Kamehameha Schools Leasehold Farm Land in Kona: What Buyers Should Know

Much of the farm land in the Kona coffee belt is owned by Kamehameha Schools and leased to farmers, so leasehold is normal there, not unusual. On a Kamehameha Schools agricultural lease, you buy the lease and the improvements, such as the house, trees, and equipment, but not the land. The years left on the lease, the rent, and the lease rules shape what the farm is worth and how it can be financed.

Key takeaways

• Kamehameha Schools is a major landowner in North and South Kona, and a large share of Kona coffee is grown on its land.

• With a leasehold farm you own the lease and improvements for the remaining term. The land stays with Kamehameha Schools.

• Selling a lease is an assignment, and the landowner's consent is usually required. Newer South Kona leases spell out how assignments work and what they cost.

• Fewer years left on a lease usually means a lower price and fewer financing options.

• Read the full lease before you make an offer: term, rent, rent resets, renewal, allowed uses, and what happens to improvements when it ends.

What you own on an agricultural lease

You buy the lessee's rights under the lease for the years remaining, plus the improvements on the parcel. The lease says what you can do: which crops, how many homes, whether you can sublease, and what condition the land must be in. Many Kona leases expect the land to be actively farmed.

What to read in the lease

• Term and years remaining.

• Rent today, when it resets, and how the new rent is set.

• Renewal or extension options.

• Allowed uses, homes, and farm requirements.

• Assignment rules, fees, and the landowner's approval process.

• What happens to the house and improvements at the end of the term.

Newer leases in South Kona include more detailed farming and assignment terms than older ones, so do not assume one lease reads like another.

How a sale works

Selling a leasehold farm means assigning the lease to the buyer. The landowner usually reviews and consents to the new lessee, and the buyer may need to show a farm plan or experience. Build that approval time into the contract.

Financing a leasehold farm

Many lenders treat leasehold farm land differently from fee simple property, and some will not lend on it. The years remaining on the lease matter a lot. Farm lenders and cash buyers are common in this market. Talk to a lender who knows leasehold before you make an offer. Maile and eXp Realty are not lenders.

Taxes on leased farm land

The lessee usually pays the property tax. A lessee can apply for Hawaiʻi County agricultural dedication, and the application needs a signature from the landowner's land manager. See agricultural dedication and property taxes.

Common questions

Who owns the land under most Kona coffee farms?

Much of the Kona coffee belt is owned by Kamehameha Schools and leased to farmers. Other farms are fee simple, owned outright.

What do you own when you buy a Kamehameha Schools leasehold farm?

The lease for its remaining term and the improvements, such as the house, trees, and equipment. The land stays with Kamehameha Schools.

Do you need Kamehameha Schools approval to buy a leasehold farm?

Usually yes. A lease sale is an assignment, and the lease typically requires the landowner's consent.

Can you get a mortgage on a leasehold farm in Kona?

Sometimes. It depends on the lender, the years left on the lease, and the property. Ask a lender who works with leasehold farms early.

Sources: Kona Coffee Farmers Association, notice on new South Kona lease provisions and assignments; Kamehameha Schools, food systems and agricultural land; Kona Coffee Farmers Association, ag tax dedication information. Lease terms vary. Read the lease for any parcel.

About the author: Maile Woodhall (pronounced Miley) is a licensed Hawaiʻi REALTOR (RS-88019) with The Agency Team Hawaii, eXp Realty (RB-21841), born and raised in Kona. Questions? Call or text (808) 482-5800.

Related guides: Leasehold vs fee simple in Kona; Buying a coffee farm in Kona; Buying a working farm in Hawaiʻi; Hawaiʻi Island Farm and Ag Land Market Report.

Last updated: October 2026.