Category Archives: Sustainability

Aren’t the Falling Oil Prices Great?

Richard Ha writes:

Isn’t it great that the price of oil has dropped so low all of the sudden?!

Wait – is it??

In the short term, for maybe five years, we’re going to be pretty happy here in Hawai‘i. More tourists will travel here, food and electricity costs will drop, and we will have more consumer confidence. We’ll feel like everything’s fine.

But everything is interconnected in our big world now, and could there be any problems with such a sudden and steep drop in oil prices?

Gail Tverberg, the former insurance actuary I sometimes refer to here who is very knowledgeable about such things on a macro level – and who writes the blog Our Finite World – just wrote about this.

In her post Ten Reasons Why a Severe Drop in Oil Prices is a Problem, she writes about the big picture.

From Our Finite World:

Let me explain some of the issues:

Issue 1. If the price of oil is too low, it will simply be left in the ground.

The world badly needs oil for many purposes: to power its cars, to plant it[s] fields, to operate its oil-powered irrigation pumps, and to act as a raw material for making many kinds of products, including medicines and fabrics….

Issue 2. The drop in oil prices is already having an impact on shale extraction and offshore drilling.

While many claims have been made that US shale drilling can be profitable at low prices, actions speak louder than words. (The problem may be a cash flow problem rather than profitability, but either problem cuts off drilling.) Reuters indicates that new oil and gas well permits tumbled by 40% in November… 

Issue 4. Low oil prices tend to cause debt defaults that have wide ranging consequences. If defaults become widespread, they could affect bank deposits and international trade. 

With low oil prices, it becomes much more difficult for shale drillers to pay back the loans they have taken out. Cash flow is much lower, and interest rates on new loans are likely much higher. The huge amount of debt that shale drillers have taken on suddenly becomes at-risk. Energy debt currently accounts for 16% of the US junk bond market, so the amount at risk is substantial.

Dropping oil prices affect international debt as well. The value of Venezuelan bonds recently fell to 51 cents on the dollar, because of the high default risk with low oil prices.  Russia’s Rosneft is also reported to be having difficulty with its loans….

Tverberg writes about some pretty extreme consequences of nearing the limits of our finite resources. I’ve said many times that I cannot disagree with her. My approach, though, is to look for workarounds for us here in Hawai‘i.

I’ve also said plenty of times that we are so lucky to have geothermal. It’s not quite “infinite,” but the Big Island will be over the geothermal “hot spot” for 500,000 to a million years, and that’s close enough.

We’ll see where all this takes us. It’s uncharted waters. On the state level, it will be good for us in the short term, but on a higher level – where Gail Tverberg operates and what she writes about – we need to pay serious attention to what’s going on. Have a look at her post. It’s important and enlightening. 

It’s been a very interesting week in terms of energy and other issues affecting the Big Island and all the rest of it. Stay tuned. I have more to say! 

Thoughts on the NextEra Purchase of HEI

Richard Ha writes:

NextEra Energy’s purchase of Hawaiian Electric Industries (HEI), just announced yesterday, will be very good for Hawai‘i.

Here’s what we know about NextEra: It’s a publicly traded company headquartered in Florida. Its principal subsidiaries include Florida Power & Light Company, which was recognized by Market Strategies International earlier this year as the nation’s most trusted electric utility, and NextEra Energy Resources, which together with its affiliated entities (NextEra Energy Resources), is North America’s largest producer of renewable energy from the wind and sun.

NextEra says it will spin off HEI’s American Savings Bank, which makes a lot of sense. NexEra.jpg

NextEra has the balance sheet and other resources to support significant investment in Hawai‘i’s transmission and distribution system to enable much higher levels of renewable energy sources.

Most of all, this change in ownership of our electrical utility will finally make much needed new and different approaches possible. What we all want is a lower cost of electricity.

And each island needs to take advantage of its own resources. One size does not fit all.

For example, the Big Island and Maui each have the options of using wind, solar, and possibly geothermal and some biofuel.

O‘ahu has wind, solar and biofuel but no proven geothermal and so limited opportunities to lower rates. Solar is a possibility. Coal is cheap, but unacceptable. LNG is possible as a bridge fuel.

Maui has its own issues, which are different from both O‘ahu and Maui.

