Legislature(2023 - 2024)BUTROVICH 205
02/14/2024 03:30 PM Senate RESOURCES
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| SB118 | |
| SSCR1 | |
| SSCR3 | |
| SSCR9 | |
| SSCR11 | |
| Overview: Alaska Food Strategy Task Force's Year One Report Review Recommendations | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SSCR 1 | TELECONFERENCED | |
| *+ | SSCR 3 | TELECONFERENCED | |
| *+ | SSCR 9 | TELECONFERENCED | |
| *+ | SSCR11 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | SB 118 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
February 14, 2024
3:30 p.m.
MEMBERS PRESENT
Senator Click Bishop, Co-Chair
Senator Cathy Giessel, Co-Chair
Senator Bill Wielechowski, Vice Chair
Senator Scott Kawasaki
Senator James Kaufman
Senator Forrest Dunbar
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Senator Kelly Merrick
COMMITTEE CALENDAR
SENATE BILL NO. 118
"An Act relating to critical and essential minerals and the
global energy transition."
- MOVED SB 118 OUT OF COMMITTEE
SPECIAL SENATE CONCURRENT RESOLUTION (SSRC) NO. 1
Disapproving EO 124.
- MOVED SSCR 1 OUT OF COMMITTEE
SPECIAL SENATE CONCURRENT RESOLUTION (SSRC) NO. 3
Disapproving EO 126.
- MOVED SSCR 3 OUT OF COMMITTEE
SPECIAL SENATE CONCURRENT RESOLUTION (SSRC) NO. 9
Disapproving EO 132.
- MOVED SSCR 9 OUT OF COMMITTEE
SPECIAL SENATE CONCURRENT RESOLUTION (SSRC) NO. 11
Disapproving EO 134.
- MOVED SSCR 9 OUT OF COMMITTEE
PRESENTATION: ALASKA FOOD STRATEGY TASK FORCE'S YEAR ONE REPORT
REVIEW RECOMMENDATIONS
- HEARD
PREVIOUS COMMITTEE ACTION
BILL: SB 118
SHORT TITLE: CRITICAL NATURAL RESOURCES; REPORTS
SPONSOR(s): SENATOR(s) MERRICK
03/29/23 (S) READ THE FIRST TIME - REFERRALS
03/29/23 (S) RES
02/02/24 (S) RES AT 3:30 PM BUTROVICH 205
02/02/24 (S) Heard & Held
02/02/24 (S) MINUTE(RES)
02/12/24 (S) RES AT 3:30 PM BUTROVICH 205
02/12/24 (S) Heard & Held
02/12/24 (S) MINUTE(RES)
02/14/24 (S) RES AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
SENATOR SHELLY HUGHES, District M
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Co-presented the Year One Report Review
Recommendations.
MICHAEL JONES, Research Assistant Professor of Economics
Institute of Social and Economic Research (ISER)
University of Alaska Anchorage (UAA)
Anchorage, Alaska
POSITION STATEMENT: Co-presented the Year One Report Review
Recommendations.
JODIE ANDERSON, Director
Institute of Agriculture, Natural Resources,
and Extension (IANRE)
University of Alaska Fairbanks (UAF)
Fairbanks, Alaska
POSITION STATEMENT: Provided information on food security.
AMY SEITZ, Executive Director
Alaska Farm Bureau
Soldotna, Alaska
POSITION STATEMENT: Briefly spoke to Alaska's food system.
SCOTT MUGRAGE, President
Alaska Farm Bureau
Ridgeway, Alaska
POSITION STATEMENT: Provided information about the farming
industry.
ASPEN O'CONNOR, Youth Farmer
Cricket Fence Farm
Palmer, Alaska
POSITION STATEMENT: Spoke to the future generation of farmers.
NICK MANGINI, Kelp Farmer
Kodiak Island Sustainable Seaweed
Kodiak, Alaska
POSITION STATEMENT: Provided information on the mariculture
industry.
COLIN PEACOCK, Co-Director
Alaska Food Policy Council Regional Food Business Center
Homer, Alaska
POSITION STATEMENT: Briefly spoke to food security and
marketing.
ACTION NARRATIVE
3:30:29 PM
CO-CHAIR CATRHY GIESSEL called the Senate Resources Standing
Committee meeting to order at 3:30 p.m. Present at the call to
order were Senators Wielechowski, Kawasaki, Kaufman, Dunbar, Co-
Chair Bishop, and Co-Chair Giessel.
SB 118-CRITICAL NATURAL RESOURCES; REPORTS
3:31:25 PM
CO-CHAIR GIESSEL announced the consideration of SENATE BILL NO.
118 "An Act relating to critical and essential minerals and the
global energy transition."
