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This dissertation has been
microfilmed exactly as received66-13,705
HOGG, Howard Carl, 1935-AN ITERATIVE LINEAR PROGRAMMING PROCEDUREFOR ESTIMATING PATTERNS OF LAND USE.
University of Hawaii, Ph.D., 1966Economics, agricultural
Univemity Microfilms, Inc., Ann Arbor, Michigan
AN ITERATIVE LINE~~ PROGRAMHING PROCEDURE
FOR ESTIMATING PATTERNS OF LAND USE
A THESIS SUBMITTED TO THE GRADUATE SCHOOL OF THE
UNIVERSITY OF HAWAII IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS FOR THE DEGREE OF
DOCTOR OF PHILOSOPHY
IN AGRICULTURAL ECONQ~ICS
JAi'lUARY 1966
By
Howard Carl Hogg
Thesis Committee:
Arnold B. Larson, ChairmanLudwig Auel'"Edmund R. BarmettlerKyohei SasakiFrank S. Scott, Jr.
ACKNOWLEDGMENTS
The method of analysis employed in this investigation is based
upon suggestions made by Arnold Larson. I am very g~ateful for the
assistance and for his continued encouragement throughout the study. I
also want to thank the other members of my thesis committee:
Frank Scott, Jr.; Edmund Barmettler; Kyohei Sasaki; and Lud~g Auer.
In addition, I would like to acknowledge the invaluable contributions
of Tamotsu Sahara, Iwao Kuwahara, Mrs. Faith Fujimura, and Mrs. Barbara
King.
Financial support for part of this work was provided by the
Department of Land and Natural Resources, State of Hawaii. In this
connection, I am especially grateful to Paul Tajima for his efforts in
making funds available. The Statistical and Computing Center of the
University of Hawaii generously allocated several hours of computer time
tics, and cultural practices that are associated with each land type••• "
and relate the physical land quality to levels of output assuming
prevailing management practices (44, p. 127).
Master productivity ratings were first developed by the Bureau to
indicate the over-all suitability of a land type for agricultural
25
production. These ratings were established by a productivity index
that considers the character of the soil profile, texture of the sur
face soil, slope of the land, climate, and miscellaneous factors. This
procedure, which is a modification of the Storie Index Method, can be
summarized by the following formula (44, p. 128):
Land productivity index m A • B • C • X • Y
where:
A Q decimal equivalent of percentage rating for general character
of the soil profile.
B = decimal equivalent of percentage rating for texture of the
surface horizon.
C - decimal equivalent of percentage rating for slope of the
land.
X m decimal equivalent of percentage rating for site conditions
other than those covered by factors A, B, and C (salinity,
soil reaction, ~nd, etc.).
Y - decimal equivalenc of percentage rating for rainfall.
The actual percentage rating for each factor associated ~th a particu
lar land type is based on a state-~de rating scheme developed for
local conditions. Low quality lands would have a low index rating. As
the computed index approaches 100 per cent, land quality increases.
A single land type would not be equally suitable for all crops.
Because of this, single use ratings were developed by the Bureau to
indicate the SUitability of a land type for alternative single uses.
In general, the single use ratings are based on the same factors con
sidered in establishing the master productivity ratings. It was
necessary, however, to consider subjectively the added reqUirements
26
peculiar to individual uses. While the single use ratings are not as
objective as the master ratings, they do allow some control over a
major weakness of the index method. If a single factor has a lo~
percentage rating it could substantially reduce the level of the master
rating. If this over-all rating is then used for single uses it is
likely that the limiting factor will not be as restrictive in some uses
as in others. Slope, for example, is far more important When classify
ing vegetable land than when classifying pasture land.
In this study yields are associated with each individual land
productivity class by assuming levels of inputs that approximate the
modal state-wide level for each land class. The productivity ratings
are used as an indicator of physical quality and as a basis for mapping
areas of uniform quality from parcels containing several productivity
classes.
The Land Study Bureau uses lower case letters to indicate the
productivity of a land type in individual uses with land type and use
designated numerically. In Table 2, for example, land type 23i (i
designates irrigated land) is rated ~ for pineapple, ~ for vegetables,
~ for pasture, and 2 for orchard crops. The possible ratings range
from class a lands with the highest productivity to class ~ lands which
are unsuited for intensive agricultural uses. For the purposes of this
study the productivity ratings for individual uses are of primary
importance; however, the individual land type descriptions are provided
in Appendix A. The characteristics of the land areas utilized in this
analysis are given in Table 2.
27
TABLE 2. LAND TYPES, PRODUCTIVITY RATINGS,
AND ACREAGE OF LANDS UNDER STUDY
Land TypeY Productivity Rating by use~ At;reagetdLocation of Lands
Hoolehua 17i 1a 2a 6a 7a 2
11 1a 2b 6a 7a 678
3i ld 2c 6a 7b 219
7 le 2e 6e 7e 152
Waianae Kai 23i ld 2c 6a 7b 22
56i le 2e 6d 7e 1,008
57 le 2e 6e 7e 56
58 le 2e 6e 7e 410
Waimanalo 3i la 2a 6a 7a 5
4i 1a 2a 6a 7a 4
51 la 2a 6a 7a 47
8i lc 2b 6a 7b 31
9i 1b 2a 6a 7b 62
19i lb 2b 6a 7b 35
321 ld 2d 6b 7c 19
35i ld 2b 6a 7b 20
371 ld 2c 6b 7b 9
4li ld 2d 6b 7c 3
Waimanalo 421 ld 2c 6b 7b 60
47i 1d 2d 6c 7d 6
561 Ie 2e 6d 7e 104
28
TABLE 2. (Continued) LAND TYPES, PRODUCTIVITY RATINGS,
AND ACREAGE OF LANDS UNDER STUDY
Location of Lands Land Type~ Productivity Rating by Use§{ Acreage£!
57
58
le
le
2e
2e
6e
6e
7e
7e
9
8
!V Those lands designated suitable for agricultural production areassumed to be irrigated. Irrigated lands are designated by (i).
B{ Uses 1, 2, 6, and 7 represent pineapple, vegetables, pasture, andorchard crops, respectively. The lower case letters indicate theland productivity class for each use. Class e lands are unsuitedfor intensive agricultural production.
£! Acreages were measured by planimeter from U. S. Geological Surveymaps of a 1:25,000 scale.
Production Costs and Yields by Land Productivity Class
The crop budgets developed in this report are based on existing
cost of production studies. In some cases the data have been modified
to insure comparability between crops and to allow estimation of costs
and yields over a range of land qualities. The budgets are believed to
represent levels of inputs and yields that are now being realized in
the State of Hawaii.
Pineapple
In this study, pineapple is considered a potential crop on only
the Hoolehua lands. Cost of production data are not required as the
State would receive a uniform rental rate per acre for all lands con-
sidered suitable for pineapple production and leased to a plantation.
The rental rate used in this report is 30 dollars per acre per year
which is believed to represent a reliable estimate of the actual rental
should the land be leased.
29
Pasture
In Hawaii, ranches vary from small part-time operations to units
that rank among the nation's largest. Management practices within any
given size group vary substantially between firms.
The practices assumed for this report apply to a hypothetical 250
animal unit. Basic data utilized in constructing this unit were taken
from 11 questionnaires from a large state-wide survey conducted by the
Land Study Bureau in 1963 (20). Only records of respondents with
150-500 animals and Whose ranches had been classified by the Bureau were
used. Selection of the 150-500 animal size group corresponds to average
sized full-time beef operations in Hawaii (21, 22, 23, 24, 2S).
The basic plant and set of equipment for a 2S0-animal Hawaiian
ranch is described in the footnotes of Table 3. Production costs are
presented in Table 4. Because the production costs of the sample
ranches appear to vary with the number of animals, such a relationship
is assumed for the purposes of this study and results in identical per
unit production costs for ranches on all land classes. This assumption
is substantiated, in part, by the evidence presented in Table 4.
The pasture improvement and supplemental feeding expenditures given
in Table 4 should not be viewed as per acre or per animal costs. In
Hawaii, many ranchers practice pasture improvement on selected areas
wi thin their unit (so-called "emergency" or "fattening" pastures) lolhile
others improve limited areas annually as part of a long range program
of development. Supplemental feeci is usually fed for finishing steers
and heifers or to the breeding herd. Seldom, except in emergencies, is
it fed to the entire herd.
30
TABLE 3. ANNUAL COSTS OF PLANT AND EQUUMENT
FOR A 2s0-ANIMAL RANCH - 1963
Item Present Value!! DepreciationlY Interest£! Total
Equipment2./ $ 1,500 $250 $ 90 $ 340
Improvements~ 9,700 850 582 1,432
HerdY 42,100 0 2,525 2,525
Total $4,297
!I The present value is that reported by sample producers and is assumedto equal one-half of their original investment in each categoryexcept herd where it represents the total value.
~ Depreciation values are those reported by sample ranchers.
£! Interest is calculated at 6 per cent of present value.
21 It is assumed that ranch equipment consists of a truck purchased for$2,000, a military jeep purchased for $600, and miscellaneous equipment valued originally at $400. The useful life of these items isassumed to be 12 years which corresponds to producer reports.
~ Improvements consist of a single storage shed which originally cost$920 (present value $460) and fencing valued initially at $18,500(present value $9,250). The useful life of improvements is assumedto be 23 years which corresponds to producer reports. With a fixednumber of animals, ranches operating on poor quality lands ~ll besubstantially larger than those operating on good land. This sizedifference would require more boundary fencing but less crossfencing. For the purposes of this study the single fencing investment is used for all ranches.
£I The herd consists of 81 cows ($16,038), 36 heifers ($5,148), 63steers ($13,680), 66 calves ($5,808) and 4 bulls ($1,232) whichrepresents the sample ranch average as of January 1, 1963 (see 22,p. 12 for the calculation of animal values). Replacement heifersand sale of discarded cows is assumed to offset herd depreciation(2, p. 22).
31
TABLE 4. ANNUAL BEEF PRODUCTION COSTS AND PER ACRE YIELD
BY LAND PRODUCTIVITY CLASS FOR A 250-ANIMAL RANCH - 1963
Cost by Land Productivity ClassItem a b c d
LaborY $ 5,130 $ 5,130 $ 5,130 $ 5,130
Maintenance of Improvements£! 450 450 450 450
Cost of Equipment Operation£! 500 500 500 500
Supplemental FeedE! 1,325 1,325 1,325 1,325
Land Clearing~ 500 500 500 500
Ferti li zationY 200 200 200 200
Weed Control.al 120 120 120 120
Plant, Equipment, and Management!Y 6,697 6,697 6,697 6,697
Real Property Ta~!I 553 513 778 1,767
Gross Income Taxi! 95 49 43 38
Total Cost 15,570 15,484 15,743 16,727
Grazing krestsJ 556 815 1,440 3,840
Cost Per kre 28 19 11 4
Yield Per AcreY 160 53 27 10
Gross Per AcreID! 32 11 5 2
!I Labor is calculated on the basis of 16.4 hours per animal @$1.25 perhour or $20.50 per animal per year (24, p. 12).
