| Quick Overview | Other Resources | 

| Sec. 1239 Definitions | 

| Sec. 1239A - Establishment & Purpose | (a) Establishment | (b) Relation to Other Programs | (c) Funding (and Cost Sharing) | (d) Personnel Costs | (e) State-Level Cooperation | (f) Annual Reports | (g) Technical Assistance | (h) Ensuring Availability of Funds |

| Sec. 1239B - Use of Farmland Stewardship Agreements | (a) Agreements Authorized | (b) Legal Basis | (c) Basic Purposes | (d) Modifications to Other Programs (Granting Exceptions & Substitutions) | (e) Short-Term Contracts | (f) Payments | (g) State & Local Conservation Priorities | (h) Watershed Enhancement |

| Sec. 1239C - Partnership Approach to Program | (a) Authority of Secretary Exercised through Partnerships | (b) Designation & Use of Contracting Agencies | (c) Conditions of Designation | (d) Delegation of Responsibility |

| Sec. 1239D - Participation of Owners & Operators of Eligible  Land | (a) Application & Approval Process | (b) Applications on Behalf of an Owner or Operator | (c) Delegation of Responsibility |

| Sec. 1239E - Creation of a Farmland Stewardship Council | (a) Appointments | (b) In General | (c) Duties | (d) Membership | (e) Personnel Costs | (f) Reports | (g) Termination |

| Sec. 1239F - Agricultural Stewardship State Block Grant Program | (a) In General | (b) Program Application | (c) Participation | (d) Coordination | (e) Delivery | (f) Strategic Plan | (g) Annual Reports | (h) Coordination with Federal Agencies | (i) Payment | (j) Program Expenditures | (k) Method of Payment |

OVERVIEW 

The Farmland Stewardship Program was included as Section 256, Subtitle F, Title II of the House-passed Farm Bill, "The Farm Security Act of 2001," H.R. 2646.  It also was included as Sec. 256 of S. 1673, one of the alternate farm bills offered in the U.S. Senate. 

Expanded language, based on Sec. 256, S. 1673, is being considered for inclusion in the conference bill when the House and Senate versions of the Farm Bill are reconciled.  This language is shown below.

RESOURCES

• For information on the current status of the FSP and links to several fact sheets explaining its importance, go to: Why the Farmland Stewardship Program in Important
• For current language, proposed at the end of April 2002, go to Current Conference Committee Language.
• To view the "reserve language" which has was eliminated from the conference committee language shown below, go to Reserve Language.
• For an easy-to-read text description of the legislative language shown below, click Text Description
• To see all the changes that are being made to Sec. 256, HR 2646, you may view a coded version of this language by clicking Modifications to Sec. 256, HR 2646
• For a detailed explanation of the legislative language, please refer to the Section-by-Section Analysis

            "(1) Of the funds used from other programs and of funds made available to carry out the Farmland Stewardship Program for a fiscal year, the Secretary shall make available technical assistance funds to provide for--

            "(A) administration, coordination and oversight through the Natural Resources Conservation Service headquarters office;

            "(B) operating expenses for the Farmland Stewardship Council to carry out its duties in cooperation with the State Technical Committees, as provided under section 1239E;

            "(C) administration and coordination through the designated state agency in the State where the property is located;

            "(D) administration and coordination through the Natural Resources Conservation Service state office, in the State where property is located;

            "(E) administration and coordination through the state conservation district agency, unless such agency is the designated state agency for administering this program, in which case these funds shall be added to the funds in the next paragraph; and

            "(F) local technical assistance, carried out through a designated 'contracting agency' and subcontractors chosen by and working with the contracting agency for preparing and executing agreements and monitoring, evaluating and administering agreements for their full term.  It shall be a requirement of this program that the majority of technical assistance funds, and the majority of responsibility for assembling, administering and monitoring, shall go to the local contracting agencies.

                       "(2) An owner or operator who is receiving a benefit under this chapter shall be eligible to receive technical assistance in accordance with section 1243(d) to assist the owner or operator in carrying out a contract entered into under this chapter.