3:31:43 PM
CO-CHAIR GIESSEL solicited a motion.
3:31:48 PM
CO-CHAIR BISHOP moved to report SB 118, work order 33-LS0076\A,
from committee with individual recommendations and attached
fiscal note(s).
3:32:05 PM
CO-CHAIR GIESSEL found no objection and SB 118, work order 33-
LS006\A, was reported from the Senate Resources Standing
Committee.
SSRC 1 DISAPPROVE EO 124
3:32:22 PM
CO-CHAIR GIESSEL reminded members that the governor has the
authority through the Alaska Constitution to make changes to the
organization and some functions in the executive branch unless
the legislature disapproves those changes through a resolution.
3:33:09 PM
CO-CHAIR GIESSEL announced the consideration of SENATE SPECIAL
CONCURRENT RESOLUTION NO. 1 Disapproving Executive Order No.
124, which would prohibit by regulation live capture,
possession, transport, or release, of native/exotic game or
eggs.
3:33:33 PM
CO-CHAIR GIESSEL solicited a motion.
3:33:40 PM
CO-CHAIR BISHOP moved EO 124 be reported from committee, and
SSCR 1, work order 33-LS1331\A, with individual recommendations
and attached fiscal note(s) be reported from committee for
further consideration in the Senate.
3:34:22 PM
CO-CHAIR GIESSEL found no objection and EO 124 and SSCR 1 were
reported from the Senate Resources Standing Committee. For the
record this report does not reflect an intent by any of the
members to vote for or against a special concurrent resolution
disapproving this Executive Order in joint session.
SSCR 3-DISAPPROVE EO 126
3:34:55 PM
CO-CHAIR GIESSEL announced the consideration of SENATE SPECIAL
CONCURRENT RESOLUTION NO. 3 Disapproving Executive Order No.
126, which would eliminate the Wood-Tikchik State Park Council.
3:35:11 PM
CO-CHAIR GIESSEL solicited a motion.
3:35:15 PM
CO-CHAIR BISHOP moved EO 126 be reported from committee, and
SSCR 3, work order 33-LS1337\A, with individual recommendations
and attached fiscal note(s) be reported from committee for
further consideration in the Senate.
3:35:50 PM
CO-CHAIR GIESSEL found no objection and EO 126 and SSCR 3, work
order 33-LS1337\A, were reported from the Senate Resources
Standing Committee. For the record this report does not reflect
an intent by any of the members to vote for or against a special
concurrent resolution disapproving this Executive Order in joint
session.
SSCR 9-DISAPPROVE EO 132
3:36:18 PM
CO-CHAIR GIESSEL announced the consideration of SENATE SPECIAL
CONCURRENT RESOLUTION NO. 9 Disapproving Executive Order No.
132, which would eliminate the Alaska Chilkat Preserve Advisory
Council.
3:36:37 PM
CO-CHAIR GIESSEL solicited a motion.
3:36:42 PM
CO-CHAIR BISHOP moved EO 132 be reported from committee, and
SSCR 9, work order 33-LS1339\A, with individual recommendations
and attached fiscal note(s) be reported from committee for
further consideration in the Senate.
3:37:12 PM
CO-CHAIR GIESSEL found no objection and EO 132 and SSCR 9, work
order 33-LS1339\A, were reported from the Senate Resources
Standing Committee.
SSCR 11-DISAPPROVE EO 134
3:37:39 PM
CO-CHAIR GIESSEL announced the consideration of SENATE SPECIAL
CONCURRENT RESOLUTION NO. 11 Disapproving Executive Order No.
134, which would eliminate the Recreational Rivers Advisory
Board.
3:37:56 PM
CO-CHAIR GIESSEL solicited a motion.
3:37:58 PM
CO-CHAIR BISHOP moved EO 134 be reported from committee, and
SSCR 11, work order 33-LS1341\A, with individual recommendations
and attached fiscal note(s) be reported from committee for
further consideration in the Senate.
3:38:27 PM
At ease
3:38:39 PM
CO-CHAIR GIESSEL reconvened the meeting.
3:38:51 PM
CO-CHAIR GIESSEL found no objection and EO 134 and SSCR 11, work
order 33-LS1341\A, were reported from the Senate Resources
Standing Committee. For the record this report does not reflect
an intent by any of the members to vote for or against a special
concurrent resolution disapproving this Executive Order in joint
session.
3:39:18 PM
At ease
^Overview: Alaska Food Strategy Task Force's Year One Report
Review Recommendations
OVERVIEW: ALASKA FOOD STRATEGY TASK FORCE'S YEAR ONE REPORT
REVIEW RECOMMENDATIONS
3:46:20 PM
CO-CHAIR GIESSEL reconvened the meeting and announced the
consideration of an overview of Alaska Food Strategy Task
Force's Year One Report Review Recommendations.
