Tag Archives: Hawai‘i Farmers and Ranchers United

Great Info Meeting on How Kaua‘i Formed its Electric Utility Co-op

Richard Ha writes:

We had an interesting presentation Friday from two executives from Kaua‘i’s electrical utility, the Kaua‘i Island Utility Cooperative (KIUC). David Bissell is CEO, and Dennis Esaki was a founding member who only recently left the KIUC board.

Meeting

It was amazing to hear what KIUC went through to purchase Kaua‘i Electric Company and form the utility cooperative. The Kaua‘i County Council and mayor were originally against the purchase, and the PUC turned down its first purchase bid as not being in the best interest of the users. But the founding group continued to rework its plan and was ultimately successful the second time it presented a bid.

In total, it was about a two-year process and the group purchased Kaua‘i Electric Company in 2002 for $215 million. And, Esaki said, referring to the county administrators, “they’re all on board now.”

This month, Kaua‘i’s electricity rates are lower than any of the islands but O‘ahu’s (mostly because of the oil price decline). Most months, its rates are a little lower than the Big Island's and a little higher than Maui.

Since 2003, ratepayers have received $30 million in refunds and patronage capital — the amount of money left after all the bills are paid, and the co-op has met its lenders’ requirements. This is money that circulates back into the community. 

Members have $80 million in equity, which is what they own of the co-op. When the utility was purchased 12 years ago, it was 100 percent debt-financed, so the equity at that time was zero.

KIUC has gone from about five percent renewable energy in 2009 to 18 percent today. It will be at about 40 percent by the end of next year.

From the KIUC 2013 Annual Report (click to enlarge):

Annual report

  Annual Report p. 9

The organization of the co-op also reflects what the people of Kaua‘i want, because its board is selected by the people. Esaki and Bissel said that at first there was almost total, and repeated, board turnover as ratepayers regularly voted out board members who weren’t doing what they wanted. Eventually, they said, the board has stabilized.

Projects are financed through national co-op financing, which results in much lower financing costs.

You can watch a video of the meeting below. Thanks to Chester Lowrey for videotaping!

There was a lot of community interest in the KIUC presentation, with a good turnout from various community groups. The presentation was sponsored by three organizations:

The Big Island Community Coalition, the steering committee of which is made up of David DeLuz, Jr., Rockne Freitas, Michelle Galimba, myself, Wallace Ishibashi, Kuulei Kealoha Cooper, Ka‘iu Kimura, D. Noelani Kalipi, Robert Lindsey, H. M. Monty Richards, Marcia Sakai, Ku‘u Lehua Veincent, and William Walter.

The board of the Hilo-Hamakua Community Development Corporation, which is President Donna Johnson, Judi Steinman, Glenn Carvalho, Eric Weinert, Jason Moniz, Gerald DeMello, Colleen Aina, and Richard Ha.

And Hawai‘i Farmers and Ranchers United, which represents more than 90 percent of the farming goods produced on the Big Island.

Ed Olson donated the use of his Wainaku Executive Center for the meeting.

We have formed a steering committee to discuss this further. The committee consists of Gerald DeMello, Michelle Galimba, Wally Ishibashi, Donna Johnson, Eric Weinert, Vincent Paul Pontieux, Marco Mangelsdorf, Russell Ruderman, and myself. I’ll keep you posted on further developments.

Edited 12/21/14 at 10:45 pm; 1/5/15; 1/30/15.

Kauai Island Utility Co-op Execs To Brief On How They Formed Their Co-Op

Richard Ha writes:

We have invited Dennis Esaki, a founder of Kauai Island Utility Cooperative (KIUC), and David Bissell, CEO of KIUC, to speak to us about how one forms a community-based utility. Having such a utility cooperative here on the Big Island would give us more control over our destiny.

It will be held this Friday, December 19, 11:30 a.m., at the former C. Brewer Executive Center in Wainaku. The event is sponsored by the Big Island Community Coalition, the Hilo Hamakua Coast Development Corporation, and the Hawaii Farmers and Ranchers United. The Ed Olson Trust is providing the Wainaku Executive Center facilities. Please R.S.V.P.

