Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1556, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to increase the loan ceiling for farm ownership and improvement loans and farm operating loans from $400,000 to $600,000.

Your Committee received favorable testimony from Meadow Gold Dairies and the Pineapple Growers Association of Hawaii. Favorable testimony from the Department of Agriculture and Island Dairy had previously been submitted to your Committee on Agriculture.

Your Committee finds that agriculture in Hawaii has changed dramatically over the past few years from huge sugarcane and pineapple plantations to smaller farms specializing in diversified agriculture. The Legislature has responded to this change with legislation and funds as warranted but the growing diversified agriculture sector requires further changes in the law.

This bill responds to the needs of today's farmer by increasing the loan ceiling for farm ownership and improvement loans and farm operating loans. This increase will provide greater flexibility to the State's agricultural loan program and provide greater opportunities for agricultural growth and expansion.

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 H.B. No. 1556, S.D. 1, and recommends that it pass Third Reading.