B{ Includes materials and contract fence repair. Cost is that reportedby sample producers.
£! Gas, oil, and repairs as reported by sample producers.
E! Figure is that reported by sample producers. At $5.30 per animal itagrees closely with the average for the Land Study Bureau's statewide survey (20).
For the$100 to $150
32
~ Average annual expenditure reported by sample producers.type of clearing usually done in Hawaii, costs vary fromper acre (24, 25, p. 6).
£I Average annual expenditure reported by sample producers. This outlay represents about 2 tons of a complete commercial fertilizer.For example, 10-10-10 fertilizer costs $4.85/cwt.
sf Average annual expenditure reported by sample produpers.
hi A management fee of $2,400 is charged to each unit. Operator incomeis the sum of this fee and the operator's labor income.
!I Based on producer and tax office reports.
jJ Based on ~ per cent of gross sales computed with a five-year averageprice.
~ Average reported acreage for sample ranches operating on landclasses a and b. Acreages for classes c and d were estimated bymultiplying the class carrying capacity-mid-pOint by total animalunits for the ranch (192 animal units). According to the Land StudyBureau classification, the five sample ranches operating on theseland classes are overstocked.
!! Estimated live beef gains per acre per year are based on an assumed200-pound required gain per year per animal and the mid-point of thecarrying capacity range for each land class. The resulting valuesagree closely with Land Study Bureau estimates.
!I Based on the 1963 average price of 20 cents per pound.
The ranch budgets indicate that pasture enjoys a margin of 2.5
cents per pound on class ~ pasture land. However, these budgets do not
allow for breeding herd maintenance, which makes it unlikely that beef
could be grown under any circumstances. If even a minimal adjustment is
made (10 per cent of the gain assigned to herd maintenance) beef could
not be profitably produced on even the class ~ pasture lands. Beef
production is therefore omitted from further consideration.
Vegetable Crops
Detailed cost and yield budgets were prepared for snapbeans,
tomatoes, Manoa lettuce, and cantaloupe. These basic budgets are for
units of four-acres in size, which represent the average size of
33
vegetable farm found in Hawaii. Per acre production costs for a 2S-acre
unit were derived from these budgets by spreading the costs of plant and
equipment and return to management over the larger acreage. This proce-
dure assumes that the level of yields and inputs; e.g., fertilizer,
insecticides, harvesting labor, etc., used for the four-acre units will
prevail on the 2S-acre units.
The set of equipment described in this section is similar to that
found on four- to 10-acre vegetable farms in Hawaii (39, p. 12).
Table 5 gives annual costs of plant, equipment, and management for a
"typical" unit. A suitable irrigation system for an irrigated four-
acre vegetable farm would include the following items (39, p. 13):
Item .Amount ~-6" Aluminum Pipe 726 Feet $982
4" Aluminum Pipe 1200 Feet 818
Sprinklers, Misc. Hardware 385
7~ hp Pump (1800 REM) 473
The other equipment items needed to make up a set of equipment con-
sistent with prevailing management practices in Hawaii are as follows:
Ford 2000 Tractor
2-Bottom Plow
Disc and Spike-Tooth Harrows
6-hp Garden Tiller
Power Sprayer
Light Truck
A single building of 1200 square feet constructed at a cost of $2.20 per
square foot is needed for storage purposes and is included.
An attempt has been made to specify accurately existing production
costs and yields for each of the vegetable crops assuming production on
the designated land classes. Tables 5 through 9 give production costs
and marketable outputs for the crops being considered. The difference
TABLE 5. ANNUAL COSTS OF PLANT AND EQUIPMENT FOR A FOUR-ACRE VEGETABLE FARM - 1963
Item Initial Value!l Life Salvage _Depreciation Interest Insurance Total Costl Acre
!I All items are new except the spike-harrow and truck. Price data were obtained from local distributorsfor all new items except the bUilding. It is assumed that a suitable building could still be constructed for $2.20 per square foot.
~ Gravely Custom (six hp).
~ Includes 70 per cent of annual operating costs based on 10,000 miles annually. w+'
35
between yield and marketed output, spoilage, is influenced by several
factors; e.g., weather and rate of movement through the market. This
makes it difficult to define a single spoilage rate that would apply to
a given crop produced under diverse conditions. In addition, existing
data are not sufficient to define rates that would apply to a specific
area or season. It is possible with existing information, however, to
estimate an average percentage loss that could be expected throughout
the year (39, pp. 29 and 55; 50, pp. 10 and 17). The portion of total,
harvested output, for which the producer receives payment is the
marketed output.
A procedure developed by the Soil Conservation Service is used to
estimate irrigation requirements and is outlined in Appendix B.
Basically, this procedure consists of first using pan evaporation data
(47) and consumptive use requirements to estimate gross water needs.
Secondly, rainfall is adjusted by considering the effects of consumptive
use needs, irrigation in inches, and gross rainfall to estimate effec
tive rainfall. The gross consumptive use less effective rainfall gives
irrigation requirements. An irrigation efficiency of 60% is assumed.
At the present time, the State of Hawaii supplies irrigation water to
Waimanalo farmers at a cost of eight cents per 1000 gallons plus a
monthly assessment of $2.50 per acre. Distribution facilities are being
prepared to deliver water from the Molokai Irrigation Project to the
Hoolehua Lands. The cost of this water will be eight cents per 1000
gallons plus a monthly assessment of $1.10 per acre (Honolulu Advertiser,
Septenber 30, 1964). There is presently no irrigation project in the
Waianae area. As water rates are not available for Waianae, it was
decided to use the Waimanalo costs for these lands.
36
Real property tax rates were supplied by the First and Second
Taxation Divisions of the State Department of Taxation. Hoolehua Farm
Lands are currently assessed at a uniform rate, While the study lands at
Waimanalo are valued at two distinct levels with the higher assessment
corresl~nding to the lands considered suitable for intensive cultiva
tion. In general, the Waianae Kai lands are assessed at a low rate.
This low valuation results from two factors: 1. the lands are, in the
most part, not suited for intensive agricultural uses, and 2. large
parcels are assessed at a uniform rate (small areas of better quality
land are not delineated). Approximately 22 acres of the study lands at
Waianae Kai are classified as £ productivity (land type 23i) Which are
well suited to intensive uses. According to the State Department of
Land and Natural Resources, the study lands, with improvements, will be
assessed at about $700 per acre ($1000 market value) after development.
For the purposes of this study this rate is assumed to apply uniformly
to all study lands except those used for grazing and pineapple. A
management fee of $2,400 per unit ($600 per acre) is charged to each
vegetable farm. This fee plus the operator's labor income equals
operator income.
The State Department of Land and Natural Resources will establish a
system of permanent windbreaks on the Molokai Farm Tract before disposi
tion of the units. It is assumed that wind will be effectively con
trolled for vegetable production before farming begins and that the
established windbreaks will be available l~thout direct cost to
individual farmers (51).
TABLE 6. SNAPBEAN PRODUCTION COSTS AND YIELDS PER ACRE BY LAND CLASS - 1963~
Expenditure by Land ClassItem Amount Price Per Uni t a b c d
Yield (Pounds) 11 ,100 10,000 8,900 7,800
Spoilage (10 per cent) 1,100 1,000 900 800
Marketed (Pounds) 10,000 9,000 8,000 7,000
Per Crop Production Costs Applicable to All Areas:
TABLE 6. (Continued) SNAPBEAN PRODUCTION COSTS AND YIELDS PER ACRE BY LAND CLASS - 1963!1
Item Amount
Mi sce11aneaus
Gross Income Tax21
Cornmission~
Total Per Crop Production Costs
Production Costs Peculiar to Area:!!
Water - Waimanalo
Water - Waianae Kai
Water - Hoolehua
Freight from Molokai
Real Property Tax - Waimanalo
Real Property Tax - Waianae Kai
Real Property Tax - Hoolehua
Management Fee
Expenditure by Land ClassPrice Per Unit a b c d
$ 8 $ 8 $ 8 $ 8
12 11 10 9
367 330 293 257
1,550 1,471 1,387 1,271
$140 $140 $140 $140
164 164 164 164
147 147 147 147
$7.00 Ton 155 140 125 109
10 10 10 10
10 10 10 10
10 10 10 10
600 600 600 600
wCIO
TABLE 6. (Continued) SNAPBEAN PRODUCTION COSTS AND YIELDS PER ACRE BY LAND CLASS - 1963!1
Item Itnount Pri ce Per Uni tEXpenditure by Land Classabc d
Total Annual Costs - Waimanalo
Total Annual Costs - \~ai anae Kai
Total Annual Costs - Hoolehua
$5,745
7,319
7,457
$5,508
7,004
7,126
$5,253
6,668
6,775
$4,908
6, 20l~
6,295
!I The cost figures presented in this table are based on studies by Douglas J. McConnell (39).
B1 Tractor operating costs are estimated at $.80 per hour. Fixed costs of ownership are given inTable 3.
£! Harvesting and marketing labor costs are estimated from data presented in McConnell's report (39)and interviews with Experiment Station specialists.
~ Gross income tax is computed as ~ of gross income based on a five-year average price.
!I Wholesale commission is computed as 15% of gross receipts based on a five-year average price.
£! Computation of annual water and freight costs assumes three crops at Waimanalo and four crops atWaianae Kai and Molokai.
VJ\0
TABLE 7. TOMATO PRODUCTION COSTS AND YIELDS PER ACRE BY LAND PRODUCTIVITY CLASS - 1963~
Land Productivity ClassItem /mount Pri ce Per Uni t a b c d
Yield (Pounds) 20,000 18,300 15,600 13,900
Spoilage (15 per cent) 3,000 2,700 2,300 2,100
Marketed (Ibunds) 17,000 15,600 13,300 11,800
Per Crop Production Costs Applicable to All Areas:
TABLE 8. (Continued) MANOA LETTUCE PRODUCTION COSTS AND YIELDS PER ACRE
BY LAND PRODUCTIVITY CLASS - 1963!1
Land Productivity ClassItem !mount Price Per Uni t a b c d
Mi see11aneous $ 18 $ 18 $ 18 $ 18
Gross Income Tax!! 8 8 7 6
Wholesale Commission£! 275 252 229 183
Total Per CrOp Production Costs 873 838 790 693
Production Costs Peculiar to Area:~
Water - Waims~alo $ 132 $ 132 $ 132 $ 132
Water - Waianae Kai 156 156 156 156
Water - Hoolehua 139 139 139 139
Freight from Molokai 233 214 194 156
Real Property Tax - Waimanalo 10 10 10 10
Real Property Tax - Waianae Kai 10 10 10 10
Real Property Tax - Hoolehua 10 10 10 10
Management Fee 600 600 600 600
~V1
TABLE 8. (Continued) MANOA LETTUCE PRODUCTION COSTS AND YIELDS PER ACRE
BY LAND PRODUCTIVITY CLASS - 1963!1
Land Productivity ClassItem Amount Pri ce Per Uni t a b c d
Total Annual Costs - Waimanalo $4,579 $4,439 $4,247 $3,859
Total Annual Costs - Wai anae Kai 5,476 5,301 5,061 4,576
Total Annual Costs - Hoolehua 5,692 5,498 5,238 4,715
!I The cost figures presented in this table are based on a study by J. A. Mollett (40).
