STAND. COM. REP. NO. 107

Honolulu, Hawaii

RE:    S.B. No. 1153

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred S.B. No. 1153 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Reduce the New Farmer Program loan interest rate;

     (2)  Increase the Program's loan limits;

     (3)  Reduce the number of credit denials required to qualify for the Program;

     (4)  Make an appropriation into the Agricultural Loan Revolving Fund; and

     (5)  Appropriate monies out of the Fund for the New Farm Program.

     Your Committee received testimony in support of this measure from the Department of Agriculture and the Hawaii Farm Bureau Federation.

     Your Committee finds that as the number of new farms in the State increases, affordable capital for new farmers must be made more readily available.  This measure provided easier and more affordable access to capital that is crucial in encouraging new farmers to enter the agriculture market.

     As affirmed by the record of votes of the members of your Committee on Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1153 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

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

____________________________

CLARENCE K. NISHIHARA, Chair