SB 2126: DAB; Farming; Small and Midsized Farms; Grants; Appropriation

A BILL FOR AN ACT

RELATING TO AGRICULTURAL GRANTS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Chapter 141, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

     "§141-    Farming grant program.  (a)  There is established within the department of agriculture and biosecurity the farming grant program.

     (b)  Subject to available funds, the farming grant program shall provide grants to small and midsized farms that practice conventional, sustainable, organic, or regenerative farming methods.

     (c)  Each grant application shall be evaluated by the board of agriculture and biosecurity and shall be approved if the application satisfies the following requirements:

     (1)  The applicant shall be an owner of a small farm or midsized farm;

     (2)  If the applicant is an entity other than an individual, the applicant shall:

          (A)  Be licensed to conduct business in the State; and

          (B)  Adopt bylaws or policies that describe the manner in which business is conducted, prohibit nepotism, and provide for the management of potential conflicts of interest;

     (3)  The applicant shall agree to comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, disability, or any other characteristic protected under applicable federal or state law;

     (4)  The applicant shall agree that grant moneys shall not be used for purposes of entertainment or perquisites and shall be used only for the following:

          (A)  Farming infrastructure and irrigation improvements;

          (B)  Upgrades to farming equipment;

          (C)  Costs relating to improving soil health and nutrient management practices; or

          (D)  Costs relating to the adoption of climate-smart or water conservation techniques;

     (5)  The applicant shall agree that all activities and improvements undertaken with grant funds shall comply with applicable federal, state, and county laws, including statutes, ordinances, applicable building codes, and rules;

     (6)  The applicant shall agree to make available to the department of agriculture and biosecurity any records relating to the grant and allow state agencies to verify the applicant's compliance with the purpose of this section; and

     (7)  The applicant shall comply with other requirements or conditions as the department of agriculture and biosecurity or board of agriculture and biosecurity may prescribe.

     (d)  For the purposes of this section:

     "Conventional farming" means growing crops from seeds that have been genetically altered using any traditional breeding method, excluding biotechnology, and that are not certified as organic.

     "Gross cash farm income" means the sum of the farm's crop and livestock sales, government payments, and other farm-related income, including fee payments from contractors.

     "Midsize farm" means a farm having an annual gross cash farm income of $350,000 to $999,999; provided that, upon approval by the board of agriculture and biosecurity, the department of agriculture and biosecurity may apply a higher annual gross cash farm income amount consistent with the term "midsize farm" or "midsize family farm" as defined by the United States Department of Agriculture's Economic Research Service in a farm typology publication or related update.

     "Small farm" means a farm having an annual gross cash farm income of less than $350,000; provided that, upon approval by the board of agriculture and biosecurity, the department of agriculture and biosecurity may apply a higher annual gross cash farm income amount consistent with the term "small farm" or "small family farm" as defined by the United States Department of Agriculture's Economic Research Service in a farm typology publication or related update."

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 for the farming grant program.

     The sum appropriated shall be expended by the department of agriculture and biosecurity for the purposes of this Act.

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2050.

Report Title:

DAB; Farming; Small and Midsized Farms; Grants; Appropriation

Description:

Establishes the Farming Grant Program to be administered by the Department of Agriculture and Biosecurity to provide grants to small and midsized farmers.  Appropriates funds.  Effective 7/1/2050.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO AGRICULTURAL GRANTS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Chapter 141, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

     "§141-    Conventional farming grant program.  (a)  There is established within the department of agriculture and biosecurity the conventional farming grant program.

     (b)  Subject to available funds, the conventional farming grant program shall provide grants to small and midsized farms that predominately practice conventional farming.

     (c)  Each grant application shall be evaluated by the board of agriculture and biosecurity and shall be approved if the application satisfies the following requirements:

     (1)  The applicant shall be an owner of a small farm or midsized farm;

     (2)  If the applicant is an entity other than an individual, the applicant shall:

          (A)  Be licensed to conduct business in the State; and

          (B)  Adopt bylaws or policies that describe the manner in which business is conducted, prohibit nepotism, and provide for the management of potential conflicts of interest;

     (3)  The applicant shall comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, disability, or any other characteristic protected under applicable federal or state law;

     (4)  Grant moneys shall not be used for purposes of entertainment or perquisites;

     (5)  All activities and improvements undertaken with grant funds shall comply with applicable federal, state, and county laws, including statutes, ordinances, applicable building codes, and rules;

     (6)  The applicant shall agree to make available to the department of agriculture and biosecurity any records relating to the grant and allow state agencies to verify the applicant's compliance with the purpose of this section; and

     (7)  The applicant shall comply with other requirements or conditions as the department of agriculture and biosecurity or board of agriculture and biosecurity may prescribe.

     (d)  For the purposes of this section:

     "Conventional farming" means growing crops from seeds that have been genetically altered using any traditional breeding method, excluding biotechnology, and that are not certified as organic.

     "Gross cash farm income" means the sum of the farm's crop and livestock sales, government payments, and other farm-related income, including fee payments from contractors.

     "Midsize farm" means a farm having an annual gross cash farm income of $350,000 to $999,999; provided that, upon approval by the board of agriculture and biosecurity, the department of agriculture and biosecurity may apply a higher annual gross cash farm income amount consistent with the term "midsize farm" or "midsize family farm" as defined by the United States Department of Agriculture's Economic Research Service in a farm typology publication or related update.

     "Small farm" means a farm having an annual gross cash farm income of less than $350,000; provided that, upon approval by the board of agriculture and biosecurity, the department of agriculture and biosecurity may apply a higher annual gross cash farm income amount consistent with the term "small farm" or "small family farm" as defined by the United States Department of Agriculture's Economic Research Service in a farm typology publication or related update."

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 for the conventional farming grant program.

     The sum appropriated shall be expended by the department of agriculture and biosecurity for the purposes of this Act.

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2026.

Report Title:

DAB; Conventional Farming; Grants; Appropriation

Description:

Establishes the Conventional Farming Grant Program to be administered by the Department of Agriculture and Biosecurity to provide grants to small and midsized farmers who practice conventional farming.  Appropriates funds.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 2104

Honolulu, Hawaii

RE:     S.B. No. 2126

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Agriculture and Environment, to which was referred S.B. No. 2126 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURAL GRANTS,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Establish the Conventional Farming Grant Program to be administered by the Department of Agriculture and Biosecurity to provide grants to owners of small and midsized farms who practice conventional farming; and

     (2)  Appropriate funds.

     Your Committee received testimony in support of this measure from the Department of Agriculture and Biosecurity; Hawaiʻi Farm Bureau; Hawaii Cattlemen's Council, Inc.; Hawaiʻi Floriculture and Nursery Association; and Restore the Commons.

     Your Committee received testimony in opposition to this measure from the Libertarian Party of Hawaii and three individuals.

     Your Committee received comments on this measure from Hawaiʻi Farmers Union United.

     Your Committee finds that small and midsized farms make up a critical component of the State's food production.  These farming operations face significant challenges, including high input costs, labor shortages, rising energy and transportation expenses, and limited access to capital.  By providing targeted financial support to aid these farmers, this measure aims to protect food security, sustain rural communities, and strengthen the State's overall agricultural capacity.

     Your Committee has amended this measure by:

     (1)  Renaming the grant program to provide inclusivity to all farms regardless of farming methods;

     (2)  Specifying that small and midsized farms that use sustainable, organic, or regenerative farming methods shall also qualify for moneys under the grant program;

     (3)  Inserting language that specifies allowable uses of grant funds under the program;

     (4)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (5)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Agriculture and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2126, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2126, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Agriculture and Environment,