A bill snaking its way through the Hawaii Legislature is taking direct aim at so-called fake farms, the properties where a few trees or a couple of animals on a big lot translate into hefty tax breaks. Senate Bill 2153, introduced by Big Island Sen. Tim Richards, would push state agencies to draw a sharper line between subsistence gardeners, smallholders and large commercial operations, then send lawmakers a set of recommendations later this year.
What the Bill Would Actually Do
SB2153 instructs the Board of Agriculture and Biosecurity to create and adopt a multi-tiered, matrix-based framework that finally defines who counts as a “bona fide farmer” and what qualifies as “bona fide agricultural activity.” The board is supposed to work with the Agribusiness Development Corporation and other stakeholders, then report back to the Legislature for sign-off. The bill cleared the Senate in early March and has been sent to the House, with committee reports indicating lawmakers want the rubric to weigh production, investment, value to community and culture, environmental stewardship and operational scale, according to LegiScan.
Why Lawmakers Say Fake Farms Are a Real Problem
Hawaii has been wrestling for years with properties that look agricultural on paper but function more like homes or future development sites. A few token plantings or a handful of animals can still unlock tax breaks or other perks, blurring the line between genuine producers and savvy landowners working the rules. That confusion has fueled calls for consistent standards and tools that steer grants, tax exemptions and market support toward farmers who actually supply food and local markets, as reported by News From The States.
Farm Advocates Worry About New Hoops
Not everyone is cheering the new framework. “My concern is that we then increase the hurdles and headaches for smallholders, without meaningfully addressing the consolidation of land ownership,” said Hunter Heaivilin, advocacy director at the Hawaii Farmers Union, who warns that tighter definitions could be misused against subsistence growers and Native Hawaiian practices.
On the other side of the ledger, Hawaii Farm Bureau Executive Director Brian Miyamoto told reporters that a clear rubric could help the state figure out where to aim incentives. Both groups, however, say the real test will be fair enforcement. The reporting notes that the bill would have the agriculture department draft the matrix this year, with the Agribusiness Development Corp. assisting, then return a proposed framework for lawmakers to approve next year. (News From The States.)
Fewer Farms, Bigger Operations
Federal counts show Hawaii had roughly 6,569 farms in the 2022 Census of Agriculture, about 10% fewer than in 2017, a sign of a shift toward fewer but larger operations statewide. Historical state tables put the number of farms in the mid-7,000s in the 2000s, which means the islands have lost on the order of several hundred to nearly a thousand operations over that stretch and have shed tens of thousands of acres of farmland. (State Data Book.)
What Other Islands Have Tried
Lawmakers and advocates are also looking at how other islands have tried to curb abuse. Guam, for example, directs its government to maintain lists of qualified local landscapers, farmers and related businesses, which agencies can then use to decide who is eligible for public procurement and support programs. Supporters in Hawaii say that kind of registration or certification system could be one tool to consider as the state builds its own matrix. (Guam Code.)
The High-Stakes Details Still to Come
The real fight will be in the fine print. Key questions include who gets counted as a farmer, how customary and Native Hawaiian cultivation methods are protected, what production or revenue thresholds will apply and how counties and the state plan to enforce any new rules. With agencies ordered to draft the framework in the coming months and report back next year, expect hearings, stakeholder meetings and a round of amendments that will determine whether this effort truly helps family farmers or just adds one more stack of paperwork to the pile.
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