Food sustainability in Hawaii – Hawaii Farming, LLC

A shared mission to sustainably grow local produce is at the core of Hawaii Farming, LLC. Formed in 2019, Hawaii Farming grows cucumbers (most notably their Keiki Cukes), leafy greens, and watercress in Waimea on the Big Island of Hawaii.

“I love the idea of producing food,” said co-owner Eric Batha. “It’s something that Hawaii needs. Hawaii needs locally grown
food.”

It’s estimated that Hawaii imports 90% of its food needs. And for a geographically remote location like Hawaii, this has been a growing area of concern for many farmers.

The grandson of Northeast Texas vegetable growers and Japanese citrus farmers, co-owner John Seward has been farming in Hawaii for 20 years. During this time, his belief in the importance of sustainable food production has deepened.

“If you look at the impact on food security, water security, you look at the impacts of climate change and global population growth, you always question how the world and Hawaii is going to feed itself in the near future,” said John. “It’s really important to us.”

Sustainable ag technology

Hawaii Farming has approached this challenge through the use of ag technology. They grow their lettuce and cucumbers in 15 acres of enclosed greenhouse space. Growing in the greenhouse has several benefits, including being able to maximize square footage and drive efficient output.

Their cucumbers are rooted in coconut core and grown on vertical trellises. This growing system allows them to plant 8,000 plants per acre, boosting their productivity.

“Our mission statement is to locally grow the freshest and healthiest produce to feed the population of Hawaii and all of the communities here,” said John. “And we want to do it in a very sustainable way that conserves natural resources.”

Hawaii Farming has also created a highly automated lettuce production system focused on food safety. The lettuce is grown hydroponically, and the enclosed growing method allows the team to save on labor and increase yields.

In addition to land efficiency gains, hydroponic farming helps the group make more effective use of their water resources. It is also easier to control pathogens, which adds to their efficiency and increases food safety.

“Being at a farm like Hawaii Farming is really incredible,” said Terrain’s specialty crop analyst, Matt Woolf. “It’s on a scale that I’ve never quite seen before. And to have this much innovation on site is pretty unique.”

Unique financing needs

Hawaii Farming also had unique financing needs when it came time to expand their facilities.

“We didn’t own the land; the land was leased,” said Lenny Feder, owner and chief financial officer. “So, we needed a different solution.”

That’s when they turned to their 20-year relationship with American AgCredit. The cooperative was able to work with Hawaii Farming to create a leasing structure for their new lettuce greenhouse.

By using Farm Credit Leasing and new market tax credits, Linus Tavares, director of regional banking for Hawaii, helped John, Lenny and Eric through a complicated transaction.

“They were incredibly supportive,” John said of Linus and the American AgCredit team.

This support is one of the reasons Hawaii Farming chooses to do business with American AgCredit. Lenny also values the team’s knowledge and understanding of Hawaii agriculture. When they were looking to build new facilities, they spoke with other financial institutions but ultimately decided to partner with American AgCredit because of the team’s expertise.

“The other banks were all kind of interested,” Lenny said. “We probably could have gotten across the line with them, but it was a greater risk because they don’t know Hawaii. They didn’t know us.”

Continuing to innovate

According to Linus, one of Hawaii Farming’s greatest strengths is the group of owners who bring their own perspectives and talents to the team. They also have a unique outlook on agriculture.

“A lot of people talk about sustainability and put in an acre of this and an acre of that,” said Linus. “They actually walk the talk. Their goal is to provide sustainability for the state of Hawaii with the type of products they grow, and that’s a big deal.”

Every few months, Hawaii Farming talks with Linus and American AgCredit about new business ideas and how the two teams can work together to create a steady and sustainable food supply for the people of Hawaii.

There are more imported products from the mainland that Hawaii Farming believes they can grow locally in their greenhouses and in Hawaii’s climate.

“We’re always looking for the next opportunity,” Eric said. “We’ve diversified into lettuce; maybe we diversify into yet another product.”