STAND. COM. REP. NO. 853

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 978
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
978 entitled: 

     "A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose of this bill is to encourage private lenders to
provide financing for diversified agricultural interests by
authorizing the Department of Agriculture (DOA) to guarantee
loans made to qualified farmers and cooperatives by private
lenders.

     The DOA testified in support of this measure.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
978 and recommends that it pass Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair