Nearly 150 acres of private land in Kau could be purchased by the state under a bill being discussed in the Legislature.

Senate Bill 1003 was introduced by a pair of Hawaii island Democrats — state Sens. Dru Kanuha of Kona and Tim Richards of Kohala — and would allocate nearly $3 million to the state Department of Business, Economic Development and Tourism to purchase a 146-acre agricultural parcel just west of Pahala.

The purchase would put the land under the control of DBEDT’s Agribusiness Development Corp., a board dedicated to acquiring land for agricultural uses.

“By my understanding, the land has been owned by a family trust for a long time,” Richards said, referring to the Ellis Jacob Hester Family Trust. “Now they’re trying to divest themselves of the property, but for the people who would farm it, they need a long-term stable landowner.”

Richards said the ADC would be that landowner, as the corporation has the statutory ability to own and administer land. The corporation taking over management of the land, he went on, will help fulfill the state’s goal of improving local agriculture and food security.

A statement by the ADC explained that the parcel, and Kau in general, represents “an optimal growing environment for both traditional and innovative agricultural practices” and is “ideal for a diverse range of crops, including coffee, macadamia nuts and specialty fruits.”

Prospective tenants can apply with the ADC to acquire commercial land licenses to use state land for commercial farming.

State Rep. Jeanne Kapela of Puna, who introduced SB 1003’s companion bill, House Bill 685, said much of the ADC’s land acquisitions have thus far been on Oahu or Kauai, but a new administration at the corporation has led to an increased focus on the Big Island.

Kapela added that the ADC’s function as a dedicated organization for agricultural land acquisition might make it better suited to manage the land than the state Department of Agriculture.

According to Hawaii County real property tax rec­ords, the Kau parcel had an assessed value of just over $700,000 in 2024. However, the bills both currently would allocate more than four times that amount to purchase the land.

That sum is subject to change, Kanuha said via email.

“Once I learned of the parcel’s availability, my office drafted this measure quickly to ensure the opportunity wasn’t lost,” Kanuha wrote. “Initially, my office was informed that $3 million would be needed for the purchase. As the bill moves through the legislative process, stakeholders — including the ADC — will have the chance to provide updated cost estimates to our committees.”

Kapela said adding a budgetary cushion for allocations is a common practice when drafting legislation.

Agricultural organizations in Kau were supportive of the measures.

“This land acquisition would build on Pahala’s successful transition from plantation agriculture to a diverse, resilient farming community,” wrote Gloria Camba, president of the Kau Coffee Growers Cooperative, in testimony for a January committee hearing about SB 1003. “It represents not just an investment in land, but an investment in the continued economic vitality of the Kau District.”

Both bills have passed their first committee hearings in their respective chambers. SB 1003 also has passed its second reading in the Senate.