~ Harvesting and marketing labor costs are estimated from data presented in Mollett's report (40) andinterviews with Experiment Station specialists.
£! POlver cultivator operating costs are estimated at $.25 per hour. Fixed costs of ownership are givenin Table 3.
~ Power spray operating costs are estimated at $.25 per hour. Fixed costs of ownership are given inTable 3.
!I Gross income tax is computed as ~ of gross income based on a five-year average price.
£! Wholesale commission is computed as 15% of gross income based on a five-year average price.
at Computation of annual water and freight costs assumes four crops at Waimanalo and five crops atWaianae Kai and Molokai.
~0"
TABLE 9. CANTALOUPE PRODUCTION COSTS AND YIELDS PER ACRE
BY LAND PRODUCTIVITY CLASS - 196)!!
Item /mount Price Per Un! tLand Productivity Classabc d
Yield (Pounds)
Spoilage (15 per cent)
Marketed (Pounds)
Per Crop Production Costs Applicable to All Areas:
8,800
1,300
7,500
7,200
1,100
6,100
6,200
900
5,300
5,800
900
4,900
Seeds 2 Pounds $2.85 Pound $ 6 $ 6 $ 6 $ 6
20 Gallons 1.90 Gallon
Fertilizer (5-10-10)
Insecticide: Malathion
vleedicide
Crates
Tractor.JY
Labor:£!
Growing
Harvesting
1000 Pounds
24 Pounds
9 Hours
4.20 100 Pound
3.25 4 Pound
.25 Each
.80 Hour
42
13
38
44
7
290
182
42
13
38
36
7
290
159
42
13
38
31
7
290
137
42
13
38
29
7
290
126
~
"
TABLE 9. (Continued) CANTALOUPE PRODUCTION COSTS AND YIELDS PER ACRE
BY LAND PRODUCTIVITY CLASS - 196J!/
Land Productivity ClassItem Amount Price Per Unit a b c d
Miscellaneous $ 8 $ 8 $ 8 $ 8
Gross Income Tax9! 7 5 5 4
Wholesale CommisSio~ 175 145 125 115
Total Per Crop Production Costs 806 745 698 675
~oduction Costs Peculiar to Area:£!
Water - Waimanalo $ 138 $ 138 $ 138 $ 138
Water - Waianae Kai 176 176 176 176
Water - Hoolehua 160 160 160 160
Freight from Molokai 93 75 66 60
Real Property Tax - Waimanalo 10 10 10 10
Real Property Tax - Waianae Kai 10 10 10 10
Real Property Tax - Hoolehua 10 10 10 10
Management Fee 600 600 600 600
.j:'-(Xl
TABLE 9. (Continued) CANTALOUPE PRODUCTION COSTS AND YIELDS PER ACRE
BY LAND PkODUCTIVITY CLASS - 1963!1
Land Productivity ClassItem hnount Pri ce Per Uni t a b c d
Total Annual Costs - Waimanalo $3,517 $3,332 $3,191 $3,121
Total Annual Costs - Waianae Kai 3,555 3,370 3,229 3,159
Total Annual Costs - Hoolehua 3,632 3,429 3,279 3,203
!I The cost figures presented in this table are based on studies by Douglas J. McCOnnell (39).
£! Tractor operating costs are estimated at $.80 per hour. Fi:ced costs of ownership are given inTable 3.
£I Harvesting and marketing labor costs are estimated from data presented in McCOnnell's report (39)and interviews with EXperiment Station specialists.
2! Gross income tax is computed as ~ of gross income based on a five-year average price.
~ Wholesale commission is computed as 15% of gross income based on a five-year average price.
f! Computation of annual water and freight costs assumes three crops in all producing areas. Whencantaloupe was being produced in Hawaii the prevailing practice was to grow a single crop each yearin rotation with some other crop such as snapbeans or broccoli.
~\0
50
TABLE 10. ANNUAL PER ACRE COST OF PRODUCTION (25-ACRE UNITS)
FOR SELECTED VEGETABLE CROPS BY LAND PRODUCTIVITY CLASS - 1963
Land Productivity ClassItem a b c d
Snapbeans
Waimanalo $4,951 $4,715 $4,459 $4,114
Waianae Kai 6,525 6,209 5,873 5,409
Hoolehua 6,663 6,332 5,981 5,501
Tomato
Waimanalo $4,226 $4,136 $3,788 $3,568
Waianae Kai 4,276 4,146 3,798 3,578
Hoolehua 4,398 4,257 3,890 3,313
Manoa Lettuce
Waimanalo $3,785 $3,645 $3,453 $3,065
Waianae Kai 4,682 4,507 4,267 3,782
Hoolehua 4,898 4,704 4,444 3,921
Cantaloupe
Waimanalo $2,723 $2,538 $2,397 $2,327
Waianae Kai 2,761 2,576 2,435 2,365
Hoolehua 2,838 2,635 2,485 2,409
51
Table 10 gives the per acre cost of production by land class for
the 25-acre units. Yields for these units are the same as those given
earlier for the four-acre farms.
Orchard Crops
Detailed cost and yield budgets were prepared for apple banana and
papaya. The unit sizes represented by these budgets are four and five
acres. respectively. which corresponds to the state average. As in the
case of vegetables. the 25-acre budgets are basically the same as those
of the smaller units ~th plant. equipment. and management costs spread
over more acres. For bananas, however. a used tractor and trailer is
added ~th the larger unit.
The sets of equipment described in Tables 11 and 15 are similar to
those found on four-acre banana farms and five-acre papaya farms in the
State of Hawaii (30. 32). The irrigation plant is the same as that
previously described for vegetable farms.
Cost figures given in Tables 12 and 16 are explai~ed. when
necessary. to ease interpretation. In Table 12. the planting is depre
ciated over a 25-year period and interest is charged at a rate of six
per cent on one-half the original investment. For papayas land clearing
is depreciated over a nine-year period as papayas are usually not grown
more than three crop cycles (of three years each) on a given site. This
results from a substance given off by the papaya root which poisons the
soil. The costs in Table 11 are depreciated over three years and
interest is charged at a rate of six per cent on one-half the original
investment.
The production costs that apply to all producing areas are
explained in detail in the body of Tables 13 and 17. Water requirements
52
were estimated w1th the same procedure outlined for vegetables (see
Appendix B). Irrigation labor cost is determined by using the rate of
one man-hour per 27,000 gallons of water delivered ($1.25 per 27,000
gallons). This rate is based upon a 1958 papaya study for the Waimanalo
area (34, p. 14). The real property tax rates used in the vegetable
budgets are also used for orchard crops. These rates are discussed in
the previous section. Ammlagement fee of $2,400 per unit is charged to
each orchard unit. This rate is equal to $600 per acre for bananas and
$480 per acre for papaya.
Sufficient data to estimate fruit spoilage by area and season are
not available, but it is possible to estimate a gross percentage of
fruit loss that would apply to all producing areas for the entire annual
production. This figure relies heavily on discussions ~th EXperiment
Station specialists.
Table 19 gives the per acre production costs for the 25-acre units.
Yields levels are assumed to be identical to those specified for the
smaller fanns.
TABLE 11. ANNUAL COSTS OF PLANT AND EQUIIMENT FOR A FOUR-ACRE BANANA FARM - 1963
Item Value Years Life Depreciation Interest Total Cost/Acre
Quonset (20 x 50) $ 600 20 $ 30 $ 18 $ 48 $ 12
Truck (l~ ton) 2,000 12 160 60 377Y 94
Irrigation 2,660 20 133 80 213 53
Jeep (Mi 11 tary) 600 6 100 18 118 30
Power Sprayer 600 10 60 18 78 20
l<napsack Sprayers (4) 140 5 28 4 32 8
Tractor and Irai 1erP.! 1,000 25 40 30 70 18
Miscellaneous 200 4 50 6 56 14
~ Includes 70 per cent of operating costs based on 10,000 miles annually.
E! This item to be used for 25-acre unit only and is not to be included in the four-acre budget.
VIu.>
TABLE 12. COST PER ACRE OF ESTABLISHING A BANANA PLANTING - 1963
Prepare planting basins: Spacing 15' by 15' or 194 basins per acre, contract @$30;plus 10 man-hours for layout @$1.25 = $12.50
Suckers for planting (194 plants @$.50 each)
Planting: 40 man-hours @$1.25 = $50
Total Per Acre
Cost Per Acre Per Year (25-year life and 6 per cent interest)
25
39
42
97
50
$353
$ 25
VI~
TABLE 13. ANNUAL APPLE BANANA COSTS PER ACRE BY LAND PRODUCTIVITY CLASS - 1963
_~ ~_ _ _Ope~ation
Per Crop Production Costs Applicable to All Areas:
Land ProductiYity Classabc d
Weed Control: A contact herbicide concentrate containing50 pounds of pentachlorophenal dissolved in50 gallons of aromatic oil will be made at thefarm. Ten gallons of concentrate will beemulsified in 100 gallons of water. Cost pergallon is 6 cents. (55 gallons weedicide •$3,30; 17 man-hours @$1.25 • $21.25; jeep andsprayer 5 hours @$1.00 m $5.00; knapsacksprayer 12 hours, fixed costs only).
$ 30 $ 30 $ 30 $ 30
Ferti 11 zing:
Harvesting:
A balanced fertilizer (10-10-10) or equivalentapplied at the rate of 12 pounds per mat inthree applications. (194 mats x 12 pounds =2,328 pounds @$4.85 per 100 pounds = $112.91;3 applications x 2 man-hours per application@$1.25 • $7.50; jeep 6 hours @$1.00 = $6.00).
Includes time used in pruning suckers, locatingmature fruits, picking, severing old stalks,loading on truck, and packing in tubs. (Class a:360 bunches @30 pounds, 63 man-hours @$1.25 •$78.75, 23 truck hours @$1.00 • $23.00; Class b:250 bunches @30 pounds, 57 man-hours @$1.25 •$71.25, 29 truck hours @$1.00 • $21.00; Class c:183 bunches @30 pounds, 42 man-hours @$1.25 •$52.50, 15 truck hours @$1.00 a $15.00; Class d:150 bunches @30 pounds, 34 man-hours @$1.25 •$42.50; 13 truck hours @$1.00 • $13.00).
