02/14/2024 01:00 PM House RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| HB296 | |
| Presentation(s): Alaska Food Strategy Task Force | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 296 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
February 14, 2024
1:28 p.m.
MEMBERS PRESENT
Representative Tom McKay, Chair
Representative George Rauscher, Vice Chair
Representative Thomas Baker
Representative Kevin McCabe
Representative Dan Saddler
Representative Jennie Armstrong
Representative Donna Mears
Representative Maxine Dibert
MEMBERS ABSENT
Representative Stanley Wright
OTHER LEGISLATORS PRESENT
Senator Shelley Hughes
Representative Andrew Gray
COMMITTEE CALENDAR
HOUSE BILL NO. 296
"An Act relating to the powers of the board of agriculture and
conservation; relating to loans and limitations under the Alaska
Agricultural Loan Act; relating to federal crop insurance
contributions; relating to municipal and state procurement
preferences for agricultural products harvested in the state and
fisheries products harvested or processed in the state; and
providing for an effective date."
- HEARD & HELD
PRESENTATION(S): ALASKA FOOD STRATEGY TASK FORCE
- HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 296
SHORT TITLE: AGRICULTURAL PRODUCTS/LOANS/SALES
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/26/24 (H) READ THE FIRST TIME - REFERRALS
01/26/24 (H) RES
02/12/24 (H) RES AT 1:00 PM BARNES 124
02/12/24 (H) Heard & Held
02/12/24 (H) MINUTE(RES)
02/14/24 (H) RES AT 1:00 PM BARNES 124
WITNESS REGISTER
SCOTT MUGRAGE, President
Alaska Farm Bureau
Owner
Mugrage Hay & Cattle
Delta Junction, Alaska
POSITION STATEMENT: Testified during the hearing on HB 296 to
recommended changes needed.
ROBBI MIXON, Executive Director
Alaska Food Policy Council
Homer, Alaska
POSITION STATEMENT: Testified in support of HB 296.
SHANNON CARROLL, Director
Alaska Public Affairs and Fisheries Development
Trident Seafoods
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 296.
BEN ADAMS, representing self
Soldotna, Alaska
POSITION STATEMENT: Testified in support of HB 296.
NICK MANGINI, Kelp Farmer
Kodiak Island Sustainable Seaweed
Kodiak, Alaska
POSITION STATEMENT: Testified in support of HB 296.
SENATOR SHELLEY HUGHES
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation, titled
"Year One Report Review Recommendations From Research to
Implementation."
MIKE JONES, PhD, Assistant Professor
Institute of Social and Economic Research
University of Alaska Anchorage
Member
Alaska Food Strategy Task Force
Anchorage, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation, titled
"Year One Report Review Recommendations From Research to
Implementation."
JODIE ANDERSON, Project Manager and Task Force Liaison
Alaska Food Security & Independence Task Force
Director
Institute of Agriculture, Natural Resources, and Extension
University of Alaska Fairbanks
Fairbanks, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation, titled
"Year One Report Review Recommendations From Research to
Implementation."
AMY SEITZ, Executive Director
Alaska Farm Bureau
Soldotna, Alaska
POSITION STATEMENT: Provided invited testimony during the
Alaska Food Security presentation.
SCOTT MUGRAGE, President
Alaska Farm Bureau
Owner
Mugrage Hay & Cattle
Delta Junction, Alaska
POSITION STATEMENT: Provided invited testimony during the
Alaska Food Security presentation.
ASPEN O'CONNOR, Farmer
Crooked Fence Farm
Butte, Alaska
POSITION STATEMENT: Provided invited testimony during the
Alaska Food Security presentation.
COLIN PEACOCK, Co-director
Regional Food Business Center
Alaska Food Policy Council
Salt and Soil Marketplace
Juneau, Alaska
POSITION STATEMENT: Provided invited testimony during the
Alaska Food Security presentation.
ACTION NARRATIVE
1:28:42 PM
CHAIR MCKAY called the House Resources Standing Committee
meeting to order at 1:28 p.m. Representatives Saddler, Baker,
Rauscher, McCabe, Dibert, Armstrong, Mears, and McKay were
present at the call to order.
