Bill Text: HI SB993 | 2013 | Regular Session | Amended
Bill Title: Agricultural Loans; New Farmer; Farm Innovation
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2013-07-02 - Act 201, 6/26/2013 (Gov. Msg. No. 1304). [SB993 Detail]
Download: Hawaii-2013-SB993-Amended.html
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THE SENATE |
S.B. NO. |
993 |
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TWENTY-SEVENTH LEGISLATURE, 2013 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO AGRICULTURAL LOANS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Financial resources are not readily available to those new to farming and those who would like to experiment with new crops or techniques. Lack of capital oftentimes weighs heavily when deciding whether or not to choose farming as a career.
With the average age of the farm operator in Hawaii being fifty-nine years old, there is a need to encourage the younger generations to take over existing farms or start their own farms. Capital is also needed for farmers to be able to test new techniques and new crops in order to make their operations run more efficiently and thus be better able to survive foreign and mainland competition.
This Act establishes enhancements to the new farmer program to address these issues and provide incentives to enter into and to continue farming.
SECTION 2. Section 155-1, Hawaii Revised Statutes, is amended by amending the definition of "new farmer program" to read as follows:
""New
farmer [program]" means a new farm enterprise [for qualified new
farmers,] or a person, who by reason of ability, experience, and training
[are], is likely to successfully operate a farm and who otherwise
[meet] meets the eligibility requirements of section 155-10 and
includes any of the following:
(1) Persons displaced from employment in an agricultural production enterprise;
(2) College graduates in agriculture;
(3) Community college graduates in agriculture;
(4) Members of the Hawaii Young Farmer Association and National FFA Organization graduates with farming projects;
(5) Persons who have not less than two years' experience as part-time farmers;
(6) Graduates from farm trainee programs designed to provide interns with the necessary hands on skills and management training to be able to successfully operate their own farm;
[(6)] (7)
Persons who have been farm tenants or farm laborers; or
[(7)] (8)
Other individuals who have for the two years last preceding their
application [have] obtained the major portion of their income from
farming operations."
SECTION 3. Section 155-3, Hawaii Revised Statutes, is amended to read as follows:
"§155-3 Restriction. Loans provided for by this chapter shall require two credit denials, except for class "F" loans for new farmer and farm innovation programs which shall require one credit denial. New farmer loans for $100,000 or less for farm trainees and recent college graduates with a degree in agriculture shall have this requirement waived. This requirement may also be waived by the board of agriculture for emergency loans. Credit denials may be accepted from any of the following:
(1) Private lenders;
(2) Members of the farm credit system; or
(3) The United States Department of Agriculture."
SECTION 4. Section 155-9, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:
"(g) Class F: [Loans for new farmer
programs shall provide for costs of a new farm enterprise for qualified new
farmers:] New farmer and farm innovation loan programs shall provide
for:
(1) [Initial] New
farmer loans made under this class shall be for purposes and in accordance
with the terms specified in class "A" and "C" only, and
shall be made only for full-time farming. The loans shall be made for an
amount not to exceed $250,000 or eighty-five per cent of the cost of the
project, whichever is less[;]. Farm trainees and recent graduates
with a degree in agriculture with smaller projects requiring loans of $100,000
or less shall have a minimum five per cent equity contribution towards the cost
of the project;
(2) Farm innovation loans are for qualified farmers to perform practical research in crop development, innovative production techniques, new technologies, and production of new crops that are not typically grown in the State. Farm innovation loans shall be limited to a maximum of $75,000;
[(2)] (3)
Any subsequent loan shall be made from classes "A" to "D",
respectively, depending upon the purpose for which the loan funds are used; and
[(3)] (4)
Borrowers shall comply with special term loan agreements as may be required by
the department and shall take special training courses as the department deems
necessary."
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect upon its approval.
Report Title:
Agricultural Loans; New Farmer Loan Program
Description:
Modifies the new farmer loan program of the Department of Agriculture to promote the development of innovative technologies and to assist new farm enterprises. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