3:47:18 PM
SENATOR SHELLY HUGHES, District M, Alaska State Legislature,
Juneau, Alaska, introduced herself and others. She explained how
they would deliver the presentation. The committee will discuss
unique issues and challenges that Alaska faces in having a
stable food supply.
3:48:05 PM
MICHAEL JONES, Research Assistant Professor of Economics,
Institute of Social and Economic Research (ISER), University of
Alaska, Anchorage, Alaska, moved to slide 2 and provided a brief
outline of the report. He said he was selected to represent and
speak on behalf of the 36-member Food Strategy Task Force.
3:49:00 PM
JODIE ANDERSON, Director, Institute of Agriculture, Natural
Resources, and Extension, University of Alaska Fairbanks (UAF),
provided information on food security. She noted that the Alaska
Food Security and Independence Task Force existed prior to the
current task force. UAF was tasked with developing the report
and worked alongside the Alaska Food Policy Council and experts
across the system. Recommendations from the original report are
the foundation for how members move forward in the legislative
task force.
3:50:37 PM
MR. JONES moved to slide 5 and listed the four main components
of the legislative intent:
[Original punctuation provided.]
Task Force Report Overview
Legislative Intent (2023-2025)
1) Improve food security statewide
2) develop comprehensive food strategy
3) strengthen diverse food systems
4) grow local food economies across state
3:50:57 PM
MR. JONES moved to slide 6 and shared task force goals that are
split by year:
[Original punctuation provided.]
Task Force Report Overview
2023 Focus:
1) Sustainably growing agriculture industry
2) Sustainably growing markets for local products
(grown, harvested & processed
3) Improving transportation and infrastructure to
transfer and deliver food
2024 Focus:
1) Enhancing climate for food & beverage
processing/distribution businesses
2) Minimizing food waste & diverting from waste
stream
3) Improving connectivity, efficiencies, & outcomes
in state-run programs
4) Ensuring food security in all communities on &
off main road system
3:51:24 PM
MR. JONES moved to slides 7 through 10 and briefly highlighted
the diverse makeup of the Executive Board, individual task force
members, and supporters. He said discussions are guided by the
public sector, legislative members, UAF, and the private sector.
He said other task force members include high-level
commissioners, deputy commissioners, university faculty farmers,
rural grocery retailers, and other agriculture and food leaders.
The task force also has support from legislative aides and
critical guidance from other experts.
3:52:15 PM
SENATOR HUGHES interjected to thank the many volunteers who
helped support the project.
3:52:40 PM
MR. JONES moved to slide 11 and provided an overview of the
agriculture industry. He said the National Agricultural
Statistics Service (NASS) under the United States Department of
Agriculture (USDA) released new data for 2022.
[Original punctuation provided.]
Task Force Report Overview
Growing the Agriculture Industry
1) Establish an Alaska Department of Agriculture
2) Expand Leases on State-Owned Land
3) Increase State Research Capacity
4) Improve Producers' Access to Capital
5) Expand Tax Exemptions for Farmland
3:53:02 PM
MR. JONES conveyed that data from USDA identified 1,172 farmers
in Alaska that have over one thousand dollars in annual sales of
agricultural products. He noted that Alaska is one of the states
to see an increase in annual sales, which demonstrates a
substantial growth trajectory. In 2012, there were 762 farmers
in the state; in 2017, there were 990. From 2012 to 2017 and
over the past five years, the total farmland size has grown. He
said the coalition wants to support workers who are facing steep
challenges with climate, input sourcing, and the agricultural
industry. There is broad support in the task force to increase
institutional support for farmers to upgrade the Division of
Agriculture into a department and boost the state's major
research bodies to design cutting edge varieties. Expanding land
options for agricultural production, reducing tax burdens, and
increasing critical access to capital would ensure producers
have the flexibility to move their businesses forward.
3:54:37 PM
SENATOR HUGHES pointed out that five of 18 recommendations were
not shown in any specific order except the establishment of a
department of agriculture in the state. She mentioned that as
the committees developed recommendations, they also identified
action steps to assess resources available and a plan for
implementation by looking at other states with robust
agricultural industries. On this day, February 14, the task
force debuted a "White Paper" that it worked on. She expressed
her gratitude for the Division of Agriculture and the Department
of Natural Resources (DNR) for piecing together information. She
implored that now is the time to start the conversation
surrounding these task force objectives.
3:56:23 PM
MR. JONES moved to slide 12 and spoke to efforts to grow local
markets:
[Original punctuation provided.]
