Legislature(2025 - 2026)BUTROVICH 205

03/28/2025 03:30 PM Senate RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 92 CORP. INCOME TAX; OIL & GAS ENTITIES TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
*+ SB 128 CREATE DEPARTMENT OF AGRICULTURE TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
Bills Previously Heard/Scheduled
**Streamed live on AKL.tv**
            SB 128-CREATE DEPARTMENT OF AGRICULTURE                                                                         
                                                                                                                                
4:10:06 PM                                                                                                                    
CHAIR GIESSEL announced the consideration  of SENATE BILL NO. 128                                                               
"An Act  establishing the Department of  Agriculture; relating to                                                               
the establishment of the  Department of Agriculture; transferring                                                               
functions  of  the Department  of  Natural  Resources related  to                                                               
agriculture to  the Department of Agriculture;  and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
4:10:38 PM                                                                                                                    
SENATOR  WIELECHOWSKI,  speaking as  Chair  of  the Senate  Rules                                                               
Committee, sponsor  of SB  128, said  that the  governor recently                                                               
pursued  Executive   Order  (EO)   136,  which  would   create  a                                                               
Department  of Agriculture.  At  that time,  there were  concerns                                                               
related  to  the  cost  of  the new  department,  what  it  would                                                               
include,  its  mission,  and  its   focus.  He  opined  that  one                                                               
overriding issue  was that the  legislature should have a  say in                                                               
the creation  of a new department.  He stated that SB  128 allows                                                               
the  legislature  to have  discussions  and  to hear  input  from                                                               
Alaskans  on this  topic (which  would  not be  possible with  an                                                               
executive order).                                                                                                               
                                                                                                                                
4:11:38 PM                                                                                                                    
CHAIR GIESSEL asked for an overview of SB 128.                                                                                  
                                                                                                                                
4:11:57 PM                                                                                                                    
HUNTER  LOTTSFELDT,  Staff,  Senator  Bill  Wielechowski,  Alaska                                                               
State  Legislature, Juneau,  Alaska,  explained that  SB 128  was                                                               
modeled  after  EO  136.  SB  128  would  take  the  Division  of                                                               
Agriculture from  the Department  of Natural Resources  (DNR) and                                                               
create a Department  of Agriculture. He noted  that the sectional                                                               
analysis would be considered at  a future meeting. He stated that                                                               
SB  128 includes  conforming changes  that provide  clarification                                                               
(e.g.   distinguishing   between   the   Alaska   Department   of                                                               
Agriculture and the  US Department of Agriculture).  He said that                                                               
the conforming changes  also ensure that the  commissioner is the                                                               
head   of  the   department  and   the  point   of  contact   for                                                               
interdepartmental  interactions. He  noted concerns  that SB  128                                                               
would eliminate  the Board of  Agriculture. He clarified  that SB
128  does   not  eliminate   the  board.   He  stated   that  the                                                               
commissioner would be the executive  of the Board of Agriculture.                                                               
He explained  that agricultural  issues would  be brought  to the                                                               
commissioner, who would then report to the board.                                                                               
                                                                                                                                
4:13:50 PM                                                                                                                    
CHAIR GIESSEL  noted upcoming invited  testimony from  the Alaska                                                               
Farm Bureau.  She confirmed that  the sectional analysis  and any                                                               
questions would be considered at a future meeting.                                                                              
                                                                                                                                
4:14:25 PM                                                                                                                    
AMY  SEITZ,  Policy  Director,   Alaska  Farm  Bureau,  Soldotna,                                                               
Alaska, expressed  appreciation for the discussions  and hearings                                                               
on  this topic.  She  noted positive  feedback  from the  farming                                                               
industry.  She noted  that much  of the  structure is  already in                                                               
place, which can help guide the discussion of SB 128.                                                                           
                                                                                                                                
4:15:48 PM                                                                                                                    
MS.  SEITZ advanced  to slide  2  and discussed  the mission  and                                                               
vision of the proposed Department of Agriculture:                                                                               
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
                       Mission and Vision                                                                                     
                                                                                                                                
        Support, promote and encourage development of an                                                                        
     agriculture (and mariculture) industry in Alaska that                                                                      
     is viable, profitable and sustainable.                                                                                     
                                                                                                                                
     Promote   an  economically   stable  agriculture   (and                                                                    
     mariculture) industry  for Alaska that can  enhance the                                                                    
     quality of  life for its people,  create sustainability                                                                    
     of its communities and  environment, and encourages new                                                                    
     business development opportunities for all Alaskans.                                                                       
                                                                                                                                
MS. SEITZ  said this mission  and vision is essentially  the same                                                               
as the current mission of  the Division of Agriculture. She noted                                                               
that she included "mariculture" as  this could be included in the                                                               
Department  of  Agriculture.  She opined  that,  ultimately,  the                                                               
mission  of   the  department  should   be  to  build   a  strong                                                               
agriculture  (and  perhaps  also mariculture)  industry  for  the                                                               
benefit of Alaskans.                                                                                                            
                                                                                                                                
