Prime farmland offers myriad of business opportunities
May 22, 2018 | 77° | Check Traffic

Prime farmland offers myriad of business opportunities

Presented by:
Locations Hawaii

Locations Hawaii

Ohana Farm Parcels is fee simple agricultural land adjacent to the Dole Plantation Visitor Center, along Kamehameha Highway between Wahiawa and Haleiwa. Thirty-three farm-ready parcels ranging in size from 10 to 18 acres are currently available for purchase, beginning at just under $100,000 per acre, which falls below the average price for fee-simple farmland elsewhere on Oahu.

The land, which was once owned by the Dole Company and used to grow pineapple and sugarcane for decades, was leased to Aloun Farms in 2011. After pouring five years’ worth of development costs into the land to deforest trees, and grade, till and improve the soil, Aloun Farms now actively farms 85 percent of the land, growing Ewa Sweet Corn, avocado, pumpkins, broccoli, sweet melons, herbs and Asian vegetables.

Aloun’s decision to offer parcels for sale to independent farmers through an associated development company, Helemano Ranch & Farms LLC, presents a win-win situation for farmers and businesses to own quality farm land.

Located 1,000 feet above sea level, with ample sun and fertile soil, Ohana Farm Parcels overlooks Oahu’s famed North Shore. Clean water from nearby Tanada Reservoir and a deep fresh-water well are available through an irrigation system from Alakai Ranch & Farms, LLC. Each parcel is accessible through internal roads, Kamehameha Highway, Paalaa Uka Pupukea Road or Plantation Road.

A family-owned business, Aloun Farms has been operating on Oahu for over 40 years and manages 2,000 acres of farm- land. According to the developer, Aloun Farms staff is willing to mentor parcel owners on best practices for farming the land, drawing on their decades of experience growing crops on Oahu, taking crops to market and diversifying their business ventures.

Eight of the parcels can be easily certified as organic farms — an opportunity to capitalize on the demand for farm-to-table food at many of Oahu’s popular hotels and restaurants.

Parcel owners can contract with Aloun Farms to grow select produce. In this arrangement, the landowner would be responsible for Aloun’s expenses, and Aloun would in turn purchase 100 percent of the crop output at market value.

While residential structures are not permitted on the parcels, barns, greenhouses, storage and processing facilities and certain other buildings are allowed.

Agritourism: a proven, sustainable business model

With more than 1.8 million annual visitors to neighboring Dole Plantation, those interested in operating an agritourism venture will find a ready-made audience. Agritour- ism — a combination of agriculture and tourism — is a proven way to augment farm revenue.

“We’re seeing a wide range of interest in Ohana Farm,” said Davilyn Sato, REALTOR-ASSOCIATE® at Locations and member of the Ohana Farm Parcels project. “This project offers the rare opportunity to own prime Oahu farm land outright, without the worry of rising leasing or rental costs. Ohana Farm Parcels will appeal to the small-scale farmer, as well as to a hui, or group, of independent farmers. The land also appeals to hotels and restaurants who would like to go beyond sourcing locally grown organic pro- duce to actually growing their own — creating a unique connection with their customers.”

Locations is one of three brokerages representing the sale. Parcels are not eligible for VA or conventional loans; a 30 percent down payment is required. For more information, visit LocationsHawaii.com/ohanafarms.