Task Force Report Overview
Growing Markets for Local Products
1) Establish an Alaska Grown Marketing Institute
2) Re-establish Alaska Meat Inspection Service
3) Add Technical Assistance Officer Position
4) Request grocery stores track Alaska Grown products
5) Expand Agriculture Revolving Loan Fund
MR. JONES said amidst Food Security Week, Alaskans producers are
hungry to expand their marketing options to shorten the state's
supply chains and feed the state. He noted that it is a tough
prospect, but the Local Markets Committee believes there are
tangible steps forward to expand marketing programs. He said the
state is missing federal dollars due to insufficient manpower to
write grants. Increasing Alaska-grown representation in larger
grocery outlets, which is a primary target for producers, poses
one of the main challenges. Except for a few large, organized
growers, production is highly seasonal, so storing perishables
is often not possible. To increase production, farmers should
discuss organized collaboration with retailers and agricultural
entities to understand constraints, meet the minimum required
volumes for distributors, and navigate less conventional
structures.
3:58:30 PM
CO-CHAIR BISHOP asked what opportunities are lost for not
capturing grant dollars.
3:58:50 PM
MR. JONES replied that he has not personally done a formal
accounting of missed federal grant opportunities. He said task
force members intimately involved with federal grants reported
that the amount of money is money is substantial, but grant
writing requires a lot of work hours. Grants require a lot of
work hours to develop grant applications.
3:59:38 PM
SENATOR HUGHES said the task force reestablished the Alaska Meat
Inspection Service in 2022. It has since learned that its three
meat plants are not at capacity due to a workforce shortage and
people may not desire this type of work. However, there is great
potential with the automation of meat processing. By expanding
the Revolving Loan Fund, meat plants could acquire automated
machines for the processing and manufacturing of meat products.
4:00:53 PM
MR. JONES moved to slide 13 and spoke to transportation and
infrastructure:
[Original punctuation provided.]
Task Force Report Overview
Improving Transportation and Infrastructure
1) Improve Maritime and Aviation Infrastructure
2) Decrease Rural Hub Food Loss: Climate-Controlled
Storage
3) Increase Bypass Mail Operations
4) Improve Data Collection and Analysis
5) Invest in Research and Innovative Technologies
6) Create Supply Chain Coordination Council
7) Increase Storage: Food Banks and Disaster
Preparedness
8) Extend Rail: Northern, Pt. MacKenzie, A2A
MR. JONES spoke to the first bullet point and stated once
agricultural products are grown, everything must navigate supply
chain networks that are more complex in Alaska than in any other
state. He said the solutions must match the diversity of that
challenge and mentioned that Alaska has critical maritime
infrastructure, especially in Anchorage. The task force supports
ongoing measures to ensure reliability and increase redundancy
to better navigate port systems in order to avoid grave
situations such as natural disasters. A large majority of
Alaskan communities live off the road system. The aviation
system is important and relies on Department of Transportation
(DOT) and Federal Aviation Administration (FAA) assets to
navigate difficulties. He said he analyzed data while working in
tandem with DOT that showed one in three of all Alaska stations
had a power outage within the past year, which is about three
times higher than nearby districts in the Northern region of the
lower 48. The task force traveled to multiple areas around the
state to understand backlogs and how food is wasted along
various systems.
MR. JONES spoke to the second bullet point and said patterns
demonstrated a lack of refrigerative or chilled assets. Data
from Alaska Commercial Company showed three thousand produce
servings went to waste in 2022 alone. Time spent growing and
selling produce in turn led to food wasted. These factors are
capitalized into the price and lead to limited food availability
in Bush communities. The task force urges the state to do better
to protect fresh food and ensure year-round availability and
affordability.
MR. JONES spoke to bullet the sixth bullet and said the task
force hopes to create a supply chain coordination council to
address ecosystem problems. He recommended bringing together
groups from all corners of the agricultural industry, maritime
and air carriers, grocery retailers, and other entities to
coordinate critical supply chain infrastructure. There is
support among the carrier community and among state and federal
agencies for the creation of this council to achieve a formal
communication mechanism.
4:05:18 PM
SENATOR CLAMAN asked about the correlation between maritime
infrastructure funding cuts to the ferry system and food
availability in rural communities.
4:05:42 PM
MR. JONES replied he has not personally conducted that research
review but noted that Northern Economics ran an economic
evaluation of the impacts of downsizing. He stated he would
provide the committee with a response.
4:06:11 PM
SENATOR CLAMAN opined it certainly seems like downsizing is a
real issue today. He said a huge part of ferry activity includes
the transportation of goods.
4:06:27 PM
MR. JONES moved to slide 14 and spoke to food systems data:
[Original punctuation provided.]
