SB2805

SECTION 1. The legislature finds that the department of agriculture's agricultural land use baseline study has indicated that the total amount of agricultural land in the State has decreased by twenty-seven thousand fifty acres since 2015, or three per cent. Put another way, tens of thousands of agriculturally zoned lands have moved out of agricultural production. The legislature finds that this is a concerning trend that must be addressed.

The legislature further finds that lands supporting viable agricultural activities should be maintained in agricultural use by bona fide farmers or ranchers. Unfortunately, the State's agricultural workforce is aging. A recent article in Hawaii Business Magazine indicated that the average age of a farmer in Hawaii is approximately sixty years. Because younger generations in farming families are often reluctant to take over family farms, many farmlands in the State are at risk of falling fallow, which would further decrease the amount of agriculturally zoned lands in active agricultural production.

The legislature finds that succession planning is a process by which business owners plan to exit their business and transition ownership and control of the business to a successor owner. Although succession planning can be a difficult process, it can be vital to ensuring the success of exiting owners, successor owners, and the businesses themselves.

The legislature further finds that because the agribusiness development corporation is one of the primary agencies responsible for addressing the business component of the State's agricultural sector, it is the most appropriate agency to educate farmers and ranchers on the benefits of succession planning. The legislature further finds that the agribusiness development corporation would also be an ideal agency to facilitate involvement in succession planning education activities by landowners, county land use and permitting officials, state taxation authorities, and other stakeholders to ensure a smooth transition of agricultural enterprises between exiting owners and their successors.

Finally, the legislature finds that a succession planning education program could also provide an opportunity for the agribusiness development corporation to connect individuals interested in entering farming or ranching with farmers and ranchers who have not yet identified a successor owner. These types of proactive efforts will help greatly in keeping valuable agricultural lands in agricultural production.

Accordingly, the purpose of this Act is to:

(1) Require the agribusiness development corporation to develop a succession planning education program; and

(2) Appropriate moneys to develop the program.

SECTION 2. Chapter 163D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§163D- Succession planning education program. (a) The corporation shall develop a succession planning education program to educate and assist farmers and ranchers in the process of transitioning agricultural businesses to new owners who intend to maintain the transitioned assets, including agricultural lands, in agricultural production. The program shall:

(1) Educate farmers and ranchers on the importance of succession planning;

(2) Connect farmers and ranchers with succession planning resources; and

(3) If a farmer or rancher does not have a successor identified, help to connect the farmer or rancher with:

(A) Persons who are interested in entering the farming or ranching business as bona fide farmers or ranchers; or

(B) Existing bona fide farmers or ranchers who are interested in expanding their business,

and connect the parties with resources to help facilitate the transfer of the agricultural assets, including agricultural lands, to ensure that the assets remain in agricultural production.

(b) For purposes of this program, the corporation shall collaborate with:

(1) The department of agriculture and private landowners that lease agricultural land in Hawaii to assist exiting farmers and ranchers in planning for lease transfers; and

(2) The department of taxation; county land use and permitting agencies; and other relevant state and county agencies to assist exiting farmers and ranchers meet any requirements necessary to transfer an agricultural business and keep the business's assets, including agricultural land, in agricultural production."

SECTION 3. In accordance with section 9 of article VII, of the Constitution of the State of Hawaii and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the appropriation contained in this Act will cause the state general fund expenditure ceiling for fiscal year 2024-2025 to be exceeded by $ , or per cent. The reasons for exceeding the general fund expenditure ceiling are that the appropriation made in this Act is necessary to serve the public interest and to meet the need provided for by this Act.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $100,000 or so much thereof as may be necessary for fiscal year 2024-2025 for the agribusiness development corporation to develop a succession planning education program for farmers and ranchers.

The sum appropriated shall be expended by the agribusiness development corporation for the purposes of this Act.

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

Report Title:

Agribusiness Development Corporation; Agriculture; Succession Planning; Education Program; Appropriation; General Fund Expenditure Ceiling Exceeded

Description:

Requires the Agribusiness Development Corporation to develop a program to educate and assist farmers and ranchers in the process of transitioning agricultural businesses to new owners. Requires the program to connect individuals interested in entering farming or ranching, or existing farmers or ranchers interested in expanding their business, with farmers and ranchers who have not yet identified a successor owner. Appropriates moneys. Declares that the appropriation exceeds the state general fund expenditure ceiling for 2024-2025.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

THE SENATE	S.B. NO.	2805
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII