SB2153 SD2

SECTION 1. The legislature finds that in the State, land is a precious and limited resource, and zoning laws often distinguish between land used for agricultural purposes and other uses, such as residential or commercial development. The lack of a uniform standard for what constitutes a bona fide farmer can lead to discrepancies in the way agricultural zoning is applied. Landholders who are not truly engaged in farming may take advantage of agricultural zoning designations, potentially reducing available agricultural land and undermining the State's efforts to preserve land for commercial agricultural activities. This creates conflicts with the preservation and allocation of agricultural resources, which should be reserved for farmers who are engaged in genuine farming activities.

The legislature acknowledges that some of the persistent difficulties in Hawaii agriculture have been its several attempts to reconcile the diversity of agricultural practices with the need for a uniform, enforceable standard that prevents abuse of agricultural tax classifications and land entitlements, incorporating the breadth and scope of agricultural activity in the State and providing comprehensive language that successfully incorporates county level zoning and property tax ordinances regarding land and water usage.

Therefore, the purpose of this Act is to require the board of agriculture and biosecurity to develop and adopt multi-tiered, matrix-based definitions for the terms "bona fide farmer" and "bona fide agricultural activity".

SECTION 2. Chapter 141, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§141- Bona fide farmers. (a) The board of agriculture and biosecurity shall work collaboratively with the agribusiness development corporation and other engaged agricultural entities and organizations to draft, develop, and adopt comprehensive definitions for the terms "bona fide farmer" and "bona fide agricultural activity" utilizing a multi-tiered, matrix-based assessment framework. The definitions shall be submitted to the legislature to be considered in legislation to codify the definitions into this chapter. The board shall periodically review and as necessary submit proposed amendments to the legislature to the definitions and framework to ensure consistency, applicability, and effective implementation in law and practice.

(b) The board of agriculture and biosecurity, in collaboration with the agribusiness development corporation, shall establish the following multi-tiered, matrix-based assessment framework for the purpose of subsection (a):

(1) Tier I. Entry-level and transitional farmers. Tier I shall recognize bona fide entry-level and transitional farms and ensure access to land, water, and agricultural support resources during the establishment or recovery phase of a farm. A person is bona fide entry-level or transitional farmer under this paragraph if the person:

(A) Is a new farmer, part-time farmer, vocational trainee, displaced agricultural worker, recovering farmer impacted by natural disaster or other catastrophic event, or graduate of Hawaii Young Farmer Association or Future Farmers of America programs;

(B) Provides a documented farm plan, including but not limited to a plan certified by the department of agriculture and biosecurity or an approved training program of the university of Hawaii college of tropical agriculture and human resiliency;

(C) Provides evidence of initial agricultural investment, including purchase or lease of agricultural infrastructure, seed stock, or livestock; and

(D) Demonstrates bona fide intent to farm within a period of not less than three years and not more than five years; provided that proof of sustained production shall not be required;

(2) Tier II. Small-scale and diversified farmers. Tier II shall recognize bona fide small-scale and diversified farms without imposing unrealistic or strictly uniform income thresholds. A person is a bona fide small-scale or diversified farmer under this paragraph if the person:

(A) Is a sole proprietor, family farmer, subsistence and cultural practitioner, small livestock operator, apiary, nursery, or diversified crop producer;

(B) Demonstrates agricultural activity, including cultivation, livestock care, aquaculture operations, or equivalent agricultural endeavor;

(i) Documents gross income from agricultural sales proportionate to the acreage and crop or livestock type; or

(ii) Documents cultural or subsistence production, including but not limited to kalo, ʻuala, loko iʻa, or other customary and traditional practices; and

(D) Provides a farm plan that demonstrates active management and stewardship of land and water resources;

(3) Tier III. Commercial and professional farmers. Tier III shall recognize bona fide commercial and professional farms and ensure accountability for operators whose primary livelihood is derived from agriculture while recognizing sector-specific economic realities. A person is a bona fide commercial or professional farmer under this paragraph if the person:

(A) Is a full-time farmer; agricultural partnership; value-added producer; medium-scale aquaculture producer; greenhouse or shade-house operator; or conducts a floriculture, forestry, or ranching enterprise;

(B) Documents gross agricultural income, calibrated by sector to reflect varying per-acre yields and market values;

(D) Provides evidence of active participation in agricultural markets, including but not limited to cooperative memberships, contractual sales arrangements, or distribution agreements; and

(4) Tier IV. Corporate and institutional agricultural enterprises. Tier IV shall recognize bona fide corporate and institutional agricultural enterprises and ensure that large-scale agricultural enterprises maintain genuine agricultural operations and do not utilize the designation of "bona fide farmer" or "bona fide agricultural activity" for the purposes of land speculation or residential development. A person is a bona fide corporate or institutional agricultural enterprise farmer under this paragraph if the person:

(A) Is a corporation, partnership, cooperative, research institution, seed company, or vertically integrated agricultural business;

(B) Provides proof of incorporation, partnership, cooperative, or other legal entity status registered within the State;

(D) Demonstrates agricultural revenues, employment of agricultural labor, and compliance with all environmental and water use permits issued pursuant to state and federal law.

(c) In assessing whether a farmer or farming operation is bona fide under any tier, the board shall consider the following factors, none of which shall be individually determinative:

(1) Evidence of production, including crop harvest logs, livestock inventories, aquaculture or aquaponic production records, or sales receipts;

(2) Investment in agricultural infrastructure, including but not limited to irrigation systems, fencing, shade houses, aquaponic tanks, apiary hives, or processing facilities;

(3) Demonstrated cultural or community value, including practices tied to Native Hawaiian traditions, subsistence food production, or contributions to local food security;

(4) Evidence of environmental stewardship, including compliance with water rights, soil conservation, invasive species management, and sustainable land management practices;

(5) Scale of operation relative to acreage and zoning, to ensure agricultural activity is appropriate to the land in use; and

(6) Temporal considerations, including allowances for crop cycles, rotational fallowing, disaster recovery, and farm start-up periods.

(d) The definition for "bona fide farmer" shall outline the following criteria:

(1) Commercial focus;

(2) Farm size or scale;

(3) Minimum income threshold; and

(4) Primary occupation.

The definition for "bona fide farmer" shall also include the term "bona fide agricultural activity".

(e) The board shall solicit and incorporate stakeholder input in drafting the definitions for "bona fide farmer" and "bona fide agricultural activity".

(f) The board shall adopt rules pursuant to chapter 91 to carry out the purposes of this section."

SECTION 3. The board of agriculture and biosecurity shall submit a report of the drafted definitions for the terms "bona fide farmer" and "bona fide agricultural activity", including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2027.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2050.

THE SENATE	S.B. NO.	2153
THIRTY-THIRD LEGISLATURE, 2026		S.D. 2
STATE OF HAWAII