The Kauai Island Utility Cooperative was formed in 2002 when Citizens Communications’ Kauai Electric announced that it was selling the Kaua‘i utility. We have a similar situation right now in that Hawaiian Electric Industries (HEI) recently announced it is selling to NextEra.

NextEra plans to use utility-scale solar, backed up by liquid natural gas (LNG) as a bridge fuel. The average shale oil and gas well lasts only five years, so that model is a concern for Big Island rate payers. (This link is an even more in-depth explanation of how shale oil is massively over-hyped, and analyzes the best data available.) Fortunately, we have geothermal we can use in place of LNG on the Big Island. We have options.

This is not an endorsement of converting to a co-op so much as it is an informational briefing.

Please R.S.V.P. to richard@hamakuasprings.com.

Hurricane Iselle: The Aftermath & Human Stories

Richard Ha writes:

Soon after Hurricane Iselle hit the Big Island, the Hawaii Farmers and Ranchers United (HFRU) core group called a meeting. We wanted to assess damage, and what we found was that some Big Island farmers were in desperate need.

The human stories which were told by some of the affected farmers were hard to take. One of the independent processors told about being in church on Sunday just after the hurricane and not being able to look a farmer, there with his family, in the eye. They both knew what this damage meant to the farmers. The processor told us at the meeting that it brought him to tears.

Diane Ley, executive director of the USDA’s Farm Service Agency, was on the phone at the after-hours emergency meeting. Scott Enright, who is chair of the Department of Agriculture, participated by cell phone. He had just landed on O‘ahu and was driving to a meeting.

Farmers and their friends pulled together to bring agencies with resources to meet with farmers at one stop. W.H. Shipman, Ltd. made their offices available to the group for meetings. Lorie Farrell did the real heavy lifting by organizing everything. And the support agencies responded.

Rally1

We met on Tuesday, on W.H. Shipman, Ltd.’s ground, with about 180 people in attendance. Chris Kanazawa, head of the USDA’s Rural Development; Scott Enright, director of the Board of Agriculture; Laverne Omori, county director of Research and Development. So was Chris Manfredi, president of the Hawaii Farm Bureau.

Rally2

Various agencies had booths where they provided information about their programs. People gave presentations. AgriLogic, which specializes in risk management insurance for farmers, was there. One of the priorities of HFRU is to increase the percentage of farmers covered by crop insurance.

Mayor Billy Kenoi announced he is hiring DayDay Hopkins to be liaison to the farmers. That is a huge deal; DayDay knows farming. I met two county council candidates for the first time that day, Danny Paleka and Ron Gonzales, and after having short conversations, it was clear to me that both are very thoughtful and know what the spirit of aloha is all about. 

Yesterday I read in the Star-Advertiser that 287,000 Hawaii residents receive aid through the Hawaii Foodbank and its agencies. I called up Ross Sibucao, the young president of the Hawaii Papaya Industry Association, and asked him: “How many papaya farmers are on food stamps?”

He chuckled at my even asking the question. He said, “Probably zero.”

The farmers are the ones feeding the people. They do important work.

Thirty Meter Telescope Receives Final Approval!

Richard Ha writes:

Today the Land Board approved the Thirty Meter Telescope (TMT). That's the final word. It's over.

Along with several others, I attended the Land Board meeting today in Honolulu where they heard testimony. Then they went into executive session and made their decision. 

It's hard for me to find the words to say how important this is.

Last night I attended a presentation at ‘Imiloa Astronomy Center of students from about ten different high schools from around the world. Each gave a scientific report and they were so high-level they were just mind-boggling. One was some kids from India describing how to measure the mass of the Milky Way. They went into every little step of how a planet forms and dies, and it was evident they hadn't memorized anything, they actually knew it. It gives you so much faith in human beings and their ability to think and do these kinds of great things.

