Board activates emergency farm loan program after Kona storm, sets flexible terms

The Board of Agriculture and Biosecurity unanimously approved activation of an Emergency Loan Program to help growers recover from damage caused by a March Kona low-pressure storm system. Dean Mascala, acting agriculture loan administrator, presented proposed loan parameters and damage estimates to the board.

Mascala told the board an Ag Stewardship Hawaii dashboard reported $12,467,101 in agricultural damage affecting roughly 256 farms and about 1,500 acres; he said that figure is expected to rise as assessments continue. The proposed program would cap loans at $100,000, fix interest at 3 percent, waive credit-elsewhere requirements for loans $50,000 or less, and allow collateral waivers or modifications case by case. Emergency applications would be accepted through Sept. 30, 2026.

Board members asked whether aquaculture operations and aggregators are eligible; Mascala said the loan authority stems from the department's ag-loan statutes and that aquaculture statutes do not automatically allow emergency loans, but the branch would interpret eligibility broadly to include aquaponics and similar operations when feasible. Members also questioned how applications would be prioritized; Mascala said loans will be triaged on an emergency basis, generally first-come, first-served, and staff would request increases to the department's lending ceiling from Budget & Finance if demand exceeds current funds. He estimated about $300,000 immediately available in the current fiscal year and noted approximately $3,000,000 in the department's revolving fund that could be used after a ceiling increase request.

The board approved activation and parameters unanimously and encouraged staff to coordinate outreach to affected growers and farm networks to publicize the program.