Ranchers urge transfer of active ag leases to Dept. of Agriculture; DLNR opposes mandatory transfers

Senate Committee on Water and Land members heard rival views March 17 on SR 118, a resolution asking the Department of Land and Natural Resources to transfer active agricultural leases to the Department of Agriculture to support agriculture.

The measure drew support from ranchers and farming groups who said the transfer is needed to keep working ranches viable. Nicole Galassie of the Hawaii Cattlemen’s Council told the committee the ranching community is asking for “less than 11,000 acres” to be transferred and said partial transfers proposed by DLNR would strip ranchers of water infrastructure and supplemental pasture. “If they just transfer parts of these leases, they will not be able to stay in business,” Galassie said.

Why it matters: supporters framed SR 118 as a targeted land‑use fix to preserve active agricultural production and protect ranch infrastructure that ranchers built and maintain. Opponents, led by DLNR, said the department has worked with the Department of Agriculture to transfer parcels where there is mutual agreement and that the resolution’s mandatory wording would compel transfers without DLNR consent.

Dawn Chang, testifying for DLNR, said the department opposes the resolution’s requirement to transfer parcels that DLNR does not consent to. “We have been moving in good faith to transfer…parcels where there is mutual agreement,” Chang told the committee and said DLNR stands on its written testimony and is available to answer questions.

Ranchers described specific parcels and local impacts. Joey Loyola, representing Botella Hawaii Enterprise, said the company uses roughly 856 acres of the contested parcel and wants to retain large contiguous pasture and water infrastructure; he said DLNR proposed retaining only 42 acres around a water tank. Steven Iluz of St. Iluz Ranch said DLNR is proposing to retain the higher‑elevation, more productive 3,010‑acre parcel while offering the lessee the less productive lower parcel. Iluz told the committee the higher ground supports roughly 700 head of cattle and that losing it would make the operation nonviable.

DLNR staff and the Land Division said they have met with affected lessees and are negotiating. DLNR staff said one TELA lease totals about 5,700 acres and that DLNR is proposing to transfer about 4,800 acres of that lease to DOA — a “large proportion,” DLNR said — and that other parcels remain under review and subject to site visits.

The Hawaii Farm Bureau and other agriculture interests voiced strong support. Bridal Miyamoto of the Hawaii Farm Bureau said the group has supported these transfers for more than 20 years and urged the committee to advance the resolution as a step to protect food production and farm jobs. Testimony and oral remarks repeatedly cited losses of agricultural acreage in recent years and the role ranchers play in wildfire response and land stewardship.

Clarifying details offered during the hearing included acreage estimates and site specifics: witnesses identified four key TMKs under discussion (Duluth/Diluz, Botelho/Botella, Nobriga/Nobriga and Diamond B), noted a requested total in the neighborhood of 11,000 acres, and gave parcel‑level numbers (for example, an 856‑acre contested parcel and a 5,700‑acre TELA lease with a proposed transfer of 4,800 acres). DLNR said negotiation and mutual agreement between DLNR and DOA remain required under Act 90, the statutory vehicle previously used for transfers.

There were no formal votes recorded during this March 17 hearing; committee members asked DLNR and DOA staff to continue negotiations and to update the committee on progress. The committee chair indicated decision making on SR 118 would occur later in the process.

What’s next: committee members noted the bill vehicle for similar language remains alive in the legislature and that decision‑making on this resolution will be scheduled for a later calendar date. The record shows active negotiations between the departments and individual lessees; committee members pressed for clarity about acreage, water infrastructure and the timing of lease expirations.

Speakers quoted in this article spoke during the SR 118 hearing and are listed in the accompanying speakers array. All quotes are verbatim and attributed to the speaker shown in the transcript.