What Can You Do on Agricultural Land in Hawaiʻi?

I wrote an article in 2023 specifically about what you can do on agricultural-zoned land in Hawaiʻi County (the Big Island). Partly that was to answer questions I get when I list larger acreages (e.g. can I run a zipline or motocross course on this property?). Partly it was to answer the more frequently asked question about having a lodge or retreat center on land zoned for agriculture. And partly just to clarify that you still need building permits for most agricultural buildings, and often special permits for less common uses including processing of farm or ranch products.

Recent moves by Maui County, and by the State of Hawaiʻi with respect to lands the Department of Agriculture leases to farmers and ranchers on behalf of the State, recognize that if we want to support increased local agricultural production (and decrease the need for costly imported food), we need to help farmers and ranchers survive and thrive in Hawaiʻi. Here is some of what is proposed.

One reason I chose todayʻs topic is because tomorrow I am heading to the Annual Hawaiʻi County 4-H Livestock Show and Auction to buy a lamb and a hog to fill my freezer with meat for a year.

State of Hawaiʻi  To Give Lessees More Flexibility on Agricultural Leases Reflecting Reality of the Economics of Production

What the State allows lessees to do on its own agricultural lands is a good indicator of government and regulatory attitudes towards farming and ranching and processing on private lands. The State is actually the largest landowner in Hawaiʻi, with around 1.5 million acres, and two-thirds of that here on the Big Island. And remember – in this state all land is classified into four categories, even before counties impose zoning, with Agricultural being the second largest designation behind Conservation (e.g. forested watersheds and shorelines)

So what the state thinks of agricultural matters.

How does the State of Hawaiʻi promote agriculture starting with its owned lands? Here are two mechanisms available to you if you wanted to buy a home in Hawaiʻi and operate a small farm or ranch on leased land.

• In some areas, the State has created agricultural parks, where it provides infrastructure and small farmers and growers can lease individual plots, generally for around $200/ac/year.
• Single properties or groups of parcels can be leased to a farmer or entity. For example a private ranch or dairy could lease hundreds or thousands of acres of pasture land owned by the state in order to increase their production. Some small multigenerational ranchers operate entirely on land leased from government or larger private owners.

Dairy cattle graze on a Hawaii State parcel administered by the Department of Agriculture

Now -what can you do on agricultural lands leased from the State of Hawaiʻi?

The outdated administrative rules are currently being updated to allow for a greater variety of activities, in recognition that agriculture is a small-margin business, and multiple revenue streams help provide producers with economic stability. The permitted activities under consideration include education, tourism, food hubs, farmers markets, livestock feed mills and slaughterhouses.

The public will have the opportunity to weigh in during hearings this summer. The State will want to balance a broader definition of agricultural activity with concerns that activities that are not really supporting food or other crop production will slip in as “ag tourism” (ziplines!).

Maui County Leads the Way

At one point Hāna Ranch hosted a Hāna Burger Food Truck serving grass-finished beef burgers or fresh fish sandwiches, accompanies by locally made taro chips.

Meanwhile, the Maui County Council passed a bill that made it easier for producers to supplement their income with activities falling under the definition of “agricultural tourism” including running food trucks featuring their produce, and providing related educational and cultural activities. These activities are required to be incidental to the main agricultural activity of farming or ranching.

Property tax regimes across Hawaiʻi are becoming less friendly to “gentleman farms/ranches” where you get a tax benefit for a half-dozen fruit trees or a couple of pet sheep. But there may be opportunities to support a farmer or rancher to produce food on your excess land. A knowledgeable agent with good relationships in the community can make introductions if that kind of partnership would be of interest.