The Puget Sound Agricultural Company (PSAC), with common variations of the name including Puget Sound or Puget's Sound, was a subsidiary joint stock company formed in 1840 by the Hudson's Bay Company (HBC). Its stations operated within the Pacific Northwest, in the HBC administrative division of the Columbia Department. The RAC-HBC Agreement was signed in 1839 between the Russian-American Company and the HBC, with the British to now supply the various trade posts of Russian America. It was hoped by the HBC governing committee that independent American merchants, previously a major source of foodstuffs for the RAC, would be shut out of the Russian markets and leave the Maritime fur trade.
Because its monopoly license granted by the British Government forbade any activity besides the fur trade, the HBC created the PSAC to sidestep this issue. The PSAC was formed to produce or manufacture enough agricultural and livestock products to meet the Russian supply demands. In correspondence with British officials, the PSAC was long touted as a means to promote the British position in the Oregon boundary dispute with the United States. For years now the British had insisted that the Pacific Northwest be partitioned along the Columbia River, rather than a westward extension of the 49th parallel. This would have left most of modern Washington state under British control, notably the important Puget Sound. Through its company stations, the PSAC would promote settlement by British subjects in this disputed area, although it largely failed in this particular aspect.
The primary company operations were centered at Fort Nisqually and Cowlitz Farm in modern Washington state. At Fort Nisqually (near present-day Olympia, Washington) due to poor soil, the station focused on pastoral operations, including flocks of sheep for wool, cattle herds for beef and cheese manufacturing. Cowlitz Farm was the company's primary center of agricultural production. The company also operated many large farms in the area of Fort Victoria on Vancouver Island.