New Farmer Loan




A New Farmer is:

  • A citizen of the United States who has resided in Hawaii for the preceding three years, or any permanent resident alien who has resided in Hawaii for the preceding three years; and
  • A person who has successfully earned a degree in agriculture from an accredited university or community college; or
  • A person displaced from employment in an agricultural production enterprise; or
  • A person with two years experience as a part-time farmer; or
  • A farm laborer or tenant, or a person who by reason of ability, experience and training are likely to successfully operate a farm.
  • Certain restrictions may apply.

New Farmer Loans are for applicants who intend to farm full-time. A full-time farmer is a person who devotes most of their time to farming or derives most of their income from farming operations. A down payment or equity contribution equal to 15% of the total project cost is required from the applicant.


Interest Rates:   6% or 1.5% below the prime rate whichever is less with an interest rate floor
of 3%.  Rates are fixed at time of loan approval.
Amount: $250,000 1

Farm Ownership and Improvement Loans

  • Purpose: Purchase or improvement of farmland; construction, or improvement of essential farm buildings; liquidation of indebtedness for the foregoing purposes.
  • Maximum Term: 40 years

Farm Operating Loans

  • Purpose: Purchase of farm equipment and livestock; payment of production and marketing expenses including materials, labor, and services; payment of living expenses; liquidation of indebtedness incurred for the foregoing purposes.
  • Maximum Term: 10 years

1 – Maximum loan amount of $250,000 may be used for a Farm Ownership and Improvement loan or a Farm Operating loan, or a combination of both types of loans.

Micro-Loans are also available for New Farmers, however, theses loans are restricted to operating loan purposes only. The maximum loan amount is $25,000 and the maximum term is 10 years. The application process minimizes paperwork and the loan approval process is expedited.


Loan applications may be obtained from any Agricultural Loan Division Office. Loan Officers are available to provide assistance and guidance on the loan process. In order to be eligible for a direct loan, applicants must be denied credit from two lenders, which include banks, savings and loan associations, credit unions, mortgage loan companies, the Farm Credit System and/or the U.S. Department of Agriculture.

A private lender may pursue a participation loan or insured loan on behalf of the applicant. Under these circumstances, the private lender will work in conjunction with the Division on the loan application.

As part of the application process, aspects such as repayment ability, collateral, capital, economic and/or environmental conditions, credit history, and other factors will be taken into consideration. Acceptable applications are presented to the Board of Agriculture for final approval, with the exception of Micro-loans, which may be approved by the Chairperson of the Board of Agriculture.

For more information, call or visit one of our offices.

Oahu: Department of Agriculture
1428 South King Street
Honolulu, Hawaii 96813
Telephone: (808) 973-9460

Hawaii Island:

  • Hilo:    Department of Agriculture
    75 Aupuni St., #104
    Hilo, Hawaii 96720
    Telephone: (808) 933-9975
  • Kona Civic Center
    82-6130 Mamalahoa Highway, Captain Cook, Hawaii 96704
    Telephone: (808) 323-7591

Kauai: Telephone: 274-3141, extension 39460 (Toll Free)

Maui: Telephone: 984-2400, extension 39460 (Toll Free)

Molokai: Telephone: 1-800-468-4644, extension 39460 (Toll Free)