This is done to provide incentives to ranchers to make capital improvements. Credit is given leases for cost of approved improvements. The amount of credit is limited to two years' rent. State lease extensions are possible for farm lands, but not for pasture lands, to the extent necessary to secure improvement loans. The HHC is empowered to withdraw from leases land needed for homesteading purposes.
Withdrawal can take place between one and five years after notification of intent to withdraw.
Because of this short withdrawal period and the lack of collateral, ranchers find it virtually impossible to obtain improvement loans. Pangolagrass is best adapted from sea level to about 3000 feet elevation in areas with annual rainfall of 50-60 inches or more, equally distributed throughout the year. It grows better than kikuyugrass on land areas of low fertility. Guineagrass is grown in Hawai'i from sea level to about 1500 feet elevation under seasonally alternating wet and dry conditions, with annual rainfall of more than 40 inches. Stargrass is extremely versatile, ranging from the dry fringes of kikuyugrass areas to midelevation of both wet and dry areas.