The bill introduces a tiered reimbursement system based on the gross income of agricultural producers. Specifically, farms with gross incomes of less than $250,000 can receive reimbursements equal to 100% of their transportation costs, those earning between $250,000 and $1 million can receive 25%, and those with earnings over $1 million can receive 10%. This structure aims to support smaller farms more significantly, potentially stabilizing local agricultural markets and encouraging growth among lower-income producers. Additionally, it allocates funding necessary for the implementation of this program from the state’s general revenues for the fiscal years 2023-2024 and 2024-2025.
Senate Bill 792 establishes a Local Agriculture Transportation Cost Reimbursement Incentive Program aimed at providing financial support to eligible agricultural producers in Hawaii. Administered by the Department of Agriculture, this program is designed to reimburse a portion of transportation costs incurred by farmers and ranchers when transporting agricultural commodities within the state. The reimbursement will cover costs associated with air, parcel, or water cargo carrier services, thereby alleviating some of the financial burdens faced by local agricultural producers in Hawaii.
While the bill has clear benefits for local agricultural producers, there may be concerns regarding the fiscal responsibility of implementing such a reimbursement program. Specifically, discussions could focus on the sufficiency of the appropriated funds and the potential impact on state revenue. Furthermore, stakeholders may debate the effectiveness of the reimbursement rates and whether they adequately incentivize the desired outcomes in increasing local agricultural production and addressing food security in Hawaii.