STAND. COM. REP. NO. 2850

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2996
                                        H.D. 2




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 H.B. No. 2996, H.D. 2, entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to allow the Department of
Agriculture to make class E agricultural loans to qualified food
manufacturers and class G agricultural loans to part-time
farmers.

     Your Committee received testimony in support of this measure
from the Board of Agriculture.

     The intent of this measure is to provide an economic
stimulus for new farmers, part-time farmers, and food
manufacturers or processors of Hawaii-grown agricultural products
or who use Hawaii-grown agricultural products as an ingredient in
the manufacturing process.

     Your Committee finds that a substantial number of
individuals and families are undertaking agricultural production
on a part-time basis to supplement earnings obtained from
full-time employment by one or more members of the household.
Government agricultural loans tend to be tailored for full-time
farming, leaving entrepreneurial start-up farmers with little
initial capital to begin their farming.


 
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     Your Committee further finds that diversified agriculture,
or the cultivation of Hawaii-grown produce, should be encouraged
as an industry to replace the sugar industry.  Providing loans to
qualified food manufacturers will make it easier to sell
agricultural products out-of-state.
 
     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 2996, H.D. 2, 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 Economic
                                   Development,



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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