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of gourmet foods do not radically fluctuate because there are always yuppies out there willing to pay the price, cost does set a limit to how much of these specialty foods are bought. My wife and I met one of the marketing personnel from Starbuck Coffee in Seattle, Washington. She said that the reason why Starbuck does not carry the Kona Coffee in its line of spcialty coffees is its ex- horbitant price. We also met one specialty coffee shop owner in New York who said that he quit buying Kona Coffee because he said he could get coffee with almost the same quality from Vanuatu at about one-third the Kona Coffee price tob New York. This same customer has bought 10 Ib. of dry coffee beans from us so he can try selling it in his coffee shop. Therefore, the name of the game in this specialty coffee business consists of (1) consistent high quality; (2) steady source; and (3) a cost reasonable enough not to be priced out of the market. Since it is envis- ioned that the coffee industry in Hamakua is to be vertically integrated, it could be very highly competitive in the gourmet coffee market, assuring the viability of this project in Hamakua. We have already proven that Hamakua Coffee has a unique taste and that we can consistently produce ahigh-quality coffee. The next step is to expand the industry. One big obstacle to expansion of the coffee industry in Hamakua is the lack of affordable land. Raw farmland now in Hamakua without utilities except dirt roads starts from $2,000/acre and goes up to $15,000/acre as it gets nearer to the main highway. Only millionaires who are gentlemen farmers can afford to pay this price. Large private land owners lease their lands for diversified ag from $160/acre/year to $500/acre/year depending on what kind of crop the farmer grows. Furthermore, these leases have a maximum of five years so that the farmer can hardly obtain a loan for farm development. Financing institutions feel uncomfortable giving loans to farmers with a lease of only five years when developing a farm for permanent crops such as coffee and macnut. Now State lands below Lower Hamakua Ditch lease for $70/acre/ year in the first three years, $100/acre/year in the next two years and $125/acre/year at the sixth year, to be renegotiated every 10 years. The lease period is 35-55 years. Depending on the profitability of the farming operation, the lease could be negotiated downward or upward. Now, this is what is really called affordahle land. This is an urgent plea to the Council to please preserve its Hamakua lands for agriculture so the farmers can develop diversified farming enterprises in the area. When farm enterprises are diversified and family-owned the agriculture in the community will be stable without fear of going bankrupt all at the same time in the future as what happens to a corporate monocrop farm operation. Thank you for your precious time in allowing testimonies in this hearing. Very sincerely yours, Ben C. Mahilum, Ph.D.~o