GOVERNOR LINGLE SIGNS BILL TO INCREASE FARM LOAN CEILING FOR HAWAIIAN HOME LANDS

For Immediate Release:  May 21, 2008

HONOLULU – Governor Linda Lingle signed into law today HB3126 SD2 CD1 (Act 85), which increases the loan ceiling for farm and ranch operations on Hawaiian home lands from $50,000 to $200,000.  This loan cap has not been changed since 1982.  Currently, the $50,000 loan ceiling limits the types of improvements that can be made for farming and ranch operations.  In some cases, the installation of an agricultural water meter alone costs $60,000, not to mention other needed infrastructure and equipment. 

The new $200,000 loan ceiling will enable farmers to adequately build basic infrastructure as well as purchase equipment and tools.  There are currently 1,102 agricultural lease holders on homestead lands, and a portion of them are expected to take advantage of this loan increase to secure funding for the development, operation and expansion of their small commercial farms. 

The bill was introduced by the Lingle-Aiona Administration on behalf of the Department of Hawaiian Home Lands beneficiaries who requested the loan increase. 

“The beneficiary farmer groups on all the islands made this piece of legislation possible; and this is an example of how their input has allowed the department to better address beneficiary concerns,” said Micah Kāne, director, Department of Hawaiian Home Lands.

The new law takes effect immediately.

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For more information, contact:
Micah Kāne
Director, Dept. of Hawaiian Home Lands
Phone: (808) 620-9501

Lenny Klompus
Senior Advisor – Communications
Phone: (808) 586-7708

Russell Pang
Chief of Media Relations
Phone: (808) 586-0043