SB 2153: DAB; Working Group; Bona Fide Farmer; Bona Fide Agricultural Activity; Definitions; Report

A BILL FOR AN ACT

RELATING TO AGRICULTURE.

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

     SECTION 1.  The legislature finds that in the State, land is a precious and limited resource, and zoning laws often distinguish between land used for agricultural purposes and other uses, such as residential or commercial development.  The lack of a uniform standard for what constitutes a bona fide farmer can lead to discrepancies in the way agricultural zoning is applied.  Landholders who are not truly engaged in farming may take advantage of agricultural zoning designations, potentially reducing available agricultural land and undermining the State's efforts to preserve land for commercial agricultural activities.  This creates conflicts with the preservation and allocation of agricultural resources, which should be reserved for farmers who are engaged in genuine farming activities.

     The legislature acknowledges that some of the persistent difficulties in Hawaii agriculture have been reconciling the diversity of agricultural practices with the need for a uniform, enforceable standard that prevents abuse of agricultural tax classifications and land entitlements, incorporating the breadth and scope of agricultural activity in the State and providing comprehensive language that successfully incorporates county level zoning and property tax ordinances regarding land and water usage.

     The purpose of this Act is to require the department of agriculture and biosecurity to convene a bona fide farmer working group to develop multi-tiered, matrix-based definitions for the terms "bona fide farmer" and "bona fide agricultural activity".

     SECTION 2.  (a)  The department of agriculture and biosecurity shall convene a bona fide farmer working group to develop multi-tiered, matrix-based definitions for the terms "bona fide farmer" and "bona fide agricultural activity".

     (b)  The bona fide farmer working group shall consist of the following members:

     (1)  The chairperson of the board of agriculture and biosecurity, or the chairperson's designee, who shall serve as the chair of the working group;

     (2)  The chairperson of the board of trustees of the office of Hawaiian affairs, or the chairperson's designee;

     (3)  The executive director of the Hawaii Farm Bureau, or the executive director's designee, who shall be invited by the chair of the working group;

     (4)  The president and chief executive officer of the Hawaii Farmers Union United, or the president and chief executive officer's designee, who shall be invited by the chair of the working group;

     (5)  The president of the Hawaii Cattlemen's Council, or the president's designee, who shall be invited by the chair of the working group; and

     (6)  The president of the Hawaii Floriculture and Nursery Association, or the president's designee, who shall be invited by the chair of the working group.

     (c)  The chair of the bona fide farmer working group may invite other representatives of interested organizations with relevant experience and expertise to participate in the working group, as necessary.

     (d)  In developing the multi-tiered, matrix-based definitions for the terms "bona fide farmer" and "bona fide agricultural activity", the bona fide farmer working group shall consider the following tiers, determine the individuals that are to be included in each tier, and examine the feasibility of implementing the tier system when considering the different types of farming operations in the State:

     (1)  Tier I.  Entry-level and transitional farmers.  Tier I shall recognize bona fide entry-level and transitional farms and ensure access to land, water, and agricultural support resources during the establishment or recovery phase of a farm;

     (2)  Tier II.  Small-scale and diversified farmers.  Tier II shall recognize bona fide small-scale and diversified farms without imposing unrealistic or strictly uniform income thresholds;

     (3)  Tier III.  Commercial and professional farmers.  Tier III shall recognize bona fide commercial and professional farms and ensure accountability for operators whose primary livelihood is derived from agriculture while recognizing sector-specific economic realities; and

     (4)  Tier IV.  Corporate and institutional agricultural enterprises.  Tier IV shall recognize bona fide corporate and institutional agricultural enterprises and ensure that large-scale agricultural enterprises maintain genuine agricultural operations and do not use the designation of "bona fide farmer" or "bona fide agricultural activity" for the purposes of land speculation or residential development.

     (e)  Members of the bona fide farmer working group shall serve without compensation but shall be reimbursed for reasonable expenses, including travel expenses, necessary for the performance of their duties.

     (f)  The bona fide farmer working group shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2028.

     (g)  The bona fide farmer working group shall cease to exist on June 30, 2028.

     SECTION 3.  This Act shall take effect on July 1, 2026.

Report Title:

DAB; Working Group; Bona Fide Farmer; Bona Fide Agricultural Activity; Definitions; Report

Description:

Requires the Department of Agriculture and Biosecurity to convene a Bona Fide Farmer Working Group to develop multi-tiered, matrix-based definitions for the terms "bona fide farmer" and "bona fide agricultural activity".  Requires a report to the Legislature.  (CD1)

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 AGRICULTURE.

