Expanding Hops & Hazardous Substance Tax

Far West Agribusiness is asking producers to call or email their legislators over HB 1220/SSB 5209 which is the Hazardous Substance Tax Exemption. Current Washington law imposes a HST on certain materials that are used as FIFRA crop protection products brought into the state. Far West Executive Director, Jim Fizgerald.

FITZGERALD: It's a corrective bill that allows for a correction to this market distortion. It's got an environmental component in it in the fact that it allows these products to now be stored in warehouses where they should be and readily available to the farmers within the 24-48 hour window. If this product isn't stored in Washington State then it might be stored as far away as Twin Falls, Idaho or Fresno, California or other parts of the country.

That window could be very damaging when producers need to combat pests or viruses in their crops.

Washington State has long been the premiere hop producing state but Idaho is seeing considerable expansion as the industry and demand continues to grow. Idaho is the country's third-largest producer of hops. Hop production in Idaho has taken a 33% leap this year over last and it's the craft brewing industry that has been driving the increase where brewers use anywhere from 2 to 4 pounds of hops per barrel. Oregon is the second largest producer.

That's today's Northwest Report. I'm Greg Martin on the Ag Information Network of the West.