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Livestock Feed Reimbursement Program Information

 

NOTE: Public information meetings have been scheduled throughout the state.  For a list of the locations and times, click here.

 

Program Overview

The LFRP was developed to implement Act 221, passed by the Hawaii Legislature in Fiscal Year (FY) 2007.  The Hawaii Department of Agriculture (HDOA) has been designated to administer the program.

The purpose of Act 221 is to create a livestock revitalization and food security program to administer and disburse funds to qualified dairy, cattle, hog, and poultry farms that apply for and receive, with proper documentation, a reimbursement for up to 60 percent of each farm's feed expenses. With financial support, the livestock industry will be able to make capital investments, expand and improve their herds and flocks, and develop new markets and products. This financial support will serve a public purpose by enabling the livestock industries to stabilize their operations; thus, contributing to food security, and helping them become more competitive with mainland suppliers in the future.

Reimbursements shall not exceed a total of $250,000 per qualified producer per year and shall be filed for feed purchased within the immediately preceding State fiscal quarter of filing and shall be effective for feed costs incurred after July 1, 2007.

 

Definition of Qualified Producers

A Qualified Producer is any person that, at the time of application, is in the business of producing the following:

                                                          

  1. milk from a herd of not less that 350 cows;
  2. poultry from a flock of not less than 3,000 birds;                                      
  3. pork from a herd of not less than 50 sows;                                                          
  4. beef producers who finish at least 100 head annually.

 

Reimbursements shall not be allowed if the flock or herd size falls five percent or more below the required minimums.                                               

 

Reimbursement Process

Companies who wish to apply for the Livestock Feed Reimbursement Program (LFRP) must complete Form A and submit it to the HDOA for review.

All forms and supporting documents should be submitted to:

Hawaii Department of Agriculture
Agricultural Development Division
Market Development Branch
Livestock Feed Reimbursement Program
1428 South King Street
Honolulu, HI  96814-2512

 

All forms and supporting documents should be sent via US Mail or express mail service or hand delivered to HDOA during regular business hours (Monday – Friday, 7:45 a.m. to 4:30 p.m.) at the address above.

Qualified companies will be contact by a HDOA representative to supply further financial information.

 

Required Documents

All forms and supporting documents should be submitted to:

Hawaii Department of Agriculture
Agricultural Development Division
Market Development Branch
Livestock Feed Reimbursement Program
1428 South King Street
Honolulu, HI  96814-2512

 

All forms and supporting documents should be sent via US Mail or express mail service or hand delivered to HDOA during regular business hours (Monday – Friday, 7:45 a.m. to 4:30 p.m.) at the address above.

 

State Forms

To be established as a legitimate vendor (able to receive funds) with the State, each operation must submit a current W-9 form and a blank invoice with the company name and address clearly shown.  Additionally, the program requires that all operations:

           

  1. Be incorporated or organized under the laws of the State of Hawaii; or
  1. Be registered to do business in the State as a separate branch or division that is capable of fully performing under the contract by obtaining a Certificate of Good Standing from the Department of Commerce and Consumer Affairs, except if the business is a sole proprietorship. On-line business registration  is available at http://www.BusinessRegistrations.com or call (808) 586-2727;
  1. Complies with Chapter 237, HRS, General Excise Tax, by obtaining an original Tax Clearance Certificate from the Department of Taxation (DOTAX). Go to DOTAX website http://www.state.hi.us/tax for forms (Form A-6) and information or call (808) 587-7572 or 1-800-222-7572;
  1. Complies with Chapter 383, HRS, Hawaii Employment Security Law, Chapter 386, HRS, Workers’ Compensation Law, Chapter 392, HRS, Employment Disability Insurance, and Chapter 393, HRS Prepaid Health Care Act, by obtaining a Certificate of Compliance from the Department of Labor and Industrial Relations (DLIR). Applications are available at http://hawaii.gov/labor/.   On the DLIR website scroll down to Library/Resources and click on Forms.  Form LIR#27 is listed under Employer Forms.  If you have questions, please call (808) 586-8926.               

 

All three certificates are valid for six months from the date of issue and must be valid on the date it is received by the HDOA.  Hours of operation for the above agencies are Monday - Friday 7:45 a.m. – 4:30 p.m. HST. 

 

Program Forms

The applicant shall submit a quarterly financial statement of farm revenues and expenses along with other supporting documents as deemed necessary by HDOA, and filed with the documentation of the feed costs. An annual financial statement shall be filed with HDOA within 90 days following the close of the business' fiscal year after the effective date of this Act for final reconciliation of any reimbursement paid during the previous three quarters within the fiscal year.

The financial statements shall be certified as accurate by the applicant and the preparer of the financial statement on HDOA forms.

 

Program Parameters

 

Reimbursements shall not exceed a total of $250,000 per qualified producer per year; and shall be filed for feed purchased within the immediate preceding fiscal quarter of filing and shall be effective for feed costs incurred after July 1, 2007.

 

  Funds shall be disbursed upon approval by the department to the qualifying producer for up to:

  1. 60 percent of the feed costs incurred for production of poultry products;
  2. 40 percent of the feed costs incurred for milk production;
  3. 50 percent of the feed costs incurred for pigs raised in Hawaii and slaughtered for local consumption; or
  4. 50 percent of the feed costs for beef cattle raised in Hawaii and slaughtered in Hawaii for local consumption.

 

Feed costs shall be limited to only the feed for the qualifying flock or herd and shall not include the feed purchases for resale or gift, or the cost of transportation to Hawaii. In no case shall costs be reimbursed to a qualified producer when, after evaluation and verification by HDOA, HDOA determines that the amount of reimbursement will result in an annual profit of more than:

  1. 12 percent for milk producers;
  2. eight percent for poultry producers;
  3. eight percent for pork producers; or
  4. eight percent for beef producers.

 

Funding

This is a new program for the State of Hawaii so delays are anticipated in the release of funds.  Anticipate delays of up to 12 weeks from the submittal of verified forms to HDOA.

Under Act 221, SLH 2007, Relating to Agriculture, for the Livestock Revitalization and Food Security Program, a total of $3 million was appropriated for the development, administration and disbursement in State FY 2008 (July 1, 2007 – June 30, 2008) and State FY 2009 (July 1, 2008 – June 30, 2009).  Grant awards are contingent upon the availability of funds in each of the fiscal years.

 

Contact Information

Hawaii Department of Agriculture
Agricultural Development Division
Market Development Branch
1428 South King Street
Honolulu, HI, 96814-2512
Phone: (808) 973-9595
Fax: (808) 973-9590
E-mail: hdoa.md@hawaii.gov