There was also a presentation by high school students from Keaukaha on how to make a koa and fiberglass canoe. It was much more involved than I would have thought. And a robotics team from Kalani High School that was made up of three girls. One of them told the audience that before she got involved in robotics she was very shy. But now, through robotics, she has discovered a passion for teaching small kids and especially girls. She raised her hand and said, "YES!!" It's amazing to see students achieving what they didn't think they could achieve. 

The Thirty Meter Telescope sponsored this event at ‘Imiloa. There are all sorts of interesting things going on, which we don't necessarily know are happening, because of the Thirty Meter Telescope and its commitment to education.

YES!!

Here is the testimony I gave this morning to the Board of Land and Natural Resources:

Aloha, everyone,

I have been involved with the TMT project from the beginning and decided to support it because of TMT's efforts to do the right thing for our Big Island. This is a once-in-a-lifetime opportunity for us. A project like the TMT will never come our way again. The benefits to the Big Island's young people – not just today's generation, but future generations too – is enormous.

The TMT is giving $1 million dollars annually to The Hawaii Island New Knowledge (Think) fund. The annual installments begin next month and last through the ten years of construction and the 50 years of viewing time.  

The Big Island has the lowest median family income in the state, and education is the best predicted of family income. The TMT partner's contribution is strictly discretionary spending. It is money out. There is no money coming in. If we stretch the waiting period too far, we could lose the whole project. 

Time is of the essence. Please do not jeopardize this education fund for our young people.  

Aloha,

Richard Ha

President, Hamakua Springs Country Farms and its 70 workers.

Also representing the Hawaii Farmers and Ranchers United. This grass roots organization represents 90 percent of the farm value produced on the Big Island

Also, President of the Big Island Community Coalition. Its steering committee members in their private capacities are:

Dave DeLuz, Jr., President, Big Island Toyota
Rockne Freitas, Former Chancellor, Hawaii Community College
Michelle Galimba, Member, Board of Agriculture and Ka'u rancher
Richard Ha, President, Hamakua Springs Country Farms
Wallace Ishibashi, Former Chair Big island Labor Alliance, DHHL commissioner. 
Kuulei Kealoha Cooper, Trustee of Kealoha Trust
D. Noelani Kalipi, Former Staffer for Senator Akaka. Helped to write the Akaka Bill.  
Ka‘iu Kimura, Executive Director, ‘Imiloa Astronomy Center
H.M. Monty Richards, Kama‘aina Cattle Rancher
Marcia Sakai, Vice Chancellor for Student Affairs, UH Hilo
Kumu Lehua Veincent, Principal of Kamehameha Schools, Hawai‘i Island campus
William Walters, President, W.H. Shipman., Ltd.

Preparing for Climate Change, The Overview

Richard Ha writes:

I was asked to talk this morning at the Hawai‘i State Association of Counties 2014 Annual Conference, which was held in Waikiki. I spoke on the panel called Preparing for Climate Change. Here’s what I said.

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Aloha everyone. Thanks for inviting me.

Food security has to do with farmers farming. If the farmers make money, the farmers will farm!

The Hawaiian side of our family is Kamahele, from lower Puna. All the Kamaheles are related. The Okinawa side of our family is Higa. The Korean side of our family is the Ha name. It’s about all of us in Hawaii. Not just a few of us!

I write an ag and energy blog Hahaha.hamakuasprings.com. It stands for three generations of us.

What is the difference between climate and weather? Neil DeGrasse Tyson, on Cosmos, describes it like the guy strolling down the beach with his dog. The dog running back and forth is the weather. The guy walking along the beach is climate.

Background: 35 years farming, more than 100 million pounds of fruits and vegetables. We farm 600 fee-simple acres which the family and 70 workers farm. Not having any money, we started out by trading chicken manure for banana keiki and went on to become the largest banana farm in the U.S. We were green farmers early. In 1992, we were first banana farm in the world certified Eco-OK by the Rainforest Alliance. In 2008, we were one of six national finalists for the Patrick Madden SARE award. We were one of the first farms in Hawai‘i to be food-safety certified.

When we needed to find a solution for a disease problem, we took a class in tissue culture and tried to culture the plants in our back bedroom. But there was too much contamination, from cat hair maybe. So we made our own tissue culture lab. We have our own hydroelectric plant, which provides all our electricity. Our trucks and tractors operate with fuel from Hawai‘i biodiesel.