Task Force Report Overview
Data and Measuring Impact
• Demystifying the "95 percent" Statistic
• Need for Robust Food Systems Data
• Approaching Food Security using a Systems-Based
Approach
MR. JONES noted that the first bullet point is in reference to a
statistic that Alaska imports 95 percent of its store-bought
food. He conveyed that a Meter and Goldberg report found this
statistic was given in back to a 1977 speech by a former Dean of
Agriculture School at UAF. Over time, it became conventional
wisdom through repetition. The statistic fails to specify
dollars, weight, calories, or units. While there is no obvious
way to track the statistic, USDA can track the dollar estimate
of home food purchases. He shared an estimate that the
percentage of imported store-bought food is high for many
states. Alaska's supply chain is unique and carries inherent
vulnerabilities from its dependence on importation. However, the
type of food that requires importation likely varies by the
specific product. He recommended focusing on the economic
arguments where the most opportunities are available for in-
state production and sales. He opined the state should also
ensure its agricultural production, marketing, and supply chain
data is public and user-friendly.
4:08:41 PM
SENATOR HUGHES said page 1 of the Department of Agriculture's
White Paper shows that Alaska spends over three billion dollars
per year on food, so a lot of money leaves the state.
4:09:06 PM
SENATOR HUGHES briefly read slide 15:
[Original punctuation provided.]
Time to cultivate and plant
Seed choices
for the Legislature!
4:09:25 PM
SENATOR HUGHES moved to slide 16 and spoke to ways to grow the
agricultural industry that are within the legislature's domain.
She clarified that the green checkmarks indicate the
legislature's ability to take action through funding or
statutory changes.
[Original punctuation provided.]
Within Legislature's Domain
Growing the Agriculture Industry
1) Establish an Alaska Department of Agriculture
2) Expand Leases on State-Owned Land
3) Increase State Research Capacity
4) Improve Producers' Access to Capital
5) Expand Tax Exemptions for Farmland
4:09:45 PM
SENATOR HUGHES moved to slide 17 and spoke to ways to grow local
markets that are within the legislature's domain:
[Original punctuation provided.]
Within the Legislature's Domain
Growing Markets for Local Products
1) Establish an Alaska Grown Marketing Institute
2) Re-establish Alaska Meat Inspection Service
3) Add Technical Assistance Officer Position
4) Request grocery stores track Alaska Grown products
5) Expand Agriculture Revolving Loan Fund
SENATOR HUGHES said establishing a department of agriculture
would address the need for a technical assistance officer
position.
4:10:26 PM
SENATOR HUGES moved to slide 18 and spoke to transportation and
infrastructure:
[Original punctuation provided.]
Within the Legislature's Domain
Improving Transportation and Infrastructure
1. Improve Maritime and Aviation Infrastructure
2. Decrease Rural Hub Food Loss: Climate -Controlled
Storage
3. Increase Bypass Mail Operations
4. Improve Data Collection and Analysis
5. Invest in Research and Innovative Technologies
6. Create Supply Chain Coordination Council
7. Increase Storage: Food Banks and Disaster
Preparedness
8. Extend Rail: Northern, Pt. MacKenzie, A2A
SENATOR HUGHES explained why the third and fourth bullet points
were not bolded in green. She said increasing bypass mail
operations falls under federal jurisdiction. Improving data
collection and analysis is being spearheaded by ISER and the
university. Although funding could help support research,
statutory changes are not necessary. She explained that farmers
have emphasized the importance of research but should not carry
all the responsibilities. States that have robust agricultural
industries also have good research programs to support farmers.
4:11:57 PM
SENATOR DUNBAR referenced slide 16 and stated DNR previously
testified on the importance of upgrading the Division of Parks
and Outdoor Recreation to a departmental structure. He inquired
about the advantages of transitioning from a divisional to a
departmental framework.
4:12:46 PM
SENATOR HUGHES replied that the process of transitioning a
division to a department takes consistent effort over an
extended period. Some advantages include having the commissioner
involved on the Governor's cabinet and budgeting process,
streamlining departments to better serve stakeholders, and
ensuring effective management practices. A commissioner can
weight in on budgeting more than a director. She also noted that
Alaska might be the only state lacking an agricultural committee
within its legislature.
4:14:51 PM
SENATOR DUNBAR opined these are powerful arguments for
establishing a department of agriculture, as well as a
department of state parks.
4:15:02 PM
SENATOR HUGHES said slides 19-24 are proposed items of
legislation and spoke to the farm structures tax rate. She noted
she assigned the titles and are unofficial:
[Original punctuation provided.]
Proposals on the Docket
SB 161 Farm Structures Tax Rate
Lowers farm structure tax rate to farmland rate.
Eligibility: IRS Schedule F.
