Ka Wai Ola - Office of Hawaiian Affairs, Volume 9, Number 7, 1 Iulai 1992 — Trustee's Views [ARTICLE+ILLUSTRATION]

Trustee's Views

No guarantees in farming

By Louis Hao Trustee, Moloka'i & Lana'i

Aloha mai. There is controversy about whether or not third party leasing of Hawaiian Homes agricultural lands benefits the Hawaiians. The commissioners of the Department of Hawaiian Home Lands (DHHL) approved third party leasing in May. Of

the 20 or more leases whieh were approved, the majority were on Moloka'i. Some of these third party leases (most of them annual) have been given to non-Hawaiians. This is what Hawaiians are questioning. How ean we Hawaiians benefit from subleasing land to non-Hawaiians? The cost of improvements, whieh includes clearing the farm land (some lots are very large and in poor farming condition) and installing water (water meter, main water lines and water laterals included) are borne by the third party lessees. These are permanent improvements whieh the homesteader receives at no expense to him or herself, thus saving between $15,000 and $30,000, depending upon the lot size and condition. I am one of 19 Moloka'i homestead lessees who has taken advantage of this opportunity. I have saved $30,000 in infrastructure costs. I would have had to borrow $30,000 at 12 percent interest over a period of 10 years. Many homesteaders could not qualify for these loans, and if they did qualify, repayment could impose a financial hardship upon them. Another thing in our favor is that we ean terminate the lease with a year's notice — no strings attached. There are 12,000 people on the residential waiting list, and DHHL does not appear able to provide either management resources or finaneial assistance for us. We homesteaders must find ways to take care of ourselves. I had to make an assessment about whether I could farm full-time or not. I found it to be a tough business with no guarantees for success and no Santa Claus available to give me the $30,000 that I needed to get started.

When I first arrived on Moloka'i 22 years ago, Sam Peters Sr., Harry "Shotgun" Kealoha and Arthur Po'opa'a clearly stated that they opposed third party leasing. I agreed. I still agree philosophically. But Hawaiian homelands cannot be used as collateral, and no financial institution will lend me money for farming on my signature alone. So what ehoiee do I have? Bther I let my land lie unproductive or let someone else make it productive for me. While DHHL continues to struggle with its current residential applicant problem, some of us with farmland have received a small blessing. The benefits are: • Senior citizen homesteaders who can't farm anymore ean receive rental ineome and annual bonuses whieh supplement their social security checks. • Some Hawaiian people cannot eam enough to subsist on full-time farming, so they must work at other full-time jobs. They ean supplement their incomes by third party leasing. The needs of the Hawaiian people who want to farm have changed between 1920 and the present. New programs are needed to enhanee planning, develop marketing strategies, teach management skills, determine realistic business ventures and acquire adequate farming equipment. We need guidance to develop high-tech farming. Perhaps aided by computer technology, we ean coordinate our efforts to fill gaps in agricultural products statewide. Anyone who receives an award would be in the same position as I have been and would have to find capital or a loan to succeed in farming. I have been obliged to find capital through the third party leasing to make permanent improvements to carry on long-term farming. When our farming processes have developed to the extent that we ean thrive on full-time farming alone, then we ean realistically consider the fate of third party leasing. Until then, let us use third party leasing to help Hawaiian farmers as we are doing right now. This eolumn is dedicated to Sam Sr., "Shotgun" and Po'opa'a, who all farmed and who dedicated their lives to better the conditions of Hawaiians. They have all passed on and the problems are still here and have yet to be resolved. Aloha!