4:16:39 PM                                                                                                                    
MS. SEITZ  advanced to slide 3  and provided an overview  of some                                                               
of the goals  a Department of Agriculture should  have. She noted                                                               
that these are goals of the current Division of Agriculture:                                                                    
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
                             Goals                                                                                            
                                                                                                                                
        • Increase production                                                                                                   
        • Market development - promote buying local at all                                                                      
          market levels                                                                                                         
        • Increase economic viability in all types and                                                                          
          sizes of farm and food businesses                                                                                     
        • Improve transportation system                                                                                         
        • Improve food security                                                                                                 
        • Assist with expanding infrastructure                                                                                  
        • Increase access to capital                                                                                            
        • Expand support programs statewide                                                                                     
        • Improve access to and protect lands and waters                                                                        
          suitable for farming                                                                                                  
                                                                                                                                
MS. SEITZ stated  that the Division of Agriculture  does not have                                                               
the  capacity  or  funding  required  to  meet  these  goals.  In                                                               
addition to  the high-level goals,  there are resources  for more                                                               
specific  goals. She  referred to  reports from  the Alaska  Food                                                               
Security  and  Independence  Task   Force  and  the  Alaska  Food                                                               
Strategy Task Force  (AFSTF), which include goals  and steps that                                                               
can  focus and  guide  the  new department.  She  noted that,  if                                                               
mariculture  is  added  to  the   department,  there  is  also  a                                                               
Mariculture  Task  Force  report.  She  added  that  there  is  a                                                               
significant amount  of feedback from industry  organizations that                                                               
can help guide the department.                                                                                                  
                                                                                                                                
CHAIR GIESSEL  commented that it  sounds as though  an additional                                                               
task force is not needed.                                                                                                       
                                                                                                                                
4:18:09 PM                                                                                                                    
MS. SEITZ agreed  and added that AFSTF developed  a Department of                                                               
Agriculture white  paper, with goals for  expanding programs. She                                                               
suggested that  a working group  may be unnecessary, as  the work                                                               
is already done. She opined that  the decision simply needs to be                                                               
made.                                                                                                                           
                                                                                                                                
4:18:36 PM                                                                                                                    
SENATOR CLAMAN  said that  he did  not support  EO 136.  He asked                                                               
whether the Division of Agriculture  with its current budget - or                                                               
a Department of  Agriculture with half of the funding  - would be                                                               
more effective at accomplishing the goals on slide 3.                                                                           
                                                                                                                                
4:19:02 PM                                                                                                                    
MS. SEITZ  said the division  currently receives $5  million. She                                                               
indicated  that, with  its current  funding  level, the  division                                                               
does not have the capacity to  do the work required to meet those                                                               
goals.  She  clarified that  she  does  not support  cutting  the                                                               
current budget. She emphasized that  the division needs the voice                                                               
[of a commissioner]  to bring Alaska's agriculture  industry to a                                                               
new level. She  said an upcoming slide would  discuss the history                                                               
of the  division and why the  voice of a commissioner  is needed.                                                               
She  acknowledged  that  it  is always  possible  to  reduce  the                                                               
budget, but emphasized that a  lower budget would be ineffective,                                                               
as the current budget is not adequate.                                                                                          
                                                                                                                                
4:20:03 PM                                                                                                                    
SENATOR  CLAMAN clarified  that  he is  not  suggesting that  the                                                               
department should start  with a smaller budget  than the division                                                               
currently has.  However, he expressed concern  that splitting the                                                               
division  into  its  own   department  might  overextend  limited                                                               
resources.  He recalled  instances  when  large departments  were                                                               
split into smaller departments and  suggested that the first step                                                               
should be to grow the division  and make these changes within the                                                               
existing structure  before spending  the time, effort,  and money                                                               
to create a  new department. He surmised that  the division would                                                               
likely get  the same amount  done with  the same amount  of money                                                               
[as a  Department of Agriculture would].  He expressed skepticism                                                               
and opined  that, without  the necessary  resources, it  does not                                                               
matter whether the title is "division" or "department."                                                                         
                                                                                                                                
4:20:55 PM                                                                                                                    
MS. SEITZ  indicated that the  Alaska Farm Bureau  has repeatedly                                                               
requested  a strong  division; however,  those efforts  have been                                                               
unsuccessful. She expressed  skepticism that providing additional                                                               
funding now  would build a  strong division that  would continue,                                                               
as the  level of future  support is unknown. She  emphasized that                                                               
it would be  difficult to rely on increased  funding knowing that                                                               
there is  the potential to  lose legislative support  and funding                                                               
in the future.                                                                                                                  
                                                                                                                                
4:21:53 PM                                                                                                                    
SENATOR WIELECHOWSKI  posed a hypothetical  example and  asked if                                                               
creating a department with the same  amount of funding - but with                                                               
a  need  for  additional  employees   -  would  create  a  better                                                               
situation than the current Division of Agriculture.                                                                             
                                                                                                                                