• Improve producers' access to capital
• Expand tax exemptions
• Increase storage capacity
• Opens doors for new entrants to Ag industry
Extends season Ag products available More Ag
production = more local food products
SENATOR HUGHES mentioned that the green checkmarks align with
task force recommendations, while the blue checkmarks indicate
why the proposal is beneficial.
4:16:16 PM
SENATOR HUGHES moved to slide 20 and spoke to the cottage food
industry and meat shared:
[Original punctuation provided.]
Proposals on the Docket
SB 251 Cottage Food Industry/Meat Shares
Raises cap for and expands cottage food industry.
Allows purchase of meat shares.
• Improve producers' access to capital
• Increase storage capacity
• Opens doors for new entrants to Ag industry
Extends season Ag products available More Ag
production = more local food products
SENATOR HUGHES added that raising the cap for the cottage food
industry would require labeling.
4:16:56 PM
SENATOR HUGHES moved to slide 21 and outlined the stand land use
proposal:
[Original punctuation provided.]
Proposals on the Docket
HB 282/SB 199 State Lands
Allows non-Ag uses (e.g., a B&B) to support Ag
development on Ag land
• Expand leases on State Land
• Improve producers' access to capital
• Opens doors for new entrants to Ag industry More
Ag production = more local food products
4:17:29 PM
SENATOR HUGHES moved to slides 22 through 24 and outlined the
CROP Act proposal:
[Original punctuation provided.]
Proposals on the Docket
HB 296/SB 211 CROP Act
• Reduces Board of Ag quorum
• Raises ARLF caps
• Adds shipping to ARLF
• Allows ARLF refinancing
• Staggers crop insurance payments
• Suspends public entities' Ag and fisheries
procurement caps 5 years.
• Improve producers' access to capital
• Expand Agriculture Revolving Loan Fund
• Grow Ag Industry
o Expand leases on state land
• Grow Markets
o Increase meat inspection/processing capacity
o Invest in innovative technology
• Improve transportation/Infrastructure
o Increase storage capacity
o Invest in logistics research
4:18:46 PM
SENATOR HUGHES moved to slide 25 and stated the bills include
nine of the 18 recommendations by the task force, but the
legislature could address the remaining seven untouched
recommendations. She spoke to budget recommendations:
[Original punctuation provided.]
7 of 18 Recommendations ~Still Need Champions~
Legislation and/or Operating Budget
1) Establish an Alaska Department of Agriculture
2) Increase State Research Capacity
3) Establish an Alaska Grown Marketing Institute
4) Create Supply Chain Coordination Council
Capital Budget
5) Improve Maritime & Aviation Infrastructure
6) Decrease Rural Hub Food Loss: Climate-Controlled
Storage
7) Extend Rail: Northern, Pt. MacKenzie, A2A
SENATOR HUGHES said for every state dollar, Alaska leverages
nine non-state dollars for research. There are vehicles
available for other agricultural bill proposals. She expressed
her belief that climate-controlled storage would not be a high
capital item and could preserve a substantial amount of food.
4:20:15 PM
SENATOR CLAMAN asked why Senator Hughes has not introduced
legislation to establish a department of agriculture considering
her passion for this goal.
4:20:38 PM
SENATOR HUGHES replied the task force recommended waiting for
the development of the White Paper and discussion to make the
case for establishing a department of agriculture and then with
integrated feedback, draft legislation. She expects drafting to
begin next year.
4:21:13 PM
SENATOR CLAMAN asked if the creation of an agricultural
department would increase the size of government.
4:21:33 PM
SENATOR HUGHES responded that the creation of the department
would add a couple of positions, but the idea is to combine and
coordinate existing roles to improve efficiency. She suggested
that the intent is to support food independence and security in
the state. She opined that local foods have higher nutritional
value and support personal health. Input from stakeholders and
communities will help determine how to best structure a
department.
4:23:13 PM
SENATOR KAWASAKI commented on the extra investment of research
dollars to the University of Alaska System, which was known as
the School of Agriculture and College of Mines one hundred years
ago when the agricultural industry was heavily relied on for
survival. While legislators don't direct exact funding, there is
an opportunity to discuss the budget and designate general funds
later this year. He stated it is important the budget reflects
state values.
4:24:21 PM
SENATOR HUGHES moved to slide 26 and spoke to recommendations
collected post-report. She mentioned that the Director of IANRE
could speak to research findings and said these recommendations
were developed following visits with farmers. Other states have
a higher cap on the workers compensation requirement and farm
vehicle registration. In Alaska, farmers must purchase
registration for commercial vehicle use, which is much more
expensive. With these changes, the state could free up the
capital to invest in agricultural businesses.
[Original punctuation provided.]
