One of the key provisions of HB 1151 allows the corporation to lease agricultural lands at the nominal rate of $1 per year to approved farmers and ranchers until the land use stops being profitable. At that point, a supplemental lease rent will be applied, calculated as a percentage of the profits derived from the sales of agricultural products. The bill also exempts producers from paying excise tax on sales proceeds from these lands, thus providing a significant financial incentive for agricultural enterprises.
House Bill 1151 amends existing statutes related to agriculture in Hawaii, specifically affecting the Agribusiness Development Corporation. This legislation allows the corporation to develop and implement agricultural projects on lands that have been taken out of production or where there is potential for market development. As part of this, the corporation can prepare business and agricultural development plans, which must include strategies for market engagement and impacts on existing agricultural operations statewide.
The bill has been met with both support and opposition within the legislative community. Proponents argue that it encourages agricultural development and supports local farmers, allowing for increased food production and economic growth. However, critics raise concerns about the long-term impacts of leasing publicly controlled agricultural land at such low rates, suggesting that it could lead to land use issues or prioritize profit-driven motives over sustainable agricultural practices.