HB 296-AGRICULTURAL PRODUCTS/LOANS/SALES
1:30:03 PM
CHAIR MCKAY announced that the first order of business would be
HOUSE BILL NO. 296, "An Act relating to the powers of the board
of agriculture and conservation; relating to loans and
limitations under the Alaska Agricultural Loan Act; relating to
federal crop insurance contributions; relating to municipal and
state procurement preferences for agricultural products
harvested in the state and fisheries products harvested or
processed in the state; and providing for an effective date."
1:30:19 PM
CHAIR MCKAY opened public testimony on HB 296.
1:30:34 PM
SCOTT MUGRAGE, President, Alaska Farm Bureau, Owner, Mugrage Hay
& Cattle, offered his support for HB 296 but expressed concern
about the crop insurance portion of the bill, which focused
primarily on the grain production in Alaska. He alluded to an
expansion of federal crop insurance for specialty crops that fit
the state more broadly and said he wished to see a segway of
this being included in the bill. He noted his other concern was
with the product preference portion of the bill and opined it
still needed more work. He further noted that the price of
Alaska-grown products is problematic. There needed to be a
connection between wholesalers and farmers, he advised, and
negotiations need to transpire. He pointed out that the pilot
project was for five years and expressed that he thought the
timeframe was too short.
1:36:24 PM
REPRESENTATIVE RAUSCHER referenced the five-year time frame and
asked Mr. Mugrage if he had a suggestion.
MR. MUGRAGE recommended a seven- to ten-year range.
1:36:54 PM
REPRESENTATIVE SADDLER asked Mr. Mugrage for his opinion on the
percentage of the product preference having a 7 percent cap.
MR. MUGRAGE opined that there was actually 15 percent for
individual crops. He stated he was in agreement with having a
cap.
1:37:59 PM
CHAIR MCKAY acknowledged the hard work of those farming Alaska
land.
1:39:07 PM
The committee took a brief at-ease at 1:39 p.m.
1:39:15 PM
ROBBI MIXON, Executive Director, Alaska Food Policy Council,
testified in support of HB 296 but offered recommendations to
make it stronger so it could work better for the state's
farmers. Areas of concern were loan eligibility, crop
insurance, and the Division of Agriculture to explore ways to
engage the Board of Agriculture and Conservation as necessary to
increase participation in decision-making. She recommended
delaying procurement until July 2025 and expressed her support
for the committee's efforts.
1:44:11 PM
SHANNON CARROLL, Director, Alaska Public Affairs and Fisheries
Development, Trident Seafoods, testified in support of HB 296
and expressed that the company was aligned with the bill's
intent. He noted 2023 was a challenging year for the fishing
industry and he appreciated the governor introducing the bill.
He pointed out how the proposed legislation could improve many
areas in the fishing industry and communities.
1:45:39 PM
REPRESENTATIVE MEARS referred to testimony about delayed
implementation of the procurement section, and asked Mr. Carroll
whether it would affect him.
MR. CARROLL replied that he did not have any recommendations for
changes in the bill.
1:47:00 PM
BEN ADAMS, representing self, related that he was a farmer and a
rancher, and for the last 25 years, a licensed attorney. He
noted his disbelief at obstacles placed on him as a farmer. He
said he was supportive of the bill but pointed out Sections 17
and 18 expressed concern regarding a confusing conflict related
to procurement. He said it may be clear to those who drafted
it, but he was unsure what it meant. He stressed that Section
18 mentioned a "preference" and he wished for clarification on
the meaning. He emphasized the expense of caring for his
cattle, especially during the winter. He said he was thankful
that the legislature was taking food security more seriously.
1:50:18 PM
REPRESENTATIVE SADDLER ventured to add clarity to Mr. Adams
concerns. He said Section 17 takes effect in 2024, and Section
18 would take effect in 2029, and no cap would be there for five
years; however, he could not speak for the [bill] sponsor.
1:51:04 PM
REPRESENTATIVE MEARS clarified that the language reverted back
to the original HB 296.
1:52:07 PM
NICK MANGINI, Kelp Farmer, Kodiak Island Sustainable Seaweed,
offered his support for HB 296 because mariculture in general
slows ocean acidification, filtration, and warming of the
waters. He noted the ways the bill could help in several areas,
including university studies, bio-stimulants, and the dependence
on kelp. He encouraged the passing of HB 296.
