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MAUI - IMPORTANT AGRICULTURAL LANDS - WATER - DIVERSION MASTERFUL ARTISTRY
1. ACT 183, 2005 SESSION LAWS OF HAWAII1
The identification and designation of Important Agricultural Lands (IAL) was proposed at the 1978
Constitutional Convention and subsequently approved by voters in the same year. Enacted as Article XI,
Section 3, of the Constitution of the State of Hawaii,
“The State shall conserve and protect agricultural lands, promote diversified agriculture,
increase agricultural self-sufficiency and assure the availability of agriculturally suitable lands.
The legislature shall provide standards and criteria to accomplish the foregoing. Lands identified
by the State as important agricultural lands needed to fulfill the purposes above shall not be
reclassified by the State or rezoned by its political subdivisions without meeting the standards
and criteria established by the legislature and approved by a two-thirds vote of the body
responsible for the reclassification or rezoning action.” [Emphasis Supplied]
Act 183, signed by Governor Linda Lingle on July 1, 2005, provides the standards, criteria, and processes to
fulfill the intent and purpose of Article XI, Section 3.
Source: Report To The Twenty-Fourth State Legislature State Of Hawaii. Final Report On The
Incentives For Important Agricultural Lands. Act 183, SLH 2005.
Prepared By: Department Of Agriculture. http://hdoa.hawaii.gov/wp-content/uploads/2013/02/IAL-Final-Report.pdf
Web Accessed: December 18, 2016
____________________
DESIGNATED IMPORTANT AGRICULTURAL LANDS - BY ISLAND
Island Landowner Acreage Predominant Date of
and location and farm name (rounded to agricultural uses approval
nearest acre)
Kauai, Koloa Alexander & Baldwin 3,869 coffee, March 2009
Kauai Coffee seed corn
Kauai, Koloa Mahaulepu Farm 1,533 taro, seed corn, May 2011
LLC (Grove Farm) forage crops, cattle
ranching
Kauai, Grove Farm 11,206 biomass production February 2013
Haupu/Lihue Company, Inc. for renewable
energy, cattle
ranching
Kauai, Kamehameha 190 taro, diversified January, 2014
Lumahai/Waipa Schools vegetable and fruit
crops, plant nursery,
cattle ranching
1 Hawaii State Legislature 2005 Legislative Session HB1640 HD3 SD2 CD1
2. Oahu, Central Castle and Cooke 679 diversified vegetable March 2011
and North Shore Homes Hawaii (3 geographically and fruit crops,
Inc./former Waialua separate properties) flowers, foliage
Sugar, former Dole
Pineapple, Mililani Ag
Park (portion)
Oahu, Kamehameha 9591.8 Grazing, diversified March 2015
Kawailoa/ Schools agriculture
Punaluu
Maui, Central Alexander & 27,294 sugarcane June 2009
Baldwin/HC&S
Plantation
Big Island, Parker Ranch, Inc. 56,777 cattle ranching September 2011
South Kohala
Total area designated as IAL – 111,139 acres IAL voluntary summary.e14 updated 2/29/16
[Emphasis Supplied]
Source: State of Hawaii, Department of Agriculture. List of lands designated Important Agricultural Lands
(IAL). http://hdoa.hawaii.gov/wp-content/uploads/2013/02/IAL-voluntary-summary-e14_rev2-29-16.pdf
Web Accessed: December 19, 2016.
____________________
Before The Land Use Commission, State of Hawai`i. In the Matter of the Petition of Alexander & Baldwin, Inc. For
Declaratory Order to Designate Important Agricultural Lands for approximately 27,102 acres at Wailuku and
Makawao, Maui, Hawai`i. Docket No. DR09-38. Findings of Fact, Conclusions of Law and Decision and Order.
June 26, 2009. RECORED AND FILED FEBRUARY 20, 2015 at 8:02 am, LAND USE COMMISSION.
http://luc.hawaii.gov/wp-content/uploads/2014/01/Declaration-of-IAL-Maui-recorded-and-filed-02-20-15.pdf [Extract]
3. Alexander & Baldwin (A&B) – Hawaiian Commercial & Sugar Company (HC&S)
East Maui Irrigation Company (EMI) – Wailuku Water Company(WWC)
Designation of Important Agricultural Land
Continuity of Water a Term and Condition of Important Agricultural Land Designation
A&B – ANNUAL REPORTS February 26, 2007 to February 29, 2016
ALEXANDER & BALDWIN, INC. Form 10-K Filed February 29, 2016
http://phx.corporate-ir.net/phoenix.zhtml?c=85663&p=IROL-secToc&TOC=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9vdXRsaW5lLnhtbD9yZXBvPXRlbmsmaXBhZ2U9MTA3NzkzNjImc3Vic2lkPTU3&ListAll=1&sXBRL=1
On December 31, 2015, the Company determined that it would cease its sugar operations at HC&S
(the "Cessation"), which will result in the eventual layoff of over 650 employees. The sugar operation
is expected to be phased out by the end of 2016, and the transition to a new diversified agriculture
model will occur over a multi-year period.
The Hawaii Legislature, in 2005, passed Important Agricultural Lands (“IAL”) legislation to fulfill
the state constitutional mandate to protect agricultural lands, promote diversified agriculture, increase
the state’s agricultural self-sufficiency, and assure the long-term availability of agriculturally suitable
lands. In 2008, the Legislature passed a package of incentives, which is necessary to trigger the
IAL system of land designation. In 2009, A&B received approval from the State Land Use
Commission for the designation of over 27,000 acres on Maui and over 3,700 acres on Kauai as IAL.
These designations were the result of voluntary petitions filed by A&B. [Emphasis Supplied]
NOTES, SUPPLIED
1. The Important Agricultural Lands (“IAL”) designation granted to A&B by The Land Use
Commission is predicated on the continuity of water flow provided by East Maui Irrigation and Wailuku
Water Company.
2. Important Agricultural Lands (“IAL”) designation: Before The Land Use Commission, State of
Hawai`i. In the Matter of the Petition of Alexander & Baldwin, Inc. For Declaratory Order to
Designate Important Agricultural Lands for approximately 27,102 acres at Wailuku and Makawao, Maui,
Hawai`i. Docket No. DR09-38. Findings of Fact, Conclusions of Law and Decision and Order. June 26,
2009. RECORED AND FILED FEBRUARY 20, 2015 at 8:02 am, LAND USE COMMISSION.
http://luc.hawaii.gov/wp-content/uploads/2014/01/Declaration-of-IAL-Maui-recorded-and-filed-02-
20-15.pdf [Extract, provided above]
3. Loss of water may result in loss of Important Agricultural Lands (“IAL”) designation and thereby
loss of special incentives, tax credits for agricultural investments and regulatory relief.
4. ALEXANDER & BALDWIN, INC. Form 10-K Filed March 9, 2015
http://phx.corporate-ir.net/phoenix.zhtml?c=85663&p=irol-SECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2lwYWdlPTEwMTMyNDY4JkRTRVE9MCZTRVE9MCZTUURFU0M9U0VDVElPTl9FTlRJUkUmc3Vic2lkPTU3
HC&S is Hawaii’s only producer of raw sugar, producing approximately 162,100 tons of raw sugar in
2014 (compared with 191,500 tons in 2013). The primary reason for the decrease in production was wet
weather during the harvesting season, which limited HC&S’s ability to harvest the planned acreage and
efficiently process the harvested cane. HC&S harvested 14,200 acres of sugar cane in 2014 (compared
with 15,400 acres in 2013). Yields averaged 11.4 tons of sugar per acre in 2014 (compared to 12.4 tons of
sugar per acre in 2013). As a by-product of sugar production, HC&S also produced approximately
53,200 tons of molasses in 2014 (compared to 54,800 tons in 2013). In 2014, approximately 10,400 tons
of sugar (compared to 16,100 tons in 2013) were processed by HC&S into specialty food-grade sugars
under HC&S’s Maui Brand® trademark or repackaged by distributors under their own labels.
The Hawaii Legislature, in 2005, passed Important Agricultural Lands (“IAL”) legislation to fulfill
the state constitutional mandate to protect agricultural lands, promote diversified agriculture, increase
the state’s agricultural self-sufficiency, and assure the long-term availability of agriculturally suitable
lands. In 2008, the Legislature passed a package of incentives, which is necessary to trigger the IAL
system of land designation. In 2009, A&B received approval from the State Land Use Commission for
the designation of over 27,000 acres on Maui and over 3,700 acres on Kauai as IAL. These
designations were the result of voluntary petitions filed by A&B. [Emphasis Supplied]
ALEXANDER & BALDWIN, INC. Form 10-K Filed March 3, 2014
http://phx.corporate-ir.net/phoenix.zhtml?c=85663&p=irol-SECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2lwYWdlPTk0MzUwNjQmRFNFUT0wJlNFUT0wJlNRREVTQz1TRUNUSU9OX0VOVElSRSZzdWJzaWQ9NTc%3d
The Hawaii Legislature, in 2005, passed Important Agricultural Lands (“IAL”) legislation to fulfill
the state constitutional mandate to protect agricultural lands, promote diversified agriculture, increase
the state’s agricultural self-sufficiency, and assure the availability of agriculturally suitable lands. In 2008,
the Legislature passed a package of incentives, which is necessary to trigger the IAL system of land
designation. In 2009, A&B received approval from the State Land Use Commission for the designation
of over 27,000 acres on Maui and over 3,700 acres on Kauai as IAL. These designations were the
result of voluntary petitions filed by A&B. [Emphasis Supplied]
ALEXANDER & BALDWIN, INC. Form 10-K Filed February 28, 2013
http://phx.corporate-ir.net/phoenix.zhtml?c=85663&p=IROL-
