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Panel advances bill to reimburse local farmers for inter‑ and intra‑island transport costs
Summary
The committee passed HB 1707 to create a transportation cost reimbursement program for eligible farmers and ranchers, with witnesses supporting caps and verification for startups; DAB and industry described a model similar to federal programs with receipts and percentage rules.
The House Committee on Agriculture and Food Systems moved a committee draft of HB 1707, a bill establishing a local agriculture transportation cost reimbursement program administered by the Department of Agriculture and Biosecurity.
Supporters—including the Hawaii Cattlemen’s Council, Young Brothers (David Veltri), the Hawaii Farm Bureau and Hawaii Farmers Union—testified that high transportation costs are a barrier to interisland commerce and local food production. Witnesses described several design elements the committee discussed: the program would reimburse a percentage of transportation costs with per‑farmer caps (witnesses used example caps of $8,000–$12,000 or $25,000 in different scenarios), require receipts ("a shoebox is fine," a DAB witness said), and limit eligibility to intra‑ and inter‑island transport to avoid duplicating mainland programs.
Young Brothers provided context on the scale of agriculture freight in its business and estimated that local agriculture accounted for roughly 3.1% of its 2024 revenues. Committee members asked about annual program costs and verification of commercial intent for startups; Farm Bureau testimony suggested acceptable proof could include bills of lading, invoices, county records, conservation or farm plans, or federal schedule F filings. The committee adopted amendments to require proof of commercial intent for small and startup farmers and passed HB 1707 as a house draft 1.
