Macadamia Nut Farms in Hawaiʻi – 2022 Update

It has been ten years since I first wrote about macadamia farms for sale in Hawaiʻi, and I still get calls from that post.

Late in 2021 (last year), I bought a home with a 6.5-acre macadamia nut orchard. Talk about a crash course on macadamia farming and the market for nuts! Here are some bullet points for the aspiring macadamia nut farmer, and a couple of properties that you could consider if you want to own a mac nut property in Hawaiʻi.

A portion of my own macadamia nut orchard lit up by the early morning sun.

My Misadventures as an Inadvertent Macadamia Orchard Owner

There is a little corner of Kohala where I have listed and sold several homes on acreage, including one with macadamia nuts. I always wanted to live on that road, but for my “forever home” needed enough acreage to pasture a couple of horses and have facilities for the equine guided education program I want to offer in retirement. Finally a listing showed up that had enough acreage — but it was planted in macadamia nut trees! I bought the property anyway, and began the task of clearing ironwoods, a 60ʻ tall white bird of paradise, and a massive banyan hanging over the neighborhoodʻs main electrical line, along with phase 1 of the less productive, unhealthy macadamia nut trees.

I was told my orchard had been a profitable enterprise (gentlewoman farmer level, not “quit your job” level), but had been neglected for several years. I first tried talking to the local large macadamia nut company that had once cared for my orchard. They politely declined as it no longer fits their business model. Going “nuts” over all the nuts on the ground, I started asking around for workers to harvest my nuts. Not the easiest job, and it took a lot of networking to find someone who had harvesters. But — with two or three years worth of debris on the ground, the first job would be just to clean up that.

The shed on my property contained a stack of classic bags for the macadamia nuts if I ever got around to harvesting them.

But once I had the workers paid and the bags full of macadamia nuts, where would I sell them? Dozens of phone calls later, I learned I was too late in the season, and even those who were buying earlier had bought their quota. I left the nuts on the ground. Became a member of the Hawaii Macadamia Nut Association. Attended their annual meeting in July, hoping to be ready for the coming harvest season.

At the Hawaii Macadamia Nut Association meeting, I learned my orchard was too dense, trees too high, and overall in need of regeneration.

The educational sessions left me with two major insights. First, that I had an orchard in serious need of attention, second, that if I spent tens of thousands of dollars getting my orchard in shape, I would be doing that in the face of a serious decline in wholesale nut prices. A veteran farmer counseled me not to feel guilty about leaving the nuts on the ground for another year.

Macadamia Market – Whatʻs a Small Scale Macadamia Nut Farmer to Do?

As with many products, I think the answer here is either go big (major commercial, enterprise level farming), or go small and value added.

Lots of folks in Hawaiʻi farm on a really small, hobby scale. A few acres of coffee or macadamia nuts or avocados, that they tend and harvest themselves. You can package and sell at farmers markets, or direct to slightly larger enterprises who finish the processing. For most of you reading this blog post, that is the way you want to go. Join the Hawaii Macadamia Nut Association to connect with farmers who are also processing and they will buy your nuts.

At a medium scale, there is the option of producing value added products. For example there are local entrepreneurs using macadamia nut oil in cosmetics (Pure Mana Hawaii), and making macadamia nut butter. On a larger scale, Meadow Gold Dairies is now producing macadamia nut milk right here on Hawaii Island.

One way to reduce the cost of your investment is to consider a leasehold property rather than a fee simple property. The leases require you to keep the property in productive agriculture (which is what you want, right?). My colleague Tanya Sunshine currently has two listings in North and South Kona with macadamia nut orchards:

• The first is a vacant land listing (MLS 664321) has a 35-year lease that started in 2018, two macadamia orchards, and almost 12 acres in total for you to build your home (farm dwelling).
• The second property has a home (MLS 666134) on 5 acres planted with multiple orchards: coffee and avocado in addition to macadamia nut trees. It was previously certified organic.

Just remember that leasehold transactions require some patience. Regular mortgage lenders will not finance these leasehold properties, so your purchase must be all-cash and the lease transfer can easily take six months.

Stay tuned for more adventures of the accidental mac nut farmer!