secToc&TOC=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9vdXRsaW5lLnhtbD9yZXBvPXRlbmsmaXBhZ2U9ODc2MTgxMiZzdWJzaWQ9NTc%3d&ListAll=1&sXBRL=1
The Hawaii Legislature, in 2005, passed Important Agricultural Lands (“IAL”) legislation to fulfill
the state constitutional mandate to protect agricultural lands, promote diversified agriculture, increase
the state’s agricultural self-sufficiency, and assure the availability of agriculturally suitable lands. In 2008,
the Legislature passed a package of incentives, which is necessary to trigger the IAL system of land
designation. In 2009, A&B received approval from the State Land Use Commission for the designation
of over 27,000 acres on Maui and over 3,700 acres on Kauai as IAL. These designations were the
result of voluntary petitions filed by A&B. [Emphasis Supplied]
5. ALEXANDER & BALDWIN, INC. [Matson] Form 10-K Annual Report Filed February 28, 2012
http://investor.matson.com/secfiling.cfm?filingID=3453-12-26&CIK=3453
The Hawaii Legislature, in 2005, passed Important Agricultural Lands (“IAL”) legislation to fulfill
the State constitutional mandate to protect agricultural lands, promote diversified agriculture, increase
the State’s agricultural self-sufficiency, and assure the availability of agriculturally suitable lands. In 2008,
the Legislature passed a package of incentives, which is necessary to trigger the IAL system of land
designation. In 2009, A&B received approval from the State Land Use Commission for the designation
of over 27,000 acres on Maui and over 3,700 acres on Kauai as IAL. These designations were the
result of voluntary petitions filed by A&B. [Emphasis Supplied]
ALEXANDER & BALDWIN, INC. [Matson] Form 10-K Annual Report Filed February 25, 2011
http://investor.matson.com/secfiling.cfm?filingID=3453-11-6&CIK=3453
The Hawaii Legislature, in 2005, passed Important Agricultural Lands (“IAL”) legislation to fulfill
the State constitutional mandate to protect agricultural lands, promote diversified agriculture, increase
the State’s agricultural self-sufficiency, and assure the availability of agriculturally suitable lands. In 2008,
the Legislature passed a package of incentives, which is necessary to trigger the IAL system of land
designation. In 2009, A&B received approval from the State Land Use Commission for the designation
of over 27,000 acres on Maui and over 3,700 acres on Kauai as IAL. These designations were the
result of voluntary petitions filed by A&B. [Emphasis Supplied]
ALEXANDER & BALDWIN, INC. [Matson] Form 10-K Annual Report Filed February 26, 2010
http://investor.matson.com/secfiling.cfm?filingID=3453-10-6&CIK=3453
The Hawaii Legislature, in 2005, passed Important Agricultural Lands (“IAL”) legislation to fulfill
the State constitutional mandate to protect agricultural lands, promote diversified agriculture, increase
the State’s agricultural self-sufficiency, and assure the availability of agriculturally suitable lands. In 2008,
the Legislature passed a package of incentives, which is necessary to trigger the IAL system of land
designation. In 2009, A&B received approval from the State Land Use Commission for the designation
of over 27,000 acres on Maui and over 3,700 acres on Kauai as IAL. These designations were the
result of voluntary petitions filed by A&B. [Emphasis Supplied]
ALEXANDER & BALDWIN, INC. [Matson] Form 10-K Annual Report Filed February 27, 2009
http://investor.matson.com/secfiling.cfm?filingID=3453-09-12&CIK=3453
The Hawaii Legislature, in 2005, passed Important Agricultural Lands (“IAL”) legislation to fulfill
the State constitutional mandate to protect agricultural lands, promote diversified agriculture, increase
the State’s agricultural self-sufficiency, and assure the availability of agriculturally suitable lands. In 2008,
the Legislature passed a package of incentives, which is necessary to trigger the IAL system of
land designation. The Company is now in the process of filing voluntary petitions to designate
lands on Maui and Kauai as IAL. [Emphasis Supplied]
6. ALEXANDER & BALDWIN, INC. [Matson] Form 10-K Annual Report Filed February 28, 2008
http://investor.matson.com/secfiling.cfm?filingID=3453-08-10&CIK=3453
The Hawaii Legislature, in 2005, passed Important Agricultural Lands (“IAL”) legislation to protect
agricultural lands, promote diversified agriculture, increase the State’s agricultural self-sufficiency, and
assure the availability of agriculturally suitable lands. The Legislature is currently considering a package
of incentives whose passage is necessary to trigger the IAL system of land designation. A&B continues
to work with the Legislature, as well as other farmers and landowners, to ensure a satisfactory package of