4:22:18 PM                                                                                                                    
MS.  SEITZ  replied  that  it would  not  immediately  create  an                                                               
improved  situation;  however,  it  could  create  the  structure                                                               
needed for  improvements over time.  She suggested that if  SB 92                                                               
passes,  it  may be  possible  to  find additional  funding.  She                                                               
pointed out that  it would take $300,000 from  each department to                                                               
double the budget for the  Division of Agriculture. She clarified                                                               
that she  is not  recommending this;  however, this  would double                                                               
the division's capacity.                                                                                                        
                                                                                                                                
4:23:10 PM                                                                                                                    
SENATOR  WIELECHOWSKI  indicated   that  if  unlimited  financial                                                               
resources  were  available,  it  would be  an  easy  decision  to                                                               
support  the increase.  He pointed  out that  the growing  budget                                                               
deficit increases competition  for available financial resources.                                                               
He  asked  how  much  funding  is needed  to  make  the  proposed                                                               
Department of Agriculture effective.                                                                                            
                                                                                                                                
4:23:41 PM                                                                                                                    
MS. SEITZ  replied that she does  not know the ideal  number. She                                                               
referred  to the  AFSTF Department  of  Agriculture white  paper,                                                               
which  includes steps  for  moving  forward, additional  staffing                                                               
requirements,  and recommended  funding amounts.  She noted  that                                                               
there are also recommendations  for agricultural development. She                                                               
recalled  $1   million  in  program   funding,  $3   million  for                                                               
forgivable loans,  and an additional  $1 million  for mariculture                                                               
program development. She acknowledged  the current budget deficit                                                               
and  suggested   taking  incremental   steps  toward   the  goals                                                               
presented  in  the  white  paper.   She  suggested  creating  the                                                               
department now and  building the programs out more  in the future                                                               
when funding is available.                                                                                                      
                                                                                                                                
MS. SEITZ  emphasized that she  is aware  that a large  amount of                                                               
funding is  needed and expressed confidence  that agriculture has                                                               
much to  offer Alaska in  terms of economic development  and food                                                               
security.   She  listed   several   opportunities  for   economic                                                               
development,  including  in-state   fertilizer  development  (via                                                               
mariculture).  This would  support both  the mariculture  farmers                                                               
and land-based  farmers, create new agriculture  enterprises, and                                                               
keep money in-state.                                                                                                            
                                                                                                                                
4:26:10 PM                                                                                                                    
SENATOR MYERS  briefly commented  on the budget  approval process                                                               
and opined  that it will always  be acrimonious. He asked  what a                                                               
Department of Agriculture  would offer and how  that differs from                                                               
what the Division of Agriculture offers.                                                                                        
                                                                                                                                
4:26:47 PM                                                                                                                    
MS. SEITZ  replied that  agricultural land  leasing is  one issue                                                               
that  a  department  could  more   easily  address.  She  briefly                                                               
explained that  the Division of  Agriculture (which is a  part of                                                               
the  Department of  Natural Resources  (DNR)) must  seek approval                                                               
from  the  DNR  commissioner  in  order  for  issues  to  receive                                                               
legislative  attention. She  acknowledged  that  the current  DNR                                                               
commissioner is  friendly to agricultural  issues and  shared her                                                               
understanding   that  upcoming   legislation   may  resolve   the                                                               
aforementioned leasing  issues. She  stated that the  Alaska Farm                                                               
Bureau has pushed  for years to make these  changes; however, the                                                               
request  never  rises  above the  Division  of  Agriculture.  She                                                               
stated that a commissioner of  agriculture would be able to bring                                                               
those  needs   directly  to  the  legislature.   In  addition,  a                                                               
commissioner would  be able to  work directly with  executives at                                                               
large-scale retail outlets and to  work with in-state procurement                                                               
across  multiple  departments.  She emphasized  that  discussions                                                               
between department  commissioners flow  more smoothly  than those                                                               
between  a commissioner  and a  division director.  She indicated                                                               
that there  are additional ways  a department would  better serve                                                               
agriculture in the state.                                                                                                       
                                                                                                                                
4:28:43 PM                                                                                                                    
CHAIR GIESSEL  observed that slide  6 contains  an organizational                                                               
chart.                                                                                                                          
                                                                                                                                
4:29:00 PM                                                                                                                    
MS.  SEITZ  advanced   to  slide  6,  containing   a  flow  chart                                                               
illustrating  the  proposed  organization of  the  Department  of                                                               
Agriculture. She explained that  AFSTF produced the Department of                                                               
Agriculture  white paper  over time  and with  industry feedback.                                                               
She stated  that this is a  starting point to illustrate  what is                                                               
possible  and  could  be  done  over  time.  She  opined  that  a                                                               
commissioner of agriculture would  be more successful at carrying                                                               
out  some of  the necessary  conversations and  offered examples.                                                               
She said  that the organizational  chart provides  some structure                                                               
and opined that it makes sense  to take small steps to start. She                                                               
noted the  interest in combining agriculture  and mariculture and                                                               
said   that  some   program   expansion   would  be   beneficial,                                                               
particularly with respect to development.  She suggested that the                                                               
commissioner  could   focus  on   priority  areas.   She  briefly                                                               
discussed  expanding  grant   capacity  and  evaluating  external                                                               
funding  sources. She  reiterated that  it would  be possible  to                                                               
begin with a limited capacity and focus on growth over time.                                                                    
                                                                                                                                