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

     SECTION 1.  The legislature finds that in the State, land is a precious and limited resource, and zoning laws often distinguish between land used for agricultural purposes and other uses, such as residential or commercial development.  The lack of a uniform standard for what constitutes a bona fide farmer can lead to discrepancies in the way agricultural zoning is applied.  Landholders who are not truly engaged in farming may take advantage of agricultural zoning designations, potentially reducing available agricultural land and undermining the State's efforts to preserve land for commercial agricultural activities.  This creates conflicts with the preservation and allocation of agricultural resources, which should be reserved for farmers who are engaged in genuine farming activities.

     The legislature acknowledges that some of the persistent difficulties in Hawaii agriculture have been reconciling the diversity of agricultural practices with the need for a uniform, enforceable standard that prevents abuse of agricultural tax classifications and land entitlements, incorporating the breadth and scope of agricultural activity in the State and providing comprehensive language that successfully incorporates county level zoning and property tax ordinances regarding land and water usage.

     The purpose of this Act is to require the department of agriculture and biosecurity to convene a bona fide farmer working group to develop multi-tiered, matrix-based definitions for the terms "bona fide farmer" and "bona fide agricultural activity".

     SECTION 2.  (a)  The department of agriculture and biosecurity shall convene a bona fide farmer working group to develop multi-tiered, matrix-based definitions for the terms "bona fide farmer" and "bona fide agricultural activity".

     (b)  The bona fide farmer working group shall consist of the following members:

     (1)  The chairperson of the board of agriculture and biosecurity, or the chairperson's designee, who shall serve as the chair of the working group:

     (2)  The chairperson of the board of trustees of the office of Hawaiian affairs, or the chairperson's designee;

     (3)  The executive director of the Hawaii Farm Bureau, or the executive director's designee, who shall be invited by the chair of the working group;

     (4)  The president and chief executive officer of the Hawaii Farmers Union United, or the president and chief executive officer's designee, who shall be invited by the chair of the working group;

     (5)  The president of the Hawaii Cattlemen's Council, or the president's designee, who shall be invited by the chair of the working group; and

     (6)  The president of the Hawaii Floriculture and Nursery Association, or the president's designee, who shall be invited by the chair of the working group.

     (c)  The chair of the bona fide farmer working group may invite other representatives of interested organizations with relevant experience and expertise to participate in the working group, as necessary.

     (d)  In developing the multi-tiered, matrix-based definitions for the terms "bona fide farmer" and "bona fide agricultural activity", the bona fide working group shall consider the following tiers, determine the individuals that are to be included in each tier, and examine the feasibility of implementing the tier system when considering the different types of farming operations in the State:

     (1)  Tier I.  Entry-level and transitional farmers.  Tier I shall recognize bona fide entry-level and transitional farms and ensure access to land, water, and agricultural support resources during the establishment or recovery phase of a farm;

     (2)  Tier II.  Small-scale and diversified farmers.  Tier II shall recognize bona fide small-scale and diversified farms without imposing unrealistic or strictly uniform income thresholds;

     (3)  Tier III.  Commercial and professional farmers.  Tier III shall recognize bona fide commercial and professional farms and ensure accountability for operators whose primary livelihood is derived from agriculture while recognizing sector-specific economic realities; and

     (4)  Tier IV.  Corporate and institutional agricultural enterprises.  Tier IV shall recognize bona fide corporate and institutional agricultural enterprises and ensure that large-scale agricultural enterprises maintain genuine agricultural operations and do not use the designation of "bona fide farmer" or "bona fide agricultural activity" for the purposes of land speculation or residential development.

     (e)  Members of the bona fide farmer working group shall serve without compensation but shall be reimbursed for reasonable expenses, including travel expenses, necessary for the performance of their duties.

     (f)  The bona fide working group shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2028.

     (g)  The bona fide working group shall cease to exist on June 30, 2028.

     SECTION 3.  This Act shall take effect on July 1, 3000.

Report Title:

DAB; Working Group; Bona Fide Farmer; Bona Fide Agricultural Activity; Definitions; Report

Description:

Requires the Department of Agriculture and Biosecurity to convene a Bona Fide Farmer Working Group to develop multi-tiered, matrix-based definitions for the terms "bona fide farmer" and "bona fide agricultural activity".  Requires a report to the Legislature.  Effective 7/1/3000.  (HD1)

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 AGRICULTURE.

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

     SECTION 1.  The legislature finds that in the State, land is a precious and limited resource, and zoning laws often distinguish between land used for agricultural purposes and other uses, such as residential or commercial development.  The lack of a uniform standard for what constitutes a bona fide farmer can lead to discrepancies in the way agricultural zoning is applied.  Landholders who are not truly engaged in farming may take advantage of agricultural zoning designations, potentially reducing available agricultural land and undermining the State's efforts to preserve land for commercial agricultural activities.  This creates conflicts with the preservation and allocation of agricultural resources, which should be reserved for farmers who are engaged in genuine farming activities.

     The legislature acknowledges that some of the persistent difficulties in Hawaii agriculture have been its several attempts to reconcile the diversity of agricultural practices with the need for a uniform, enforceable standard that prevents abuse of agricultural tax classifications and land entitlements, incorporating the breadth and scope of agricultural activity in the State and providing comprehensive language that successfully incorporates county level zoning and property tax ordinances regarding land and water usage.

     Therefore, the purpose of this Act is to require the board of agriculture and biosecurity to develop and adopt multi-tiered, matrix-based definitions for the terms "bona fide farmer" and "bona fide agricultural activity".

     SECTION 2.  Chapter 141, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§141-     Bona fide farmers.  (a)  The board of agriculture and biosecurity shall work collaboratively with the agribusiness development corporation and other engaged agricultural entities and organizations to draft, develop, and adopt comprehensive definitions for the terms "bona fide farmer" and "bona fide agricultural activity" utilizing a multi-tiered, matrix-based assessment framework.  The definitions shall be submitted to the legislature to be considered in legislation to codify the definitions into this chapter.  The board shall periodically review and as necessary submit proposed amendments to the legislature to the definitions and framework to ensure consistency, applicability, and effective implementation in law and practice.

     (b)  The board of agriculture and biosecurity, in collaboration with the agribusiness development corporation, shall establish the following multi-tiered, matrix-based assessment framework for the purpose of subsection (a):

     (1)  Tier I.  Entry-level and transitional farmers.  Tier I shall recognize bona fide entry-level and transitional farms and ensure access to land, water, and agricultural support resources during the establishment or recovery phase of a farm.  A person is bona fide entry-level or transitional farmer under this paragraph if the person:

          (A)  Is a new farmer, part-time farmer, vocational trainee, displaced agricultural worker, recovering farmer impacted by natural disaster or other catastrophic event, or graduate of Hawaii Young Farmer Association or Future Farmers of America programs;

          (B)  Provides a documented farm plan, including but not limited to a plan certified by the department of agriculture and biosecurity or an approved training program of the university of Hawaii college of tropical agriculture and human resiliency;

          (C)  Provides evidence of initial agricultural investment, including purchase or lease of agricultural infrastructure, seed stock, or livestock; and

          (D)  Demonstrates bona fide intent to farm within a period of not less than three years and not more than five years; provided that proof of sustained production shall not be required;

     (2)  Tier II.  Small-scale and diversified farmers.  Tier II shall recognize bona fide small-scale and diversified farms without imposing unrealistic or strictly uniform income thresholds.  A person is a bona fide small-scale or diversified farmer under this paragraph if the person:

          (A)  Is a sole proprietor, family farmer, subsistence and cultural practitioner, small livestock operator, apiary, nursery, or diversified crop producer;

          (B)  Demonstrates agricultural activity, including cultivation, livestock care, aquaculture operations, or equivalent agricultural endeavor;

          (C)  Either:

               (i)  Documents gross income from agricultural sales proportionate to the acreage and crop or livestock type; or

              (ii)  Documents cultural or subsistence production, including but not limited to kalo, ʻuala, loko iʻa, or other customary and traditional practices; and

          (D)  Provides a farm plan that demonstrates active management and stewardship of land and water resources;

     (3)  Tier III.  Commercial and professional farmers.  Tier III shall recognize bona fide commercial and professional farms and ensure accountability for operators whose primary livelihood is derived from agriculture while recognizing sector-specific economic realities.  A person is a bona fide commercial or professional farmer under this paragraph if the person:

          (A)  Is a full-time farmer; agricultural partnership; value-added producer; medium-scale aquaculture producer; greenhouse or shade-house operator; or conducts a floriculture, forestry, or ranching enterprise;

