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Why Not Buy Land in Hawaii and Become a Kona Coffee Farmer

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In the recent past, starting a new business reliant on the purchase of real estate property has not been a viable business option because of the high costs of real estate. For instance, buying land to start your own Kona coffee farm wasn't a profitable business proposition because Big Island real estate was just too expensive.

But thanks to a healthy decline in property prices in the Islands, starting your own Kona coffee farm just might be a reality. 3 to 5 acre parcels of land in Kona can now be purchased under $500,000. This amount of land can produce about 10,000 pounds of pure Kona coffee. At close to $50/pound, you can almost pay off your purchase in one year - assuming you know what you're doing.

It's interesting to see how the real estate market effects other aspects of our lives, other then just buying a home to live in. The decline in the market has opened several business opportunities that otherwise would not be availble to entrepenuers.

Comments (11)

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SVRPaul

A 5 acre parcel of land for $500,000 can generate that much coffee beans?

Sign me up!

In the meantime... send me a bag of chocolate covered Kona Beans....

Hawaii Life

Aloha SVRPaul...I'm not an expert on Kona coffee, and after doing some more research (asking my wife who loves coffee), it actually goes for around $30 - $50/pound depending on the quality. So assuming you're just starting out, you probably wouldn't get the best quality or yeild the max production until you got some experience under your belt.

SVRPaul

How many pounds of Kona Beans can one acre produce? Assuming that somebody with experience was running everything?

Hawaii Life

An experienced farmer can produce about 10,000 pounds of cherry which reduces to approximately 2,000 pounds of coffee beans. This is a pretty informative page,

http://www.konacoffeeroasting.com/faq/growing/

Erik Hinshaw R(S)

ALoha From the Heart of Kona Coffee Country. I live on an acre of coffee land with Im afraid more weeds than coffee. One must be a little cautious. The Kona Coffee Market can be fickle. The Japanese are the main buyers and currently they are not buying much. That said great deals can be had in coffee land right now. Leasehold is particularly atractive with 5 -10 acre farms selling for just above $200,000. For the price of a one bedroom condo you get acres of cash procducing coffee, a 2 to 3 bedroom home, often with an ocean view. Many farmers are transitioning to organic practices as well. All of this just minutes from great surf and a Bay where you can swim with the dolphins.

Nazerine

I think I need to take a Kona Coffee Farming class =)

JD

It doesn't matter if you can grow it, it matters if you can SELL it. Who are you going to sell it to ? Before you plant the first seed you have to have a contract. And maybe 500k for the land ok but add in storage house, labor, materials, machines, etc. Now we are in the millions. Not being negative just saying. If i'm wrong let me know. Thanks for the post.

Hawaii Life

Aloha JD, I'm not a Kona coffee farm expert, but I do know of several farms that are completely sold out, and they're selling at $60+/lbs.

I also have a coffee bean shop, from which I drop ship coffee. I know that I cannot get Kona coffee at a reasonalble price because my suppliers are all sold out.

So I don't think the question is whether you can sell it, there is the demand, but whether you can grow it well enough to be included as part of that demand.

Truly

Hey, I'm kinda late to this article but I'd really like to know more about this. What kind of experience should you have if you wanted to become a Kona coffee farmer? Are there specific classes you can take to learn about this? I'm only 17 but I can really imagine a life for me in Hawaii doing something like this. Thanks!

Hawaii Life

Aloha Truly,

It's never too late! At age 17, I would recommend trying to get a summer job at a Kona Coffee farm after you graduate High School.

When you're ready, check out the many great blog posts about Kona coffee farms here:

http://www.hawaiilife.com/articles/tag/coffee-farm/

As well as Kona coffee farms for sale here:

http://www.hawaiilife.com/gallery/2292/

RSMacDonald

Kudos to you for a great blog post - 3 years old and it's still getting comments.

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