4:31:33 PM                                                                                                                    
CHAIR GIESSEL  commented on the  high price of poultry  and shell                                                               
eggs. She  opined that expanding local  production would increase                                                               
food security.  She shared her  understanding that  Alaska's seed                                                               
potatoes - and other varieties of seed - are sought after.                                                                      
                                                                                                                                
4:32:01 PM                                                                                                                    
MS.  SEITZ  confirmed  that Alaska's  seed  potatoes  are  sought                                                               
internationally  because   of  the  high  quality.   She  said  a                                                               
commissioner  would  be  better positioned  to  communicate  with                                                               
other countries  and navigate the  export market. In  addition to                                                               
seed potatoes,  there may  be a potential  export market  for raw                                                               
canola seeds  and peonies.  She emphasized  the need  for someone                                                               
who can  coordinate and  expand those  markets. She  said poultry                                                               
and eggs  is an  area that  could quickly  expand with  the right                                                               
support.                                                                                                                        
                                                                                                                                
4:33:24 PM                                                                                                                    
MS.  SEITZ  returned to  slide  5  and discussed  the  department                                                               
focus.  Slide  5 indicates  that  the  Department of  Agriculture                                                               
should neither  include fisheries  nor be renamed  the Department                                                               
of  Food   Security.  She  emphasized  that   the  Department  of                                                               
Agriculture should  focus on the industries  that are cultivating                                                               
agricultural   products.  She   expressed  confusion   about  the                                                               
suggestion   to   include   fisheries  in   the   Department   of                                                               
Agriculture,  although   recent  conversations  have   helped  to                                                               
clarify   the  reasoning.   She  explained   that  from   farming                                                               
standpoint, there  are concerns  that including fisheries  in the                                                               
department  would  push  agriculture  issues aside  in  favor  of                                                               
fisheries issues.                                                                                                               
                                                                                                                                
MS.  SEITZ  emphasized  that  the  intention  behind  creating  a                                                               
Department  of Agriculture  is to  make  agriculture a  priority,                                                               
whereas fisheries  is already  a high priority  for the  State of                                                               
Alaska. She opined  that fisheries and agriculture  should not be                                                               
placed in  the same department;  however, she  expressed interest                                                               
in  continuing  conversations  around the  reasoning  behind  the                                                               
suggestion. With respect to renaming  the department to reflect a                                                               
focus on food security, she  acknowledged that that food security                                                               
is  important.  However, food  security  is  a broad  topic  that                                                               
reaches well beyond the scope  of agriculture. She indicated that                                                               
renaming the  proposed Department  of Agriculture  the Department                                                               
of  Food   Security  would   reduce  the   department's  intended                                                               
agricultural focus.  It would  also leave out  farms that  do not                                                               
produce  food  (e.g. peony  farms).  She  reiterated that  it  is                                                               
important to ensure that the department name reflects its focus.                                                                
                                                                                                                                
4:36:27 PM                                                                                                                    
SENATOR DUNBAR  agreed that a  Department of Food  Security would                                                               
focus  on  Electronic  Benefit Transfer  (EBT)  and  Supplemental                                                               
Nutrition  Assistance  Program (SNAP)  funding  and  the Port  of                                                               
Alaska,  which is  not what  the  Farm Bureau  is requesting.  He                                                               
recalled from discussions of EO  136 that cannabis is the largest                                                               
cash crop grown  in Alaska. He asked what role  the Department of                                                               
Agriculture would have  in promoting or regulating  the growth of                                                               
cannabis products.                                                                                                              
                                                                                                                                
4:36:58 PM                                                                                                                    
MS. SEITZ  emphasized that  she is speaking  for the  Alaska Farm                                                               
Bureau,  not for  the  state.  She stated  that  cannabis is  not                                                               
federally approved  and is therefore  not a  federal agricultural                                                               
product. She  surmised that the current  division protocols would                                                               
continue  to  apply  and  shared   her  understanding  that  this                                                               
requires  the  reporting of  any  hemp  that  does not  meet  the                                                               
tetrahydrocannabinol  (THC)  threshold.  She noted  that  SB  128                                                               
would move cannabis over to  the department. She surmised that it                                                               
is not  the goal to  have the Department of  Agriculture regulate                                                               
cannabis.  She  reiterated  her understanding  that  the  current                                                               
protocol is for hemp growers to  report any THC that is above the                                                               
legal limit.                                                                                                                    
                                                                                                                                