          (B)  Documents gross agricultural income, calibrated by sector to reflect varying per-acre yields and market values;

          (C)  Complies with all applicable federal, state, and county labor, safety, and environmental standards; and

          (D)  Provides evidence of active participation in agricultural markets, including but not limited to cooperative memberships, contractual sales arrangements, or distribution agreements; and

     (4)  Tier IV.  Corporate and institutional agricultural enterprises.  Tier IV shall recognize bona fide corporate and institutional agricultural enterprises and ensure that large-scale agricultural enterprises maintain genuine agricultural operations and do not utilize the designation of "bona fide farmer" or "bona fide agricultural activity" for the purposes of land speculation or residential development.  A person is a bona fide corporate or institutional agricultural enterprise farmer under this paragraph if the person:

          (A)  Is a corporation, partnership, cooperative, research institution, seed company, or vertically integrated agricultural business;

          (B)  Provides proof of incorporation, partnership, cooperative, or other legal entity status registered within the State;

          (C)  Documents that more than fifty per cent of landholdings are actively used for agricultural production; and

          (D)  Demonstrates agricultural revenues, employment of agricultural labor, and compliance with all environmental and water use permits issued pursuant to state and federal law.

     (c)  In assessing whether a farmer or farming operation is bona fide under any tier, the board shall consider the following factors, none of which shall be individually determinative:

     (1)  Evidence of production, including crop harvest logs, livestock inventories, aquaculture or aquaponic production records, or sales receipts;

     (2)  Investment in agricultural infrastructure, including but not limited to irrigation systems, fencing, shade houses, aquaponic tanks, apiary hives, or processing facilities;

     (3)  Demonstrated cultural or community value, including practices tied to Native Hawaiian traditions, subsistence food production, or contributions to local food security;

     (4)  Evidence of environmental stewardship, including compliance with water rights, soil conservation, invasive species management, and sustainable land management practices;

     (5)  Scale of operation relative to acreage and zoning, to ensure agricultural activity is appropriate to the land in use; and

     (6)  Temporal considerations, including allowances for crop cycles, rotational fallowing, disaster recovery, and farm start-up periods.

     (d)  The definition for "bona fide farmer" shall outline the following criteria:

     (1)  Commercial focus;

     (2)  Farm size or scale;

     (3)  Minimum income threshold; and

     (4)  Primary occupation.

     The definition for "bona fide farmer" shall also include the term "bona fide agricultural activity".

     (e)  The board shall solicit and incorporate stakeholder input in drafting the definitions for "bona fide farmer" and "bona fide agricultural activity".

     (f)  The board shall adopt rules pursuant to chapter 91 to carry out the purposes of this section."

     SECTION 3.  The board of agriculture and biosecurity shall submit a report of the drafted definitions for the terms "bona fide farmer" and "bona fide agricultural activity", including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2027.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2050.

Report Title:

BAB; Bona Fide Farmer; Bona Fide Agricultural Activity; Definitions; Report

Description:

Requires the Board of Agriculture and Biosecurity to develop and adopt a multi-tiered, matrix-based assessment framework to develop definitions for the terms "bona fide farmer" and "bona fide agricultural activity" to be codified into the Hawaii Revised Statutes.  Requires the Board to collaborate with stakeholders to draft the terms "bona fide farmer" and "bona fide agricultural activity".  Requires a report to the Legislature.  Effective 7/1/2050.  (SD2)

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 AGRICULTURE.

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

     SECTION 1.  The legislature finds that in the State, land is a precious and limited resource, and zoning laws often distinguish between land used for agricultural purposes and other uses, such as residential or commercial development.  The lack of a uniform standard for what constitutes a bona fide farmer can lead to discrepancies in the way agricultural zoning is applied.  Landholders who are not truly engaged in farming may take advantage of agricultural zoning designations, potentially reducing available agricultural land and undermining the State's efforts to preserve land for commercial agricultural activities.  This creates conflicts with the preservation and allocation of agricultural resources, which should be reserved for farmers who are engaged in genuine farming activities.

     The legislature acknowledges that some of the persistent difficulties in Hawaii agriculture have been its several attempts to reconcile the diversity of agricultural practices with the need for a uniform, enforceable standard that prevents abuse of agricultural tax classifications and land entitlements, incorporating the breadth and scope of agricultural activity in the State and providing comprehensive language that successfully incorporates county level zoning and property tax ordinances regarding land and water usage.

