Farmland Access Act

#2507 | S Congress #118

Subjects:

Last Action: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry. (7/26/2023)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary



The Farmland Access Act, also known as the "BUY-PROTECT-SELL" Act, is an amendment to the Food Security Act of 1985. Its purpose is to ensure equal treatment of buy-protect-sell transactions and certain other transactions under the agricultural conservation easement program. This act allows for the transfer of protected eligible land to farmers and ranchers and defines the terms and requirements for buy-protect-sell transactions. It also expands the definition of eligible land to include transactions that use a buy-sell-protect structure or involve a lease-to-own agreement with a farmer or rancher. The act also ensures that eligible entities conducting covered transactions receive the same benefits and assistance as those conducting other agricultural land easement transactions.

Possible Impacts



1. The Farmland Access Act could potentially benefit farmers and ranchers by facilitating the transfer of protected eligible land to them. This could provide them with more land to cultivate and increase their income potential.

2. The Act could also potentially benefit Indian tribes and local governmental entities in states that use the prior appropriation doctrine or a hybrid of it. This could ensure that their water rights are protected and not infringed upon by other parties.

3. The Act could affect landowners who have a lease-to-own agreement with a farmer or rancher. They may be able to receive advanced payment for their land through the buy-sell-protect structure, providing them with financial stability.

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2507 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                S. 2507

  To amend the Food Security Act of 1985 to ensure equal treatment of 
buy-protect-sell transactions and certain other transactions under the 
  agricultural conservation easement program, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 26, 2023

  Mr. Welch (for himself and Mr. King) introduced the following bill; 
  which was read twice and referred to the Committee on Agriculture, 
                        Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
  To amend the Food Security Act of 1985 to ensure equal treatment of 
buy-protect-sell transactions and certain other transactions under the 
  agricultural conservation easement program, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Farmland Access Act''.

SEC. 2. 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.''.
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