$ 126
$ 102
$ 126
$ 92
$ 126
$ -68
$ 126
$ 56
VIVI
TABLE 13. (Continued) ANNUAL A]?PLE BANANA COSTS PER ACRE BY LAND PRODUCTIVITY CLASS - 1963
Lmld Productivity ClassOperation a b c d
Indi rect Labor: Includes bookkeeping, going after supplies, $ 6 $ 6 $ 6 $ 6repairing equipment, etc. (5 man-hours@$1.25 • $6.25).
Gross Income Tax: Computed as ~ per cent of gross income. $ 4 $ 3 $ 2 $ 2(Gross based on five-year average price).
Wholesale Cammission: Computed as 18 per cent of gross income. $ 151 $ 108 $ 79 $ 65(Gross based on a five-year average price).
Preplanting weed control: 6 man-hours @$1.25 n $7.50; 50 gallonsaromatic oil @$.19 per gallon a $9.50
Total
Cost!Acre
$180
31
25
20
10
17
Cost!Acre! Year
25
37
$62
VI\0
TABLE 17. ANNUAL PAPAYA COSTS PER ACRE BY LAND PRODUCTIVITY CLASS - 1963
___ __ Operation
Per Crop Production Costs Applicable to All Areas:
COsfTAiire- by Land PioducfivTIY Classabc d
Weed COntrol: A contact herbicide consisting of 1 pound ofpentachlorophenate (@ $.36 per pound), 8 gallonsof aromatic oil (@ $.19 per gallon) and 1 poundof emulsifier (@ $.40 per pound) in 50 gallonsof water is mixed on the farm. 300 gallons willbe applied annually spraying every 2 months at arate of 50 gallons per acre (300 gallons spray@$4.56 per 100 gallons m $13.68; 37 man-hours@$1.25 a $46.25)
Fertilizing: A complete (10-10-10) fertilizer is appliedmonthly for 33 months. Application is at a rateof 2,900 pounds per year. (49 man-hours @$1.25 m
Pest Control: During the three-year life of the planting2,500 gallons of spray are applied per acre.(50 pounds of wettable sulphur @$.15 per poundand 17 pounds of "captan" @ $1.30 per pound ...$29.60; 83 man-hours @$1.25 ... $103.75
Harvesting and Packing Labor: Picking frequency varies from2 to 3 times per week during the year. Sortingand packing is done immediately after picking.(Class a, 205 man-hours @$1.25 ... $256.25;Class b, 176 hours @$1.25 a $220.00; Class c,114 man-hours @$1.25 a $142.00; Class d,66 man-hours @$1.25 a $82.00)
$ 60
202
133
256
$ 60
202
133
220
$ 60
202
133
142
$ 60
202
133
82
~o
TABLE 17. (Continued) ANNUAL PAPAYA COSTS PER ACRE BY LAND PRODUCTIVITY CLASS - 1963
Cost/Acre by Land Pioductivity ClassOperation a b c d
Other Costs: Minor repairs, maintenance of vehicles, $ 8 $ 8 $ 8 $ 8bookkeeping, etc. (A flat charge of $25per crop cycle)
Gross Income Tax: Computed as ~ per cent of gross income 8 6 4 2(Gross based on five-year average price)
Wholesale Commission: Computed as 18 per cent of gross 273 220 144 84income (Gross based on five-year averageprice)
Production Costs Peculiar to Area:
Water - Waimanalo $ 154 $ 154 $ 154 $ 154
Water - Waianae Kat 165 165 165 165
Water - Hoolehua 148 148 148 148
Freight from Molokai ($7.00 per ton) 63 51 33 19
Real Property Tax - Waimanalo 10 10 10 10
Real Property Tax - Waianae Kai 10 10 10 10
Real Property Tax - Hoolehua 10 10 10 10
0'\I-'
TABLE 17. (Continued) ANNUAL PAPAYA COSTS PER ACRE BY LAND PRODUCTIVITY CLASS - 1963
~ Durbin-Watson statistic for serial correlation in the residuals.
** Significant at one per cent level.
* Significant at five per cent level.
W Significant at 10 per cent level.
~ Test inconclusive.
tY Not computed because banana eventually drops out of the analysis(see text)¥
Deletion of the seasonal variables is based on the assumption of uniform
marketings by quarter for all of the crops in question, and that this
marketing pattern will continue in the future for any new land brought
into production. Table 22 indicates the quantity marketed in each
quarter for the several crops.
75
TABLE 22. PERCENTAGE MARKETED BY QUARTER FOR SELECTED CROPS 1959-63
Per Cent by QuarterCrop Ql Q2 Q3 ~
Snapbeans 22 27 26 ~
Tomatoes 26 31 22 21
Manoa Lettuce 25 W ~ ~
Apple ~nana 22 20 27 30
The price lags used in estimating these equations differ among the
crops considered. For snapbeans and tomatoes the most suitable lag was
found to equal their respective growing periods, or three and four
months. Manoa lettuce price is lagged one month but it takes two months
to produce a crop. This may result from the relatively high cost of
harvesting labor which could limit harvesting in periods of low price.
For apple banana a lag of six months is used and appears justifiable
from the standpoint of production methods. During low price periods,
fertilizer applications may be reduced and the planting allowed to
deteriorate, in which case about six months would lapse before the
effects are evident in reduced yields. About the same length of time
may be needed to rehabilitate neglected stands.
Figure 4 presents the computed supply equations in graphic form for
all crops in Group II with the exception of cantaloupe and apple banana.
The designated functions for these crops are omitted for reasons
previously given.
Estimated 1963 prices for snapbeans and Manoa lettuce were deter-
mined by simultaneous solution of the supply and demand equations.
Estimates of the 1963 market supply of these crops ~rere made by solving
76
the supply equations with the equilibrium prices. For cantaloupe and
tomatoes, total market supply functions were not computed. In the case
of these crops, the 1963 market price is estimated by first fitting a
simple linear regression to sales over time to estimate the 1963 supply
then solving the demand equations with this quantity. The resulting
functions (sales over time) are given below as equations (4) and (5).
(4) Xl = - 67,806.5 + 35.08X2 (cantaloupe)
(5) Xl = -160,897.2 + 85.37X2 (tomatoes)
where:
Xl :a Honolulu aOO'la1 supply (1000 pounds)
X2 ... Year
The regression coefficients for these equations are significant at t,ro
and one per cent while the R2,s are significant at five and one per
cent, respectively. Table 23 compares the estimated 1963 prices and
quantities with those actually recorded. The material presented in
Figure 4 and Table 23 should, for the most part, be self-explanatory.
However, the graph of tomato supply and demand may require further
clarification. This graph is actually the left-hand side of Figure 5
with the total market supply function missing. Market price, estimated
as outlined above, is indicated by point (a) in Figure 4. The local
supply function (SL) then indicates the quantity supplied by local
producers at this price (4,560,000 pounds as contrasted to the actual
local supply of 4,429,000 pounds). The difference between total market
supply and local supply equals estimated imports (2,130,000 pounds as
compared to 2,338,000 pounds actually recorded).
77
TABLE 23. ACTUAL AND ESTIMATED 1963 WHOLESALE PRICES
AND MARKET SUPPLIES FOR SELECTED CROPS
Crop
Snapbeans 27.2 1,202 26.8 1,286
Tomatoes 20.0 6,767 20.3 6,690
Manoa LettuceY 18.1 1,455 16.3 1,744
Cantaloupe£! 15.0 1,467 20.6 1,059
Apple Banana£! 9.7 5,363 9.3 6,437
~ The 1963 production of Manoa lettuce was abnormally low resulting inan unusually high price. 1962 actual and estimated prices are 15.8and 16.6 cents, respectively.
E{ The actual 1963 price recorded here is that received by localproducers for the 10,000 pounds marketed in 1963. It has littlemeaning for comparative purposes. Cantaloupe price was 17.5 cents,20.4 cents, and 17.3 cents for the years 1960, 1961, and 1962. The1961 and 1962 market supply of cantaloupe was 768 and 880 thousandpounds, respectively.
£! The market supply figures recorded here are for all bananas.
78
CHAPTER V
ESTLMATED LAND USE PATTERNS
In this chapter the estimating procedure developed earlier is used
to estimate patterns of land use for the three project areas being con
sidered. Each of the estimated land use patterns represents a competi
tive equilibrium under a particular set of assumptions and subject to
the limitations of the estimating model.
79
en class a orchard la~d.
Because of the above qualifications, only the vegetable crops need
to be considered within the program for most of the land use patterns.
The other crops that can be profitably grown are pineapple at Hoolehua
and papaya on class ~ orchard land. Both of these crops are assumed to
have perfectly elastic demand which allows them to be dealt with
indirectly by charging an opportunity cost, corresponding to their fixed
net return, to vegetable crops grown on the appropriate land classes.
If the vegetable crops are not at least as profitable the lands would be
allocated to either papaya or pineapple. Vegetable lands ~th the same
productivity rating can now be grouped, ~th identity of the different
lands being retained only when differences in opportunity costs occur.
In view of these considerations, the land class designations indicated
in Table 24 were established. The basic difference between Tables 2 and
24 is that in Table 24 all land types, in a given project area, that
have identical production costs for the uses being considered, have been
combined into a single land class designated Lei. In the case of area
one, additionally, land types one and 17 are combined because of the
small acreage of land type 17 (two acres).
To estimate realistically the land use patterns in the areas under
study, the possibility of encountering other restrictive factors (in
addition to land area and quantity) had to be considered. Preliminary
investigation indicated four factors that could potentially be restric
tive. They were: labor availability at Hoolehua, capital limitations,
freight service from Molokai, and water supply during seasonal peaks at
Hoolehua.
80
TABLE 24. LAND CLASSES USED IN THIS STUDY AND THEIR CHARACTERISTICS
L.S.B.Land Projec, L.S.B. Productivity MeasuredClass Area.! Land Type!Y Ratings£! Acreage
LCl 1 1, 17 la 2b 7a 680
LC2 1 3 ld 2c 219
LC3 2 23 2c 22
LCq. 3 3, 4, 5 2a 7a 56
LC5 3 9 2a 62
LC6 3 8, 19, 35 2b 86
LC7 3 37, 42 2c 69
Lea 3 32, 41, 47 2d 28
!I Pro j ect areasrespectively.
W See Table 2.
£! See Table 2.Hoolehua.