4:38:05 PM                                                                                                                    
SENATOR  DUNBAR  asked whether  a  change  to federal  law  would                                                               
change the  Department of Agriculture's  role. He also  asked if,                                                               
in  the  event  of  federal legalization  of  cannabis,  cannabis                                                               
growers would have access to Alaska Farm Bureau's services.                                                                     
                                                                                                                                
4:38:27 PM                                                                                                                    
MS. SEITZ  said the  Alaska Farm Bureau  has not  discussed this.                                                               
She surmised that  cannabis growers would meet  the definition of                                                               
a  farmer (i.e.  someone who  is  cultivating a  crop) and  would                                                               
therefore qualify  as a potential  member of Alaska  Farm Bureau.                                                               
She  emphasized that  this  is conjecture,  and  the issue  would                                                               
ultimately  be  determined by  the  department  and would  likely                                                               
include input from the legislature.                                                                                             
                                                                                                                                
4:39:14 PM                                                                                                                    
MS. SEITZ advanced to slide 7:                                                                                                  
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Program Expansion                                                                                                        
                                                                                                                                
        • Market Development                                                                                                    
        • Grants and Loans                                                                                                      
        • Lands and waters                                                                                                      
        • Inspection Services                                                                                                   
        • Alaska FFA                                                                                                            
        • Mariculture                                                                                                           
                                                                                                                                
         Increased staff capacity and program funding =                                                                         
        increased reach, resources and ability to build                                                                         
     industry                                                                                                                   
                                                                                                                                
     Details in Department of Agriculture White Paper                                                                           
                                                                                                                                
MS. SEITZ stated  that there are many years' worth  of input from                                                               
organizations and industry available  regarding areas for program                                                               
expansion. She suggested beginning with program development.                                                                    
                                                                                                                                
CHAIR  GIESSEL noted  that the  Department  of Agriculture  white                                                               
paper is available online and in committee members' packets.                                                                    
                                                                                                                                
MS SEITZ stated  that there is opportunity for  the department to                                                               
work  with the  University  of Alaska  and  with the  mariculture                                                               
industry.  She said  there is  a  great deal  of opportunity  for                                                               
industry growth.                                                                                                                
                                                                                                                                
4:40:22 PM                                                                                                                    
MS.  SEITZ advanced  to  slide 8  and discussed  the  need for  a                                                               
Department  of  Agriculture.  She  opined  that  Alaska  needs  a                                                               
Department  of  Agriculture  to see  growth  in  the  agriculture                                                               
industry. She  emphasized the need  for an organization  that can                                                               
focus on and  prioritize agriculture in the state.  She said that                                                               
the  Division of  Agriculture has  been  a low  priority for  the                                                               
state  since  statehood  in  1959.  She  acknowledged  that  some                                                               
projects  have received  funding; however,  the division  has not                                                               
consistently  operated  at  a  capacity   that  would  allow  for                                                               
industry growth. She added that the  focus has been on starting -                                                               
rather than  building - agriculture.  She opined that  creating a                                                               
Department  of Agriculture  would  provide the  focus needed  for                                                               
industry growth.                                                                                                                
                                                                                                                                
4:41:15 PM                                                                                                                    
CHAIR  GIESSEL  shared  her   perspective  that  the  agriculture                                                               
industry in Alaska has shrunk since statehood.                                                                                  
                                                                                                                                
4:41:30 PM                                                                                                                    
MS. SEITZ advanced  to slide 9, containing  agriculture data from                                                               
the  United  States  Department of  Agriculture  (USDA)  National                                                               
Agricultural  Statistics  Service  (NASS) census  for  the  years                                                               
1982,  2002, and  2022,  and discussed  the  positive impacts  of                                                               
momentum and support.  She acknowledged that the  data is limited                                                               
to  the farmers  responding and  indicated that  Alaska has  good                                                               
response  numbers.  She stated  that  agriculture  in Alaska  has                                                               
experienced  growth   over  the  years,  though   the  production                                                               
percentage has decreased. She noted  that Alaska's population has                                                               
also expanded. She directed attention to  the data on slide 9 and                                                               
said  that  the  growth  of  Alaska's  agricultural  industry  is                                                               
increasing momentum.                                                                                                            
                                                                                                                                
4:42:57 PM                                                                                                                    
SENATOR DUNBAR asked  the average size of  farms. He acknowledged                                                               
that  crops often  determine farm  size and  wondered if  the new                                                               
farms tend to be small or large.                                                                                                
                                                                                                                                
4:43:20 PM                                                                                                                    
MS.  SEITZ said  there are  many small-acreage  farms, with  half                                                               
being 9  acres or under.  She emphasized that small  acreage does                                                               
not mean a farm is unsuccessful and  added that a lot can be done                                                               
with a  small parcel that  is diversified. She noted  that Alaska                                                               
is unique in that small farms have been very successful.                                                                        
                                                                                                                                