     Therefore, the purpose of this Act is to require the board of agriculture and biosecurity to develop and adopt multi-tiered, matrix-based definitions for the terms "bona fide farmer" and "bona fide agricultural activity".

     SECTION 2.  Chapter 141, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§141-    Bona fide farmers.  (a)  The board of agriculture and biosecurity shall work collaboratively with engaged agricultural entities and organizations to draft, develop, and adopt comprehensive definitions for the terms "bona fide farmer" and "bona fide agricultural activity" utilizing a multi-tiered, matrix-based assessment framework.  The definitions shall be submitted to the legislature to be considered in legislation to codify the definitions into this chapter.  The board shall periodically review and as necessary submit proposed amendments to the legislature to the definitions and framework to ensure consistency, applicability, and effective implementation in law and practice.

     (b)  The board of agriculture and biosecurity shall establish the following multi-tiered, matrix-based assessment framework for the purpose of subsection (a):

     (1)  Tier I.  Entry-level and transitional farmers.  Tier I shall recognize bona fide entry-level and transitional farms and ensure access to land, water, and agricultural support resources during the establishment or recovery phase of a farm.  A person is bona fide entry-level or transitional farmer under this paragraph if the person:

          (A)  Is a new farmer, part-time farmer, vocational trainee, displaced agricultural worker, recovering farmer impacted by natural disaster or other catastrophic event, or graduate of Hawaii Young Farmer Association or Future Farmers of America programs;

          (B)  Provides a documented farm plan, including but not limited to a plan certified by the department of agriculture and biosecurity or an approved training program of the university of Hawaii college of tropical agriculture and human resiliency;

          (C)  Provides evidence of initial agricultural investment, including purchase or lease of agricultural infrastructure, seed stock, or livestock; and

          (D)  Demonstrates bona fide intent to farm within a period of not less than three years and not more than five years; provided that proof of sustained production shall not be required;

     (2)  Tier II.  Small-scale and diversified farmers.  Tier II shall recognize bona fide small-scale and diversified farms without imposing unrealistic or strictly uniform income thresholds.  A person is a bona fide small-scale or diversified farmer under this paragraph if the person:

          (A)  Is a sole proprietor, family farmer, subsistence and cultural practitioner, small livestock operator, apiary, nursery, or diversified crop producer;

          (B)  Demonstrates agricultural activity, including cultivation, livestock care, aquaculture operations, or equivalent agricultural endeavor;

          (C)  Either:

               (i)  Documents gross income from agricultural sales proportionate to the acreage and crop or livestock type; or

              (ii)  Documents cultural or subsistence production, including but not limited to kalo, ʻuala, loko iʻa, or other customary and traditional practices; and

          (D)  Provides a farm plan that demonstrates active management and stewardship of land and water resources;

     (3)  Tier III.  Commercial and professional farmers.  Tier III shall recognize bona fide commercial and professional farms and ensure accountability for operators whose primary livelihood is derived from agriculture while recognizing sector-specific economic realities.  A person is a bona fide commercial or professional farmer under this paragraph if the person:

          (A)  Is a full-time farmer; agricultural partnership; value-added producer; medium-scale aquaculture producer; greenhouse or shade-house operator; or conducts a floriculture, forestry, or ranching enterprise;

          (B)  Documents gross agricultural income, calibrated by sector to reflect varying per-acre yields and market values;

          (C)  Complies with all applicable federal, state, and county labor, safety, and environmental standards; and

          (D)  Provides evidence of active participation in agricultural markets, including but not limited to cooperative memberships, contractual sales arrangements, or distribution agreements; and

     (4)  Tier IV.  Corporate and institutional agricultural enterprises.  Tier IV shall recognize bona fide corporate and institutional agricultural enterprises and ensure that large-scale agricultural enterprises maintain genuine agricultural operations and do not utilize the designation of "bona fide farmer" or "bona fide agricultural activity" for the purposes of land speculation or residential development.  A person is a bona fide corporate or institutional agricultural enterprise farmer under this paragraph if the person:

          (A)  Is a corporation, partnership, cooperative, research institution, seed company, or vertically integrated agricultural business;

          (B)  Provides proof of incorporation, partnership, cooperative, or other legal entity status registered within the State;

          (C)  Documents that more than fifty per cent of landholdings are actively used for agricultural production; and

          (D)  Demonstrates agricultural revenues, employment of agricultural labor, and compliance with all environmental and water use permits issued pursuant to state and federal law.