1, 2, and 3 are Hoolehua, Waianae Kai, and Waimanalo,
Pineapple is omitted from all project areas except
The budgets used in this analysis are based upon labor intensive
production methods that would require a large amount of hired labor for
a 25-acre unit. It is assumed that the necessary labor would be avail-
able on Oahu at the $1.25 wage rate. Molokai, however, does not have
the population of Oahu and it is conceivable that a labor shortage
could arise if a sizeable development of 25-acre units were attempted at
Hoolehua. For this reason several alternative use patterns were
estimated that incorporate different labor assumptions. These patterns
utilize wage rates, for Hoolehua, of $1.25 per hour (a common agricul-
tural wage), $1.50 per hour (the wage rate--including fring benefits--
earned by seasonal plantation employees on Molokai), and $2.00 per hour
81
(a wage rate that approximately equals that of permanent plantation
employees on Molokai). An additional pattern (IE) was estimated that
assumes 12 - 25-acre units at Hoolehua and imposes a quarterly labor
restriction on these operations.
Capital, the second potential restriction, was found on closer
investigation to pose no problems. State development programs for
agricultural land have typically included provision for adequate credit
at modest interest rates (48, p. 21).
This analysis assumes that Molokai production will be shipped to
Oahu by barge. Barge service is currently available and the existing
capacity is sufficient to handle the additional output. Air freight is
available but at a substantially higher cost. The problems encountered
with barge service are scheduling and transit time which appear to be
non-optimal for diversified crop production. Analysis of these problems
is beyond the scope of this study, therefore, no transportation restric
tions are imposed in this analysis. Tentative plans for a vacuum
cooling plant at Kaunakakai, Molokai, and increased barge service were
discussed at the Molokai Farm Conference on May 22, 1965. It was con
cluded at this time that if these facilities were needed they would be
provided.
The manager of the Water and Land Development Division, Department
of Land and Natural Resources, assured the Conference participants that
sufficient water would be available throughout the year. He also
indicated that as the need increases additional facilities will be
added. Plans are currently being prepared for a storage reservoir and
feeder lines to tap additional sources of supply.
82
One of the estimated patterns (IA) indicates that a substantial
acreage of papaya could be brought into production at Hoolehua. In
fact, it suggests an increase of nearly 50 per cent in total state
production. It has been assumed in this study that papaya production
could be expanded without depressing its price. While this assumption
is probably true for limited additional quantities it may not hold for
an increase of this magnitude. It was not considered necessary to
develop this possibility any further, however, because of the marginal
nature of this crop at Hoolehua where the cost-return margin on LCI is
.4 cents per pound. It is also doubtful that sufficient labor could be
provided at a wage of $1.25 per hour which, for all practical purposes,
excludes pattern LA from consideration.
Operator income, for all of the patterns discussed in this report,
is the sum of the return to management and labor income. In dollar
terms this would mean a return of $8,650, $9,900, and $12,400 for
Total market supply(thousand pounds) 13,688 2,194 2,552 1,844
Production on new land(thousand pounds) 9,368 2,194 826 660
Land Use Pattern IC
This pattern is based upon the same assumptions as patterns IA and
IB except that labor at Hoolehua is now charged a wage rate of $2.00
per hour. The reasons for selecting this wage rate were discussed
earlier. The opportunity rent for LCI and LC2 is again determined by
pineapple ($30 per acre per year). This pattern is summarized in
Tables 29 and 30.
In this use pattern none of the lands remain idle. The main
difference between this and previous solutions is that diversified crop
production, on the lands included in this analysis, has shifted entirely
to Oahu. The beginning of this shift was evident with pattern IB but was
not complete until IC was estimated.
89
TABLE 29. LAND USE PATTERN IC ASSUMING A 25-ACRE UNIT
AND A $2.00 WAGE RATE FOR HOOLEHUA!!
Crop
Tomatoes
Acres
LC1 2 3 4
56
5
7
6
86
7
59
8
Net return per acre
Cantaloupe
Acres
Net return per acre
Manoa lettuce
Acres
Net returns per acre
Snapbeans
Acres
Net returns per acre
Pineapple
Acres 680 219
Net returns per acre $30 $30
7
$807
16
$807
$1,164 $1,317 $986 $578
58
($1,164)$1,320
10
$612
28
$319
TOTAL ACREAGE 680 219 22 56 62 86 69 28
~ Bracketed values are net returns that would have been earned if thecrop had been produced on that land class. The acreage and returnsfigures given in this table actually leave approximately 450 thousandpounds of tomatoes (production of 15 acres) in disposal. Thisapproximation was accepted because of the computing time involved inbringing this system to equilibrium.
90
TABLE 30. CHARACTERISTICS OF THE COMPUTED EQUILIBRIUM
Total market supply 13,800 2,133 2,557 1,858(thousand pounds)
Production from new land 9,485 2,133 832 676(thousand pounds)
Land Use Patterns for Hoolehua
All of the land use patterns discussed in this section were esti-
mated by simply determining how much additional production ~uld be
reqUired to force price to the production cost level. This procedure
can be used because the diversified crops considered in this study fail
to use the entire acreage of the best land at Hoolehua. Because of this
simplification it was possible to estimate four land use patterns
wdthout using the program. These use patterns are identical to patterns
LA, IB, IC, and ID discussed earlier except that they apply only to
Hoolehua.
Land Use Pattern IIA
This land use pattern assumes the same per acre input levels as lA,
multiple cropping of cantaloupe, and a 2S-acre production unit. Land
area and quantity demanded are the only restrictions imposed on this
pattern. The assumed wage rate is $1.25 per hour. Table 36 summarizes
use pattern IIA. Table 36 indicates that the entire area of LCl could
be brought into production of the five crops considered.
No economic rent accrues to LCI or LC2 in this pattern. Papaya
could utilize the entire area of Lel at a rental rate of $61 per acre
96
per year and pineapple could utilize LC2 at $30 per acre per year.
These amounts were added to the production costs of the other crops.
This means that at the indicated prices a $61 net return for LCl and a
$30 net return for LC2 exists for the designated uses.
TABLE 36. LAND USE PATTERN IIA ASSUMING A 25-ACRE UNIT
AND A $1.25 WAGE RATE
Production fromCro New Land
(thousand pounds
Tomatoes 13.8 14,800 10,512 337
Cantaloupe 14.6 2,317 2,317 127
Manoa lettuce 9.1 2,585 861 17
Snapbeans 17.7 1,923 753 20
Papaya 9.0 10,525 2,739 179
Pineapple 219
TOTAL 899
~ This price is equal to per unit production costs including a $61 peracre opportunity rent for papaya on LeI.
~ Papaya is grown on the 179 remaining acres of LCl and pineapple onthe 219 acres of LC2•
Land Use Pattern lIB
Use pattern lIB is identical to pattern IIA except that labor is
charged at the rate of $1.50 per hour. The basis for this rate was
discussed earlier. Table 37 summarizes pattern IIB. The interpretation
of the acreage estimates given in Table 37 is identical to that of
pattern IIAc
97
TABLE 37. LAND USE PATTERN IrB ASSUMING A 25-ACRE UNIT
AND A $1.50 WAGE RATE
Equilibr}Uffi Total Market Production fromCrop Price!. Supply New Land AcreageP!
Tomatoes 14.8 13,550 9,220 296
Cantaloupe 15.9 2,046 2,046 112
Manoa lettuce 10.0 2,482 754 14
Snapbeans 19.7 1,782 586 16
Pineapple 461
TOTAL 899
~ This price is equal to per unit production costs including a $30opportunity rent for pineapple on LC1• Papaya cannot be grown iflabor is $1.50 per hour.
E/ Pineapple is grown on the remaining 242 acres of LCl and on the 219acres of LC 2.
Land Use Pattern IIC
Use pattern IIC is identical to both patterns IIA and IIB except
that labor is now charged $2.00 per hour. The basis for using this wage
rate was discussed earlier. Table 38 summarizes pattern IIC.
98
TABLE 38. LAND USE PATTERN rIC ASSUMING A 25-ACRE UNIT
AND A $2.00 WAGE RATE
Equilibr;um Total Market Production fromAcreageE!Crop Price! Supply New Land
Tomatoes 17.1 10,675 6,249 200
Cantaloupe 18.8 1,442 1,442 79
Manoa lettuce 11.1 2,353 623 12
Snapbeans 23.9 1,487 238 7
Pineapple 601
TOTAL 899
!I This price equals per unit production costs including a $30 opportunity rent for pineapple on LC1.
~ Pineapple is grown on 382 acres of LCl and 219 acres of LC2.
Land Use Pattern lID
This land use pattern assumes prevailing management practices
(except in the case of cantaloupe which is again treated as a multiple
crop) and a four-acre unit. It is further assumed that family labor is
sufficient to meet the needs of this unit, therefore, no restrictions
other than land area and quantity demanded are imposed. The assumed
wage rate is $1.25 per hour. Table 39 summarizes pattern lID. Inter-
pretation of the data given in Table 39 is identical to that of earlier
use patterns. The only difference between the assumptions of this
pattern and IIA is that unit size has been changed (from 25 to four
acres).
99
TABLE 39. LAND USE PATTERN IID ASSUMING A FOUR-ACRE UNIT
AND A $1.25 WAGE RATE
Equi 11 br}um Total Market Production fromAcreageP.!Crop Pricea Supply New Land
Tomatoes 16.2 11,800 7,411 238
Cantaloupe 18.7 1,462 1,462 80
Manoa lettuce 10.6 2,412 684 13
Snapbeans 19.8 1,775 578 16
Pineapple 552
TOTAL 899
!I This price equals per unit production costs including a $30 opportunity rent for pineapple.
~ Pineapple acreage includes 333 acres of LeI and 219 acres of LC2•
Stability of the Land Use Patterns
It would have been possible to re-run each final land use pattern
with a linear programming system that ranges the restrictions and
objective function. This is usually done to indicate the range over
which these values could vary without changing the basis or solution.
It appears that this procedure would give some idea of the tolerance or
allowable error that could occur in the cost budgets or demand and
supply functions. Such an interpretation must be approached with some
caution. The quantity restrictions at the equilibrium position are
established by the intersection of the market demand function and the
newly generated supply function for each crop. A change in quantity
must be accompanied by a shift of either the supply or demand curve,
which would also change price. A change in price would, in turn, change
the level of net return. Because these values are inseparably related,
100
ranging them individually ~uld have little meaning. The objective
function supplies a certain amount of information about the computed
equilibrium. Referring to Table 27 it is obvious that if cantaloupe net
returns fell (due to a cost or demand shift) from $725 to $721 per acre,
a basis change would occur. Similarly, a cantaloupe price rise would
cause tomato to be displaced from LC40 The objective function, because
of the way it is computed, is in effect already ranged. The land areas,
in a particular application, are fixed, which eliminates the need for
ranging these restrictions.