4:44:04 PM                                                                                                                    
SENATOR   MYERS   observed   that  the   interest   in   Alaska's                                                               
agricultural sector  has waxed  and waned  over the  years, which                                                               
may have had  the impact of beginning projects  without the long-                                                               
term focus  needed for continued  growth. He  asked if this  is a                                                               
fair characterization of the industry over time.                                                                                
                                                                                                                                
4:44:29 PM                                                                                                                    
MS. SEITZ  agreed with this  observation. She offered  an example                                                               
to  illustrate how  the  State of  Alaska  has offered  financial                                                               
support for  projects in the  past and then later  pulled project                                                               
funding. This has been a challenge for growers.                                                                                 
                                                                                                                                
4:45:04 PM                                                                                                                    
SENATOR  CLAMAN directed  attention to  the data  on slide  9 and                                                               
said  this  suggests  that  the  agriculture  industry  has  been                                                               
successful and is making significant  progress under the Division                                                               
of Agriculture.                                                                                                                 
                                                                                                                                
4:45:34 PM                                                                                                                    
MS.  SEITZ  said that,  despite  recent  growth, the  agriculture                                                               
industry in  Alaska remains relatively small.  She suggested that                                                               
a  Department of  Agriculture  would  significantly increase  the                                                               
number of farms in the state.  She explained that the past decade                                                               
has seen an  increase in interest from organizations  such as the                                                               
Alaska  Food Policy  Council; however,  this support  may not  be                                                               
enough  to sustain  the level  of growth  that would  be possible                                                               
under  a  Department  of Agriculture.  She  emphasized  that  the                                                               
division  has   not  had  significant  success   entering  larger                                                               
markets. In  cases (such  as with Alaska  Range Dairy)  that have                                                               
seen success,  it has  required additional  support (such  as the                                                               
governor's involvement in the process).  She clarified that slide                                                               
9 illustrates  that the  momentum is  there; however,  support is                                                               
necessary for additional expansion.                                                                                             
                                                                                                                                
4:46:32 PM                                                                                                                    
SENATOR WIELECHOWSKI  asked whether the fundamental  argument for                                                               
creating a Department  of Agriculture is that the  free market is                                                               
insufficient and thus government intervention is required.                                                                      
                                                                                                                                
4:46:47 PM                                                                                                                    
MS.  SEITZ suggested  that one  way to  look at  the issue  is to                                                               
consider what industries the State of Alaska has not supported.                                                                 
                                                                                                                                
4:47:02 PM                                                                                                                    
SENATOR  WIELECHOWSKI asked  what type  of help  the Alaska  Farm                                                               
Bureau is looking for.                                                                                                          
                                                                                                                                
4:47:09 PM                                                                                                                    
MS. SEITZ replied that the  AFSTF Department of Agriculture white                                                               
paper proposes  help in  building markets.  She pointed  out that                                                               
the  fisheries   industry  has  help  from   the  Alaska  Seafood                                                               
Marketing  Institute (ASMI).  The agriculture  industry does  not                                                               
have this type of help.                                                                                                         
                                                                                                                                
4:47:27 PM                                                                                                                    
SENATOR  WIELECHOWSKI repeated  his  earlier  question about  the                                                               
fundamental argument. He  asked if the argument is  that the free                                                               
market is insufficient.                                                                                                         
                                                                                                                                
4:47:39 PM                                                                                                                    
MS. SEITZ asked for suggestions.  She expressed uncertainty about                                                               
who  to   turn  to  for   market  development,   including  state                                                               
procurement  and larger  retail markets.  She questioned  whether                                                               
Alaska has the free market necessary to build the industry.                                                                     
                                                                                                                                
4:48:04 PM                                                                                                                    
SENATOR  WIELECHOWSKI  asked  whether  cooperatives  and  farmer-                                                               
funded inspectors could perform those tasks.                                                                                    
                                                                                                                                
4:48:11 PM                                                                                                                    
MS. SEITZ asked  who would guide that process  and emphasized the                                                               
need for  state support. She asked  for an example of  where this                                                               
process  has  been  successful without  government  support.  She                                                               
asked who would perform the  inspections and pointed out the need                                                               
for  USDA  slaughter  facilities.  She reiterated  the  need  for                                                               
government agencies.                                                                                                            
                                                                                                                                
4:48:42 PM                                                                                                                    
SENATOR WIELECHOWSKI  recalled that a  government-owned slaughter                                                               
facility that was  sold to private industry. He  asked the status                                                               
of that facility.                                                                                                               
                                                                                                                                