1:53:55 PM
CHAIR MCKAY, after ascertaining no one else wished to testify,
closed public testimony on HB 296.
CHAIR MCKAY announced that HB 296 was held over.
^PRESENTATION(S): ALASKA FOOD STRATEGY TASK FORCE
PRESENTATION(S): ALASKA FOOD STRATEGY TASK FORCE
1:54:28 PM
CHAIR MCKAY announced that the final order of business would be
the Alaska Food Strategy Task Force presentation.
1:54:54 PM
SENATOR SHELLEY HUGHES, Alaska State Legislature, introduced a
PowerPoint presentation, titled "Year One Report Review
Recommendations From Research to Implementation" [hard copy
included in the committee packet].
1:56:31 PM
MIKE JONES, PhD, Assistant Professor, Institute of Social and
Economic Research, University of Alaska Anchorage; Member,
Alaska Food Strategy Task Force, Introduced strategies and
recommendations from the Alaska Food Security Task Force.
1:57:12 PM
JODIE ANDERSON, Project Manager and Task Force Liaison, Alaska
Food Security & Independence Task Force; Director, Institute of
Agriculture, Natural Resources, and Extension, University of
Alaska Fairbanks, provided some background information on the
formation of the Alaska Food Strategy Task Force.
1:58:55 PM
DR. JONES provided an overview of the Alaska Food Strategy Task
Force Report and mentioned that the task force is guided by a
diverse executive board and has members from across the state
including university faculty, commissioners, deputy
commissioners, farmers, rural grocers, and other food leaders.
2:00:43 PM
SENATOR HUGHES mentioned that the legislative task force was
created in statute with no funding. She noted the involvement
of individuals has been voluntary.
2:01:18 PM
DR. JONES noted the top five priorities of the agriculture
committee. He mentioned new data from the National Agriculture
Statistics Service from the U.S. Department of Agriculture
(USDA) that reported that there are 1,172 farmers in Alaska with
annual sales of agricultural products over $1,000. Alaska is
one of the only states in the country where the number of
farmers is increasing. There is difficulty among farmers
accessing markets within the state. Support for farmers can be
sought through an upgrade of the Division of Agriculture to a
Department of Agriculture, expanding land options for
agriculture producers, reducing tax burdens, and increasing
critical access to capital for farmers. To boost marketing
support, the task force would like to establish an Alaska Grown
Marketing Institute to build on the successful components of the
Alaska Seafood Marketing Institute. By adding a technical
assistance officer position, dedicated support can be put forth
to funneling federal support dollars. The committee recommends
expanding the Agriculture Revolving Loan fund. The committee
wants to work with grocery stores to source seasonal produce in
new ways.
2:05:41 PM
DR. JONES made note of the complicated supply chains within
Alaska. He highlighted critical maritime and aviation
infrastructure. In 2022 there were 360,000 servings of fresh
fruits and vegetables that were rotten upon arrival to stores.
About 95 percent of the food purchased in Alaska comes from
outside the state. He encouraged approaching food security
using a systems-based approach
2:09:15 PM
SENATOR HUGHES made note of the 18 recommendations that were put
forth by the task force that are within the domain of the
committee. The current Alaska Meat Inspection Service is not at
capacity due to a lack of adequate workforce and funding. The
legislature can fund logistics research. She discussed bills
that have been proposed that could benefit Alaska's food
security including expanding tax exemptions for farmers,
allowing the purchase of meat shares, expanding the cottage food
industry, allowing non-agricultural uses to support agriculture
development on agricultural land and Expanding Agriculture
Revolving Loan Fund.
2:16:37 PM
CHAIR MCKAY recognized Representative Gray was present in the
gallery.
2:16:41 PM
SENATOR HUGHES said that 7 of the 18 task force recommendations
have yet to be put forth in proposed legislation, which may be
included in amendments or new bills. She emphasized the
importance of robust agriculture research for farmers in the
state.
2:19:32 PM
MS. ANDERSON reported that in response to recommendations from
the food security task force, research advancements are underway
for a livestock nutrition research program at the University of
Alaska Fairbanks and through capital funding. This research
will help to develop the necessary livestock feed in Alaska to
reduce the reliance on expensive imported feed.