     (c)  In assessing whether a farmer or farming operation is bona fide under any tier, the board shall consider the following factors, none of which shall be individually determinative:

     (1)  Evidence of production, including crop harvest logs, livestock inventories, aquaculture or aquaponic production records, or sales receipts;

     (2)  Investment in agricultural infrastructure, including but not limited to irrigation systems, fencing, shade houses, aquaponic tanks, apiary hives, or processing facilities;

     (3)  Demonstrated cultural or community value, including practices tied to Native Hawaiian traditions, subsistence food production, or contributions to local food security;

     (4)  Evidence of environmental stewardship, including compliance with water rights, soil conservation, invasive species management, and sustainable land management practices;

     (5)  Scale of operation relative to acreage and zoning, to ensure agricultural activity is appropriate to the land in use; and

     (6)  Temporal considerations, including allowances for crop cycles, rotational fallowing, disaster recovery, and farm start-up periods.

     (d)  The definition for "bona fide farmer" shall outline the following criteria:

     (1)  Commercial focus;

     (2)  Farm size or scale;

     (3)  Minimum income threshold; and

     (4)  Primary occupation.

     The definition for "bona fide farmer" shall also include the term "bona fide agricultural activity".

     (e)  The board shall solicit and incorporate stakeholder input in drafting the definitions for "bona fide farmer" and "bona fide agricultural activity".

     (f)  The board shall adopt rules pursuant to chapter 91 to carry out the purposes of this section."

     SECTION 3.  The board of agriculture and biosecurity shall submit a report of the drafted definitions for the terms "bona fide farmer" and "bona fide agricultural activity", including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2027.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2050.

Report Title:

BAB; Bona Fide Farmer; Bona Fide Agricultural Activity; Definitions; Report

Description:

Requires the Board of Agriculture and Biosecurity to develop and adopt a multi-tiered, matrix-based assessment framework to develop definitions for the terms "bona fide farmer" and "bona fide agricultural activity" to be codified into the Hawaii Revised Statutes.  Requires the Board to collaborate with stakeholders to draft the terms "bona fide farmer" and "bona fide agricultural activity". Requires a report to the Legislature.  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 agriculture.

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

     SECTION 1.  The legislature finds that in the State, land is a precious and limited resource, and zoning laws often distinguish between land used for agricultural purposes and other uses, such as residential or commercial development.  The lack of a uniform standard for what constitutes a bona fide farmer can lead to discrepancies in the way agricultural zoning is applied.  Landholders who are not truly engaged in farming may take advantage of agricultural zoning designations, potentially reducing available agricultural land and undermining the State's efforts to preserve land for commercial agricultural activities.  This creates conflicts with the preservation and allocation of agricultural resources which should be reserved for farmers who are engaged in genuine farming activities. 

     The legislature acknowledges that some of the persistent difficulties in Hawaii agriculture have been its several attempts to reconcile the diversity of agricultural practices with the need for a uniform, enforceable standard that prevents abuse of agricultural tax classifications and land entitlements, incorporating the breadth and scope of agricultural activity in the State and providing comprehensive language that successfully incorporates county level zoning and property tax ordinances regarding land and water usage.

     The purpose of this Act is to require the board of agriculture and biosecurity to develop and adopt multi-tiered, matrix-based definitions for the terms "bona fide farmer" and "bona fide agricultural activity".

     SECTION 2.  Chapter 141, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§141-    Bona fide farmers.  (a)  The board of agriculture and biosecurity shall work collaboratively with engaged agricultural entities and organizations to draft, develop, and adopt comprehensive definitions for the terms "bona fide farmer" and "bona fide agricultural activity" utilizing a multi-tiered, matrix-based assessment framework.  The definitions shall be submitted to the legislature to be considered in legislation to codify the definitions into section 141-1.  The board shall periodically review and as necessary submit proposed amendments to the legislature to the definitions and framework to ensure consistency, applicability, and effective implementation in law and practice.

