Kona Side - Buying Land - Starting Coffee Farm (Captain Cook: real estate, lease)

[IslanderDreams]

Hello Everyone,

First I would like to say, I enjoy and appreciate the posts and information provided here. It's been very helpful and informative.

I'm currently looking to buy land. My budget max is $400K, but would be more comfortable in the $200K to $350K range. I'm interested in anything above 3 acres. I'm interested in the Kona side, South Kona to as far south as the areas around Captain Cook. Would appreciate people's comments on the area. Am I missing out on any other areas.

This is a long term plan for me. If I were to buy today, the land would sit for about 3 - 5 years. I want to start a coffee farm and grow some other fruit crops or mac nuts. I actually want to do this first, but at as a gentleman's farm operation. I'm not going to rely on the income from this farm. It's something I just want to do and if it helps the island in terms of jobs and or consumption of the fruits, crops etc. I can create the better I would feel about it. I would then build a home, once I move to the island.

Can anyone specifically comment on Kona Sea Ranch? They are selling 5 acres lots.
Can anyone comment on Papa Estates?
I seem to be interested to land that is setup under a HOA and are gated since I won't be moving in person for many years. What are people's thoughts about this.

I'll be in the big island in March to continue my search.

I appreciate everyone's comments and feedback on my plans above.

[hotzcatz]

If you want the "Kona" designation on your coffee crops, there's a specific area that the crop must be grown in.

For different crops, there is a website run by the University of Hawaii, CTAHR, which can give you more information that you'd need for many of the crops you'd be able to grow: https://www.ctahr.hawaii.edu/site/Search.aspx

So, depending on what you want to grow, check the rainfall maps, the soil maps, how close to the place to sell your crops and maybe ask some folks about how to harvest the crops or where to get people power for the harvest. It may also be useful to check into processing options for any crops you may want to grow. Providing you're attempting to grow crops at a profit.

[Grassyknoll]

Kona Sea Ranch, Ka Lae Farms, there are a few other mini-farm subdivisions popping up in the area between Captain Cook and Miloli'i.
I would not look to invest in any property until I had spent some time on the island (perhaps you have ?) and really had a grasp of what areas suited my needs.
Coffee farming isn't easy and I know a few farmers that even though they are fairly successful, always seem to be trying to sell their farms.

[IslanderDreams]

hotcatz, thanks for the info. I'll definitely look at the info you provided on the link.
As for having Kona label, I don't think it means much, but thanks for letting me know. I didn't know that.

Grassyknoll, yes I have spent a lot of time in Hawaii since I was little. I'm an islander myself, just not Polynesian. My home island is another 7 hour flight west of Hawaii. I just haven't spend much time in Big Island. I plan to retire here and start this farm. My advantage, I'm not relying on the farm for income. It doesn't mean I don't want it to succeed, but I don't have that pressure. Big Island is my compromise as going all the way home for me is not what I want to do. I still need to be close to the mainland and 5.5 hours is good. I can't do the Oahu or Maui. They are all priced out of my budget.

I know coffee farming is not easy, but I want to try. I do see a lot of farmers selling their farms and would like to know why?

I saw this article on just a few days ago and I'm sad about it.
https://www.mercurynews.com/2017/12/...ltural-future/

Anyway, appreciate the comments and info so far. Thank you!!

[Grassyknoll]

If the "Kona" label isn't that important to you, there are other coffee farms options. Have you looked at the Ka'u variety being grown on the South end of the island? Ka'u coffee is getting noticed and has been doing well in cupping competitions. Land is much cheaper in that area though it isn't for everyone.

[terracore]

"If you want the "Kona" designation on your coffee crops, there's a specific area that the crop must be grown in."

More accurately, there's a specific area that the cherries must be sold to.

[bolus]

If I remember correctly a lot of the properties on that side are leasehold. So you dont own the land, you just lease it. If you purchase close to the end of the lease the owner can ask for the property back and not renew the lease or convert to fee simple and sell it. I was told that sometimes when the price looks too good to be true it might be right at the end of the lease.

so check for that

(I looked at a 4 acre coffee farm near Kona when I moved here but it was leasehold and too far from work)

It is funny that there are coffee plants growing like weeds behind my office

[IslanderDreams]

GrassyKnoll, thanks for letting me know about Ka'u. I see your in that area based on your info. What I've heard is that this area is really off the grid. I also hear it rains a lot. No issue with me, but my wife that's another story. I also need reliable internet and phone service. Can you tell me a little bit about the area?

Terracore, thanks for that info.

Bolus, I'm only looking at Fee Simple properties only. I'm familiar with this leasehold, which I'm not interested at all and for the reasons you stated. Thanks!

[Dreaming of Hawaii]

IslanderDreams, I live in Ka'u so may be able to help you out a little bit. Grassyknoll does, too.

Not all properties in Ka'u are the same. There are some (like Discovery Harbour and Mark Twain) that have County water and everything else is on catchment. There is acres and acres of lava, but also land that has great soil (hence all of coffee farms). Rainfall varies, too, by elevation and location. For example, I am at 1200' elevation and get twice as much rain as people at 800' in the same subdivision. We average less than 40 inches a year, and I don't think I've ever heard anyone say that it rains a lot here.

Generally there is good reliable internet and phone service, although that, too can vary by location. Electricity serves most properties except for the upper areas of Ocean View.

[Grassyknoll]

Originally Posted by IslanderDreams

GrassyKnoll, thanks for letting me know about Ka'u. I see your in that area based on your info. What I've heard is that this area is really off the grid. I also hear it rains a lot. No issue with me, but my wife that's another story. I also need reliable internet and phone service. Can you tell me a little bit about the area?

The Ka'u district is large and covers a very diverse landscape of climates and land types. On the West side it begins where South Kona ends and then includes the bottom of the island up the East side to Volcanoes National Park. Just like most districts, there are numerous micro-climates throughout Ka'u. Some areas get very little rain (such as Oceanview) and other areas such as Pahala get a fairly large amount. You would find the same thing within the Kona district, some areas within only a few miles of each other can have vastly differing amounts of annual rainfall.
The Ka'u district was negatively affected by the discontinuation of sugarcane production in the 90's. And there aren't a lot of jobs. Agriculture is still the predominate employer-Mac nut farms, some cattle, small-scale citrus and other edible crops and lately a push to develop Ka'u coffee and tea farms.
I ended up moving to the area mainly due to how much further my real estate dollars would go and the mild climate.
Ka'u is rural and not for everyone, but we love it and wouldn't live elsewhere.
If you really want to know more about Ka'u coffee farming, best to get in touch with some of those operations.

If you do focus on a Kona farm, definitely look at the South Kona area. Prices for raw land drop quickly the further you get from Captain Cook. A couple acres of raw land in Captain Cook can easily be near 1 mil, just 10 miles South, comperable land could be half or a quarter that amount.