Hawai‘i, the most isolated inhabited place on Earth, faces a severe food security crisis. Nearly one-third of its residents struggle with food insecurity, reaching 40% on Hawai‘i Island. The state's vulnerability to natural disasters and economic shocks highlights the urgent need for legislative action to bolster local food production and reduce dependency on imports. Two key strategies are proposed: tax incentives and regulatory relief for local food infrastructure, and the elimination of grocery taxes. These measures aim to stabilize food costs, support local businesses, and enhance resilience against emergencies.

Empowering Local Food Production Through Incentives

The state Legislature is considering bold initiatives to strengthen local food systems by offering targeted tax incentives and simplifying regulations. By supporting local food production, processing, and storage, these measures aim to reduce dependence on imports and prepare the state for potential crises. Businesses would benefit from refundable tax credits for investments in essential infrastructure like storage facilities and processing plants. Streamlining permitting processes would also minimize delays and costs associated with critical food system projects.

Local businesses face significant challenges, including some of the highest electricity, shipping, and labor costs in the nation. Many have shifted operations to the mainland due to regulatory and tax burdens, leaving Hawai‘i without vital local food infrastructure. Addressing these barriers would empower local producers, improve food security, and stimulate economic growth. For instance, refundable tax credits could incentivize investment in modern storage facilities and distribution networks, while streamlined regulations would facilitate quicker project approvals, reducing operational costs and increasing efficiency.

Eliminating Grocery Taxes for Immediate Relief and Long-Term Stability

Eliminating grocery taxes is another crucial step toward addressing food insecurity. Currently, Hawai‘i is one of the few states that imposes full grocery taxes, disproportionately affecting low- and middle-income households. Research shows that even a 1% increase in grocery taxes can raise food insecurity among low-income families by 0.84%. Removing this tax would provide immediate financial relief to struggling families and create a fairer economic environment.

Georgia’s experience in the 1990s demonstrates the potential benefits of eliminating grocery taxes. By 2021, the policy had saved households $691.4 million, created over 18,000 jobs, and generated $1.45 billion in economic activity. Adopting a similar model in Hawai‘i could significantly ease the financial burden on families while driving economic growth. Moreover, reducing grocery taxes would lower operational costs for local businesses, enabling them to expand operations and contribute to building a resilient food system capable of withstanding natural disasters and economic disruptions. This approach aligns with the values of aloha and community that define Hawai‘i, ensuring a stronger, healthier future for all residents.