     (b)  The board of agriculture and biosecurity shall establish the following multi-tiered, matrix-based assessment framework for the purpose of subsection (a):

     (1)  Tier I.  Entry-level and transitional farmers.  Tier I shall recognize bona fide intent to farm and ensure access to land, water, and agricultural support resources during the establishment or recovery phase of a farm.  A person is bona fide entry-level or transitional farmer under this paragraph if the person:

          (A)  Is a new farmer, part-time farmer, vocational trainee, displaced agricultural worker, recovering farmer impacted by natural disaster or other catastrophic event, or graduate of Hawaii Young Farmer Association or Future Farmers of America programs;

          (B)  Provides a documented farm plan, including but not limited to a plan certified by the department of agriculture and biosecurity or an approved training program of the University of Hawaii college of tropical agriculture and human resiliency;

          (C)  Provides evidence of initial agricultural investment, including purchase or lease of agricultural infrastructure, seed stock, or livestock and;

          (D)  Demonstrates bona fide intent to farm within a period of not less than three years and not more than five years provided that proof of sustained production shall not be required;

     (2)  Tier II.  Small-scale and diversified farmers.  Tier II shall recognize bona fide small-scale and diversified farms without imposing unrealistic or strictly uniform income thresholds.  A person is a bona fide small-scale or diversified farmer under this paragraph if:

          (A)  Is a sole proprietor, family farmer, subsistence and cultural practitioner, small livestock operator, apiary, nursery, or diversified crop producer;

          (B)  Demonstrates agricultural activity, including cultivation, livestock care, aquaculture operations, or equivalent agricultural endeavor;

          (C)  Either:

               (i)  Documents gross income from agricultural sales proportionate to the acreage and crop or livestock type; or

              (ii)  Documents cultural or subsistence production, including but not limited to kalo, ʻuala, loko iʻa, or other customary and traditional practices; and

          (D)  Provides a farm plan that demonstrates active management and stewardship of land and water resources;

     (3)  Tier III.  Commercial and professional farmers.  Tier III shall recognize bona fide commercial and professional farmers and ensure accountability for operators whose primary livelihood is derived from agriculture while recognizing sector-specific economic realities.  A person is a bona fide commercial or professional farmer under this paragraph if the person:

          (A)  Is a full-time farmer; agricultural partnership; value-added producer; medium-scale aquaculture producer; greenhouse or shade-house operator; or conducts a floriculture, forestry, or ranching enterprise;

          (B)  Documents gross agricultural income, calibrated by sector to reflect varying per-acre yields and market values;

          (C)  Complies with all applicable federal, state, and county labor, safety, and environmental standards; and

          (D)  Provides evidence of active participation in agricultural markets, including but not limited to cooperative memberships, contractual sales arrangements, or distribution agreements; and

     (4)  Tier IV.  Corporate and institutional agricultural enterprises.  Tier IV shall recognize bona fide corporate and institutional agricultural enterprises and ensure that large-scale agricultural enterprises maintain genuine agricultural operations and do not utilize the designation of "bona fide farmer" or "bona fide agricultural activity" for the purposes of land speculation or residential development.  A person is a bona fide corporate or institutional agricultural enterprise farmer under this paragraph if the person:

          (A)  Is a corporation, partnership, cooperative, research institution, seed company, or vertically integrated agricultural business;

          (B)  Provides proof of incorporation, partnership, cooperative, or other legal entity status registered within the State;

          (C)  Documents that more than fifty per cent of landholdings are actively used for agricultural production; and

          (D)  Demonstrates agricultural revenues, employment of agricultural labor, and compliance with all environmental and water use permits issued pursuant to state and federal law.

     (c)  In assessing whether a farmer or farming operation is bona fide under any tier, the board shall consider the following factors, none of which shall be individually determinative:

     (1)  Evidence of production, including crop harvest logs, livestock inventories, aquaculture or aquaponic production records, or sales receipts;

     (2)  Investment in agricultural infrastructure, including but not limited to irrigation systems, fencing, shade houses, aquaponic tanks, apiary hives, or processing facilities;

     (3)  Demonstrated cultural or community value, including practices tied to Native Hawaiian traditions, subsistence food production, or contributions to local food security;

     (4)  Evidence of environmental stewardship, including compliance with water rights, soil conservation, invasive species management, and sustainable land management practices;

     (5)  Scale of operation relative to acreage and zoning, to ensure agricultural activity is appropriate to the land in use; and

     (6)  Temporal considerations, including allowances for crop cycles, rotational fallowing, disaster recovery, and farm start-up periods.

     (d)  The definition for "bona fide farmer" shall outline the following criteria:

     (1)  Commercial focus;

     (2)  Farm size or scale;

     (3)  Minimum income threshold; and

     (4)  Primary occupation.

     The definition for "bona fide farmer" shall also include the term "bona fide agricultural activity".