agricultural incentives is provided for IAL. [Emphasis Supplied]
ALEXANDER & BALDWIN, INC. [Matson] Form 10-K Annual Report Filed February 26, 2007
http://investor.matson.com/secfiling.cfm?filingID=3453-07-9&CIK=3453
The Hawaii Legislature, in 2005, passed Important Agricultural Lands ("IAL") legislation to protect
agricultural lands, promote diversified agriculture, increase the State's agricultural self-sufficiency, and
assure the availability of agriculturally suitable lands, and is currently considering a package of incentives
whose passage is necessary to trigger the IAL system of land designation. Under the 2005 legislation,
either the landowners or the counties may propose lands to be designated as IAL, subject to the
approval of the SLUC. If a majority of a landowner's landholdings (excluding conservation lands) are
designated as IAL pursuant to the voluntary landowner petition process, no additional lands may be so
designated by the SLUC, unless otherwise proposed by the landowner. Lands designated IAL shall not
be reclassified by the State or rezoned by the counties unless such lands meet the standards and criteria
established by the Legislature, and such reclassification or rezoning is approved by the State or
applicable county, respectively, by a two-thirds vote. Lands designated IAL shall also be eligible for
certain incentives, intended to support agricultural activity on these lands. The IAL incentives,
which are currently being considered by the Legislature, may include tax credits for agricultural
investments and regulatory relief. The IAL system will not take effect until the Legislature has
established the agricultural incentives to be provided to IAL. A&B continues to work with the
Legislature, as well as other farmers and landowners, to ensure a satisfactory package of agricultural
incentives is provided for IAL. [Emphasis Supplied]
_______________________
ALEXANDER & BALDWIN (A&B)
HAWAIIAN COMMERCIAL & SUGAR COMPANY (HC&S)
AGRICULTURAL RESEARCH – DIVERSIFED AGRICULTURE
HAWAII AGRICULTURE RESEARCH CENTER
http://www.harc-hspa.com/
RICK VOLNER, JR. President, Hawaiian Commercial & Sugar Company, General Manager
CHRIS BENJAMIN President/CEO of Alexander & Baldwin, Inc.
Source: Hawaii Agriculture Research Center. http://www.harc-hspa.com/board-of-directors.html
Web Accessed: December 18, 2016
7. STATE OF HAWAII DEPARTMENT OF AGRICULTURE
AGRICULTURE DEVELOPMENT CORPORATION
http://hdoa.hawaii.gov/chair/adc10/
The Agribusiness Development Corporation was established in 1994 (Act 264, Session Laws of Hawaii 1994,
and codified in chapter 163D, Hawaii Revised Statutes) to facilitate and provide direction for the
transition of Hawaii’s agriculture industry from a dominance of sugar and pineapple to one
composed of a diversity of different crops.
The ADC is headed by a board of directors consisting of eight private-sector members appointed by the
governor and three ex-officio members to include Chairperson of HDOA [Hawaii Department of
Agriculture, Chairperson of the Department of Land and Natural Resources (DLNR) and Director of
the Department of Business, Economic Development and Tourism (DBEDT).
Goal 1: Transition former plantation land and water systems for diversified agriculture.
Goal 2: Initiate development of facilities and provide support as necessary for successful
diversified agriculture.
Goal 3: Provide solutions to certain bottleneck issues facing the agriculture industry.
[Emphasis and Clarification Supplied]
_______________________
In 2015, sugar remained the largest crop on the state with 38,800 acres and those
acres will be fallowed in 2017 following the planned closing of HC&S plantation on
Maui. Diversified crops are grown on 16,900 acres statewide. This category
includes a wide variety of leaf, root and melon crops, most of which is consumed
locally. More than half of all diversified crops in the state are grown on Oahu and
most of that in the central plain between Ewa and Haleiwa. In 1980, just 7,490
acres of diversified crops were grown statewide, indicating a substantial increase in
local food production and a shift in the center of that production to Oahu where
the market is the largest and transportations costs are the lowest.
Source: Hawaii Department of Agriculture (HDOA). Statewide Agricultural Land
Use Baseline 2015. February 17, 2016. Web Accessed: December 19, 2016
http://hdoa.hawaii.gov/blog/main/nrsalus2015/
MAUI’S AGRICULTURAL LANDSCAPE
Comparison: 1980 and 2015
A&B Sugar Area - CONSISTENT
DIVERSIFIED AGRICULTURE AREAS
A&B Micro-Development within Sugar Area
ALL OTHERS Downsized and/or Eliminated