Solutions would need to be tested for stability whenever additional
restrictions have been imposed (other than land area and quantity). In
this study only pattern IE, with quarterly labor restrictions, is in
this category. It was decided not to rearun this pattern because of the
time involved and the limited value of the additional information.
Derived Labor Demand Curves for Hoolehua
An interesting by-product of land use patterns A, B, and C are the
labor demand curves that can be constructed from them. Using per acre
per year labor requirements data for the five diversified crops, a
total requirement can be estimated for each pattern. For the purposes
of thib study the relationship of primary interest is the quantity of
labor that can be hired at each wage rate. Estimated available family
labor is deducted from the total requirement to obtain the quantity of
labor that could be hired at each wage.
Available family labor can be estimated directly from the cost of
production budgets. It is generally assumed that family labor is
sufficient to operate a four-acre diversified crop unit. If these
101
family operated farms produced single commodities, the following
quantities of family labor \~uld be required:
Tomatoes 5,576 hours per year per farm
Cantaloupe 4,308 hours per ~~ per farm
Manoa lettuce 5,680 hours per year per farm
Snapbeans 12,032 hours per year per farm
Papaya 2,500 hours per year per farm
Tomatoes and cantaloupe are the largest land users, among the diversi
fied crops, in most of the patterns considered in this study. For this
reason and due to a lack of data family labor is assumed to be 5,000
hours per family per year. With this amount of labor available, a
family operated unit producing only snapbeans would not be possible.
It is necessary to establish the number of diversified crop units
that could be developed under each use pattern. This must be done for
patterns A, B, and C under both I and II development plans. Table 40
gives these values.
Figure 6 shows the relationship between the hourly wage rate and
the difference between required labor and available family labor
(converted to annual worker units). The resulting functional relations
can be interpreted as derived labor demand CU4ves for Hoolehua under the
assumptions of patterns rA, IB, IC and lIA, lIB, IIC, respectively. The
function representing these relationships is of the form (6).
(6) Xl = a - bX2
where: Xl = hourly wage rate
X2 = number of hired workers
As would be expected, the curves shown in FigurE~ 6 are quite different.
102
If only the Hoolehua lands are developed (II) labor commands a much
higher wage than if the entire area being studied (I) is developed.
There are currently 91 unemployed persons on Molokai that could be
given full-time work at wages in excess of $1.50 per hour under either
plan.
TABLE 40. LABOR REQUIREMENT FOR SELECTED LAND USE PATTERNS
Entire Area Developed
PatternRequired
Units Labor(hours/year)
FamilyLabor(hoursyear)
Worker a/uivalent-
IA ($1.25 wage)
IB ($1.50Hoolehua wage)
IC ($2.00Hoolehua wage)
Hoolehua Only
27
6
o
581,494
211,888
o
135,000
30,000
o
446,494
181,888
o
215
87
o
IIA ($1.25 wage) 27
IIB ($1.50 wage) 18
IIC ($2.00 wage) 12
768,543
601,256
401,979
135,000
90,000
60,000
633,543
511,256
341,979
305
246
164
~ Represents hired labor divided by 2,080 hours which is taken to beone full-time employee.
-. 3.001Ill-lC\l 2.75.-l
.-l0"0
2050'-'
(lJuell 2.25""'(!)00C\l 2.00~
>..-l 1.75""'::J,Q""~.I
....~ 1.50~-<
1.25
1.00
.75
.50
.25
Figure 6. Derived Demana Curves for Hired Labor at Hoolehua
(I) Xl C 1092 - .003X2
(II) Xl = x.77 - .005X2
on1" (II)...... Hoolehua __ .'.1
---------------- . "' d8velop,d (I)-------- En ti 2.'2 en: cd
Table 46 indicates the income changes associated with land use
pattern ID.
TABLE 46. CHANGES IN INCOME RESULTING FROM LAND USE PATTERN ID
THAT ASSUMES A FOUR-ACRE UNIT AND A $1.25 WAGE RATE
Existing Gross Projected Gross Projected Income ofCrop State Income State Income Existing Producers
Tomatoes $ 925,680 $1,909,135 $ 713,471
Cantaloupe 0 299,062 0
Manoa lettuce 284,272 255,701 183,341
Snapbeans 344,648 351,565 237,683
TOTALS $1,554,600 $2,815,463 $1,134,495
Pattern ID, as expected, has the smallest effect on existing vegetable
producer income. In this case, existing producer income falls 28 per
cent While total state income increases 81 per cent. Again, interpreta-
tion of these results is subject to the same limitations as for pattern
IA.
Changes in the Wholesale Price Level
Each of the land use patterns considered in this report would cause
reductions in the wholesale price level for most of the included crops.
Although a consideration of how these changes might effect retail prices
and consequently the consumer is beyond the scope of this study, an
approximation can be made. For convenience it is assumed that the
retail margin is constant. That is, a one cent drop in the price at
wholesale would reduce retail price by a like amount. For patterns lA,
IB, and IC, the vegetable price changes given in Table 47 occurred.
110
TABLE 47. ESTIMATED WHOLESALE PRICES FOR SELECTED LAND USE PATTERNS
era
Tomatoes
Cantaloupe
Manoa lettuce
Snapbeans
20.3
20.6
16.3
26.8
13.80
13.85
9.02
17.72
14.69
15.19
9.39
18.82
16.23
17.53
10.61
19.84
It is evident from Table 47 that the expected price reductions are
substantial. Pattern IB, for example, would reduce wholesale price by
5.6, 5.4, 6.9, and 8.0 cents per pound for tomatoes, cantaloupe, Manoa
lettuce, and snapbeans, respectively. If the assumption of a constant
retail margin holds a similar decline would occur at the retail level.
111
CHAPTER VII
Sili~E ADDITIONAL CROPS THAT APPEAR TO OFFER POTENTIAL
FOR ACREAGE EXPANSION
This study has considered in some detail the possibility of
expanding the production of a relatively small number of crops. In this
chapter expansion of several additional crops (zucchini squash, eggplant,
Irish potatoes, passion fruit, and macadamia nuts) ~ll be discussed in
a more general manner. Some major limitations are inherent in the
approach used here. First, a demand curve was not constructed for any
of these crops. In fact, only for zucchini squash and eggplant is
sufficient data available from which to estimate a demand relationship.
Secondly, only limited cost of production and yield data are available.
Within these limitations, the following discussion will attempt to
point out some of the relevant factors influencing the possibility of
expanding the production of these crops in the areas under study.
Vegetable Crops
One objective of this study was to discover what the effect of
bringing new vegetable land into production would be on crop prices. A
selected group of four crops was used to provide a basis from which to
consider vegetable production in general. It can be argued that such a
small number of crops is not an adequate basis upon which to make
generalizations. While this may be true, it is also true that the vast
majority of vegetables that could be grown in these areas could utilize
only very small acreages as long as the Honolulu market must absorb all
additional production. During the 1963-64 season the Hawaii Agricul
tural EKperiment Station Demonstration Farm at Eoolehua conducted trials
112
(on 1/5 acre plots) for eggplant, cucumbers, zucchini squash, bell
peppers (two plots), and tomatoes (t\~ plots). From this group of five
crops eggplant, zucchini squash, and tomatoes appeared to be promising
(35). Eggplant returned over $1,400 per 1/5 acre plot based on actual
sales in the Honolulu market (35). The test plot upon which this is
based is small, therefore any error is compounded when stated in per
acre terms. The state is nearly self-supporting in this crop \~.th a
supply of slightly over 700,000 pounds per year. With the yield level
recorded by the Demonstration Farm, Which represents above average
management, the total existing market supply could be grown on 11 acres
with one crop or 5.5 acres with two crops per year. On this basis, it
appears safe to assume that additional production would affect price
markedly and that only limited acreage could be brought into production
without reducing price below per unit cost. Zucchini squash indicated a
return of nearly $500 per 1/5 acre (35) but again it appears that this
crop could profitably utilize only a limited acreage. The total
Honolulu supply of all squash could be grown on 10 acres (at the
reported 28,300 pound yield per acre) with one crop, or five acres with
two crops per year.
There are three vegetable crops, potatoes, dry onions, and carrots,
for which production could be expanded without reducing price. This is
true because most of the market supply is currently imported from the
U. S. mainland. Of the three, cost of production and yield estimates
are available only for potatoes (12). This material is based on planta
tion yield experience during WOrld War II and synthesized cost data.
According to this study the cost of producing potatoes in Hawaii is
nearly three times as high as the California cost but because of high
113
yields (potentially high, as current yield levels are far below those
assumed) and lower transportation cost a net return of from $12 to $728
per acre appears possible. This return level depends upon wholesale
price, yield, and cost structure, and does not include costs for such
items as transportation from Molokai and real property tax, which should
total about $60. The study cited uses wholesale prices of $6.04 and
$8.33 per cwt. and defines a high and low cost unit. The acreage
required to supply the Honolulu market by 1965 was estimated at from
1,400 to 2,000 acres based upon a 15-20,000 pound per acre yield, one
crop per year, and population and consumption estimates. If the price
and cost data upon Which this discussion is based are reliable, the
expansion of potato production in Hawaii is feasible.
The three crops discussed here are generally suited to the areas
being considered. Potato production in Hawaii or at least in the areas
of study may be restricted to one crop per year because of the summer
heat.
Orchard Crops
Two orchard crops which appear to have a future in Hawaii as export
crops, and that could be grown in the areas under study, are passion
fruit and macadamia nuts. The discussion in this section is based upon
cost and return budgets prepared by Joseph T. Keeler (29, 31).
Converting the passion fruit budget to a base comparable to that
used in this study; i.e., $1.25 per hour for labor; $2,400 return to
management; a 25-acre unit; and $330 for water, irrigation labor, and
transportation expenses, allows it to be considered in comparison with
the other crops. Assuming a 30,000 pound yield per year, the price per
pound could drop from the current 5.5 to 4.8 cents per pound and still
114
cover production costs. Data on wholesale price and quantity sold are
not available for this crop so it is nOw known how many additional acres
could be brought into production before price wouid fall to this level.
Scott (56) shows that a market could be developed for the production of
2,250 acres (assuming a 30,000 pound yield which is sUbstantially higher
than average) with a comprehensive promotional campaign. It is probably
realistic to assume that the acreage could be expanded gradually, with
sufficient promotion, without adversely affecting price. The immediate
concern, however, is with the effect on price of a current increase in
output and this cannot be determined from available data.
Macadamia nuts offer another orchard crop possibility for these
lands. Converting the budget prepared by Keeler to a comparable base,
using the procedure outlined for passion fruit, indicates that with a
marketable yield of 5,865 pounds (in shell - 2500 pounds shelled) and a
price of around 20 cents per pound, macadamia nuts could be profitably
grown. Scott (57) provides an estimate, for 10 years hence, of 20
million pounds, or the production of 13,300 acres (assuming a 1500 pound
yield - shelled). This level of sales could be achieved by the time
current plantings reach maturity.
