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Board approves amended agricultural‑loan rules to add lines of credit and import‑replacement loans
Summary
The Board of Agriculture and Biosecurity unanimously approved amended HAR chapter 4‑8 to expand loan types (including secured lines of credit), add an import‑replacement loan category (up to $2.5 million at 3%), and set flat interest rates (4% general; 3% for new farmers). Staff said the changes follow public hearings and aim to increase farm liquidity.
Wayne Takamini, the Agricultural Loan Division presenter, asked the board to approve amended Hawai‘i Administrative Rules chapter 4‑8 after public hearings held March 9, 2026. The package adds new definitions (cooperatives, food hubs), creates lines of credit for working capital and a new import‑replacement loan category, and simplifies denial procedures.
Takamini said the rules would introduce two main financing changes: a flat interest structure—4% for most qualified farmers and 3% for new or part‑time farmers—and the addition of lines of credit that can be secured by crops, livestock, facility assets or real estate. “The line of credit should help them with more money when they need it in emergencies,” he said, describing the measure as intended to provide liquidity through harvest cycles and unexpected delays.
He also outlined a newly created import‑replacement loan category designed to encourage larger‑scale production of crops that substitute food now imported into the state: “Limit is 2,500,000 at 3% per year,” he said, noting applications would require sound credit and the ability to repay and that the loans would be reserved for farms that pass a rigorous vetting process.
Board members asked staff whether the division has the capital to support expanded loan ceilings; Dean (deputy director) said the division has roughly $6,000,000 in cash available short‑term and is working with the governor’s office to raise statutory loan ceilings for the fiscal year. Jason Moniz asked whether a summary of the public‑hearing testimony was available; Takamini pointed the board to testimony and minutes included in the rule packet and said most speakers supported chapter 4‑8 revisions.
The board voted to approve the amended rules and to allow the chairperson to post the revised HAR chapter 4‑8 on the governor’s web portal for final review, a motion the chair announced as approved unanimously. Staff said next steps include preparing the final clean versions and forwarding them to the governor for signature.
The rule changes take effect only after any required administrative steps; staff said they will monitor program demand and request additional general‑fund support from the legislature if demand outpaces current resources.