We are unique on the Big Island. Beside solar, wind and biofuels, we have proven geothermal. Once it’s developed, geothermal wants to run 100 percent of the time, and the more it runs, the cheaper it is to the rate payers.

What if we guaranteed the geothermal developer, say, 25MW, and put no restriction on generating electricity for hydrogen manufacturing over and above the 25MW. If, for instance, the geothermal company installed a 30MW generator, they could sell 25MW to the utility and sell the excess 5MW cheap to make hydrogen. That would solve our liquid transportation problem, via hydrogen fuel cells, and we could make nitrogen fertilizer so as not to be dependent on petroleum byproducts. That’s only one example of what we could do with new thinking.

I would resist the temptation to advocate for a cable going from the Big Island. We need to see demonstrated results first.

This sales is an unexpected but very interesting turn of events. We welcome NextEra.

Maku’u Stories, Part 5: What Uncle Sonny Kamahele Taught Me About Business

Let me tell you something really interesting I learned from my Uncle Sonny Kamahele. He had 20 acres in Maku‘u, in Puna on the Big Island. There was a rare kipuka there with soil that was 10 feet deep, no rocks or anything. There was a spring in one corner of his property.

I was just out of college with an accounting degree and lots of ideas about business. So I looked at his land and wondered if he would lease me 10 acres to grow bananas. I scratched my chin and thought about how I could grow 35,000 pounds per acre on those 10 acres. Maybe 300,000 pounds a year if I took into account turn around space.

And yet on the other 10 acres, Uncle Sonny was making his living with just 10 or 20 hills of watermelons, with maybe four plants on each hill. People would come from miles around to buy his watermelons. It provided him with enough income to support himself and to send money to his wife and son in the Philippines.

Here’s the lesson I learned from him: It’s not about how big your farm is. Your business is successful if it supports your situation. I learned a lot from Uncle Sonny, but I think that’s the most important thing I learned from him.

That’s what I always look at when I visit a farm. Not how big it is, or how much money it makes, but how it operates, and whether it solves the problem it is trying to solve.

Here’s why I’m telling you this right now. We have a real energy problem looming. I think the situation with oil is very serious, and there are definitely going to be winners and losers in the world. We need to position ourselves to be winners, and it’s going to take all of us, big and small.

How are we going to feed Hawai‘i?

Every one of us is going to play a role in it – from the largest farmers to the small folks growing food in their backyard. Do you remember in the plantation camps, especially the Filipino camps, how the yards were always planted with food? Beans, eggplants, the whole thing. I don’t see it so much anymore, but we can do it again.

We are lucky on the Big Island. We’re not crowded and everybody has room to grow food. You know how you can tell we have plenty space? Everybody’s yard is too big to mow! We have the ability to do this.

It’s going to take all of us. It’s not just about any one of us, it’s about all of us, from the biggest to the smallest.

I’m lucky to have had my Uncle Sonny Kamahele to learn from when I was younger. I spent a lot of time with him and I got a real feeling for how he made decisions, which was old style.

His lifestyle was a real connection to the past, too. His lawn and the whole area were always immaculate, practically manicured. He lived pretty close to the old ways with a lot of remnants from the past. His red and green house had stones from down the beach under the pillars, and lumber over the dirt floors. He built beds on those floors and then had five or six lauhala mats on the beds instead of mattresses; old style. There was a redwood water tank.

He listened to the County extension folks, and I learned from that, too – to pay attention to the people who know something.

But one of the most important things I learned was that your business, big or small, is a success if it supports your particular situation.

See also:
Maku‘u Stories, Part 1: My Kamahele Family in Maku’u
Maku‘u Stories, Part 2: Cousin Frank Kamahele
Maku‘u Stories, Part 3: Uncle Sonny
Maku‘u Stories, Part 4: Tutu Meleana & The Puhi

Guest Post: First Hilo-Hamakua Meeting on Agr & Food Security

I asked Dr. Bruce Mathews, interim dean of the College of Agriculture, Forestry and Natural Resource Management (CAFNRM) at the University of Hawai‘i at Hilo (UHH), to write a guest post about speaking at the first of our community meetings on agriculture and food security.

