HomeMy WebLinkAboutCOM 0675.447 2022-2024From: Krista Olson
Sent: Monday, August 19, 2024 11:54 AM
To: Council Testimony
Subject: Bill 121 and impact on production farms
Aloha Chairperson & Commission Members,
As one of the last remaining row crop farmers in the Kona area, I want to highlight some concerns
regarding Bill 121 as it pertains to production farmers. Over the last five years, our family and several
other long term farm families have made the difficult decision to supplement agricultural revenue by
adding farm stay opportunities for visitors. As people passionate about working the land and
contributing to our island food system, none of us have come lightly to the decision to invest
substantial resources in agritourism through short-term farm stays. In our case, we simply couldn't see
any way to continue our 20 year commitment to providing our local grocery stores with produce
without establishing an additional revenue stream less impacted by increasingly unpredictable
weather, feral pigs and the rising cost of raw materials.
After speaking with other farmers who also offer some form of TAR on their working farms, I want to
highlight ways that Bill 121 could inadvertently and negatively impact many small farms offering
agricultural tourism. In our current food economy, many of us are only able to sustain our operation
because we subsidize our growing operation with diverse income streams that include hosted farm
stays and significant off -farm employment.
Please support health & safety vs permitting requirements for registration:
Please support clear language that outlines health and safety requirements in place of permitting
requirements for TARs. This part of the bill will have a huge impact on farms, which often have
unconventional structures (pavilions, yurts, tent cabins, screened in structures) that are rented out to
help farms make ends meet because it is extremely difficult to only rely on agricultural
income. Because of state law, farms cannot rent out their 2nd farm dwellings, so taking away the
ability to rent unconventional and often unpermitted structures would cause financial hardship
to farms. Examples of cities that currently utilize health and safety requirements vs. permitting include
Vail CO and Santa Cruz, CA as well as Big Bear Lake CA, Mammoth Lakes CA, Aspen CO and Park
City UT. Please look to these for examples of implementation.
Please consider extendingthe bill to support agricultural tourism:
I encourage the council members to look deeper into how this bill and set of related bills
could be altered to protect and encourage the future of agricultural tourism on Hawaii
Island, which is something that needs support based on our General Plan and CDPs -
and is needed for many farms to make ends meet. Even the new agricultural tax
classification penalizes commercial farms that are running TARs by not extending the
tax benefits to any farm operating a TAR. It appears that many hobby farms with very
insignificant revenue from crop production will benefit from the new agricultural tax
classification, but larger food producing farms utilizing TARs to diversify and subsidize
farm income will be penalized. COMM14,CL V1
Ref. o:
Ref. Gate I " +
Please consider existing fees when making decisions on registration and renewal fees:
Before looking at additional registration and renewal fees, it is important to see what
fees and taxes farms (permanent residents) are currently paying to operate TARs at
their place of residence. I encourage the council to consider different fees for
permanent residents, and especially production farms, versus TARs that are operated
by owners not residing on the Island.
To give a sense of the fees/taxes, I am referencing here an example from another
farmer to estimate fees for a farm operating a TAR.
Using the following assumptions for an example: The farm was purchased 10 years
ago for $800K with a yearly $130K gross TAR income ($100K net income) .
TOTAL fees/taxes : $38,532/Year
(Tax Penalties: $3,499 + $500 + $3208 = $7,207 total tax penalties + State Income
Tax $8,250 + GET / TAT etc. $23,075 = $38,532/Year in county penalties and
county/state taxes (for $1 OOK gross revenue)
The economic realities for those in the agricultural sector, necessitate a level of flexibility in how we
can utilize our property. By integrating these recommendations, Bill 121 can more effectively support
the agricultural community, promote agritourism, and ensure property owners have the necessary
flexibility to adapt to economic challenges. This approach will contribute to a vibrant, sustainable, and
inclusive future for Hawaii County.
Mahalo for your thoughtful consideration of these matters. I appreciate your dedication to crafting
legislation that reflects the diverse needs and realities of our community.
ILMOM
Krista Olson, 79-969 Kealaola St. Kealakekua. HI 96750