RELATING TO AGRICULTURE.

SB2153

THE SENATE

S.B. NO.

2153

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to agriculture
.

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

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SECTION 1.
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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.
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The lack of a uniform standard for what
constitutes a bona fide farmer can lead to discrepancies in the way
agricultural zoning is applied.
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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.
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This creates conflicts with the preservation
and allocation of agricultural resources which should be reserved for farmers
who are engaged in genuine farming activities.
�

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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.

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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".

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

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"
�141-
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Bona
fide farmers.
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(a)
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The board of agriculture and biosecurity shall
work collaboratively with 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.
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The definitions shall be submitted to the
legislature to be considered in legislation to codify the definitions into
section 141-1.
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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.

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

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

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(A)
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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;

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(B)
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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;

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

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(D)
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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;

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

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

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

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(C)
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Either:

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

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(ii)
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Documents cultural
or subsistence production, including but not limited to kalo,
ʻ
uala, loko i
ʻ
a, or other customary and traditional
practices; and

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

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

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(A)
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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;

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

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(C)
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Complies with all applicable federal, state, and county labor,
safety, and environmental standards; and

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

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(4)
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Tier IV.
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Corporate and institutional agricultural enterprises.
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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.
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A person is a bona fide corporate or institutional
agricultural enterprise farmer under this paragraph if the person:

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

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

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(C)
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Documents that
more than
fifty per cent of landholdings are actively used for agricultural production;
and

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

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(c)

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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:

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

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

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

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

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

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

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

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(1)
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Commercial
focus;

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(2)
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Farm
size or scale;

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(3)
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Minimum
income threshold; and

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(4)
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Primary
occupation.

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

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

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

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SECTION 3.
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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.

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SECTION 4.
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New statutory material is underscored.

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SECTION 5.
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This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

BAB; Bona
Fide Farmer; Bona Fide Agricultural Activity; Definitions; Report

Description:

Requires
the Board of Agriculture and Biosecurity to develop
and adopt
a multi-tiered, matrix-based assessment framework to develop definitions for the
terms "bona fide farmer" and "bona fide agricultural activity".
�
Requires the Board to collaborate with stakeholders to draft the
terms
"bona fide farmer" and "bona fide agricultural
activity".

Requires a
report to the Legislature.

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