The two orchard crops discussed here are not equally suited to the
study areas. The HAES Demonstration Farm at Hoolehua uses passion fruit
windbreaks that yield well and show no wind damage, this crop appears to
be equally suited to the other areas. Macadamia nuts on the other hand
can be grown in all of the areas but are susceptible to wind damage and
are not gro\~ to best advantage under irrigated conditions. Current
acreages of both crops are far below the estimated requirements. In
January 1963 there were 4,420 acres in macadamia nuts and 290 acres in
115
passion fruit.
It is possible to include any crop in the program for which the
necessary demand, sup~ly, and budget data are available. Of the five
crops discussed in this section only eggplant and zucchini squash are in
this r ~gory. These crops could utilize such a small acreage that it
was not ~.'nsidered worthwhile to include them in the detailed analysis.
\
116
CHAPTER VIII
SUMMARY AND CONCLUSIONS
Summary
Evaluation of a land development project necessitates estimation
of the land use pattern that will probably result in the project area.
Ideally, this estimation would include all of the production alterna
tives faced by the producer. In practice, however, a complete analysis
of this type would seldom be possible. The present study considers a
selected group of crops that includes those most likely to be grown in
important quantities.
The estimating procedure utilizes an iterative linear programming
model to allocate lands of varying quality among uses in such a way as
to assure that each physical land class is being utilized in its best
agricultural use. The best agricultural use is defined as that use
earning the highest net return. Market demand functions for each crop
were incorporated in the solution procedure because the level of return
changes with quantity for all crops with a downward-sloping demand.
Market supply functions were also included for these crops, as it was
necessary to measure the effects of expanded production on existing
produce~s.
Land use patterns were estimated for four- and 25-acre units, two
different development plans, and for various labor assumptions. These
patterns indicate that with 25-acre units, and assuming that the entire
area will be developed, the announced first increment at Hoolehua
(Honolulu Advertiser, May 24, 1965) can be utilized only if a $1.25 per
hour wage rate prevails. There is some doubt that sufficient labor
would be available on Molokai at this wage. If Hoolehua only were
117
developed, the producers could pay as much as $2.00 per hour and utilize
the entire area (300 acres). Hired labor demand curves, derived for
Hoolehua under both development plans, indicate that the 91 persons
currently unemployed on Molokai could be given work at $1.50 per hour.
Under the several development plans, the output of existing
producers changes only slightly. Total state output, on the other hand,
increases greatly (40 to 200 per cent). The gross income earned by
existing producers is reduced by 25-30 per cent while total gross state
income after development increases by 75-90 per cent. Wholesale prices
are reduced substantially in each case.
Most crops not considered in the study could utilize only a limited
acreage. Notable exceptions to this were carrots, potatoes, and dry
onions which could be expanded greatly without reducing price. These
crops can only be grown as one crop per year, during the winter.
Certain orchard crops appear to offer some potential, but expansion
depends upon the level of market promotion.
Emplications
Differences between the several land use patterns occur as the
result of wage rate variations, changes in assumed unit size, imposed
labor restrictions, and modification of the assumed area to be develope~
The State Department of Land and Natural Resources, as the planning
agency in this venture, can control only two of these variables, unit
size and area to be developed. Even in the case of unit size the degree
of control is not absolute because a farmer with a 25-acre unit, for
example, may choose to utilize only part of it in actual production.
Recent evidence (Honolulu Advertiser, May 24, 1965) seems to
indicate that the state is committed to an initial development plan for
118
the Hoolehua lands only. The first increment of this development is to
be composed of l2-25-acre units. For immediate planning needs, those
patterns estimated for the Hoolehua lands only and based on a 25-acre
unit appear to be the most appropriate. The only difference between
these patterns is the wage rate. Selection of the pattern that would
most closely approximate reality depends upon the wage that would have
to be paid to obtain the required labor. The author feels that plan IIB
($1.50 wage rate) probably comes the nearest to accomplishing this.
Labor would not be restrictive if the wage was sufficiently high to
attract workers to Molokai. On the basis of pineapple company expe
rience, a wage of $1.50 per hour is sufficient to do this. It should be
restated, however, that if only the Hoolehua lands are developed for
diversified crop production, the new faDners could pay up to $2.00 per
hour for labor, while still utilizing the 300 acres of LCI (see pattern
IIC). Pattern IIB could utilize over 400 acres of LCI while paying
$1.50 per hour for all labor. Another approach to estimating a land use
pattern for Hoolehua would be to assume a fixed amount of available
labor and then compute the use pattern. This was done for the entire
area, ~th the labor restriction imposed only at Hoolehua (pattern IE),
but could not be computed for Hoolehua alone because the programming
model will not accept problems involving a single land class and more
than one restriction. It is possible to anticipate what would happen if
a corresponding pattern were computed for Hoolehua. To begin with,
papaya drops out of the pattern IE because it cannot compete for scarce
labor. Tomatoes are grown on 130 acres and Manoa lettuce on four acres
of LCI. If only Hoolehua were developed, with the same labor restric
tions used in pattern IE, more crops, probably all of the vegetable
119
crops, would be grown at Hoolehua but total acreage would not increase.
Actually fewer acres would probably be utilized because the labor
requirement for tomatoes is one of the lowest of the vegetable crops
being considered. This means that approximately 50 per cent of each
unit would remain idle. Obviously, this idle land results from labor
becoming restrictive. In the case of pattern IE, labor is restrictive
in the second and fourth quarters only, with about 27,000 hours left
unused in each remaining quarter. If the assumption of prevailing
management practices is relaxed, in reference to the prevailing cropping
patterns used in this study, it would be possible to reconstruct the
budgets and demand curves on a quarterly basis, thus allowing quarterly
patterns to be estimated.
Validity of Findings
Production costs were estimated, for the various land classes,
from existing cost of production studies and are assumed to accurately
represent conditions in Hawaii. If these costs are in error it would,
of course, effect the land use patterns. All known existing data, as
well as materials based upon personal interviews with Experiment Station
and Extension Service specialists, have been incorporated in the cost
budgets. IE in the future conflicting but more reliable data should be
made available or if costs should change, the land use ~atterns can be
recomputed utilizing the new cost structure.
The yield estimates used in this study probably tend to be conser
vative for high quality irrigated land. It was felt, however, that
because of the lack of information regarding the effects of ~~nd and the
difficulty in ~ssessing the contribution of management in those
instances where high yields have been recorded, it would be better to
120
retain the above yield estimates. Two of the study crops in particular
(tomatoes and bananas) appear to offer potentially higher yields.
Tomatoes have yielded 30-50 tons per acre on an annual (2-crop) basis
(varieties N-52 and N-55) under irrigated conditions. One of the
highest recorded yields was on the Molokai Demonstration Farm at
Hoolehua. The level of management on this farm is quite different from
the prevailing levels assumed in this study. Irrigated bananas have
also recorded yields several times larger than those used here, but
these yields were in sheltered areas. ~indbreaks at Hoolehua that are
sufficient to protect bananas will not be available for some time, if
at all (51).
The estimated demand functions, for ~ich some statistical tests
of reliability are provided in Appendix C, have been previously
discussed in some detail. If even one of these equations is in error
the computed land use patterns would indicate incorrect acreages and
returns for all crops. In this analysis no attempt has been made to
quantify the changes that would occur from variations in these functions.
The supply functions used in this study were estimated with a
relatively simple model. Although the fits obtained ~th this model
leave much to be desired statistically, there did not appear to be a
practical alternative to the procedure employed. Errors in these func
tions would influence the acreage that could be brought into production
at a given price. The more inelastic the true relationship is, the less
significant this source of error becomes. The elasticity of supply
measured over the range of price change associated with land use
pattern IA (~ich reduces price more than any of the other patterns)
indicates inelastic supply for all crops for which supply was estimated.
121
The coefficients of elasticity are .16, .25, and .02 for tomatoes,
3napbeans, and Manoa lettuce, respectively.
The computed land use patterns are only as reliable as the data
used in the programming model. In this section an attempt has been made
to establish the type of error that would occur in the estimated land
use patterns as a result of errors in the input data. It should be
re-emphasized at this point that computed net return levels would be in
error if the factors influencing their measurement are not adequately
controlled. As the actual level of return does not enter in the evalua
tion of the respective'patterns, this possibility should not pose a
serious problem. Far more important than the actual level of returns is
the relative level between uses.
Suggestions for Further Research
The land use patterns estimated in this study are based'on data for
a single year, 1963. Amore satisfactory planning approach would be to
project levels of demand and production costs to some future period,
computing land use patterns for each intervening year, so that a land
development scheme could be devised. This scheme should represent
changes in population, income, competitiveness of the several crops, and
any other factor that might significantly affect one or more of the
crops.
There are a number of other areas that could easily justify
additional research. In terms of the input data a logical next step
would be to const);llct a set of budgets for better than average or
perhaps optimum input levels. The possibility of export markets for
winter vegetables should be explored more fully, perhaps to the extent
of estimating demand curves for selected export markets. With these
122
data, the patterns could be recomputed.
The programming procedure developed for this study should be
tested on other types of problems. For example, estimating a land use
pattern for an entire state or region would be a good test of the
efficiency of the program in handling larger problems.
123
APPENDIX A
DESCRIPTION OF LAND TYPES
The following land type descriptions are from the detailed land
classification reports (3, 44) published by the Land Study Bureau,
University of Hawaii.
Molokai
Land Type
1
Description
Deep, red (Molokai) soils; nonstony to slightlystony; slopes less than 10%; average annualrainfall (AAR) less than 20 inches; moderate tostrong winds.
3 Moderately deep, red (Molokai) soils; stony;slopes less than 10%; AAR less than 25"; moderateto strong winds.
7 Moderately deep, red (Molokai and Lahaina) soils;slopes less than 40%; eroded; AAR less than 25".
17 Moderately deep; nonstony to slightly stony, dark(Kawaihapai and Hanalei) soils; nearly levelcoastal flat areas.
Oahu 3 Included are nonstony, moderately deep to deep,well-drained, moderately fine to fine-texturedlands having brownish-red to red surface soil overred subsoil. The soils have developed on uplandpositions from residuum of basic igneous rocks andfrom old alluvium. Soil reaction is slightly acidto mildly alkaline. Slopes range from 0 to 10 percent. Soil series include Maliko, Mamala (greaterthan 20 inches deep), Molokai, and Lahaina. Landsare easily worked. Median annual rainfall variesfrom 15 to 40 inches. Elevations range from 0 to1000 feet.
