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Perhaps land is being held aside in expectations of even bigger increases in value in the future. If land appreciates at, let's say, 10% per year, and taxes are low (because it is "agricultural") then it pays to do nothing for the present. A 10% growth rate with almost no risk is not very common these days.

I was surprised to see little solar or wind development on my visit to Hawaii. On the sunny side of most islands this would seem to be ideal and on the rainy sides there seem to be fairly steady winds. Perhaps I just wasn't in the right places or didn't notice...

Policies not Politics
---- Daily Landscape

by rdf (robert.feinman@gmail.com) on Tue Mar 21st, 2006 at 11:15:03 AM EST
[ Parent ]
some of that is going on no doubt, but the bottom line is even with cheap dirt, the sugar plantations don't make any money even with a price propped up at 2X the world market.  If not for transportation subsidies on top of the price games, the last 2 plantations would have died years ago.  Ethanol may save them though.

Wind is coming.  The BI has a couple of decent sized farms and are doubling capacity.  Maui is adding a wind farm too.  Oahu has an older windfarm that was regarded as a dog, but stories have been circulating that they were going to replace the turbines and add new capacity as well.  Even on kauai our backward coop is now getting serious.

Solar is still 2X the price of oil fired juice.  Nobody is rushing to put in solar on a big scale.  More likely we'll jump into biomass as the ag lobby is strong.

by HiD on Tue Mar 28th, 2006 at 04:05:03 AM EST
[ Parent ]

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