[Congressional Record (Bound Edition), Volume 151 (2005), Part 13]
[Extensions of Remarks]
[Pages 18235-18236]
[From the U.S. Government Publishing Office, www.gpo.gov]




INTRODUCTION OF A BILL TO EXEMPT HAWAII FROM THE ADJUSTED GROSS INCOME 
          LIMITATION ON PARTICIPATION IN CONSERVATION PROGRAMS

                                 ______
                                 

                              HON. ED CASE

                               of hawaii

                    in the house of representatives

                        Wednesday, July 27, 2005

  Mr. CASE. Mr. Speaker, I rise today to introduce a bill that exempts 
my State of Hawaii from the adjusted gross income limitation on 
participation in Farm Bill conservation programs. These programs assist 
and incentivize producers and landowners to preserve and conserve the 
dwindling agricultural lands of our country.
  These invaluable programs include the following:
  Conservation Reserve Program (CRP), which provides annual rental 
payments to replace crops on highly erodible and environmentally 
sensitive lands with long-term plantings that protect the soil. Hawaii 
is attempting to access this program, the largest of all the 
conservation programs, by developing a Conservation Reserve Enhancement 
Program, which is awaiting approval by the USDA.
  Conservation Security Program (CSP), which provides financial and 
technical assistance for improvements in conserving environmental 
resources on farmland that meets certain soil and water quality 
criteria standards.
  Environmental Quality Incentives Program (EQIP), which provides cost 
share payments to producers and landowners to plan and install 
structural, vegetative, and land management practices on eligible lands 
to alleviate conservation problems, with 60 percent of funds allocated 
to livestock producers.
  Farmland and Ranchland Protection Program (FRPP), which assists state 
and local governments to acquire easements to limit conversion of 
agricultural lands to nonagricultural uses.
  Grassland Reserve Program (GRP), which retires acres from grazing 
under arrangements ranging from 10-year agreements to permanent 
easements and permits the delegation of easements to certain private 
organizations and state agencies.
  Wetlands Reserve Program (WRP), which uses permanent and temporary 
easements and long-term agreements to protect farmed wetlands.
  Wildlife Habitat Incentives Program (WHIP), which provides cost 
sharing and technical assistance for conservation practices that 
primarily benefit wildlife.
  These programs have become increasingly important in Hawaii, where 
funding has risen from around $4.9 million in 2003 to $14.2 million in 
2005. Unfortunately, especially in the case of the Conservation Reserve 
Program, Hawaii's ability to access these programs has been severely 
limited by the application of the adjusted gross income limitation 
(AGI) placed on the programs by the 2002 Farm Bill to Hawaii's unique 
conditions. As a result, many of the lands that would deliver the 
highest environmental benefits are excluded because of this provision.
  In Hawaii's case, there are compelling reasons why an exemption from 
the AGI limitation is not only fair but necessary for these programs to 
achieve their desired goals. By way of background, during the writing 
of the 2002 Farm Bill some groups called attention to the fact that 
some very wealthy individuals were receiving payments under Farm Bill 
conservation programs. As a result, a limitation was put in place 
making individuals and corporations with annual incomes of $2.5 million 
or more ineligible for participation in Farm Bill conservation programs 
unless 75 percent of that income comes from farming, ranching, or 
forestry.
  This adjusted gross income (AGI) provision seriously disadvantages 
Hawaii because the major portion of our agricultural lands are owned by 
families or corporations with diversified holdings. In many cases, 
these entities have remained engaged in ranching or farming, despite 
low profit margins, due to a connection to long traditions in ranching, 
farming, or other activities.
  Large agricultural landholdings in Hawaii typically date back more 
than 100 years and follow the traditional Hawaiian land division of 
ahupua'a, where land parcels extend from the mountain to the sea, based 
on the ancient Hawaiian recognition of the interconnectedness of these 
environments. As a result, we have properties where the upper lands 
might be used for ranching, the middle lands for crops or residential 
development, and the lower, oceanside lands for hotels and business 
developments. Therefore, we have ranches where income from ranching is 
supplemented by a shopping center and restaurant. A portion of the 
ranch land may, and in many cases in Hawaii does, harbor endangered 
plant and animal species. Taking these marginal lands