4 Included are non-stony, deep, well-drained, mediumto moderately fine-textured lands having brownsurface soil over yellowish-brown subsoil. Thesoils have developed from volcanic ash and cinderswashed from adjacent uplands. Soil reaction isneutral to mildly alkaline. Slopes range from 0 to10 per cent. Included is the Koko soil series.Lands are easily worked. Median annual rainfallvaries from 10 to 20 inches. Elevations rangefrom 0 to 200 feet.
O~u
Land TYEe
5
l~
Description
Included are ncnstony, deep, well-drained, mediumto fine-textured lands having brown to darkreddish-brown surface soil over dark brovm subsoil.These young soils are derived from recent alluvium.Soil reaction is slightly acid to neutral~ Slopesrange from 0 to 10 per cent. Soil series includedare the Kawaihapai and Pulehu. Lands are easilyworked. Median annual rainfall varies from 10 to40 inches. Elevations range from 0 to 600 feet.
8 Included are nonstony (except for Kaena),moderately deep, moderately well to imperfectlydrained, fine-textured lands having dark grayishbrown to grayish-black surface soil over subsoilin which gray and brown colors are often mottledwith tints of yellows, browns, and reds. The soilshave developed from old alluvium and residuum ofbasic igneous rocks under the influence ofrestricted drainage. Soil reaction is neutral tomildly alkaline. Slopes range from 0 to 10 percent. Soil series and complexes included areHonouliuli, Honouliuli-Mamala Complex, Kaena,Kalihi, Keaau, Kokokahi, Lualualei, Makalapa,Papaa, and Waimanalo. Lands are difficult to workbecause the soils are very plastic and sticky whenwet and very hard when dry. In localized areas,the impeded internal drainage restricts growth ofcrops that require good drainage. Median annualrainfall varies from 15 to 60 inches. Elevationsrange from 0 to 500 feet.
9 Included are nonstony, deep, well-drained, finetextured lands having dark reddish-brown to brownsurface soil over red subsoil. The soils havedeveloped on upland positions (including highterraces) from old alluvium or residuum from basicigneous rocks. Soil reaction is strongly to slightly acid. Slopes range from 0 to 10 per cent.Included are the Alaeloa, Kaneohe, and Lolekaaseries. Lands are easily worked. Median annualrainfall varies from 40 to 100 inches. Elevationsrange from 0 to 800 feet.
19 Included are nonstony, deep, well-drained,moderately fine to fine-textured lands having darkreddish-brown surface soil over red subsoil. Thesoils have developed on upland positions fromresiduum of basic igneous rocks. Soil reaction ismedium acid. Slopes range from 11 to 20 per cent.Included are the Alaeloa, Kaneohe, and Lolekaaseries. Lands are difficult to work because of
125
Land Type Description
Oahu slope. Median annual rainfall varies from 40 to80 inches. Elevations range from 10 to 1000 feet.
23 Included are stony, deep, well-drained, moderatelyfine to fine-textured lands having red to reddishbrown surface soil over red to brown subsoil. Thesoils have developed from recent and old a11uviunl.Soil reaction is slightly acid to neutral. Slopesrange from 0 to 10 per cent. Soil series includedare Ewa, Kahuku, Kamananui, Pu1ehu, and Waialua.Lands are difficult to work because of stoniness.Median annual rainfall varies from 15 to 40 inches.Elevations range from 0 to 400 feet.
32 Included are nonstony, deep, well-drained,moderately fine to fine-textured lands havingreddish-brown to dark red surface soil and redsubsoil. They have developed on upland positionsfrom residual lava or old alluvium. Soil reactionis strongly acid. Slopes range from 21 to 35 percent. Soil series included are Kahana, Kunia, andWahiawa. Lands are difficult to work because ofslope. Median annual rainfall varies from 30 to60 inches. Elevations range from 250 to 1200 feet.
35 Included are stony, deep, imperfectly to welldrained, medium to fine-textured lands having darkreddish-brown to dark grayish-brown surface soilover brown subsoil. The soils have developed onbottomland positions from recent alluvium. Soilreaction varies from medium acid to neutral.Slopes range from 0 to 10 per cent. Soil seriesincluded are Hanalei and Kawaihapai. Lands aredifficult to ,~rk because of the stoniness. TheHanalei soils are subject to occasional flooding.Median annual rainfall varies from 30 to 80 inches.Elevations ranges from 0 to 300 feet.
37 Included are stony, deep, well-drained, moderatelyfine to fine-textured lands having dark reddishbrown surface soil over brown subsoil. The soilshave developed on old alluvial terraces. Soilreaction is very strongly acid to strongly acid.Slopes range from 0 to 10 per cent. Included isthe Lokekaa soil series. Lands are difficult towork because of the stoniness. Median annual rainfall varies from 40 t~ 90 inches. Elevations rangefrom 20 to 500 feet.
Oahu
Land Type
41
126
Description
Included are stony, deep, vrell-drained, medium tofine-textured lands having dark reddish-brownsurface soil over reddish-brown subsoil. The soilshave developed on old alluvial terraces or volcaniccinder deposits. Soil reaction is very strongly tostrongly acid. Slopes range from 11 to 20 percent. Included are the Lolekaa and Ualakaa soilseries. Lands are difficult to work because of theslope and stoniness. The layer of soil materialover cinders may be rather thin in the case of theUalaka~ soils. The Lolekaa soils are usuallydeficient in bases including potassium and calcium,and phosphorus fixation is high. Median annualrainfall varies from 40 to 90 inches. Elevationsrange from 20 to 500 feet.
42 Included are stony, moderately deep, imperfectly-drained, fine-textured lands having very dark graysurface soil over brown, gray, yellowish-brown, andolive, mottled subsoil. The soils have developedOn upland positions from old alluvium or lavasweathered in place, under conditions of restrictedinternal drainage. Soil reaction is neutral tomildly alkaline. Slopes range from 11 to 20 percent. Soil series and complexes included areHonouliuli, Kaena, Lualualei, Lualualei-Ewa Complex,Makalapa, and Papaa. Lands are difficult to workbecause of the slope, stoniness, and stickinesswhen wet. Median annual rainfall varies from 15 to40 inches. Elevations range from 0 to 500 feet.
47 Included are nonstony, deep, well-drained moderatelyfine to fine-textured lands with dark reddish-brownsurface soil over reddish-brown to red subsoil.The soils have developed on upland positions fromlava weathered in place. Soil reaction is mediumacid. Slopes range from 21 to 35 per cent. Soilseries included are Alaeloa, Kaneohe, Lolekaa,Nakalele, and Paaloa. Lands are difficult to workbecause of slope. Special problems range fromacidity to erodibility. Median annual rainfallvaries from 40 to 80 inches. Elevations range from10 to 1000 feet.
56 Included are rocky, deep, imperfectly to welldrained, medium to fine-textured l&;ds having darkred to very dark brown surface soil and red to graysubsoil. The soils have developed on uplands,upland talus positions, or alluvial flats fromresiduum of basic igneous rocks or from alluvium.Soil reaction ranges from slightly acid to neutral.
127
Land Type Description
Oahu Slopes range from 0 to 35 per cent. Soil seriesand complexes included are the Ewa, Hanalei,Honouliuli, Kaena, Kahana, Kahuku, Kawaihapai,Kawaihapai-Lualualei Complex, Koko, Lahaina,Lualualei, Lualualei-Ewa Complex, Mahana, Makalapa,Mamala, Molokai, Nakalele, Pulehu, Rockland Coral,Rocky lands, Stony lands, and Rough Broken LandSoil Complexes. Lands are virtually impossible towork because of the rocks, and in some cases,slope. Median annual rainfall varies from 25 to80 inches. Elevations range from 0 to 1500 feet.
57 Included are stony or rocky, shallow, well-drained,medium to fine-textured lands having variablesurface and subsoil colors. The soils havedeveloped on uplands or upland alluvial positionsfrom residuum of basic igneous rocks or fromalluvium. Soil reaction is quite variable. Slopesrange from 36 to 80 per cent. Soil series andcomplexes included are Ewa, Ewa-Lualualei Complex,Kaena, Kunia, Lahaina, Lolekaa, Lualualei, Lualualei -Ewa Comple."<:, r.1ahana, Manana, Molokai, Waikapu,and the (Rough Broken Land) Soil Complexes. Landsare virtually impossible to work because of theslope. In some cases, erosion is a serious problem.Median annual rainfall varies from 15 to 100 inches.Elevations range from nearly sea level to 1500 feet.
58 Included are generally steep pali lands havinglittle o~ no soil mantle over the rock material.Drainage is usually good because of the slope.Color varies with the rock composition and degreeof weathering. Slopes generally do not ~xceed
35 per cent, although some inclusions may be moresteep. Many of these lands occur on the sides ofgulches which dissect the open cultivated lands,but large areas belonging to this unit are found inthe Waianae and Koolau mountain ranges. Because ofthe slope and the lack of soil materials, theselands are not suited for agricultural uses. Amountand distribution of rainfall are highly variablethroughout the area of occurrence. Median annualrainfall varies from 15 to about 250 inches.Elevations range from 150 to 4000 feet.
128
APPENDIX B
IRRIGATION REQUIREMENTS
Waimanalo
Irrigation requirements for the study crops produced at Waimanalo
were estimated by multiplying inches of pan evaporation by an average
growing period consumptive use coefficient then deducting effective
rainfall. This procedure is based upon materials supplied by the Soil
Conservation Service. Table B-1 illustrates the calculation of these
requirements for the Waimanalo area. To complete the estimation of
water requirements for this area it was necessary to know during Which
months the "typical" vegetable farmer would grow the various crops. The
follo~ng cropping pattern was established from interviews with
TABLE B-1. IRRIGATION REQUIR~1ENTS FOR STUDY CROPS AT WAIMANALO
Pan Evaporation Average Growing Period Rainfall Irrigation bl~ Inches per Month~(E) Consumptive Use (K) (E)·(K) Total Effective Requirement--Other Other Other Other
In cases of slow convergence it is possible to obtain preliminary
results by interrupting the solution process. Frequently, these results
will contain sufficient data for deleting one or more of the crops
before attempting a subsequent run. Crops could be deleted if they are
entering on insignificant acreages or if their acreages change little
from one stage of the solution to the next. If they are deleted for the
latter reason the acreage in the regions where they are to be grown must
be reduced appropriately. It may also be found that the system is close
enough to a solution for the intermediate results to be used as they
are. To reduce the likelihood of slow convergence the program could be
modified as follows:
(a) Price need not be modified according to the production
costs of the several producing regions as was done in this
study. If price is changed by a uni'form amount at each
step of the solution process the major cause of slow
convergence is removed. However, this modification of
the procedure will affect the accuracy of the results as
the final price for each crop may be higher or lower than
the actual price.
(b) An approximate solution could be accepted by writing a
degree of allowable error into the program. There are a
number of ways of doing this; perhaps the most obvious is
to accept a solution that is ~thin a given range of the
required market supply.
142
143
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