Farmer and rancher participation in formal conservation plans may increase if a new legislative proposal passes. House Bill 1936 – relating to tax incentives for farmers – would implement a 25 percent reduction in taxes paid by farmers for certain inputs. By incentivizing participation in conservation programs via tax cut, the bill offers a new solution to an old problem: How do state or federal agencies encourage widespread participation in conservation programs?

Under HB 1936, farmers around the state would receive a tax break on purchases of “new equipment, infrastructure, seed, seedlings, spores, animal feed, and amendments” for the previous calendar year if the farmer meets any of the following criteria: 

“(a) Is a recipient of grant funds originating directly from the Washington state conservation commission or indirectly receives grant funds through a conservation district or other public entity;

(b) Is a participant in a Washington state conservation commission or conservation district conservation program; or

(c) Is a participant in a United States department of agriculture natural resources conservation service conservation program.”

The bill could represent a significant savings to the agricultural community which pays an estimated $1 billion in taxes annually.

Investments in new equipment and infrastructure represent significant costs to farm operations. The average price of purchase for a new tractor ranges between $500 and $1,000 per “horse,” putting the price of a 100-horsepower tractor between $50,000 and $100,000. Installation of center pivot irrigation averages $700 an acre while drip irrigation is nearly twice that. For conversion of a 640-acre section, the investment is nearly $500,000.

By returning 25 percent of those costs to farmers who participate in conservation programs, the state is setting up a win-win scenario. Farmers recognize an immediate cost savings for their purchases and the state encourages increased conservation activities on farms throughout Washington. 

This commonsense solution rewards farmers and ranchers who are invested in conservation without punishing those for whom conservation practices are less prioritized or don’t fit with their operational needs at present. As more members of the agricultural community adopt conservation practices, more wins will be realized by both food producers and our wildlands and wildlife.