Washington Farm Bureau stands alone against farm fuel bill

Published 3:03 pm Wednesday, March 26, 2025

The Washington Farm Bureau has staked out a firm and lonely position against a bill intended to help farmers avoid paying cap-and-trade taxes on fuel.

Nearly a dozen farm groups and Gov. Bob Ferguson support House Bill 1912 as a way to fulfill a pledge by lawmakers to not tax fuel used to produce and transport farm goods.

The Farm Bureau, the traditional bellwether of the farm lobby, has charted a different position. Even if the bill passes, some farmers will pay cap-and-trade taxes, Farm Bureau Vice President Bridget Coon told the Senate Environment and Energy Committee on March 25 .

Large farms already are getting tax-free fuel delivered by distributors, but small farms that fuel up at retail gas stations are paying the tax, and HB 1912 won’t change that, she said.

“We’re concerned the bill would just codify what’s happening today,” Coon said. “It needs to do more.”

The division within the farm lobby comes after more than two years of struggling by fuel suppliers and distributors to identify fuel destined for farms.

Most farm lobbyists agree the private-sector has figured out how to navigate a complicated supply chain to deliver or sell through fuel cards tax-free fuel to farmers. “It was a market-driven solution,” said Mark Streuli, lobbyist for the Washington Cattlemen’s Association and Washington Potato and Onion Association.

HB 1912 would direct the state to compile a directory of those businesses selling tax-free fuel to farmers and also help retailers connect with distributors of tax-free fuel.

The bill also would continue a program to partially refund cap-and-trade taxes to farmers and extend by two years to the end of 2029 the tax exemption on fuel used to transport farm goods.

“While it’s not a complete fix, it’s a big step in the right direction,” the bill’s prime sponsor, Rep. Tom Dent, R-Moses Lake, said.

Farm Bureau director of government relations Breanne Elsey said no bill would be better than HB 1912 because if the bill passes the Legislature may lose interest in doing more. “We’re going to continue to work on a true fix bill,” she said.

The Farm Bureau proposes gas stations give farmers with the proper paperwork on-the-spot discounts. Retailers would then apply to the state to get their money back.

The idea hasn’t caught on with other farm groups. Yakima-Klickitat Farm Association President Mark Herke said farmers would oppose having a burden like that put on them.

“Why would we wish that on someone else?” he asked.

“Let the marketplace figure it out,” Herke said. “Stations should want to have a sign out: ‘Farmers welcome: Come here and get your discount.’ ”

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