My pop told me that, “Get a thousand reasons why no can.” I’m only looking for the one reason why CAN.

As we stroll along the climate change beach, there are two things that we notice.

The first is energy. Without energy, work stops. Petroleum products are finite and costs will rise. Farmers’ costs will rise and farmers’ customers’ costs will rise. How can we dodge the bullet?

I attended five Peak Oil conferences. The world has been using twice and three times as much oil as we have been finding. So the price is going to keep on going up. It will increase farmers’ costs and will increase the farmers’ customers’ costs. We need to do something that will help all of us, not just a few of us. Something that can help future generations cope.

That something is hydrogen. The geothermal plant can be curtailed at 70 MW per day. That’s throwing away 70 MW of electricity every night. The new eucalyptus chip plant Hu Honua can be curtailed by 10 MW for ten hours per night. The key to hydrogen is electricity cost. On the mainland it is made from natural gas. Here it can be made from running electricity through water. We are throwing away lots of electricity at night. We know that oil and gas prices will be steadily going up in the future. Hydrogen from our renewable resources will become more and more attractive as oil and gas prices rise. At some point we will have an advantage to the rest of the world. And as a bonus, hydrogen combined with nitrogen in the air will produce nitrogen fertilizer.

You may be interested to know the inside scoop about the lawsuit that Big Island farmers brought against the County.

Why? Clarity: Farmers are law-abiding citizens and we play by the rules. We thought that the Feds and the State had jurisdiction. We want clarity about the rules of the game.

Equal treatment: Only Big Island farmers are prohibited from using biotech solutions that all our competitors can use. How is that equal? It’s discriminatory against local farmers.

When the law was first proposed, they wanted to ban all GMOs. We asked what are papaya farmers supposed to do? They said, we can help them get new jobs, to transition. We were speechless. It was as if they were just another commodity. So farmers and ranchers got together and ran a convoy around the County building in protest. Then they said they would give the Rainbow papaya farmers a break. I was there when the papaya farmers had a vote to accept the grandfather clause for Rainbow papayas. There were a lot of young, second- and third-generation farmers there in the room.

In the end, the papaya farmers said, We are not going to abandon our friends who supported us when we needed help. That is not who we are. Then they voted unanimously to reject the offer. I was there and being a Vietnam vet, where the unspoken rule was we all come back or no one comes back, I could not have been prouder of the papaya farmers. That explains why the Big Island farmers are tight. Old-fashioned values. The rubbah slippah folks absolutely get all of this.

So who are these farmers? I am one. I don’t grow GMOs. It isn’t about me. I’ll make 70 this year and, like almost all the farmers, have never sued anyone. But there comes a time when you have to stand up for what is right.

The group we formed, Hawaii Farmers and Ranchers United, grows more than 90 percent of the farm value on the Big Island.

This is about food security. The GMO portion of food security is small. This is not about large corporations. It is about local farmers. It is not about organics; we need everybody. But organics only supply 4 percent of the national food supply and maybe 1 percent of Hawai‘i’s. Our organic farmers are not threatened by modern farming. Hawaii organic farmers are threatened by mainland, industrial-scale organic farms. That is why there are hardly any locally grown organics in the retail stores. It’s about cost of production. Also, on the mainland winter kills off the bad bugs and weeds and the organic farmers can outrun the bugs through the early part of summer. Hawai‘i farmers don’t have winter to help us.

Most importantly, this is about pro-science and anti-science. That is why farmers are stepping up. We know that science is self-correcting. It gives us a solid frame of reference. You don’t end up fooling yourself. In all of Hawai‘i’s history, now is no time to be fooling ourselves.

My pop told me that there were a thousand reasons why No Can. He said, look for the one reason why Can! He said to look for two solutions to every problem and one more, just in case.

He would pound the dinner table and dishes would bounce in the air and he would point in the air and say, “Not no can. CAN!”

We can have a better world for future generations. It’s all common sense and attitude.

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