critical agricultural structures, and the temporary livestock feed
subsidy would help local cattle, poultry, swine, and aquaculture producers meet the high feed
costs resulting from the Midwest drought. Together these would help to preserve and enhance
the economic viability of local food production.

Our final three priorities address the State procurement code, public utility services to ratepayers
engaged in agricultural activities, and State agricultural policy. Each of these legislative
initiatives would support Hawaii’s farmers and ranchers by expanding potential markets, helping
to reduce utility costs, and developing policies to support and promote Hawaii’s agricultural
industry.

The remaining five legislative priorities would support important irrigation systems, fund
infrastructure improvements on the Galbraith Estate lands, address DOH policy regarding
direct marketing of produce at farmers markets, support 4H and FFA, and provide additional
tax incentives associated with Important Agricultural Lands. Each of these initiatives are also
worthy of our strong support.

Ron Weidenbach
Hawaii Fish Company, Inc.
Waialua, HI