Dr. Mathews writes:

Mahalo for inviting me to present an overview of Hawaii’s soil resource base for agriculture from the pre-European contact era to the present during the first part of HHCDC Symposia Series on Agriculture and Food Security.

I found that the speakers during the first session provided a solid overview of the current realities facing our local agriculture from all perspectives (resources, new precision technologies, economics, policies, etc.). I appreciated the candid discussions regarding the growth constraints faced by many crop sectors as long as there is strong import competition from continental-based operations (CBOs) and heavy dependence on imported energy and nutrient inputs for our farms.

At the end of my talk I shared a bit about my concerns regarding what I called sustainability madness and ecological imperialism. Many people are very concerned about local use of agricultural chemicals (mainly synthetic biocides such as pesticides, herbicides, etc.) and GMOs, yet the majority in Hawaii consume foods every day that are imported from CBOs where synthetic biocides and (or) GMOs were used in their production.

No doubt there is quite a bit of not in my back yard (NIMBY) ecological imperialism/ecological hypocrisy going on here and this has implications for local society as a whole.

On the other side of the coin, the best genetic manipulations in the world won’t work for long to support economic yields if we cultivate soils depleted of nutrients, organic matter, and beneficial microbial and faunal balance. The problems of climate change such as drought will only be magnified in such soils.

Yesterday I met with a group of current and former UH Hilo College of Agriculture, Forestry, and Natural Resource Management (CAFNRM) students who had leased some land with relatively good soil to farm but recently gave up the lease after raising several different truck crops. Some of the dilemmas that they mentioned facing were the lack of viable organic options to control certain pests, time and labor needed to control weeds when herbicides were not used, security challenges, etc. Obviously, they could not sell much of what did not grow well without effective pest and weed control.  There is some zealous Garden of Eden like idealism that permeates the thinking of many until they have faced the reality of actually trying to farm in Hawai‘i.

I hope that my talk also brought to light that with increasing population and cropping intensification Native Hawaiians in the pre-European contact era indeed faced challenges and threats to sustainability despite far fewer constraints posed by invasive species.

Finally, I trust human ingenuity and integrated approaches to solve the challenges we currently face. In contrast to the polarized, advocacy-based discussions seen at some recent agricultural meetings, the dialogue at the first session of this symposia was surprisingly well-received, cordial, deep, and meaningful.

The challenges that agriculture faces in Hawaii demand an open and understanding approach based on the best scientific and verifiable on-farm evidence available so that we can best self-correct as a society for a more sustainable future.

I look forward to attending the 2nd and 3rd sessions of the symposia series.

The three-part symposium is being hosted by the Hilo Hamakua Community Development Corporation, and, as Dr. Mathews mentioned, the first one went  well.

The next two meetings are November 5th and November 13th; both are from 6-8 p.m., in the Laupahoehoe Community Public Charter School Bandroom.

The meetings are open to the public; please come if you’re interested. Read more here.

Yes, We’ll Have No Tomatoes

Richard Ha writes:

I haven’t mentioned this yet, but we have been phasing out production of our tomatoes.

This came about because of what I’ve been saying here for years: The price of oil has raised farming costs substantially. The pluses of growing our hydroponic tomatoes were no longer exceeding the minuses.

When we started growing tomatoes back in 2002, we had been banana growers. Oil prices were low and banana prices were also low; it was hard to make a living that way. We needed to diversify, which is one of the reasons we went into tomatoes. It was a good decision.

But costs have been increasing drastically, and our tomato growing infrastructure is getting old and will start falling apart soon, so we had to make a decision. Do we take it apart and rebuild the tomato houses? Or do we replace them? Replacing them would cost an eye-opening three times what it cost 12 years ago when we put them up.

It’s a real-life consequence of what I keep saying here: The price of oil is four times higher than it was 10 years ago and there are significant consequences. Everything costs so much more now. We are in the middle of major changes and most people don’t even realize it.

We took into account that our customers are under increasing economic pressure, as well—meaning they have less disposable income—and that our tomatoes are a high-end product. We also knew, as we made this decision, that oil and other costs are expected to keep rising.

Our plan had always been to take our tomato farming to the next step, which would have been to leverage our excess hydroelectricity in a controlled environment that allowed us to exclude insects and optimize light and temperature. Unfortunately, it just took too long to get our hydro plant operating.

