DNR-Stemilt Land Swap

DNR - Stemilt Land Swap. I’m Greg Martin with today’s Fruit Grower Report.

A recent land and equipment transaction between Stemilt Growers and the state Department of Natural Resources, has been approved by the department’s board according to DNR spokesman, Bob Redling

REDLING: The State of Washington through DNR supports construction of common schools, public schools, K-12 and one of the ways we provide non-tax income to support these schools is through DNR renting out ag land to the private sector. As well as on the west side especially timber operations.

He says this was a good opportunity for both DNR and Stemilt.

REDLING: DNR is switching a lot of its ag leases from from crop-share to cash rent to provide more certainty for the beneficiaries of these state land trusts and in this case we saw a real good chance to add prime irrigated orchard land to the portfolio that came with in this case a new pump station and delivery system

Part of the acquisition is irrigated orchard north of Pasco and near Ice Harbor Dam.

REDLING: One thing that shouldn’t be overlooked is it’s being reclassified because we’re purchasing it as state-held land and because of that the county will get the benefit now of the compensating use tax on the lease income which the lease income is going to be nearly $400-thousand dollars a year. So the county can now collect not only a portion of that but going back about seven years they can collect the difference.

That’s today’s Fruit Grower Report. I’m Greg Martin on the Ag Information Network.