DNR Offering 3,000-acre Agricultural Lease in Paterson’s Horse Heaven Hills

Paterson/Horse Heaven Hills

DNR is offering a long-term lease on 3,000 acres of prime agricultural land within Horse Heaven Hills AVA with secured water permits and senior water rights in-hand. Photo: DNR

Washington State Department of Natural Resources (DNR) is offering for lease approximately 3,000 acres of agricultural land in the Paterson-Horse Heaven Hills region. All bids are due by 1 p.m., April 6, 2017. Learn more

This bid opportunity is unique for a several reasons: its large size, an atypical lease structure and the ability to tap into 3.9 acre feet of non-interruptible Columbia River water per acre.

This structure of this lease will differ from our standard agricultural leases. Most notably, we’re looking to the bid winner to construct the supply system needed to deliver water to the land. To that end, the agency will allow proposals with rental terms designed to reimburse against the winning bidder’s investment – such as a long-term lease of up to 35 years and reduced lease rates.

locationmapThe agency will select its future lessee based on a range of criteria, including the applicant’s financial capabilities and ability to perfect DNR’s water rights. Environmental considerations also will factor in, such as whether the applicant intends to grow organic crops or preserve areas of shrub-steppe as wildlife habitat.

“We know this is not a typical agricultural land lease, but we also know that access to prime irrigated farmland is valuable. We want applicants to be creative and propose what can work for them, and us,” says DNR Southeast Region Manager Todd Welker. “We’ve done a lot of work upfront. We think this approach will preserve a valuable water right, generate revenue for public beneficiaries and pencil out for someone.”

To reduce risk, DNR has already negotiated needed agreements and right-of-ways for the water supply system. We’re also providing water pipeline and pump station engineering drawings, electrical drawings and a project cost estimate, which rings in at $11 million.

Want to find out more? Check out www.Paterson2017.com, which has overhead drone footage of the available farmland, associated documents and parcel temperature data. You’ll also be able to sign up to get email updates about this unique lease offering.

If you are interested in a tour of the parcels, email Rick Roeder or Randy Niessner, or visit www.paterson2017.com

March Offerings: Irrigated Agriculture and Grazing Leases

Grazing Lease No. 10-094032 — March 8, 2017

This 10 year-lease, which will be offered at sealed-bid public auction, includes 120 acres in Spokane County.

Sealed bids must be received no later than 10:00 a.m. on March 8, 2017, at which time they will be opened at DNR’s Northeast Region Office, 225 S. Silke Road, Colville, Wash., 99114. Lease documents:

For more information, contact Shawn Soliday or Suzanne Thome at 509-624-7474.

Temporary Grazing Permit No. 11-095122 — March 8, 2017

This five-year permit, which will be offered at sealed-bid public auction, includes 9,934 acres in Okanogan County.

Sealed bids must be received no later than 11:00 a.m. on March 8, 2017, at which time they will be opened at DNR’s Northeast Region Office, 225 S. Silke Road, Colville, Wash., 99114. Lease documents:

For more information, contact Brian Derting or Suzanne Thome at 509-624-7474.

Irrigated Ag Lease No. 12-092579 — March 9, 2017

This ten-year lease, which will be offered at sealed-bid public auction, includes 255 irrigated agriculture acres in Adams County.

Sealed bids must be received no later than 3:30 p.m. on March 9, 2017, at which time they will be opened at DNR’s Southeast Region Office, 713 Bowers Road, Ellensburg, Wash., 98926. Lease documents:

For more information, contact Mark Bohnet at 509-531-7418, or Kathleen Beach at 509-925-0912.

Leasing Washington State Trust Lands

DNR-managed trust land

This DNR-managed trust land parcel in Kittitas County has multiple leases for different uses.

There’s more to state trust lands managed by Washington State Department of Natural Resources (DNR) than leasing for grazing, irrigated and dryland agricultural activities. Trust lands are used for a wide variety of other revenue-producing purposes authorized through special use and commercial leases. For instance, the parcel pictured here, in Kittitas County, is leased for use as a communication site, grazing land and wind power generation.

Special events uses also are possible to authorize on trust land. DNR considers a wide variety of proposals for the use of state land, provided the use is in the best interest of the trust’s beneficiaries.

If you would like to explore opportunities to lease state lands or have questions about use authorization, contact a DNR Region office to speak with your local DNR land manager.

Find more information, including an online lease opportunity viewer, on the DNR Leasing State Trust Lands for Agriculture and Grazing web page.

by Chad Unland, Manager, Agriculture Administration Unit, DNR Southeast Region

Grazing Lease Auction Dates Set

Grazing land available to lease in Northeast Washington. Watch for these auctions dates:

April 19, 2016

Grazing Lease No. 10-090715 is a ten-year lease offered at sealed bid public auction which contains 160 acres in Ferry County. Sealed bids must be received no later than 10:00 a.m. on April 19, 2016, at which time they will be opened at DNR’s Northeast Region Office, 225 S. Silke Rd., Colville, WA 99114. View the bid packet. For more information, contact Brian Derting or Tim Gallagher at (509) 684-7474.

May 5, 2016

Grazing Lease No. 10-089633 is a ten-year lease offered at sealed bid public auction which contains 1,470.92 acres in Ferry County. Sealed bids must be received no later than 10 a.m. on May 5, 2016, at which time they will be opened at DNR’s Northeast Region Office: 225 S. Silke Rd., Colville, WA 99114. View the bid packet. For more information, contact Brian Derting at or Tim Gallagher at (509) 684-7474.

DNR Offers Electronic Payment Options for Lessees

wire transfer imageThe Department of Natural Resources offers lessees the option to remit payments electronically through automated clearinghouse (ACH), or wire transfer payments. If you are interested in this option and would like to obtain the necessary form contact DNR’s Office of Finance, Budget and Economics at (360) 902-1250 and ask for accounts receivable.