            "(h) ENSURING AVAILABILITY OF FUNDS.— All amounts required for preparing, executing, carrying out, monitoring, evaluating and administering an agreement for its entire term shall be made available by the Federal, State, and local agencies and private sector entities involved in funding the agreement upon execution of the agreement.

            "SEC. 1239B. USE OF FARMLAND STEWARDSHIP AGREEMENTS.

            "(a) AGREEMENTS AUTHORIZED .—The Secretary shall carry out the Farmland Stewardship Program by entering into service contracts as determined by the Secretary, to be known as farmland stewardship agreements, with the owners or operators of eligible agricultural land to maintain and protect the natural and agricultural resources on the land.

            "(b) LEGAL BASIS.—An agreement shall operate in all respects as a service contract. Any agency participating in the Farmland Stewardship Program that has the authority to enter into service contracts and to expend public funds under such contracts may enter into or participate in the funding of an agreement.

            "(c) BASIC PURPOSES.—An agreement with the owner or operator of eligible agricultural land shall be used—

            "(1) to negotiate a mutually agreeable set of guidelines, practices, and procedures under which conservation practices will be provided by the owner or operator to protect, maintain, and, where possible, improve, the natural resources on the land covered by the agreement in return for annual payments to the owner or operator;

            "(2) to enable an owner or operator to participate in 1 or more of the conservation programs offered through agencies at all levels of government and the private sector and, where possible and feasible, comply with permit requirements and regulations, through a one-stop, one-application process; or, if that is not feasible, then an attempt shall be made to assemble as many programs, requirements and regulations into as few applications and agreements as possible;

            "(3) to implement a conservation program or series of programs where there is no such program or to implement conservation management activities where there is no such activity;

            "(4) to expand or maintain conservation practices and resource management activities to a property where it is not possible at the present time to negotiate or reach agreement on a public purchase of a fee-simple or less-than-fee interest in the property for conservation purposes; and

            "(5) to negotiate and develop agreements with private owners and operators to expand or maintain their participation in conservation activities and programs; to enable them to install or maintain best management practices (BMPs) and other recommended practices to improve the compatibility of agriculture, horticulture, silviculture, aquaculture and equine activities with the environment; and improve compliance with public health, safety and environmental regulations.

            "(d) MODIFICATION OF OTHER CONSERVATION PROGRAM ELEMENTS.—If most, but not all, of the limitations, conditions, policies and requirements of a conservation program that is implemented in whole, or in part, through the Farmland Stewardship Program are met with respect to a parcel of eligible agricultural land, and the purposes to be achieved by the agreement to be entered into for such land are consistent with the purposes of the conservation program, then the Secretary may grant exceptions to any remaining limitations, conditions, policies, or requirements of the conservation program that would otherwise prohibit or limit the agreement.  The Secretary may also grant requests to —

            “(1) establish different or automatic enrollment criteria than otherwise established by regulation or policy;

            “(2) establish different compensation rates to the extent the parties to the agreement consider justified;

            “(3) establish different conservation practice criteria if doing so will achieve greater conservation benefits;

            “(4) provide more streamlined and integrated paperwork requirements;

            “(5) provide for the transfer of conservation program funds to States with accounts that have been expressly established to collect and consolidate payments from different programs so that a single annual payment can be made to an owner or operator;

            “(6) provide funds to monitor the effectiveness of the Program for wildlife, the protection of natural resources, economic effectiveness and sustaining the agricultural economy.

            “(7)  For an exception to be considered, a contracting agency or the designated state agency must —

            “(A) Submit a request for an exception to the Secretary or Administrator who has responsibility for the program for which an exception is being requested.  Requests for exceptions in programs administered by the U.S. Department of Agriculture shall be submitted to the Secretary of Agriculture, while requests for exceptions in programs administered by the U.S. Department of Interior shall be submitted to the Secretary of Interior and requests for exceptions in programs administered by the U.S. Environmental Protection Agency shall be submitted to the Administrator of that Agency, and so forth.