4:48:51 PM                                                                                                                    
MS.  SEITZ  replied  that  the slaughter  facility  is  still  in                                                               
operation. She said there are  currently two slaughter facilities                                                               
in Alaska.  She acknowledged  that the  State of  Alaska provided                                                               
some support  for those facilities; however,  she emphasized that                                                               
the State  of Alaska did  not help build the  livestock industry.                                                               
She explained that the slaughter  facilities continue to struggle                                                               
due to  a lack of  assistance. She  reiterated that the  State of                                                               
Alaska   has  not   helped   build   the  necessary   large-scale                                                               
agricultural  markets.  She  acknowledged that  the  Division  of                                                               
Agriculture   helped  to   create  the   Alaska  Farmers   Market                                                               
Association  (AMFA) and  assisted  with the  peony industry.  She                                                               
said Alaska  is the  only state that  does not  provide dedicated                                                               
assistance to the agriculture industry.  She pointed out that the                                                               
State of  Alaska helps  the fishing and  oil and  gas industries.                                                               
She questioned  the perception  that the State  of Alaska  is not                                                               
supposed to help the state's agriculture industry.                                                                              
                                                                                                                                
4:49:55 PM                                                                                                                    
SENATOR  DUNBAR   agreed  that  the  government   should  provide                                                               
industries  with the  necessary  infrastructure  and support.  He                                                               
disagreed  that   the  fishing  industry  is   analogous  to  the                                                               
agriculture  industry  and  offered examples  to  illustrate  the                                                               
differences.   He  opined   that  the   administration  has   not                                                               
adequately funded ASMI and asserted  that the State of Alaska has                                                               
not done  a good  job promoting the  fishing industry.  He agreed                                                               
that the  State of Alaska has  done a good job  providing support                                                               
to the oil  and gas industry. He  asked to return to  slide 9 and                                                               
pointed out that in 2022,  the agriculture industry sold close to                                                               
$40 million in crops and had  1,173 farms. He estimated that this                                                               
is around $40,000 per farm.                                                                                                     
                                                                                                                                
4:50:54 PM                                                                                                                    
MS. SEITZ  clarified that slide  9 contains the total  crop value                                                               
and does  not include  livestock. She  said the  total (including                                                               
livestock) is $90 million.                                                                                                      
                                                                                                                                
4:51:09 PM                                                                                                                    
SENATOR  DUNBAR  said  this  is  roughly  $90,000  per  farm.  He                                                               
surmised that, considering  the acreage and the  cost of farming,                                                               
many farms are  not the family's primary income  source. He asked                                                               
if this  is accurate. He asked  for information on the  number of                                                               
farms that  are the  primary source of  income versus  those that                                                               
are a side project or secondary income source.                                                                                  
                                                                                                                                
4:51:44 PM                                                                                                                    
MS.  SEITZ  said  she  would  provide that  census  data  to  the                                                               
committee. She said  this data would indicate that  many farms do                                                               
require additional,  off-farm income.  She indicated  that health                                                               
insurance is  one reason for this.  She noted an increase  in the                                                               
number farmers  for whom the  farm is the primary  income source.                                                               
She estimated the total to  be roughly 900 farmers. She clarified                                                               
that there are around 2000 farmers for the 1,173 farms.                                                                         
                                                                                                                                
4:52:49 PM                                                                                                                    
SENATOR DUNBAR shared  his understanding that Grow  North Farm is                                                               
the  only  large-scale, industrial  farm  in  Anchorage. He  said                                                               
there are  multiple farmers  (including refugees)  with different                                                               
plots on the  farm. He asked if  this counts as a  single farm or                                                               
if it is  considered multiple farms, as there  are multiple units                                                               
(with separate farmers) within that location.                                                                                   
                                                                                                                                
4:53:20 PM                                                                                                                    
MS.  SEITZ said  she  does not  know.  She expressed  uncertainty                                                               
about the criteria used to  make that determination. She said she                                                               
would  research how  the USDA  census  of agriculture  determines                                                               
this and provide the answer.                                                                                                    
                                                                                                                                
SENATOR DUNBAR  expressed support for  Grow North Farm,  which is                                                               
in his district.                                                                                                                
                                                                                                                                
4:54:06 PM                                                                                                                    
SENATOR HUGHES said she worked with  Ms. Seitz on the Alaska Food                                                               
Strategy  Task Force  and  expressed support  for  her work.  She                                                               
noted that  the task force  provided a  letter of support  for SB
128, which included  several points related to  the inadequacy of                                                               
the Division  of Agriculture.  This includes a  lack of  a robust                                                               
agriculture industry; a lack of  food security; overdependence on                                                               
outside  sources;   and  a  lack  of   in-state  food  processing                                                               
facilities.  She shared  that she  chaired the  subcommittee that                                                               
created the  white paper.  During that  process, it  became clear                                                               
that the primary  issue was not related to  employees or funding,                                                               
but to leadership.  She explained that there is a  need to have a                                                               
seat at the cabinet table, in order to move projects forward.                                                                   
                                                                                                                                
