State agencies including schools, hospitals and prisons will be directed to buy locally grown produce, poultry and meat as part of a push by Gov. Linda Lingle to increase the state's food self-sufficiency.

If Hawai'i can reduce by 10 percent the amount of food it imports, it would create more than $300 million in economic activity, generate $6 million in taxes and create 2,300 new jobs, Lingle said in her State of the State address yesterday. Hawai'i imports roughly 85 percent of all consumed food, according to the state.

"Increasing our food self-sufficiency will contribute to the state's economic recovery by keeping more of our money here at home," Lingle said in remarks to a joint session of legislators in the state House chamber. "If we each make an effort to buy more locally produced food we will be contributing to our economic recovery, helping Hawai'i farmers lower their unit costs, and protecting our open spaces."

State agencies will take the lead by purchasing locally grown fruits, vegetables, poultry, eggs and meat, she said. Under new rules, Hawai'i farmers will receive a 15 percent price preference when placing their bids for state purchases. That's a 5 percentage point increase over the current 10 percent price preference, which Lingle and lawmakers say is not working properly.

The proposals come after a tough year for local farmers, who produce about 15 percent of the food consumed in Hawai'i.

Drought and water restrictions coupled with the global recession forced the closure of five farms last year that produced papaya, macadamia nuts, eggs, cabbage and other vegetables.

The Hawai'i Farm Bureau Federation lauded Lingle's efforts to promote locally grown food and self-sufficiency but said more needs to be done to help farmers acquire land, labor and water.

The 15 percent price preference will help local companies compete with Mainland companies, but the competition gap remains large, said Dean Okimoto, president of the Hawai'i Farm Bureau Federation and Nalo Farms.

"It's like we're creating demand for something we cannot fulfill," said Okimoto. "The problem is we need to get more farmers out there. It's a production problem. Getting labor, land and water is making it hard. It's tough to do with no money. Not being able to afford the land, the water and the labor, that's holding back expansion."

Acquiring land and water sources is not cheap, especially when biodiesel producers and other businesses are able to offer more for land, Okimoto said.

State lawmakers were supportive of Lingle's suggestion but echoed Okimoto's concern about the availability of land and water.