REPORT TITLE:
Agricultural Loans; Exports


DESCRIPTION:
Provides agricultural loans to qualified farmers who export crops
and livestock.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           5
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO AGRICULTURAL LOANS.



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

 1      SECTION 1.  The legislature finds that in the past, state
 
 2 government has not encouraged the exportation of goods to infuse
 
 3 capital into our local economy.  Consequently, the export
 
 4 potential of markets such as the agricultural industry remains
 
 5 relatively untested and undefined.  The legislature also finds
 
 6 that countries like Japan lack agricultural resources to feed its
 
 7 population and depends on other nations like Tonga for its food
 
 8 supply.  A more productive agricultural loan program would
 
 9 encourage farmers to export crops and livestock to compete in the
 
10 world marketplace.  The purpose of this Act is to provide
 
11 agricultural loans to qualified farmers to export crops and
 
12 livestock to ultimately increase the State's export industries.
 
13      SECTION 2.  Section 155-9, Hawaii Revised Statutes, is
 
14 amended as follows:
 
15      1.  By amending subsection (d) to read:
 
16      "(d)  Class C:  Farm operating loans shall be for the
 
17 purpose of carrying on and improving a farming operation,
 
18 including:
 
19      (1)  The purchase of farm equipment and livestock;
 

 
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                                     S.B. NO.           5
                                                        
                                                        

 
 1      (2)  The payment of production and marketing expenses
 
 2           including materials, labor, and services;
 
 3      (3)  The payment of living expenses;[and]
 
 4      (4)  The liquidation of indebtedness incurred for any of the
 
 5           foregoing purposes[.]; and
 
 6      (5)  The exportation of crops and livestock.
 
 7      The loans shall be for an amount not to exceed $400,000 and
 
 8 for a term not to exceed ten years.  To be eligible, an applicant
 
 9 shall derive, or present an acceptable plan to derive, a major
 
10 portion of the applicant's income from and devote, or intend to
 
11 devote, most of the applicant's time to farming operations."
 
12      2.  By amending subsection (f) to read:
 
13      "(f)  Class E:  Loans to cooperatives and corporations shall
 
14 provide credit to farmers' cooperative associations and
 
15 corporations engaged in marketing, purchasing, and processing,
 
16 and providing farm business services, including:
 
17      (1)  Facility loans to purchase or improve land, building,
 
18           and equipment for an amount not to exceed $500,000 and
 
19           a term not to exceed twenty years; [and]
 
20      (2)  Operating loans to finance inventories of supplies,
 
21           warehousing, and shipping commodities, extension of
 
22           consumer credit to justified farmer-members, and other
 
23           normal operating expenses for an amount not to exceed
 

 
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                                     S.B. NO.           5
                                                        
                                                        

 
 1           $300,000 and a term not to exceed seven years[.]; and
 
 2      (3)  The exportation of crops and livestock.
 
 3      To be eligible, a cooperative or corporation shall have a
 
 4 majority of its board of directors and a majority of its
 
 5 membership as shareholders who meet the eligibility requirements
 
 6 of section 155-10 and who devote most of their time to farming
 
 7 operations, and the facility loans shall be for an amount not to
 
 8 exceed $500,000 or eighty per cent of the cost of the project,
 
 9 whichever is the lesser."
 
10      SECTION 3.  Statutory material to be repealed is bracketed.
 
11 New statutory material is underscored.
 
12      SECTION 4.  This Act shall take effect upon its approval.
 
13 
 
14                           INTRODUCED BY:  _______________________