SENATOR  HUGHES then  addressed  Senator Wielechowski's  question                                                               
about free  markets. She  offered an  analogy to  illustrate that                                                               
the government  is responsible  for creating  infrastructure that                                                               
farmers cannot  create by  themselves. She  said that  across the                                                               
country,  departments  of  agriculture  support  the  agriculture                                                               
industry. Departments  of agriculture provide  the infrastructure                                                               
needed to build and  navigate markets, coordinate transportation,                                                               
address   production  issues,   conduct  research,   and  provide                                                               
education. She  emphasized that  the departments  coordinate many                                                               
things  that  farmers  cannot  do on  their  own.  She  expressed                                                               
excitement about  the growing  trend of  small acreage  farms, as                                                               
newer  technologies  allow farmers  to  produce  more on  smaller                                                               
parcels of land.  She offered an example to  illustrate this. She                                                               
stated that the goal is  for the free-market principles to thrive                                                               
in the  agriculture industry; however,  she opined that  it makes                                                               
sense for state government to take on certain roles.                                                                            
                                                                                                                                
4:57:26 PM                                                                                                                    
SENATOR KAWASAKI  asked about  other ways  the state  can support                                                               
the  agriculture  industry,  particularly   in  light  of  recent                                                               
discussions of  federal farm subsidies  and the debt  ceiling. He                                                               
offered several  examples, including crop  insurance, agriculture                                                               
risk  coverage, conservation  programs,  among  others. He  asked                                                               
what  other things  a department  and/or a  division could  do to                                                               
support the industry.                                                                                                           
                                                                                                                                
4:58:27 PM                                                                                                                    
MS.  SEITZ  indicated that  the  list  Senator Kawasaki  provided                                                               
includes  many   good  suggestions.   She  said   that  providing                                                               
technical  assistance  -  whether   for  navigating  the  federal                                                               
government in  order to obtain  crop insurance or  assistance for                                                               
beginning farmers. She briefly discussed  the challenges faced by                                                               
new farmers  in Alaska and  the various areas where  a Department                                                               
of  Agriculture   could  work  with  the   University  of  Alaska                                                               
Cooperative Extension to provide assistance.                                                                                    
                                                                                                                                
5:00:04 PM                                                                                                                    
MS. SEITZ  advanced to slide  10, containing a chart  with budget                                                               
data  from fiscal  year (FY)  06  through FY  26 (proposed),  and                                                               
emphasized  the  need for  additional  funding  and support.  She                                                               
recalled  Senator  Dunbar's  earlier comments  related  to  state                                                               
funding and support  for ASMI and indicated that  the Division of                                                               
Agriculture's funding  has likewise  been insufficient.  She said                                                               
it  would  be  helpful  to   have  a  marketing  arm  to  provide                                                               
additional support. She emphasized  that the agriculture industry                                                               
in Alaska could be much  larger with the appropriate support. She                                                               
acknowledged that  the fisheries industry is  larger and inferred                                                               
that this  is partly due  to the  level of support  that industry                                                               
has  received  from  the  State of  Alaska.  She  suggested  that                                                               
agriculture could be in-line with  fisheries with an equal amount                                                               
of support.                                                                                                                     
                                                                                                                                
5:01:16 PM                                                                                                                    
CHAIR  GIESSEL  thanked  Ms.  Seitz  for  her  presentation.  She                                                               
highlighted  past  calls  from  the  governor  that  successfully                                                               
placed local  milk and tomatoes  in stores. She noted  that fewer                                                               
local stores  are carrying those  products and suggested  that an                                                               
additional call from the governor -  or a commissioner - could be                                                               
helpful.  She  expressed  hope that  Alaskans  will  utilize  the                                                               
upcoming farmers markets.                                                                                                       
                                                                                                                                
5:02:09 PM                                                                                                                    
[CHAIR GIESSEL held SB 128 in committee.]                                                                                       

Document Name Date/Time Subjects
SB 128 Alaska Farm Bureau Presentation.pdf SRES 3/28/2025 3:30:00 PM
SB 128
SB 128 Fiscal Note Ag. Dev..pdf SRES 3/28/2025 3:30:00 PM
SB 128
SB 128 Fiscal Note Commissioner.pdf SRES 3/28/2025 3:30:00 PM
SB 128
SB 128 Fiscal Note NLPMC.pdf SRES 3/28/2025 3:30:00 PM
SB 128
SB 128 Letter of Support.pdf SRES 3/28/2025 3:30:00 PM
SB 128
SB 128 Supporting Documents DoAg White Paper.pdf SRES 3/28/2025 3:30:00 PM
SB 128
3.28.25 SB 128 Sectional Analysis.pdf SRES 3/28/2025 3:30:00 PM
SB 128
SB 128 AFSTF Letter of Support.pdf SRES 3/28/2025 3:30:00 PM
SB 128
L.pdf SRES 3/28/2025 3:30:00 PM
SB 92
SB 92 Explanation of Changes v.A to v.L.pdf SRES 3/28/2025 3:30:00 PM
SB 92
SB 92 Sectional Analysis v.L.pdf SRES 3/28/2025 3:30:00 PM
SB 92
SB 128 Public Testimony.pdf SRES 3/28/2025 3:30:00 PM
SB 128
SB 92 Public Testimony.pdf SRES 3/28/2025 3:30:00 PM
SB 92