REPORT TITLE:
Agricultural Loans; Exports


DESCRIPTION:
Provides agricultural loans to qualified farmers who export crops
and livestock; allows working capital loans for farmers affected
by State eradication programs.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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THE SENATE                              S.B. NO.           S.D. 1
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
 
 7 their population and depend on other nations, like Tonga, for
 
 8 their food supply.  A more productive agricultural loan program
 
 9 would encourage farmers to export crops and livestock to compete
 
10 in the world marketplace.
 
11      The purposes of this Act are to:
 
12      (1)  Provide agricultural loans to qualified farmers to
 
13           export crops and livestock to ultimately increase the
 
14           State's export industries; and
 
15      (2)  Add provisions to allow working capital loans for
 
16           farmers affected by state eradication programs.
 
17      SECTION 2.  Section 155-9, Hawaii Revised Statutes, is
 
18 amended as follows:
 
19      1.  By amending subsection (d) to read:
 

 
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 1      "(d)  Class C:  Farm operating loans shall be for the
 
 2 purpose of carrying on and improving a farming operation,
 
 3 including:
 
 4      (1)  The purchase of farm equipment and livestock;
 
 5      (2)  The payment of production and marketing expenses
 
 6           including materials, labor, and services;
 
 7      (3)  The payment of living expenses;[and]
 
 8      (4)  The liquidation of indebtedness incurred for any of the
 
 9           foregoing purposes[.]; and
 
10      (5)  The exportation of crops and livestock.
 
11      The loans shall be for an amount not to exceed $400,000 and
 
12 for a term not to exceed ten years.  To be eligible, an applicant
 
13 shall derive, or present an acceptable plan to derive, a major
 
14 portion of the applicant's income from and devote, or intend to
 
15 devote, most of the applicant's time to farming operations.
 
16      Qualified farmers affected by state eradication programs may
 
17 also be eligible for loans under this section.  Loans made for
 
18 rehabilitation from eradication programs shall be subject to the
 
19 terms of class "C" loans, except that the interest rate shall be
 
20 three per cent a year, the requirements in section 155-3 shall be
 
21 waived, and section 155-9(d)(4) shall not apply."
 
22      2.  By amending subsection (f) to read:
 
23      "(f)  Class E:  Loans to cooperatives and corporations shall
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 provide credit to farmers' cooperative associations and
 
 2 corporations engaged in marketing, purchasing, and processing,
 
 3 and providing farm business services, including:
 
 4      (1)  Facility loans to purchase or improve land, building,
 
 5           and equipment for an amount not to exceed $500,000 and
 
 6           a term not to exceed twenty years; [and]
 
 7      (2)  Operating loans to finance inventories of supplies,
 
 8           warehousing, and shipping commodities, extension of
 
 9           consumer credit to justified farmer-members, and other
 
10           normal operating expenses for an amount not to exceed
 
11           $300,000 and a term not to exceed seven years[.]; and
 
12      (3)  The exportation of crops and livestock.
 
13      To be eligible, a cooperative or corporation shall have a
 
14 majority of its board of directors and a majority of its
 
15 membership as shareholders who meet the eligibility requirements
 
16 of section 155-10 and who devote most of their time to farming
 
17 operations, and the facility loans shall be for an amount not to
 
18 exceed $500,000 or eighty per cent of the cost of the project,
 
19 whichever is the lesser."
 
20      SECTION 3.  Statutory material to be repealed is bracketed.
 
21 New statutory material is underscored.
 
22      SECTION 4.  This Act shall take effect upon its approval.