Farmland purchases

AN ACT Relating to preserving Washington farmland by limiting 1
purchases by certain entities; adding a new chapter to Title 64 RCW; 2
prescribing penalties; and declaring an emergency. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. The legislature finds that agricultural 5
land owned by Washington farmers and ranchers plays a key role in the 6
availability of affordable food in Washington state. However, the 7
legislature further finds that the acquisition of agricultural land 8
by large investment and business entities, multinational nonprofit 9
organizations, certain land trusts, and other corporate and nonprofit 10
entities is driving local farmers and ranchers out of business while 11
burdening Washington consumers with significant increases in food 12
costs. Therefore, the legislature intends to prohibit large 13
investment and business entities, multinational nonprofit 14
organizations, certain land trusts, and other corporate and nonprofit 15
entities from purchasing more of the state's existing agricultural 16
land, so that our state's residents and families can afford food.17
NEW SECTION. Sec. 2. (1) A business entity may not purchase, 18
acquire, or otherwise obtain an interest in land in Washington state 19
zoned for agricultural use.20
H-1703.1
HOUSE BILL 2028
State of Washington 69th Legislature 2025 Regular Session
By Representatives Walsh and Chase
Read first time 02/27/25. Referred to Committee on Civil Rights &
Judiciary.
p. 1 HB 2028
(2) An investment entity may not purchase, acquire, or otherwise 1
obtain an interest in land in Washington state zoned for agricultural 2
use. 3
(3) This chapter does not apply to any land on which merchantable 4
timber exists or that qualifies for treatment as timberland under 5
chapter 84.34 RCW. 6
NEW SECTION. Sec. 3. Whenever a business entity or investment 7
entity owns an interest in land in violation of section 2 of this 8
act, that land is ineligible for taxation under the open space 9
taxation act, chapter 84.34 RCW, for any taxable period subsequent to 10
the effective date of this section and prior to divestment to a 11
lawful ownership status.12
NEW SECTION. Sec. 4. (1) The legislature finds that the 13
practices covered by this chapter are matters vitally affecting the 14
public interest for the purpose of applying the consumer protection 15
act, chapter 19.86 RCW. A violation of this chapter is not reasonable 16
in relation to the development and preservation of business and is an 17
unfair or deceptive act in trade or commerce and an unfair method of 18
competition for the purpose of applying the consumer protection act, 19
chapter 19.86 RCW.20
(2) In addition to any other remedy to which a plaintiff is 21
entitled under the consumer protection act, chapter 19.86 RCW, a 22
business entity or investment entity that violates this chapter shall 23
(a) forfeit and pay to the state a civil penalty of not more than 24
$100,000; and (b) sell the subject land to a qualified buyer within 25
one year of entry of final judgment against the defendant and the 26
completion of all timely appeals. A defendant that fails to sell any 27
land as required by this subsection shall forfeit and pay to the 28
state an additional civil penalty of not more than $125,000 each year 29
the failure to sell the land continues. 30
NEW SECTION. Sec. 5. The definitions in this section apply 31
throughout this chapter unless the context clearly requires 32
otherwise.33
(1) "Agricultural use" means any use of land for the primary 34
purpose of agriculture as that term is defined in RCW 51.08.014.35
(2) "Business entity" means any association, company, firm, 36
partnership, corporation, limited liability company, limited 37
p. 2 HB 2028
liability partnership, or other legal entity, and that entity's 1
successors, assignees, or affiliates, whether organized as a for-2
profit or not-for-profit entity, and expressly including private 3
foundations and land trusts. "Business entity" does not include an 4
investment entity. 5
(3) "Investment entity" means: (a) A real estate investment trust 6
as defined by 26 U.S.C. Sec. 856; or (b) an entity that manages funds 7
pooled from investors and owes a fiduciary to those investors.8
NEW SECTION. Sec. 6. Sections 1 through 5 and 7 of this act 9
constitute a new chapter in Title 64 RCW.10
NEW SECTION. Sec. 7. This act is necessary for the immediate 11
preservation of the public peace, health, or safety, or support of 12
the state government and its existing public institutions, and takes 13
effect immediately.14
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p. 3 HB 2028