VALUE CHAINS
INFORMATION review
Agribusiness Services
Hawai'i Island
Who are we trying to benefit?
To effectively understand the service needs of Hawaiʻi Island producers, it is essential to understand their demographics, characteristics, and specific needs within the agrifood cluster. Below is a summary of key information from the 2022 USDA National Agricultural Statistics Service (NASS) Agricultural Survey, focusing on how these factors relate to the prioritized services:
Producer Demographics and Characteristics
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Advanced Age of Farmers: The average age of producers is 61 years, with approximately 46% being 65 years or older. Only about 6% are under 35. This highlights the need for services that address succession planning, attract younger farmers, and adapt to the capabilities of an aging workforce.
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Beginning Farmers: There are 951 producers (about 15% of the total) who have been operating their farms for 5 years or less. These newcomers may require additional support in business planning, technical assistance, and education to establish successful operations.
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Gender Distribution: Female producers represent 43% of the total, indicating a significant presence of women in farming. Tailored services that support women in agriculture can enhance their contributions and address specific challenges they may face.
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Internet Access: Approximately 80% of farms have internet access, primarily through broadband and cellular data plans. This connectivity enables opportunities for online training, access to digital resources, and utilization of farm management software.
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Off-Farm Employment: About 65% of producers work off-farm, with 34% working more than 200 days off-farm. This reliance on off-farm income suggests time constraints and a need for flexible services that accommodate part-time farmers.
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Land Tenure: The majority of farms (2,623) are fully owned. Secure land ownership provides stability but may also limit opportunities for new entrants and necessitates services that help owners maximize their land's productivity.
Key Challenges for Producers associated with Access to Agribusiness Services
A. Business & Financial Services
Needs:
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Financial Planning and Management: Assistance with bookkeeping, accounting, and financial decision-making.
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Access to Capital: Loans, grants, and funding opportunities for expansion and equipment purchase.
Challenges:
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Limited Providers: Not enough service providers to meet demand.
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Affordability: High costs make services inaccessible for many producers.
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Skill Gaps: Producers may lack financial literacy and business management skills.
B. Agricultural Technical Assistance, Extension, Research
Needs:
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Crop Management Guidance: Best practices for soil health, pest control, and sustainable farming.
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Research Access: Latest findings and innovations applicable to local conditions.
Challenges:
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Insufficient Providers: Demand outstrips supply of extension services.
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Inadequate Resources: Limited budgets and infrastructure hinder service delivery.
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Disconnects: Misalignment between available services and producer needs.
C. Farm Equipment Repair, Maintenance, Operation
Needs:
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Equipment Access: Affordable tools and machinery suitable for small-scale farms.
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Maintenance Services: Reliable repair and maintenance support.
Challenges:
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High Costs: Importing equipment is expensive due to shipping and biosecurity regulations.
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Harsh Conditions: Hawaiʻi's environment leads to faster equipment wear.
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Technical Expertise: Lack of local technicians and training on equipment use.
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Implications: Producers need support in accessing appropriate technology and maintaining equipment to improve efficiency.
D. Training & Education (Management, Technical)
Needs:
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Tiered Training Programs: From basic to advanced levels, covering management and technical skills.
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Specialized Skills Development: Targeted training in areas like sustainable practices and agri-tourism.
Challenges:
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"Missing Middle": Gap in intermediate-level training offerings.
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Accessibility: Time constraints and off-farm work limit participation.
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Expectations: Reliance on state-provided services, which may be insufficient.
E. Certification/Compliance Support Services
Needs:
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Guidance on Regulations: Understanding and complying with food safety standards, organic certification, and other regulations.
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Assistance with Documentation: Support in navigating paperwork and processes.
Challenges:
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Demand vs. Supply: High demand for support but limited services available.
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Cost and Complexity: Compliance can be time-consuming and expensive.
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Expectations: Producers may expect free state services that are limited.
F. Marketing & Distribution
Needs:
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Market Access: Connections to local and external markets.
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Marketing Skills: Knowledge in branding, promotion, and consumer engagement.
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Distribution Networks: Efficient logistics to reach buyers.
Challenges:
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Limited Support Services: Few organizations provide comprehensive marketing assistance.
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Competition: Competing with imported products on price and visibility.
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Infrastructure Gaps: Inadequate transportation and storage facilities.