It’s been a very difficult decision, and one that we’ve been carefully considering and making for quite some time, taking not only all these conditions into account but also our next generation. As hard as it’s been to make this decision, we all agreed it was the right thing to do. It allows us to continue farming. 

We’re definitely not closing up shop; just refocusing our farming efforts based on economic factors.

We will stay in bananas. They do well in our rain and deep soil and other conditions. The banana infrastructure we have in place, such as the coolers and concrete, is good for another 20 years. The pluses exceed the minuses.

I continue to be very interested in producing a cost-effective protein source here on the farm, such as tilapia and other fish. We are currently working on the problems of protein feed and oxygenation of water, which we can do with gravity and electricity. We’re always thinking about where we need to be in 10 or 20 years.

And I’ll let you know what other interesting projects crop up along the way. 

In the meantime, you’ll see our Hamakua Springs Country Farms tomatoes until the end of November; that’s when the last of them will come off the vines, go through our packing houses, and hit the supermarkets.

We thank you for supporting, and enjoying, our tomatoes all these years.

Hamakua Springs tomatoes

You’re Invited to a Community Meeting re: Hamakua Agriculture

Richard Ha writes:

Save the dates:

  • Wednesday, October 29
  • Wednesday, November 5
  • Thursday, November 13
  • 6-8 p.m.
  • Laupahoehoe Community Public Charter School Bandroom

On these dates, the Hilo Hamakua Community Development Corporation will hold a series of community meetings to discuss agriculture on the Hamakua Coast. All are welcome (and refreshments are free).

We will take a 40,000 foot view of ag and its outside influences, and then look at the resources available to help us, such as the Daniel K. Inouye-Pacific Basin Ag Research Center (PBARC), the College of Tropical Ag and Human Resources (CTAHR), and the College of Ag, Forestry and Natural Resources Management (CAFNRM) at UH Hilo. 

There are many scientists researching various subjects. What do we want them to work on?

Farmers will be at the meeting to share their knowledge and experience.

Are you looking for land to farm? Kamehameha Schools/Bishop Estate with be there, and the Hamakua Ag Co-op has vacant land.

John Cross, former land manager for C. Brewer/Hilo Coast Processing, will attend. Did you know why all the sugar cane equipment had tracks, rather than rubber tires? Did you know that the plantations frequently planted banyan trees as significant landmarks? 

Jeff Melrose will be at the meetings. He recently did a study that's a snapshot of agriculture on the Big Island. He will talk about on what is grown on the Hamakua coast and why.

Come and talk story with the presenters, learn where you can get additional information, and speak up on what you would like to know more about in the future.

Ag & food security symposia

 

What I Learned From My Uncle Sonny Kamahele

Richard Ha writes:

I reread some of my posts about my Uncle Sonny Kamahele recently. The most important things I learned about farming, I learned from him down at Maku‘u. I thought I’d revisit some of that here.

***

Science is great, but there are kids now that go to the supermarket and think that’s where food comes from.

For me, it all goes back to Uncle Sonny and all the layers of technology that have cropped up since then. Wheelbarrow

When I first thought about farming, I spent hours and hours talking to Uncle Sonny Kamahele down the beach at Maku‘u.

I’ve written about Uncle Sonny here and here. He was my Pop’s cousin, and I learned the basic principles of farming from him.

I had just graduated from UH Manoa with an accounting degree. I had cost benefit volume analysis and market share on my mind.

Uncle Sonny drove to town once a week. He did not have electricity or running water, but he always had a stack of U.S. News & World Reports with the current copy on top. He made his living farming watermelon by himself.

One day he told me that he needed to open up a new plot of land because he could not stay at the same place for too long; he didn’t want to get a virus or a wilt of some sort.

Over the days and weeks, I watched him cut grass in the new plot with a sickle and pull it into a roll, and then cart the grass out of his plot in a wheelbarrow. When he wasn’t doing that, he would take a hoe and remove the roots of the grass, because he knew that otherwise it would regrow.

The other types of weed were dormant seeds of broad-leaved weeds that would germinate and pop up. Uncle Sonny would remove these with a hoe, only on dry days, without disturbing too much of the soil. After awhile the seeds would stop germinating.