Other Recommendations Collected Post-Report
1) Change workers comp requirement for Ag producers
from 11 to 50 workers
2) Allow hemp as feed for livestock
3) Establish farm vehicle registration at lower cost
than commercial vehicle registration
4:25:48 PM
SENATOR HUGHES moved to slide 27 and briefly spoke to support
for the task force. She stated she hasn't seen such strong
public support and momentum since the aftermath of the COVID-19
pandemic's effect on grocery stores two years ago.
[Original punctuation provided.]
Time to Plant
The seeds are in your hands
and the soil is rich and ready!
Tremendous public support Task Force (36 members)
Food & Farm Caucus (28 members)
Boots on the ground
4:27:05 PM
MS. ANDERSON stated that IANRE is responsible for maintaining
the work of the land grant of UAA to improve the lives of
Alaskans. The task force received capital funding last year for
a livestock nutrition research program. It also heard from
producers and agency partners like Farm Bureau and the Alaska
Food Policy Council about the need for protein production in the
state. With that funding, a new program will be housed in Palmer
at the Experiment Station that will study the most ideal crops
for feed to raise in the best way possible. She noted poor hay
production over the past couple summers. Therefore, livestock
producers must make the decision to either bring in money to
feed their herd or downsize it to what can be afforded. The
research program will study raising the right crops that will
feed the herd at the right lifecycle. This is a sustainable
movement that mandates new researchers obtain their own funding.
Without specialists and sufficient capital, tremendous research
opportunities remain unavailable and federal money is left on
the table. As new programs begin, funding will become more
accessible. She said a new oil seed crop similar to canola
proved successful in Fairbanks. The oil seed is outproducing all
commercial oil seed products in the lower 48. Camelina oil is
expressed after being crushed or ground and can be used for
food-grade human consumption, animal feed, and as a biofuel.
4:31:44 PM
MS. ANDERSON said after the oil is expressed, the meal
transforms into waste that can be used as livestock feed.
Considering aviation fuel needs, this presents an opportunity to
bring the crop to the interior of Alaska. The oil seed also has
incredible soil benefits that could help farmers decrease their
inputs. In the summer, IANRE will begin an oil seed research
project utilizing five seed varieties from North Dakota. IANRE
saw production rates of three thousand lbs. per acre., which is
higher than in the lower 48. Increased production rates are only
achievable with sustainable, consistent funding.
4:33:33 PM
CO-CHAIR BISHOP asked if camelina removes nitrogen from soil.
4:33:50 PM
MS. ANDERSON replied camelina does not remove a lot of nitrogen
from the soil, but it is beneficial to soil health.
4:34:20 PM
CO-CHAIR BISHOP noted that fertilizer is expensive and pondered
the cost-benefit ratio of using camelina in crop rotation.
4:34:39 PM
MS. ANDERSON replied that camelina was studied as a potential
cover crop. Farmers can't be asked to improve their soil health
through cover cropping if an economic value is unmet. She said
the plant produces nitrogen in its seeds. If seeds are kept in
the field, nitrogen remains, but it does not fix nitrogen levels
in soil.
4:36:14 PM
CO-CHAIR GIESSEL announced invited testimony.
4:37:33 PM
AMY SEITZ, Executive Director, Alaska Farm Bureau, briefly spoke
to Alaska's food system. She said Alaska Farm Bureau and other
organizations have been discussing the need for food production
for many years. She said she appreciates the legislature and
administration's interest in developing a task force and stated
it will help Alaska's food system.
4:39:08 PM
SCOTT MUGRAGE, President, Alaska Farm Bureau, Ridgeway, Alaska,
Provided information about the farming industry. He expressed
pride to see the administration's interest in food security and
praised the representation of the Alaska Farm Bureau by the
Director of Agriculture. There is an opportunity to run with the
momentum. As a member of the Board of Directors for the National
Farm Bureau, he highlighted efforts to address longstanding
issues. Given the rapid pace of climate change in Alaska, he
stressed the necessity of establishing a department of
agriculture. He expressed concerns about the potential for
foreign entities to enter Alaska with integrated operations,
which could potentially lead to local farmers becoming
employees.
4:41:57 PM
SENATOR DUNBAR asked him to elaborate on his comment about one
hundred years of poor farming practices.
4:42:17 PM
MR. MUGRAGE replied that integrated operations are detrimental
to the farming industry. He stated big companies make profit
from a fully integrated deal while small producers feel the
impact. Costco grows, processes, and sells its own Rotisserie
chickens. Farmers can't compete against large producers. If
Costco doesn't turn a profit on its chickens, it makes up the
loss because people buy other products in addition to the
chicken. If a farmer doesn't make a profit off the chicken, the
farmer can't survive and the business closes. Big corporations
like Tyson and Costco are in the power position, so if they do
buy from farmers, they set the terms.
