Buy-protect-sell and certain other transactions under the agricultural conservation easement program

(a)

Purposes of agricultural conservation easement program

Section 1265(b) of the Food Security Act of 1985 (16 U.S.C. 3865(b)) is amended— (1)in paragraph (3), by striking and after the semicolon at the end; (2)in paragraph (4), by striking the period at the end and inserting ; and; and (3)by adding at the end the following:

(5)facilitate the transfer of protected eligible land to farmers and ranchers.

(b)

Definition of buy-Protect-Sell transaction

Section 1265A of the Food Security Act of 1985 (16 U.S.C. 3865a) is amended by striking paragraph (2) and inserting the following:

(2)

Buy-protect-sell transaction

(A)

In general

The term buy-protect-sell transaction means a legal arrangement between the Secretary and 1 or more eligible entities— (i)relating to land— (I)that is owned, or will be purchased prior to acquisition of an agricultural land easement, by— (aa)at least 1 eligible entity described in paragraph (3)(B); (bb)an Indian tribe; or (cc)a local governmental entity using a buy-protect-sell transaction to protect water rights in a State that uses the prior appropriation doctrine or a hybrid of the prior appropriation doctrine; and (II)with respect to which an agricultural land easement will be purchased over all or a portion of the land by at least 1 eligible entity, which may be— (aa)the same 1 or more eligible entities described in subclause (I); (bb)1 or more other eligible entities described in subparagraph (A) or (B) of paragraph (3); or (cc)any combination of eligible entities described in items (aa) and (bb); and (ii)under which— (I)1 or more eligible entities described in clause (i) certifies to the Secretary that— (aa)1 or more of the eligible entities described in that clause will secure an agricultural land easement on the land described in that clause, subject to subparagraph (B)(i); and (bb)the 1 or more eligible entities described in subclause (I) of that clause that own the land will, in a timely manner after the acquisition of the agricultural land easement described in item (aa), transfer ownership of the land to a farmer or rancher that is not an eligible entity, pursuant to a contract with a willing buyer, subject to subparagraph (B)(ii); and (II)the Secretary shall be reimbursed for the entirety of the Federal share of the cost of the agricultural land easement by the eligible entities described in clause (i) if the eligible entities described in subclause (I)(bb) fail to transfer ownership in accordance with that subclause. (B)

Requirements

(i)

Timing of acquisition of agricultural land easement

After entering into an arrangement described in subparagraph (A), the Secretary shall provide to the applicable 1 or more eligible entities a period of sufficient time, which shall be not less than 3 years, to secure an agricultural land easement on the applicable land. (ii)

Transfer of land to farmer or rancher

(I)

Timing

(aa)

In general

Subject to item (bb), a transfer of land described in subparagraph (A)(ii)(I)(bb) shall be completed by the date that is 3 years after the date on which an agricultural land easement is acquired with respect to that land. (bb)

Extension

The Secretary may extend the time for completing a transfer described in item (aa) if the Secretary determines that an extension of time is justified. (II)

No limitations on terms

The Secretary may not impose any limitations on the terms of a contract described in subparagraph (A)(ii)(I)(bb) between 1 or more eligible entities and a farmer or rancher.

(c)

Definition of eligible land

Section 1265A(4)(A)(i) of the Food Security Act of 1985 (16 U.S.C. 3865a(4)(A)(i)) is amended— (1)in subclause (I), by striking or after the semicolon at the end; (2)by redesignating subclause (II) as subclause (III); and (3)by inserting after subclause (I) the following:

(II)a transaction described in section 1265B(e)(1)(B); or

(d)

Availability of assistance for the purchase of agricultural land easements

Section 1265B(a) of the Food Security Act of 1985 (16 U.S.C. 3865b(a)) is amended— (1)in paragraph (1), by striking land; and inserting the following: “land, including through the use of—

(A)buy-protect-sell transactions; and (B)transactions described in subsection (e)(1)(B); and

;

(2)in paragraph (2), by striking ; and and inserting a period; and (3)by striking paragraph (3). (e)

Co-Eligible entities

Section 1265B(b)(4) of the Food Security Act of 1985 (16 U.S.C. 3865b(b)(4)) is amended— (1)by redesignating subparagraphs (E) and (F) as subparagraphs (F) and (G), respectively; and (2)by inserting after subparagraph (D) the following:

(E)

Co-eligible entities

(i)

Definition of co-eligible entity

In this subparagraph, the term co-eligible entity means an eligible entity that jointly applies for cost-share assistance under this section with 1 or more other eligible entities. (ii)

Joint application for cost-share assistance

The Secretary shall allow multiple eligible entities to jointly apply for cost-share assistance under this section. (iii)

Shared responsibilities of co-eligible entities

(I)

In general

The Secretary may enter into an agreement with 1 or more co-eligible entities for the purchase of 1 or more agricultural land easements on any eligible land, including through a buy-protect-sell transaction. (II)

Grant of agricultural land easements

An agricultural land easement purchased pursuant to subclause (I), including through a buy-protect-sell transaction, may be granted to any 1 or more co-eligible entities.

(f)

Equal application to buy-Protect-Sell and other transactions

Section 1265B of the Food Security Act of 1985 (16 U.S.C. 3865b) is amended by adding at the end the following:

(e)

Equal application

(1)

Definition of covered transaction

In this subsection, the term covered transaction means— (A)a buy-protect-sell transaction; and (B)an agricultural land easement transaction that— (i)uses a buy-sell-protect structure in which an eligible entity transfers ownership of land to a farmer or rancher— (I)prior to the time at which the eligible entity acquires the agricultural land easement on that land; or (II)at the same time that the eligible entity acquires the agricultural land easement on that land; or (ii)concerns land with respect to which the landowner has a lease-to-own agreement with a farmer or rancher at the time of the application for assistance under this section. (2)

No additional land eligibility requirements

The Secretary may not impose any requirements or limitations relating to the eligibility of land for buy-protect-sell transactions beyond those described in— (A)paragraphs (2) and (4) of section 1265A; and (B)subsection (a) of section 1265D. (3)

Advanced payment

The Secretary shall allow eligible entities conducting covered transactions to receive advanced payment in accordance with the procedures required for other agricultural land easement transactions under this section. (4)

Paperwork requirements

The Secretary shall impose the same paperwork requirements on agricultural land easement transactions described in paragraph (1)(B) that the Secretary imposes on other agricultural land easement transactions under this section. (5)

Certified entities

The Secretary shall ensure that benefits described in section 1265B(b)(5) are extended to eligible entities certified under that section that are conducting buy-protect-sell transactions. (6)

Savings clause

Nothing in this subsection limits the eligibility of agricultural land easement transactions described in paragraph (1)(B) for assistance under this section.