2:21:55 PM
SENATOR HUGHES made note of the viability of camelina as a
commercial crop in Alaska. Capital infusion of funds is needed
to decrease rural hub food loss through climate-controlled
storage. Extending the rail system to Pt. MacKenzie would help
to move food further throughout the state. There is a
recommendation from the task force to raise the workers' comp
requirement for agricultural producers. Another recommendation
is to allow hemp in statute as feed for livestock. To show
support to farmers, farm vehicle registration could be
established at a lower rate than a commercial vehicle
registration. She explained that there is tremendous public
support for food security.
2:26:14 PM
MS. ANDERSON, in response to Representative McCabe, said that a
resource for an inexpensive, freight-moved, soil amendment like
potash is needed to benefit the agricultural industry. She
explained that the Plant Materials Center at the Division of
Agriculture could study hemp for its insulation qualities. The
university system could collaborate with the Division of
Agriculture to study hemp as a nutrition source for livestock.
2:29:24 PM
SENATOR HUGHES clarified that federal regulation makes it
impossible for the university to study hemp until the 2024 Farm
Bill is passed at the federal level. The Division of
Agriculture reported that because of uncertainty at the federal
level, there has been hesitation to plant hemp in Alaska.
2:35:50 PM
DR. JONES affirmed that the task force has had conversations
with federal agencies about food supply chains and aviation
infrastructure friction. Broadband is a major issue for food
security and could be solved with federal dollars. There are
nuances about where funding can come from and who can receive
funding for cold storage.
2:38:55 PM
REPRESENTATIVE MCCABE urged the task force to speak with the
Federal Aviation Administration about updating communication
technology and weather stations.
2:39:56 PM
SENATOR HUGHES referred to the white paper [included in the
committee packet], which provides the recommendations that the
Office of the State Veterinarian be transferred from the
Department of Environmental Conservation to the Division of
Agriculture. The task force report was not designed to collect
dust and provides action items to keep up momentum to tackle the
food security crisis in Alaska.
2:41:47 PM
DR. JONES, in response to Representative Baker, explained issues
in Kotzebue, Alaska, including difficulties collaborating with
the postal service to inspect by-passed mail.
2:46:32 PM
AMY SEITZ, Executive Director, Alaska Farm Bureau, thanked the
committee for its interest and attention in food production
during food security week. She introduced representatives from
Alaska's food system.
2:47:58 PM
SCOTT MUGRAGE, President, Alaska Farm Bureau; Owner, Mugrage Hay
& Cattle, mentioned that Alaska has lots of untapped potential
for livestock opportunities. He encouraged the committee to "do
it right the first time" and discourage foreign entities and
large corporations from profiting from farm operations in
Alaska. In response to Representative McCabe, said that cattle
and processed beef could be moved across the state using a
variety of transportation options. Grass fed Alaska beef could
be big enough for exports if automated slaughter facilities and
transportation infrastructure were available. He noted the
bottleneck due to labor. There is export potential to Asian
markets.
2:53:04 PM
ASPEN O'CONNOR, Farmer, Crooked Fence Farm, described her
family's farm outside of Palmer and emphasized the importance of
educating the youth about farming. She is 12 years old and
supports creating a Department of Agriculture that would house
the Future Farmers of America. This would ensure that students
remain connected to food and learn skills to build future farms
in Alaska. She described how critical food security is for
Alaska's future.
2:56:58 PM
COLIN PEACOCK, Co-director, Regional Food Business Center,
Alaska Food Policy Council, Salt and Soil Marketplace, discussed
challenges faced by farmers who attempt to enter their products
into grocery stores. He suggested a mandate or request from the
governor to potentially increase local foods on grocery shelves.
He recommended funding agricultural research and creating a
Department of Agriculture. Marketing for agriculture in Alaska
is essential to grow the business of local farmers.
2:59:21 PM
CHAIR MCKAY provided closing remarks.
2:59:47 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 3:00 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| AFSTF_Report_8-1-2023 FINAL.pdf |
HRES 2/14/2024 1:00:00 PM |
|
| DoAg White Paper - AFSTF v2024-02 DRAFT.pdf |
HRES 2/14/2024 1:00:00 PM |
|
| Return on Investment_02-09b.pdf |
HRES 2/14/2024 1:00:00 PM |
|
| AFSTF-Feb.14.2024-ResourcesCommittee Presentation.pdf |
HRES 2/14/2024 1:00:00 PM |