4:45:14 PM
ASPEN O'CONNOR, Cricket Fence Farm, Palmer, Alaska, stated she
is 13 years old and expressed her belief that it is important
schools have an agricultural education program. Her said farming
has been a part of her life since birth and her family currently
raises sheep and dairy goats. She relayed that he represents the
next generation of Alaskan farmers. Palmer Junior Middle School
planned to create a Future Farmers of America (FFA) club but
students shot down the idea. Most students do not understand
that most food comes from farming or how it's grown. By housing
FAA under a department of agriculture, students would remain
connected to food and learn valuable skills to build future
farmers in Alaska. She said over the past few years and since
the COVID-19 pandemic, she has realized how critical food
security is for Alaska's future. Establishing a department will
ensure people can farm, ranch, garden, learn, and eat. She
stated her belief that young farmers feel it is important the
state listens to this recommendation to ensure the land and food
growers are supported and funded.
4:48:01 PM
CO-CHAIR BISHOP commented that the middle school's vote outcome
for a FAA club in the cradle of civilization for farming in
Alaska was a travesty. He encouraged her to educate her peers
and take another vote.
4:48:46 PM
CO-CHAIR GIESSEL said the discussion about future farmers
reminded her of a young man who could not afford land, so he
farmed people's front yards and strived to get into the
industry, but eventually had the means to buy land.
4:49:28 PM
MS. SEITZ said everyone is excited for the future of agriculture
and would like to see an easier path for the next generation to
get into the business.
4:49:52 PM
NICK MANGINI, Kelp Farmer, Kodiak Island Sustainable Seaweed,
Kodiak, Alaska, said there are 36 farms under the mariculture
industry in the state and 14 of those farms are permitted for
both kelp and oysters. Currently, almost all oysters harvested
within the state remain in Alaska. However, the increase in
oyster growth this year may result in oysters being shipped
outside the state. Alaska currently has 746 acres of permitted
kelp farms and 1,358 in total. In 2017 during the first harvest
for the state, only about 18 thousand pounds of kelp were
produced. In 2022, nine hundred thousand pounds of kelp were
produced. He said the mariculture industry has a lot of
momentum, but marketing challenges exist. The creation of a
department of agriculture could address some of those
difficulties. The money that goes into university research is
integral to the success of the mariculture industry. He said he
worked on a couple grant opportunities with the University of
Alaska (UA) and noted an upcoming soil amendment project.
Utilizing kelp within the state to increase the quality of
nutrients within soil would benefit everyone. Two years ago, he
performed a large study on livestock that demonstrated the
benefits of kelp for gut biome. There are other benefits such as
biostimulants and human consumption that are important for the
mariculture industry, but the creation of a department of
agriculture is key, especially for mariculture permitting
assistance.
4:53:27 PM
MS. SEITZ introduced the Co-Director of the Alaska Food Policy
Council Regional Food Business Center and said he has worked
with diverse farmers to build markets for them.
4:53:43 PM
COLIN PEACOCK, Co-Director, Alaska Food Policy Council Regional
Food Business Center, spoke to food security and marketing. He
mentioned he started a food hub in Southeast Alaska and
primarily assisted smaller food producers. His producers were
successful through the establishment of their products in
grocery stores. However, there are incredible barriers to market
entry. Task force recommendations would address some of these
issues. The governor requested that Fred Meyer introduce Alaskan
products, which could allow small to medium producers to
potentially grow into larger producers who could significantly
address food security. However, it will not be possible to
address this issue through agriculture without a more organized
and efficient structure to uncover larger ways to bring money to
the state. Following the market strategies of the Alaska Seafood
Marketing Institute would generate incredible dividends.
Increasing agricultural research within universities is also one
of the best ways to support farmers.
4:56:12 PM
CO-CHAIR GIESSEL said she knows a farmer in her district in
Anchorage. She said as wages increase, he can no longer
economically produce food due to the increased cost of paying
his J-1 visa employees. He did not plant cucumbers last month
because he can't sell them at rates that are too unreasonable.
His customers have complained about the price of cucumbers at
Fred Meyer, but he can't sell directly to the grocer due to the
long time it takes to reimburse producers. Therefore, he uses a
middleman company to manage the cash flow. She said she advised
the governor that wage increases shift the cost of food, what
farmers can grow, and what they can make a living at. She
expressed frustrations that Costco has been unwilling to accept
local produce. She stated her appreciation for the land trust in
Palmer but acknowledged her disappointment knowing subdivisions
are built on the farmlands.
4:59:09 PM
There being no further business to come before the committee,
Co-Chair Giessel adjourned the Senate Resources Standing
Committee meeting at 4:59 p.m.