STAND. COM. REP. NO. 3134

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.R. No. 64
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Economic Development, to which was
referred S.R. No. 64 entitled:

     "SENATE RESOLUTION REQUESTING THE LEGISLATIVE REFERENCE
     BUREAU TO EVALUATE THE AGRICULTURE LOAN SYSTEM IN HAWAII,"

begs leave to report as follows:

     The purpose of this measure is to request the Legislative
Reference Bureau to evaluate the agriculture loan system in
Hawaii, through consultation with appropriate government and
private agencies.

     Testimony in favor of this measure was submitted by the
Department of Agriculture, Department of Land and Natural
Resources, College of Tropical Agriculture and Human Resources,
University of Hawai`i at Manoa, Hawaii Farm Bureau, and Farm
Credit Services of Hawaii.

     Your Committee finds that as agriculture changes, both in
terms of size and the kind of farming operations, agriculture
loan programs must also evolve.  Your Committee has heard that
one major bank has closed down its agricultural loan division,
and that farmers on leased lands have particular problems in
securing loans because their leases do not meet the terms of the
loans required by private financial institutions.

     Your Committee believes this evaluation is an important
first step in improving the supply of farm credit in an evolving
industry.

 
a                                                     SR64
                                   STAND. COM. REP. NO. 3134
                                   Page 2


     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee concurs with the intent and purpose of
S.R. No. 64, and recommends that it be referred to the Committee
on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development,



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
a                                                     SR64