Uncle Sonny knew that certain weeds could continuously regrow if the roots were not removed, and that others only grew from seed. I noticed that, after awhile, hardly any weeds grew in the new plot, and I thought about how amazing that was.

The lessons I learned from Uncle Sonny? Know what your problem is. Also: no waste time.

My grandma Leihulu lived with us for several years as I was growing up in Waiakea Uka. She grew taro and made poi, and she did the same things as Uncle Sonny. She always had a stack of California grass smoldering, even when it was raining – they were weeds she’d removed the same way he did. It was second nature to her. It was just her lifestyle.

Whenever I see a plot of ground that’s clean like that, it’s pretty obvious to me that they did that with a hoe, and that that is somebody that knows what they’re doing.

As Uncle Sonny got older, he started using pesticides, but because they cost money he was very very careful with them. It saves that part where you have to go and hoe the weeds out and go and pull the seeds out. It saved him a lot of time. It wasn’t very many years later that he started to use Roundup.

When I started farming, we were using skull & crossbones types of poisons like Paraquat. When we switched to Roundup, we didn’t have to use that anymore. It made spraying herbicides so much safer for the farmer.

When you use a chemical like Roundup in conjunction with a 100-hp tractor, you can do 1000 times more than one human can do. That means you can produce that much more food.  But now that herbicides kill everything, you start losing that knowledge; you don’t have to know what the old guys knew.

When Uncle Sonny used herbicides, he always stuck the leaf into it and saw if it worked. If not, he’d add a little more.

He followed the instructions, but he never relied on the instructions for the final result. He knew the formula, but he checked to make sure the result was what he wanted. It showed me that he knew what he was doing. He knew why that particular spreader was in there, and checked the proportions for sure. Not that he doubted, but if he wanted it to work very well, he’d check it himself.

I haven’t seen anybody, not anybody, do that. But I think it was common knowledge with the old folks.

We are so far removed from our food now that we don’t really have a connection with why we’re doing what we’re doing. But we need the basic knowledge. You’ve got to know why you’re doing what you are doing.

More about Uncle Sonny:

Western Region Meeting – Part 2 & Lake Tahoe

Richard Ha writes:

Last time I wrote about the first session of the Western Region meeting of the Association of Public and Land-Grant Universities, which I attended at Lake Tahoe as a Council for Agricultural Research, Extension, and Teaching (CARET) delegate.

The remaining sessions focused on the four major areas that comprise the Western Agenda – fire, water, invasive species, and endangered species.

Maria Gallo, director of UH Manoa’s College of Tropical Agriculture and Human Resources, is proposing adding the important subjects of nutrition and obesity to the Western Agenda, and I support that idea.

I like that we are taking a systems approach to this. The world has become incredibly interconnected, but too often we look at things in their independent silos. My friend, Charlie Hall, is a systems ecologist. He looks at things from an interconnected, ecological point of view.

The main issue we discussed was whether we would take the time to create one cohesive comprehensive paper that incorporates all four parts of the Western Agenda, or whether we would focus on one important issue and build the comprehensive paper along the way.

We CARET members wanted to get moving right away. We are action-oriented and want to have something we are working on before our winter meeting in Washington, D.C. We decided to get behind “fire” and push it hard as soon as we can.

The plan is very complex and involves multiple stakeholders who have been in the fight for varying lengths of time and to different degrees. We are not interested in who gets credit so much as in moving this project forward. Fire season will start soon and we will see multiple fires throughout the West. We all know this. We need to move, and move now.

Hawai‘i is going to be a major contributor in this work on the Western Agenda, especially in the area of endangered species, invasive species, and water issues. I am happy to be in the middle of it.

While this important work was going on, June and I took some time to see South Lake Tahoe and San Francisco closer up.

Here’s Lake Tahoe from our room, overlooking the Summer Concert series stage area.

View of lake

We went on a paddle wheeler on the lake.

We saw sandy beaches, warm weather, and many homes built right into the landscape. They introduced a proposal that new developments cannot reflect sunlight into the lake.

We also sat at San Francisco’s Fisherman’s Wharf and I had ceviche and raw oysters, while June had a sourdough break bowl with Dungeness crab cocktails. There were seagulls all around. We’re having a fun time.