     (e)  The board shall solicit and incorporate stakeholder input in drafting the definitions for "bona fide farmer" and "bona fide agricultural activity".

     (f)  The board shall adopt rules pursuant to chapter 91 to carry out the purposes of this section."

     SECTION 3.  The board of agriculture and biosecurity shall submit a report of the drafted definitions for the terms "bona fide farmer" and "bona fide agricultural activity", including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2027.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

Report Title:

BAB; Bona Fide Farmer; Bona Fide Agricultural Activity; Definitions; Report

Description:

Requires the Board of Agriculture and Biosecurity to develop and adopt a multi-tiered, matrix-based assessment framework to develop definitions for the terms "bona fide farmer" and "bona fide agricultural activity".  Requires the Board to collaborate with stakeholders to draft the terms "bona fide farmer" and "bona fide agricultural activity". Requires a report to the Legislature.

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. 2942

Honolulu, Hawaii

RE:     S.B. No. 2153

        S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2153, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose and intent of this measure is to require the Board of Agriculture and Biosecurity to develop and adopt multi‑tiered, matrix-based definitions for the terms "bona fide farmer" and "bona fide agricultural activity."

     Your Committee received written comments in support of this measure from the Hawaii Farm Bureau, Hawaii Cattlemen's Council, and one individual.

     Your Committee received written comments on this measure from the Department of Agriculture and Biosecurity and the Office of Hawaiian Affairs.

     Your Committee finds that the lack of a uniform standard for what constitutes a bona fide farmer can lead to discrepancies in the way agricultural zoning is applied.  For example, landholders who do not truly engage in farming may take advantage of agricultural zoning designations, potentially reducing the availability of agricultural land and undermining the State's efforts to preserve land for commercial agriculture.  Your Committee recognizes the challenges of reconciling the diversity of agricultural practices with the need for a uniform, enforceable standard that prevents abuse of agricultural tax classifications and land entitlements.  Accordingly, this measure will help to establish balanced definitions for statewide uniformity.

     Having received prior concurrence from the previous
subject-matter committee chair, your Committee has amended this measure by including the Agribusiness Development Corporation as a collaborating stakeholder for the development and adoption of the assessment framework to define "bona fide farmer" and "bona fide agricultural activity."

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2153, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2153, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

STAND. COM. REP. NO. 2187

Honolulu, Hawaii

RE:     S.B. No. 2153

        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. 2153 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Require the Board of Agriculture and Biosecurity to develop and adopt a multi-tiered, matrix-based assessment framework to develop definitions for the terms "bona fide farmer" and "bona fide agricultural activity";

     (2)  Require the Board to collaborate with stakeholders to draft the terms "bona fide farmer" and "bona fide agricultural activity"; and

     (3)  Require a report to the Legislature.

     Your Committee received testimony in support of this measure from the Hawaiʻi Farmers Union United; Hawaiʻi Farm Bureau; Hawaii Cattlemen's Council Inc.; and one individual.

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

     Your Committee received comments on this measure from the Department of Agriculture and Biosecurity.

     Your Committee finds that agricultural zoning laws are important to protect and preserve land for critical food production.  Your Committee further finds that currently, there are landholders in the State that have taken advantage of vague agricultural zoning designations, which has potentially reduced available agricultural land and undermined the State's efforts to preserve land for legitimate agricultural activities.  While there are numerous policies and programs that are intended to specifically support agriculture, the lack of clarity around certain definitions that are necessary to adequately regulate agriculture has reduced the State's ability to support food production in the State.  Therefore, this measure will increase support to farmers by requiring the Department of Agriculture and Biosecurity to collaboratively define the terms "bona fide farmer" and "bona fide agricultural activity" fully and clearly, to be codified into State law.

     Your Committee notes the comments and recommendations from the Hawaiʻi Farmers Union United regarding the importance of visibility and comprehension by the state government of the agricultural sector in order to pass critical legislation.  Your Committee further notes the recommendation of establishing a farmer registration program, tied to the terms "bona fide farmer" and "bona fide agricultural activity", which would complement the multi-tiered framework established in this measure.  Your Committee understands the necessity of thoughtful contribution and collaboration with stakeholders to develop a farmer registration system.  Therefore, should your Committee on Ways and Means choose to deliberate on this measure, your Committee respectfully requests that it consider the recommendations from the Hawaiʻi Farmers Union United.

     Your Committee has amended this measure by:

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

     (2)  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. 2153, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2153, 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,