HB 191-DEPARTMENT OF AGRICULTURE AND FOOD  11:34:58 AM CHAIR HERRON announced that the final order of business would be HOUSE BILL NO. 191, "An Act establishing a state department of agriculture and food and relating to its powers and duties; relating to the powers and duties of the Department of Environmental Conservation and the Department of Natural Resources; and providing for an effective date." 11:35:12 AM REPRESENTATIVE THOMPSON, as the sponsor, introduced HB 191. Representative Thompson said he is a businessman who supports a strong, diversified Alaska economy. He heard from the agriculture community concerns about agricultural projects and the ability to provide a safe, long-term food supply. In the '70s, Governor Hammond established goals for the state: broaden the economic base of the state through agricultural production; stabilize food costs by increasing local food; provide alternative job opportunities through expanded agriculture; improve rural life by developing an economic base through agriculture. Currently, there is renewed interest in growing food locally; there are markets for farmers' produce, Alaska's disease-free potatoes, and greenhouse products. House Bill 191 will enable farmers to communicate their ideas for the enhancement of agriculture in the state. He pointed out that only Rhode Island and Alaska do not have a department of agriculture. Representative Thompson acknowledged that the bill is "a work in progress," and asked the committee to assist in strengthening the agriculture industry for the benefit of all Alaskans. 11:37:31 AM PETE FELLMAN, Representative, Alaska Farm Bureau, Inc., gave a brief discussion of the history of the state's agricultural policy. He referred to efforts - spanning over 20 years - to stabilize the state policy on agriculture from one administration to the next. However, Mr. Fellman has been involved in this effort during many changes in administration, and some administrations did not support agriculture in any way. He opined the Department of Natural Resources (DNR) is not serious in supporting agriculture; in fact, $12 million from the Agriculture Revolving Loan Fund (ARLF) has been tapped to run the Division of Agriculture within DNR. Because of the restriction preventing farmers from borrowing money against agricultural land, the ARLF at the division is the only source of loans for operating money for farmers. He asked whether the committee wants agriculture in Alaska to die a slow death. 11:42:06 AM LYALL BRASIER, Owner, Brasier Farms, stated his farm has been in operation for 40 years raising potatoes, livestock, forage, and grain. He expressed his support of HB 191 because the state needs a strong food security program, and should eliminate the multi-layers of bureaucracy between agriculture, the governor, and the legislature. 11:44:02 AM BRYCE WRIGLEY, President, Alaska Farm Bureau, Inc., stated that food production and food security need to become a top priority. There is only a three to nine day supply of food in the state, and Alaska's food distribution system is vulnerable to natural and man-made disasters. Farmers and ranchers are thwarted by regulations that prohibit the growth of the industry; for example, agencies providing inspection services, veterinary services, oversight of land, and other issues, are functions of several different departments, and would be more efficient if located in a single department of agriculture. The Alaska Farm Bureau proposes a 10-year goal of increased food production to a level that would provide for the population for 90 days. If created, the department of agriculture would be funded as is the Division of Agriculture, and critical agricultural functions would move from the Department of Environmental Conservation (DEC) and DNR to one department. He offered help from the agricultural community to develop and focus the department. Mr. Wrigley advised that for three decades the needs of the division have been sidetracked by the size of DNR and its other large and important priorities; in fact, DNR does not have the capacity for an appropriate level of management to provide food security, which is something that has been possible for many years. A dynamic agricultural industry would benefit Alaska by growing local food, reducing social ills in rural areas, and fostering good work ethics in young people. He urged support for the creation of a department of agriculture that will be efficient, responsive, proactive, empowered, and positively involved with many facets of life in Alaska. 11:48:15 AM RUBY HOLLEMBAEK, Owner-Operator, Alaska Interior Game Ranch; President, Alaska Diversified Livestock Association, Inc. (ADLA), said she is a life-long Alaskan resident and noted her support for several agricultural organizations around the state. She provided a brief personal history. In her role as president of ADLA, she expressed support for the creation of a department of agriculture and food. A department of agriculture was formed under the territorial constitution, but unfortunately was not retained at statehood. This department should be reinstated to supply resources for Alaskans who produce food, fiber, and fuel. Ms. Hollembaek advised that there was a 15 percent decrease in the amount of land in production from 1987 to 2007; in fact, Alaska is ranked 50th in the amount of land in production of all of the states, due not to a lack of land, water, or an acceptable growing season, but because of the political outlook toward agriculture in Alaska. As a matter of fact, ADLA was formed in 2001 to bring unity and a voice to livestock producers who are encouraged by the public's interest in eating locally, alternative energy products, and Alaskan-made fiber. She said livestock businesses are thriving, although fuel and fertilizer prices are high. Livestock producers are looking for the same consideration from state government as oil, gas, fisheries, and other resources receive, and "to sit at the table and conduct business about our product ... we want a cabinet-level seat." She stated the purpose of the department of agriculture created by the territorial constitution, and relayed that the ARLF was created in 1953 with an authorization of $1 million. 11:52:40 AM LYNN GATTIS, Owner, Gattis Farm, observed that as a life-long Alaskan she continues to be interested in how residents get their food. Ms. Gattis is a farmer in Port MacKenzie and supports HB 191 because the attention to agriculture in Alaska is lacking, which she attributed to DNR's other responsibilities. Furthermore, this situation reflects a lack of a true plan for the needs of Alaska and its farmers. Although she did not agree with all aspects of the bill, the bill will address the issue of inattention to agriculture. Ms. Gattis expressed her preference for less government, not more, but she said agriculture struggles to be heard by state government, and instead the state should support agriculture so its businesses can be profitable. 