            “(B) The request shall–

            “(i) explain why the property qualifies for participation in the program;

            “(ii) explain why it is necessary or desirable to make an exception to one or more program limitations, conditions, policies or requirements;

            “(iii) if possible, suggest alternative methods or approaches to satisfying these limitations, conditions, policies or requirements that are appropriate for the property in question;

            “(iv) request that the Secretary or Administrator grant the exception, based on the documentation submitted.

            “(C) The Secretary or Administrator may request additional documentation, or may suggest alternative methods of overcoming program limitations or obstacles on the property in question, prior to deciding whether or not to grant a request for an exception.

            “(D) Exceptions may be granted by a Secretary or Administrator to allow additional flexibility in tailoring conservation programs to the specific needs, opportunities and challenges offered by individual parcels of land, and to remove administrative and regulatory obstacles that previously may have limited the use of these programs on eligible agricultural land, or would prevent these programs from being combined together through a Farmland Stewardship Agreement.  Exceptions may be granted only if the purposes to be achieved by the program after the exception is granted remain consistent with the purposes for which the program was established.

            “(E) The Secretaries and Administrators who receive requests for exceptions under this chapter shall respond to these requests within sixty (60) days of receipt.  Decisions on whether to grant a request shall be rendered within one hundred eighty (180) days of receipt.

           “(F)  If a request for an exception is declined, such finding shall have no impact upon the ability of a designated state agency or local contracting agency to include the affected program or other programs in a Farmland Stewardship Agreement.  The contracting agency or landowner/operator may choose to include a program in which a request for an exception is declined, if the program still can be utilized as it exists with no changes in the Farmland Stewardship Agreement, or to leave the program out and to proceed with the Farmland Stewardship Agreement by assembling other programs.

            "(e) SHORT-TERM CONTRACTS.— The Secretary may provide payments to private landowners or operators, and cover expenses incurred by the organization or contracting agency that will overseen an agreement, while baseline data is gathered, documents are prepared and the formal agreement is being negotiated.  The Secretary may use a short-term service contract to pay for all technical services required to establish an agreement, and to compensate landowners for time and materials in providing baseline data, and for implementing an initial set of recommended practices, as recommended by the contracting agency.  These contracts may be used to establish a Farmland Stewardship Agreement, or any other type of conservation program, permit or agreement on private land.  Such contracts may be used during a two-year planning period, which may be extended for up to two additional periods of six months each by mutual agreement between the Secretary, the contracting agency and the owner or operator.

            “(f) PAYMENTS.–– Payments to owners and operators shall be made as provided in the programs that are combined as part of a Farmland Stewardship Agreement.  At the election of the owner or operator, payments may be collected and combined together by the designated state agency and issued to the owner or operator in equal annual payments over the term of the agreement.  Payments for other services rendered by the owner or operator shall be made as follows– 

      “(1) IN GENERAL.––  Programs that contain term or permanent easements may be combined into a Farmland Stewardship Agreement.  Except for portions of a property affected by easements, Farmland Stewardship Agreements shall provide no interest in property and shall be solely contracts for specific services. The fees paid shall be based on the services provided. Compensation shall include–– 

      “(A) ANNUAL BASE PAYMENT.–– All owners or operators enrolled in a Farmland Stewardship Agreement shall receive an annual base payment, at a rate to be determined by the Secretary.  The annual base payment shall be considered by the Secretary to be satisfied if the owner or operator receives annual payments from another conservation program that has been incorporated into the Farmland Stewardship Agreement.  In addition, owners and operators shall receive––

      “(B) DIRECT FEES FOR SERVICES.–These fees shall be based on the cost of providing each service. These fees may be set by adopting private sector market prices for the performance of similar services or by competitive bidding. Or, alternatively––

