Gov. Dunleavy proposes creation of new agriculture department next year to boost food security

Gov. Mike Dunleavy says he plans to establish the Alaska Department of Agriculture next year in an effort to boost the state’s food production.

Alaska’s state agriculture policies are currently overseen by the Division of Agriculture, which is housed in the Alaska Department of Natural Resources.

Dunleavy said Friday that he would issue an executive order in January, when the Legislature convenes, seeking to create the new department. Under state law, Dunleavy’s executive order would take effect in July unless a majority of lawmakers vote in a joint session to undo the order.

Palmer Republican Sen. Shelley Hughes, who has long advocated for the state’s agricultural sector, said Friday that she hoped lawmakers would approve of the change. Hughes chaired the Alaska Food Strategy Task Force, which argued earlier this year in favor of creating the department.

It was not immediately clear how much the department would cost. Last week, Dunleavy did not include the department when he introduced his budget proposal, which called for spending $1.5 billion over Alaska’s expected revenue in the coming fiscal year.

This is the second time in his tenure as governor that Dunleavy has sought to create a new state department through executive action. In 2022, Dunleavy issued an executive order dividing the Department of Health and Social Services into the Department of Health and the Department of Family and Community Services. At the time of the split, Dunleavy estimated the creation of the new department would cost $2 million annually.

There is some precedent to lawmakers rejecting Dunleavy’s executive orders. Lawmakers rejected eight of 12 orders issued earlier this year. Most of the rejected orders would have eliminated public boards that lawmakers deemed to be necessary. But Hughes, who is largely politically aligned with Dunleavy, said she expected lawmakers to view the proposal favorably given its support in the agriculture industry.

Dunleavy has taken several actions to highlight Alaska agriculture in recent years, but during his first year in office, Dunleavy oversaw budget cuts that slashed state Division of Agriculture staff by more than half.

In 2019, the agriculture division laid off 20 state employees, leaving a staff of 16, following budget cuts proposed by Dunleavy. The cuts reduced the division’s revolving loan fund, cut its marketing and inspection capacities, and reduced the division’s ability to ensure that grocery stores carry Alaska-grown products.

Still, the monetary value of Alaska’s agricultural products has grown steadily, from under $70 million in 2017 to $91 million in 2022, according to data from the U.S. Department of Agriculture.

In his Friday announcement, Dunleavy said the 2020 coronavirus pandemic was a “wake up call.”

“It revealed how much Alaska had become dependent on functioning supply chains and how quickly a disruption at West Coast ports could wreak havoc in Alaska,” Dunleavy said.

Dunleavy in 2022 issued an administrative order creating a task force to study food security. He then issued another administrative order creating an office of food security within the Office of the Governor, though the food security office does not appear to have any formal staff or funding.

Scott Mugrage, president of the Alaska Farm Bureau, said Friday in a statement released by Dunleavy that creating an agriculture department “has been a long standing priority” for the bureau.

“Agriculture was a key industry here in territorial and early statehood days, with support, we can get back to that,” he said.