11:54:46 AM REPRESENTATIVE TUCK asked which aspects of the bill Ms. Gattis did not support. MS. GATTIS explained that the bill adds a layer of government and cost, but will allow agriculture to have "a seat at the table." She opined DNR cannot provide a "direction" for agriculture, such as small farms and niche markets, or huge tracts of land. 11:56:28 AM PAUL HUPPERT, Owner, Palmer Produce, Inc., informed the committee his family and he are involved in agriculture in many ways, and he has served on industry-related councils and boards. Mr. Huppert supported the testimony of the previous speakers, and added that an additional problem with DNR is its negativity towards agricultural issues. He opined if there is no department of agriculture, the industry will continue to decline. Mr. Huppert is also upset by the inappropriate use of the ARLF. He concluded, saying that Alaska's isolation is a protection from agricultural diseases and that creates many opportunities for agriculture in Delta Junction and Port MacKenzie. 11:59:03 AM MICHAEL NEECE, President, Homer Grange, expressed his support of HB 191. He informed the committee that the Grange is a national organization established in 1867 to help provide support for farmers throughout the U.S. 11:59:52 AM BRUCE WILLARD, Director, Alaska Farm Bureau, Inc., said he has been involved in commercial agriculture in the state since 1959. Mr. Willard expressed his support of HB 191, and described some of the problems surrounding the marketing of livestock. Although there is a slaughterhouse in Palmer, it is threatened with closure, and then conditions would revert to "butchering under a tree." He reiterated that agriculture needs a direction and a voice, and the state does not need more fisheries. 12:02:01 PM MARIE RICE had her testimony read by Bill Burton as follows [original punctuation provided]: I've been involved in the agriculture community in Kodiak since 1963 when we purchased a cattle ranch at Kalsin Bay. We took a big hit in the 1964 tidal wave, [losing] many of our purebred Scottish Highland cattle we had shipped all the way from Colorado. We revived and added a large lease and cattle from the adjoining ranch a few years later that resulted in a cattle ranch encompassing 50,000 acres of lease and we ran nearly 1,000 head of cattle. At the time agriculture was at its peak with seven large cattle operations on the road system on Kodiak. I remember when the transition was made from the Department of Agriculture to the Division of Agriculture and the great concern the ranchers had about the change. The fear at the time was that the emphasis on support for agriculture in Alaska would be greatly diminished. The timing of this was also coupled with the Native Land Claim Settlement Act that allowed for native selection of land that encroached on some of the leasehold interest. Those fears have come to reality in the place agriculture has been able to hold in the state. I strongly support the switch back to the Department of Agriculture. Agriculture in our state needs renewed emphasis and support if we are to increase the level of production to serve our needs. I recently saw a statistic that said we produce 3% of our food. I have recently taken part in the USDA hoop house project which is very exciting in trying to increase local production of vegetables. Please support the move to the Department of Agriculture. BILL BURTON said that ranchers in Kodiak have lost land due to the Alaska Native Claims Settlement Act, and a department of agriculture is needed to help promote agriculture in the event of a disruption in the delivery of food. 12:06:03 PM GAYLE EASTWOOD disclosed she was a member of the Alaska Farm Bureau and that she was testifying on her own behalf. Ms. Eastwood and her husband have imported different species of trees for future sale in Southeast Alaska. At their ranch in Delta Junction, they can grow and sell hay cheaper than buying imported hay, thus they are proponents of Alaska-grown products. Ms. Eastwood expressed her support for HB 191, restating that the department was originally created in 1945 and the ARLS was authorized in 1953. She further explained that the ARLS intended to help farmers control animal diseases and plant pests, and for other agricultural endeavors. Agriculture in Alaska extends beyond garden-grown vegetables to the barley project in Delta Junction where farmers are growing barley, wheat, oats, canola, and potatoes on a commercial scale. Also, farmers are raising sheep, cattle, yak, bison, and other animals for commercial sale. In Southeast Alaska, on a smaller scale, sheep and cattle are raised, and there are nurseries and Farmer's Markets. Ms. Eastwood opined a department of agriculture will benefit farmers and consumers by assisting farmers to improve products, thus providing a locally produced product reducing freight costs and increasing the vitamin content of food. She concluded that agriculture is the poor relation of oil, gas, and coal at DNR. 12:09:14 PM DELBERT SIMINEO, Palmer, Alaska (Indisc.). 12:11:46 PM ED FOGELS, Deputy Commissioner, Office of the Commissioner, Department of Natural Resources, advised that the administration has no position on the bill at this time; however, as long as the division is located within DNR, he and the commissioner are committed to making it more effective. Mr. Fogel recognized the true value of agriculture to Alaska and the issues of food security, and agreed with the need to strengthen the agricultural plan for the state. In fact, the commissioner has a strong connection to the agricultural industry, and Mr. Fogel has met with the farming community on numerous occasions. Referring to the bill, he agreed that state agencies need to collaborate on agricultural issues, and said DNR will work toward that goal. 12:13:46 PM CHAIR HERRON referred to the passion of the previous testimony and asked for clarification on whether Mr. Fogel felt that the division needs to become a department of agriculture. MR. FOGEL stated that his intent was to inform the committee that there is new management at DNR, thus the division will be given a "fresh look". CHAIR HERRON observed the newest member of the legislature from Fairbanks was listening to the deep-rooted concern of his constituents. 12:15:43 PM REPRESENTATIVE KELLER appreciated the department's commitment to examine the issue. 12:16:15 PM [HB 191 was held for further testimony.]