New Hawaii ag park aims to let Kauaʻi farmers ‘just focus on farming’

[April 26, 2025]  By THOMAS HEATON/Honolulu Civil Beat

Tools, greenhouses, customers and, most importantly, land and water — these are basic needs sorely lacking for farmers in Hawaiʻi. So a nonprofit on Kauaʻi is stepping up to fill the void by developing an agricultural park it hopes will help farmers grow and sell more food locally.

The Olohena ʻĀina Center project is in the beginning stages, but local group Mālama Kauaʻi has acquired 87 acres of arable land near Kapaʻa and begun accepting applications from potential tenants.

The center still faces hurdles before opening, including one that has stalled many agricultural endeavors across the islands: the need for a reliable water source and irrigation to deliver it.

High rents, insufficient and inconsistent water sources, inappropriate land and short lease terms are among the issues standing in the way of greater local food production in Hawaiʻi, which imports up to 90% of its food. After the harvest, produce needs to be cleaned, packaged and marketed.

The privately run park will be East Kauaʻi’s first, joining two others on the island, offering tenants a list of resources many cannot otherwise access.

The Olohena ʻĀina Center will be built and opened over three phases, eventually sporting a 1-acre hub facility that includes access to greenhouse space, business and meeting spaces, cold storage and basic processing facilities.

The park will also host a 4-acre Noah’s Arc-style orchard of myriad food trees planted in pairs, Mālama Kauaʻi Executive Director Megan Fox said, which will be cultivated and propagated for community use.

At first, 20 acres will be opened to tenant farmers, followed by another 62 acres in subsequent phases.

The cost of building the park is estimated at $3 million, Fox said. But pending design and engineering work will determine the final tally.

The agricultural park model is not new to Hawaiʻi, with a handful of privately run parks across the islands. The state Department of Agriculture has also run a program for decades that includes 227 lots spanning more than 3,000 acres statewide.

But finding a space has been an issue for farmers who have complained for years that getting state ag park leases is too difficult.

Mālama Kauaʻi seeks to provide another more accessible route for smaller farming operations, insulating them from the many pain points within Hawaiʻi’s food system, Fox said.

“That’s the whole point of an ag park,” Fox said. “You just focus on farming.”

Water Woes

The park project got a significant boost in February when Mālama Kauaʻi signed a land lease with My Kapaʻa LLC, which is partly owned by Honolulu-born singer and actress Bette Midler, paving the way for work to begin.

Its timeline for development, however, depends on how quickly Mālama Kauaʻi can get water to the site. Organizers initially had planned to draw water from the state-owned East Kauaʻi Irrigation System, but the plantation-era system has fallen into disrepair and the state has threatened to shut it down.

Water is a pervasive issue for many including ʻĀina Ho’okupu o Kīlauea, another agricultural park whose expansion plans have been stymied by deteriorating water infrastructure on the North Shore.

The problem with Kalihiwai Reservoir is almost two decades old but progress has been slow, according to the nonprofit’s executive director, Yoshi L’Hote, who is not sold on digging wells and drawing from the aquifer.

“How many straws can you put in one glass of water? Eventually there’s not going to be enough water for everybody,” L’Hote said.

To avoid further delay, Mālama Kauaʻi has decided to dig a well, Fox said, a likely more expensive but faster track to watering the park. It may take up to nine months just to get a well-digging permit, she said, let alone find and hire contractors to dig out and build the system.

“Once we have the well, won’t won’t have to rely on the state anymore,” Fox said. “It’s pretty much our No. 1 priority.”

The organization is funding the project through a mixture of channels, including Kauaʻi County. The state just rejected its $2 million application for a grant-in-aid, though Fox said Mālama Kauaʻi would continue advocating for funding.

The organization has started accepting pitches and applications for less water-reliant operations to use the land as it works to stand up the operation. Those pitches could include using rainwater catchment or running honeybee operations.