‘Teaching People To Fish’ Through Biotechnology

Richard Ha writes:

Dennis Gonsalves and I had lunch at Zippys awhile back with Lawrence Kent of the Gates Foundation. Lawrence told us the Gates Foundation is sponsoring GM plant research to help the poorest of the poor. It’s a significant project, though just a small percent of the whole Gates Foundation effort.

I asked him about commercial banana research. He said they don’t do anything with commercial projects. Oh shucks, I thought.

But Dennis Gonsalves is working with Lawrence on a virus-resistant cassava project for Africa. Can you imagine: Local Kohala boy Dennis Gonsalves working with the Gates Foundation to help save lives of the poorest of the poor in sub-Saharan Africa? Wow.

I wrote about Hillary Clinton talking about the State Department moving from emergency feeding of the poor to GM plants that provide people with solutions they need to sustain themselves. Replacing emergency feeding programs with GM solutions gives farmers biotech tools to enhance their food production and vitamin content and more.

It’s kind of like the old saying: Give a man a fish and feed him for a day; teach a man to fish and feed him for a lifetime.

Golden rice is an example of this kind of humanitarian effort. Another is the vitamin A-enhanced banana developed in north Queensland, Australia that was recently announced.

From ABC.net.au:
By Louisa Rebgetz

Updated Sun 15 Jun 2014, 8:56am AEST
Genetically modified bananas grown in far north Queensland and bound for Africa are about to undergo human trials in the United States

Queensland University of Technology (QUT) researchers have engineered the fruit to increase the amount of beta-carotene, which is converted to vitamin A in the body.

The aim is to prevent thousands of children in East Africa from dying or going blind as a result of vitamin A deficiency.
Also, here’s an interesting 2011 New York Times article about Dennis Gonsalves:
By PAUL VOOSEN
Published: September 21, 2011 
PUNA, Hawaii — His shoes crunching through volcanic grit on the Big Island’s eastern shore, Dennis Gonsalves walks into a grove of juvenile papaya trees. The renowned plant pathologist eyes the bulbous green fruit stack up the trees’ trunks. In a few months, harvest will arrive, each tree shedding two or three papayas a week

Working in the shadow of a volcano, farmers in Puna, the heart of Hawaii’s papaya industry, harvest a bounty of healthy fruit each year. It’s a far cry from 15 years ago, when a devastating virus swept through the groves. The trees withered. Their leaves grew to resemble craggy bird claws. The fruit was pockmarked with ring-shaped spots, hallmarks of infection. The island’s papaya tradition seemed at an end.
Today, the trees’ leaves are thick as a giant’s fingers as they dance in the trade winds. The yellow-fleshed papaya will be sold to Los Angeles or San Francisco or fed to Honolulu’s throngs. Stopping at one thriving specimen, Gonsalves cannot conceal his pride.
“This one here,” he said, “you come six months from now, it’ll be loaded with papaya.”
A bit of paternal glow can be allowed. After all, Gonsalves invented the tree….

Farmers Support Colleen Hanabusa

Richard Ha writes:

Hillary Clinton says GM foods are okay, and the vast majority of our local farmers agree. I think Senator Inouye, too, would have agreed with Hillary Clinton on this issue.  Hanabusa

Our local county councilperson Margaret Wille says they are not okay, though, and, without scientific proof and going against the vast majority of UH scientists, initiated an ordinance to ban it. Hawai‘i State Senator Brian Shatz went with Margaret Wille on this issue.

This is why we farmers support Congresswoman Colleen Hanabusa in the upcoming U.S. Senate election. It’s about courage, leadership, and common sense.

Hillary Clinton was the featured speaker at the recent BIO 2014 conference, which is the largest industry trade group representing all aspects of biotechnology (it has a thousand members).

Audio excerpt of Hillary Clinton's talk

Listen to the short audio above for an excerpt of her talk. She supports genetically modified products and says there is a large gap between fact and perception. She talks about the shift in foreign policy from emergency feeding to providing seeds that are drought-resistant, for example. And she advises the industry to be more thoughtful about how they describe genetically engineered products.

Everything she says makes a whole lot of sense to me.