Bill > SB1303

This bill updates Hawaii's Agricultural Loan Program to address critical challenges faced by agricultural producers by making several key changes. The bill lowers the state agricultural loan program's interest rates to a fixed 4% for certain loan classes, increases loan limits across multiple loan categories (for example, raising the maximum for Class A farm ownership loans from $800,000 to $1,500,000), and reduces the required credit denials from two to one. The bill introduces two new loan classes: Class J for lines of credit with secured revolving credit for farm operational expenses (up to $100,000 for chattel-secured and $250,000 for real property-secured loans), and Class K for import replacement loans to encourage large-scale agriculture that can replace imported crops, with loans up to $2,500,000. Additionally, the bill defines "import replacement crops" as crops grown specifically to replace imported agricultural products and creates provisions to support new farmers, farm innovation, and projects aimed at improving Hawaii's agricultural self-sufficiency. The bill also includes appropriations to support these expanded loan programs, reflecting the legislature's intent to strengthen the state's agricultural sector by providing more flexible and accessible financing options for farmers.

Agriculture and Natural Resources, Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1303&year=2025