Can't find any info on lease rates for farmland (Hilo: real estate market, renter)

[Mr. Neptune]

Hi all

I have a 9 acre parcel in Hakalau, I used to lease it to a farmer but he stopped paying Another farmer has recently shown interest, but I can't seem to find any info on current farm lease rates. I used to rent it for about $275/acre/year, but that was five years ago.

I've been searching the internet for hours and I got nuthin'. I've finally landed in this forum...it's worth a shot. It's 9 acres, on a slope, 10 miles north of Hilo. It's not cleared, mostly that cane/grass stuff

Just looking for any kind of estimate...thanks!

Oh yeah...I live in New Jersey, that's why I'm so clueless about what's going on!

[hotzcatz]

There are farm co-op 30 year leases for $186 per acre per year and that includes the taxes paid and some sort of insurance but no water. However, there is a lot of paperwork to fill out to get the leases (if you ca get them at all) and other rigamarole to deal with. If you could legally let someone put a structure of some type on the property, you could ask a lot more for it. Is there any fencing? Water? How much of a slope is it and when was it last worked? If it's been fallow for years and covered in guinea grass it's difficult to get it back into production.

Five years ago the whole real estate market was different. The peak here was around August '05, I think it was. '07 was past peak but still higher, I think. I'm not a real estate professional, though, so my opinion is just an opinion.

[Mr. Neptune]

Thanks for the info, hotzcatz

there is no fencing on the property, there is a creek...?, don't know the degree of slope, and it was last worked in late 2009/early 2010. there is also electricity available

if a 30-year lease is $186/acre/year, am I correct in assuming that a shorter lease could charge more because there is a shorter commitment? I'm not looking to get rich, just don't want to price myself way under market.

any other input would be appreciated. where do people advertise/find land available for lease? I was warned years ago about "general" ads (Tribune Herald, Craigs List, etc.), as they would attract pakalolo farmers. But I've never been able to find other outlets to advertise farm leases. Is it all just word-of-mouth?

thanks again!

[KauaiHiker]

Very interesting thread. If this was Kaua'i, my wife would be interested. She's trying to start a community garden.

She met a lot of local farming community (and wannabe farmers) through the ag courses at the local community college. Those people usually are looking at smaller 1-acre market gardens, but they may know someone.

Another lead might be the state's agricultural extensions on each island. I'm pretty sure the ag dept. has an office and sometimes a field station in each county. The state also leases some ag land, so you might be able to look up their records online or through their offices to see what they charge.

[oregonwoodsmoke]

This isn't Hawaii specific advice, but I have farmed all my life. Farmland leases happen through word of mouth, cards put up at the local feed store, ads in the local agricultural newspaper, through the farm extension agent, through the local farmer's co-op. Put the word out where the farmers buy their agricultural chemicals, fertilizer, irrigation equipment, tractors, and such.

If there is no house, or at least power and sewer hook-ups, it will have to be someone that is extremely local to the fields. Farmers can't tend or guard fields located too far from where they live. Most prefer to be looking at the fields right out their living room window.

[cagary]

Craigslist-Big Island has ads for farm leases.

[hmswain]

Hi I ran across your post while looking to lease farmland in Hakalau, I am a small diversified organic farmer.
If you are still looking to lease around two acres. I would need a long term commitment because of the nature of organic farming

[Dreaming of Hawaii]

Originally Posted by hmswain

Hi I ran across your post while looking to lease farmland in Hakalau, I am a small diversified organic farmer.
If you are still looking to lease around two acres. I would need a long term commitment because of the nature of organic farming

I doubt you'll hear anything from the OP. It's been three years since he last posted anything here.

[terracore]

It might help if you specify what kind of organic farming you are looking to do. There's a lot of cheap land in areas with great sun and rain but little soil.

Also, altitude might be important depending on what you are growing. And a lot of the land with decent soil was former sugar plantation and the soil has been poisoned with arsenic and other chemicals and the EPA has restrictions on moving the soil, but maybe not for using it in place. (though good luck getting an organic label). Some of the organic startups I've seen are using aquaponics on cheap land with poor soil but with good sun etc.

But to answer your original question, I don't think there are "going rates", if you are looking for standardization. We bought a house that came with a neglected 3-acre guava farm and I researched the topic to exhaustion and came to the conclusion that the right renter and the right landlord need to meet through happenstance or networking through friends. Other than that you can advertise through Craigslist or the free bulletin boards at the feed and fertilizer stores.

You may also have good luck if you search for cabin renting opportunities. A lot of these off grid cabins for lease are on 2-3 acre parcels and the land use could probably be negotiated, maybe for cabin rent plus free land use.

Good luck and please report back if you find what you are looking for.

[terracore]

I saw a sign on 130 that advertised 8.5 acres for $500/month. Seems high to me.