[[Page 18236]]

out of cattle production and assisting with reforestation of native 
species can have a tremendous impact on the prospects of survival for 
Hawaii's endangered species. But regrettably, the AGI provision has 
meant that federal funds to assist in these efforts cannot be used to 
provide what could be enormous environmental benefits. Thus, as a 
result of our particular history, we in Hawaii are denied access to a 
very valuable tool to encourage conservation on many of these marginal 
agricultural lands.
  In addition, as one of the most isolated land masses in the world, 
Hawaii has a wealth of unique animal and plant species; regrettably we 
are also the endangered species capital of the United States. Our 255 
listed plant species represent approximately one-fourth of the total 
number of endangered species in the United States. They also comprise 
more than one-fifth of the entire Hawaiian flora. An Hawaii's endemic 
birds make up one-third of the list of endangered bird species. Our 
unique and beautiful endangered birds would benefit greatly from 
restoration and protection of native forests using funding from the 
Farm Bill programs. These programs would also help to control runoff 
into streams and coral reefs providing habitat for more unique endemic 
species.
  Finally, Hawaii should receive special consideration out of simple 
fairness. Hawaii, especially my Second district, is a rural 
agricultural state. Despite this, in part because of the AGI 
limitation, Hawaii comes in dead last of all the states in terms of 
federal assistance received as a percentage of agricultural production. 
In fact, we receive less than 1 cent per dollar of production value 
compared with 17 cents for North Dakota and an average of 6 cents 
nationwide.
  As a prime example, Hawaii has only ever had 21 acres enrolled in the 
Conservation Reserve Program, which covers some 39.2 million acres 
nationwide. The Conservation Reserve Program (CRP) was enacted in 1985 
and has grown to become the biggest USDA conservation program, costing 
just under $2 billion annually in recent years. Under this program, 
producers bid to retire highly erodible or environmentally sensitive 
land from production during national signup periods. The Farm Service 
Agency ranks bids based on their estimated environmental benefits and 
cost to the government. (I have no doubt that Hawaii would deliver very 
high environmental benefits, especially when one considers the impact 
on coral reefs and endangered species.) Successful bidders receive 
annual rental payments, as well as cost sharing and technical 
assistance, to install conservation practices. Almost all the enrolled 
land is retired for 10 years. Enrollment is limited to 25 percent of 
the crop land in a county.
  In July 2004, Hawaii's Governor Lingle submitted the ``Hawaii 
Conservation Reserve Enhancement and Coordinated Conservation Plan.'' 
The proposal is currently under review by the Farm Service Agency.
  If approved, the plan will restore 30,000 acres of native forest--
10,000 acres in riparian buffers along streams and 20,000 acres in 
large blocks in groundwater recharge and sediment source areas. The 
plan covers the islands of Maui, Hawaii, Molokai, Lanai, Kauai, and 
Oahu. The principal goals of the project are to improve water quality 
in streams, reduce flow of polluted runoff to near shore waters and 
coral reefs, and restore terrestrial and aquatic wildlife habitat.
  Unfortunately, the proposal has been stalled because of concerns that 
not enough suitable land will be eligible under AGI limitations.
  Hawaii's agriculture has many unique characteristics due to our 
isolated location, land use patterns dating from the days of the 
Kingdom of Hawaii, tropical climate, and year-round growing season. Few 
USDA programs address our special needs, and we do not benefit from any 
of the general commodities programs. Hawaii has traditionally received 
relatively little assistance from the Farm Bill conservation programs, 
although they seek to address problems that are central to our islands: 
protecting water quality, preserving endangered species, and 
controlling invasive pests.
  An AGI exemption for Hawaii would remove a barrier that effectively 
eliminates roughly 80 percent of Hawaii's agricultural land from 
participation in conservation programs. I ask my colleagues for their 
support for this exemption to help to protect Hawaii's special 
environment and vulnerable endangered wildlife both on the land and in 
our nearshore waters and to provide Hawaii with equal and fail access 
to the great benefits of these programs.

                          ____________________