Bill Text: HI SR73 | 2014 | Regular Session | Introduced

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Bill Title: DLNR; Leased Public Land for Agriculture

Spectrum: Partisan Bill (Democrat 8-0)

Status: (Introduced - Dead) 2014-03-21 - The committee on WTL deferred the measure. [SR73 Detail]

Download: Hawaii-2014-SR73-Introduced.html

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THE SENATE	S.R. NO.	73
TWENTY-SEVENTH LEGISLATURE, 2014
STATE OF HAWAII

SENATE RESOLUTION

 

 

REQUESTING THE DEPARTMENT OF LAND AND NATURAL RESOURCES TO Define "best use" of lands under leases for agriculture, Base agricultural lease rents on the value of the land for the intended agricultural production activity, Grant right of first refusal to renew or extend an agricultural lease of twenty years or more to the lessee prior to the disposition of the lease at public auction, and transfer expeditiously all of its managed lands leased or under Revocable Permit for agricultural purposes to the Department of Agriculture.

 

 

     WHEREAS, article XI, section 3, of the Hawaii State Constitution mandates, in part, "The State shall conserve and protect agricultural lands, promote diversified agriculture, increase agricultural self-sufficiency and assure the availability of agriculturally suitable lands.  The legislature shall provide standards and criteria to accomplish the foregoing"; and

 

     WHEREAS, many of Hawaii's lands classified as agricultural or conservation are leased by the Department of Land and Natural Resources for agricultural purposes; and

 

     WHEREAS, long-term leases at affordable rates are essential for the viability of farms and ranches on these lands; and

 

     WHEREAS, chapter 171, Hawaii Revised Statutes, relating to management and disposition of public lands, is silent on any requirements to set lease rents at the "best use" of public land or for agricultural use; and

 

     WHEREAS, the only reference to "best use" in chapter 171, Hawaii Revised Statutes, is in section 171-18.5, Hawaii Revised Statutes, relating to sugarcane lands conveyed for the development of housing projects, which provides a definition for "highest and best use" as the most profitable, probable, and legal use to which the land can be put; and

 

     WHEREAS, if the most profitable use standard is used in determining the best use of agricultural lands, resultant prices may not accurately reflect best agricultural uses, which should be the primary purpose of agricultural lands; and

 

     WHEREAS, in fact, under current economic conditions in Hawaii, lands classified as agricultural are often sold for prices far above the value of the land in actual agricultural production, which results in lease rents based on inflated land prices rather than agricultural productivity that many farmers and ranchers are unable to afford; and

 

     WHEREAS, the Department of Land and Natural Resources' leases are subject to public auction upon expiration, subjecting farmers or farm families who have farmed or ranched successfully and paid their rent faithfully for many years to the potential loss of their farms and their livelihoods; and

 

     WHEREAS, long-term agricultural operations are essential to Hawaii's goal of increased long-term food security; and

 

     WHEREAS, section 166E-1, Hawaii Revised Statutes, expresses the Legislature's finding that the Department of Land and Natural Resources should transfer certain public lands classified for agricultural use by the Department of Land and Natural Resources to the Department of Agriculture to ensure the long-term productive use of public lands; now, therefore,

 

     BE IT RESOLVED by the Senate of the Twenty-seventh Legislature of the State of Hawaii, Regular Session of 2014, that the Department of Land and Natural Resources is requested to:

 

     (1)  Define "best use" of lands under leases for agriculture or offered for lease for agricultural purposes based on agricultural production for which the lands are suited, such as ranching on pasture land, crop production in areas of suitable soil, and aquaculture or aquaponics where such facilities are appropriate;

 

     (2)  Base agricultural lease rents on the value of the land for the intended agricultural production activity, using current production values from the land under consideration and from nearby similar agricultural activities as necessary, without consideration of land sale prices or of improvements made to the land by the lessee;

 

     (3)  Grant right of first refusal to renew or extend an agricultural lease of twenty years or more to the lessee prior to the disposition of the lease at public auction; provided that:

 

          (A)  The lessee is engaged in agricultural production, including crop production, livestock production, or aquacultural or aquaponic production;

 

          (B)  The lessee is not in arrears in the payment of taxes, rents, or other obligations owing the State or any county; and

 

          (C)  The lessee has not had, during the five years preceding the expiration of the lease, a previous sale, lease, license, permit, or easement covering other public lands canceled for failure to satisfy the terms and conditions thereof; and

 

     (4)  Pursuant to the Legislature's findings codified in section 166E-1, Hawaii Revised Statutes, expeditiously transfer all Department of Land and Natural Resources managed lands leased or under revocable permit for agricultural purposes to the Department of Agriculture; and

 

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Chairperson of the Board of Land and Natural Resources and Chairperson of the Board of Agriculture.

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

DLNR; Leased Public Land for Agriculture