Farmland Protection Program

(a)

Definitions

Section 1238H of the Food Security Act of 1985 (16 U.S.C. 3838h) is amended— (1)in paragraph (1)(B)— (A)in clause (iii), by striking or; (B)in clause (iv), by striking the period at the end and inserting ; or; and (C)by adding at the end the following:

(v)meets certification requirements described in paragraph (6)(B).

;

(2)by striking paragraph (2) and inserting the following:

(2)

Eligible Land

The term eligible land means land on a farm or ranch that is— (A)cropland; (B)rangeland; (C)grassland; (D)pasture land; or (E)forest land that is an incidental part of an agricultural operation, as determined by the Secretary, including woodlots, wooded corners, and forested riparian areas that may comprise up to 50 percent of the offered acreage.

;

(3)by redesignating paragraph (4) as paragraph (5); (4)by inserting after paragraph (3) the following:

(4)

Permanent conservation easement

The term permanent conservation easement means a conservation easement or other interest in eligible land that— (A)is for the primary purpose of protecting the agricultural production capacity of the eligible land; and (B)is permanent or for the maximum duration allowed under State law.

; and

(5)by adding at the end the following:

(6)

Qualified State or local entity

The term qualified State or local entity means a public or private entity that— (A)operates a farm and ranch land protection program that— (i)has for at least 3 calendar or fiscal years used or provided public or private funds to purchase permanent conservation easements on not less than 10 farms or ranches; (ii)has the necessary authority under State law, as well as the technical and financial capacity— (I)to monitor and enforce the terms of the permanent conservation easements so that the purpose of the permanent conservation easements is carried out for the maximum allowable duration; or (II)in the case of a governmental entity, to require other public or private holders of the permanent conservation easements acquired with public funding to hold, monitor, and enforce the permanent conservation easements for the purpose described in subclause (I); and (iii)has financial control policies to ensure that, on average, the purchase price of the permanent conservation easements does not exceed the appraised fair market value of the permanent conservation easements; and (B)is certified by the Secretary in accordance with a process under which the entity shall demonstrate— (i)strategic planning and articulated objectives; (ii)long-term commitment and organizational viability; (iii)a record of funds management and accountability; and (iv)a history of successfully completing projects.

(b)

Farmland Protection

Section 1238I of the Food Security Act of 1985 (16 U.S.C. 3838i) is amended— (1)by redesignating subsections (b) and (c) as subsections (d) and (e), respectively; (2)by striking subsection (a) and inserting the following:

(a)

Program

(1)

In general

The Secretary, acting through the Natural Resources Conservation Service, shall carry out a farm and ranch land protection program under which the Secretary shall facilitate the purchase of conservation easements or other interests in eligible land for the purpose of protecting the agricultural production capacity of the land by limiting incompatible nonagricultural uses of the land. (2)

Priority

In carrying out the program, the Secretary shall give priority to protecting farm and ranch land— (A)with prime, unique, or other productive soils that are at risk of non-agricultural development; (B)that shall stay in production agriculture; (C)in rural communities that face intense conversion pressure, as defined by the Secretary; (D)in areas that have locally-led land-use planning and zoning strategies; and (E)in watersheds that would benefit most from the protection of farm and ranch resources, as determined by the Secretary. (b)

Grants

(1)

In General

The Secretary shall use not less than 75 percent of the funds made available to carry out this subchapter for each fiscal year to award grants, administered by the Natural Resources Conservation Service State Conservationists in consultation with the appropriate State technical committees established under section 1261, to qualified State or local entities for the purchase of permanent conservation easements. (2)

Distribution

The Secretary shall distribute grants described in paragraph (1) among States based on— (A)the demonstrated need for farm and ranch land protection; and (B)the relative contribution of funds provided by State or local entities for the protection of farm and ranch land. (3)

Use of grants

A qualified State or local entity that receives a grant under this subsection— (A)may use the grant funds to purchase 1 or more permanent conservation easements, regardless of whether the qualified State or local entity has a pending purchase offer for any of the permanent conversation easements at the time of receiving the grant; and (B)shall use the grant funds only for the purchase of permanent conservation easements. (c)

Grant Agreements

(1)

In General

The Secretary, acting through the Natural Resources Conservation Service, may enter into agreements with qualified State or local entities, under which a State or local entity may purchase permanent conservation easements using a combination of the funds of the entity and grant funds made available by the Secretary under subsection (b). (2)

Terms and Conditions

(A)

In General

Subject to subparagraph (B), an agreement described in paragraph (1) shall stipulate the terms and conditions under which qualified State or local entities shall use grant funds distributed by the Secretary under subsection (b). (B)

Requirements

Each agreement shall— (i)authorize the State or local entity to determine the criteria and priorities of the entity for purchasing permanent conservation easements; (ii)authorize the State or local entity to establish terms and conditions for permanent conservation easements, if the attorney general of the State in which the farm or ranch is located certifies to the Secretary that State law permits the State or local entity to achieve and permit effective enforcement of the conservation purposes of the permanent conservation easements; and (iii)not require a Federal contingent right of enforcement or reversionary interest in the permanent conservation easement, if the attorney general of the State in which the farm or ranch is located certifies to the Secretary that the State has a direct or contingent right of enforcement or reversionary interest in the permanent conservation easement. (C)

Amount of matching funds

(i)

In general

The Secretary shall determine the percentage of matching funds (up to 100 percent) that each qualified State or local entity is required to provide as a condition of receiving a grant under subsection (b) based on the proposal submitted by the qualified State or local entity. (ii)

Requirements

A proposal described in clause (i) shall include a description of— (I)the amount of matching funds of the qualified State or local entity available for the purchase of permanent conservation easements; and (II)the commitment of the qualified State or local entity to achieve the priorities of the program.

;

(3)in subsection (d) (as redesignated by paragraph (1)) by striking Any and inserting Notwithstanding subsection (c)(2)(B)(ii), any; (4)in paragraph (1) of subsection (e) (as redesignated by paragraph (1))— (A)in subparagraph (A), by striking exceed and all that follows through land. and inserting the following: “exceed the higher of—

(i)50 percent of the appraised fair market value of the conservation easement or other interest in eligible land; or (ii)if a qualified conservation contribution (as defined by section 170(h) of the Internal Revenue Code of 1986) of at least 25 percent of the market value is made by the landowner in connection with the purchase of a conservation easement or other interest in land, two-thirds of the actual cost of purchasing the conservation easement or other interest in land.

; and

(B)in subparagraph (B)— (i)by striking an eligible and inserting a qualified State or local agency or other eligible; (ii)by striking charitable donation and inserting qualified conservation contribution; and (iii)by striking 25 and inserting 50; and (5)by adding at the end the following:

(f)

Performance measures

The Secretary shall establish performance measures for farm and ranch land protection, including performance measurements for qualified State and local entities that receive funding under this section. (g)

Program coordination

The Secretary shall carry out the program under this section and the grassland reserve program under subchapter C with a minimum amount of program redundancy, considering the unique role of each program. (h)

Availability of funds

Grant funds and technical assistance made available to a qualified State or local entity under this section shall remain available for a period of time that the Secretary considers to be reasonable (but not less than 18 months) to allow the qualified State or local entity to finalize the purchase of permanent conservation easements in accordance with the grant agreement.