KAILUA, Kona, Hawai'i — MacFarms of Hawaii LLC has stopped buying macadamia nuts from local suppliers for the first time in decades because it is producing too many of the nuts on its own.

The decision by the state's second-largest macadamia nut grower and processor may hurt local farmers, especially small-scale farmers in South Kona for whom the crop is an important source of income.

"To our knowledge, this is the first time this has happened in the last 25 years," said Judy Magin, executive director of the Hawaii Macadamia Nut Association. "It's a tough situation, particularly challenging for farmers."

The decision comes after Hawai'i macadamia nut growers produced a net 60 million pounds of the crop in the 2005-2006 growing season — the most since the government began compiling such statistics in 1946.

The previous record was 58 million pounds grown in 1997-1998, said Steve Gunn, deputy director of the Hawai'i field office of the U.S. Department of Agriculture statistics section.

MacFarms says it may resume buying the nuts from local growers if conditions change during the season, but the outlook is uncertain.

"We're not sure how things are going to pan out ... in terms of deliveries of our orchard," said MacFarms President Hilary Brown. "We're also not sure of the situation in regard to the marketplace, which is somewhat depressed."

Mary Anne Maigret, who owns a macadamia nut orchard on 3.5 acres in Honaunau, expected to sell nuts to MacFarms this year after doing so last year.

Instead, she said, MacFarms' announcement has left her "in limbo."

Some Hawaii Macadamia Nut Association members and large processors have vowed to help farmers in need. Magin suggested struggling farmers contact the association for advice and contacts.