No Vacancies

Oʻahu farmer Fung Yang was like many new and emerging farmers who struggle to find an affordable piece of land to buy or lease.

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So, in 2009, the portobello mushroom farmer added his name to the state’s “expressions of interest list” so he would be notified whenever a vacancy became available.

Many farmers languish on the list though, contending with slow tenant turnover fueled by high demand and the ability for leaseholders to transfer their agreements to others. Often, the land is not what the farmers seek — too small, too big, or on the wrong island.

But in 2023, 13 years after he signed onto the list, Fung secured a 5-acre plot at the in-demand Waimānalo Agricultural Park. It was not without some sacrifice.

“You can’t just say ‘Here’s a piece of land,’” said Laura Ediger of the education program GoFarm. “There are so many things about the agricultural economy that are not helpful to small and medium farmers.”

A confluence of factors frustrates the state’s budding farmers, including an at-times unfair process that favors well-connected or well-established farmers over the rest.

But the park leases are alluring enough — with long lease terms and comparatively low rents — for people to wait for years, as Fung did from 2009 until 2023, during which time he paid comparatively high rents for month-to-month private lease.

At any given time, the list held by the department could contain about 250 names, said Brian Kau, administrator of the state’s Agricultural Resource Management Division that oversees the program. Registered farmers are notified of vacancies once or twice a year.

If land becomes available, they are then able to bid and apply anonymously. Applicants must be bona fide farmers and the highest bid generally wins.

Existing leaseholders are able to transfer ownership of the lease, sometimes at a price for new tenants, which can be problematic because it forces new farmers into a “favor-based economy,” Ediger said.

The state rules were not intended to make the lease transfer process unfair, Kau said, adding that any value attached to a lease should be based on the value of the business on the property — not the state land itself. Ultimately, the Board of Agriculture has final say on lease transfers.

Hawaiʻi’s Sustainable Food Systems Working Group, formed to address kinks in local food production and access, is currently looking into state land lease conditions.

The group, which lawmakers made permanent on Thursday, identified lease terms as an issue in its first report to lawmakers. It has since become a key priority for the working group, state food systems coordinator Amanda Shaw said.

A Hot Commodity

The state last opened a new agricultural park in 2001, in Kahuku on Oʻahu.

“Could the ag department manage more ag parks? Yes,” Kau said. “Is there land for more ag parks? Yes. But it’s difficult for the state to get the rights to the land.”

It’s also proven difficult for the department to secure funding to fit parks with infrastructure, such as irrigation, which has happened with the 150-acre Royal Kunia Agricultural Park on Oʻahu.

The state acquired that acreage in 2004 and funded its design in 2006, which took five years to complete. But lawmakers have ignored the agriculture department’s budget requests over the past decade to complete the estimated $25 million irrigation work.

Instead, Kau said, the lot is being leased for grazing cattle.

In the meantime, farmers like Fung are left with a yearslong wait to pay lease rates that can allow their operations to become more viable.

For Fung, the tenure promised by the state was enough for him to place the highest bid he could afford.

“I had to put my best foot forward,” Fung said.

He is unwilling to share the amount though for fear of angering others in the small farm community but said it was more than the typical $500 per acre vegetable farmers typically pay.

It’s a situation that Mālama Kauaʻi hopes to resolve for its potential farmers, assessing each based on their basis, Fox said.

The park has already accepted 11 applications for future plots on the 87-acre property, Fox said, having rejected a few applications seeking large portions of the park. The organization expects the application list to get longer as it approaches the end of a roadshow around East Kaua‘i.

Mālama Kauaʻi has yet to finalize the terms of its leases, but Fox said the prices will be affordable and terms will be sufficient to ensure farmers can establish themselves well.

Fund said that even if he’s paying more than others at the O‘ahu agricultural park, he has no doubts about it being a good agreement as he sits with 33 years left on his 35-year lease.

“The best deal is now,” he said. “You get to control your destiny.”

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