      “(C) ANNUAL PER-ACRE STEWARDSHIP FEES.–– These fees shall be based on the services provided, or the quantity of benefits provided, with higher fees for greater benefits that can be quantified. Such values shall be determined and set by the Secretary. Or, alternatively–– 

       “(D) OTHER INCENTIVES.–– Other forms of compensation acceptable to an owner or operator also may be considered.  These other forms of compensation may include Federal, State or local tax waivers, credits, reductions or exclusions; priority processing of permits from State and local agencies; consolidation of permits from State and local agencies into a single operating plan; extended-duration permits from State and local agencies; enhanced eligibility and priority listing for participation in cost-share programs, loan programs, conservation programs and permanent conservation easement or public purchase programs; and priority access to technical assistance services provided by Federal and, where possible, local, regional and State agencies.

                  "(g) STATE AND LOCAL CONSERVATION PRIORITIES.—To the maximum extent practicable, agreements shall address the conservation priorities established by the State and locality in which the eligible agricultural land is located.  The Secretary may adopt for this purpose a pre-existing state or regional conservation plan or strategy that maps economically and ecologically important lands, including a plan developed pursuant to planning requirements under Title VIII of the 2001 Interior Appropriations Act and Title IX of the 2001 Commerce, Justice, State Appropriations Act.

            "(h) WATERSHED ENHANCEMENT.—To the extent practicable, the Secretary shall encourage the development of Farmland Stewardship Program applications on a watershed basis.

"SEC. 1239C. PARTNERSHIP APPROACH TO PROGRAM.

            "(a) AUTHORITY OF SECRETARY EXERCISED THROUGH PARTNERSHIPS.— The Secretary may administer agreements under the Farmland Stewardship Program in partnership with other Federal, State, and local agencies whose programs are incorporated into the Program under section 1239A, and in partnership with state departments of agriculture or other designated state agencies.

            "(b) DESIGNATION AND USE OF CONTRACTING AGENCIES.—Subject to subsection (c), the Secretary may authorize a local conservation district, resource conservation and development council, extension service office, state-chartered stewardship entity, nonprofit organization, local office of the Department of Agriculture, or other participating government agency to enter into and administer agreements under the Program as a contracting agency on behalf of the Secretary.

            "(c) CONDITIONS OF DESIGNATION .—The Secretary may designate an eligible district or office as a contracting agency under subsection (b) only if the district of office—

            "(1) submits a written request for such designation to the Secretary;

            "(2) affirms that it is willing to follow all guidelines for executing and administering an agreement, as prescribed by the Secretary;

            "(3) demonstrates to the satisfaction of the Secretary that it has established working relationships with owners and operators of eligible agricultural land, and based on the history of these working relationships, demonstrates that it has the ability to work with owners and operators of eligible agricultural land in a cooperative manner;

            "(4) affirms its responsibility for preparing all documentation for the agreement, negotiating its terms with an owner or operator, monitoring compliance, making annual reports to the Secretary, and administering the agreement throughout its full term; and

            "(5) demonstrates to the satisfaction of the Secretary that it has or will have the necessary staff resources and expertise to carry out its responsibilities under paragraphs (3) and (4).

            “(d) DELEGATION OF RESPONSIBILITY.—The Secretary may delegate responsibility for reviewing and approving applications from local contracting agencies to the state department of agriculture or other designated state agency in the State in which the property is located, provided that the designated agency follows the criteria for reviewing and approving applications as established by the Secretary and consults with the agencies with management authority and responsibility for the resources affected on properties on which Farmland Stewardship Agreements are negotiated and assembled.

"SEC. 1239D. PARTICIPATION OF OWNERS AND OPERATORS OF ELIGIBLE AGRICULTURAL LAND.

            "(a) APPLICATION AND APPROVAL PROCESS.—To participate in the Farmland Stewardship Program, an owner or operator of eligible agricultural land shall—

            "(1) submit to the Secretary an application indicating interest in the Program and describing the owner’s or operator’s property, its resources, and their ecological and agricultural values;

            "(2) submit to the Secretary the purpose and objectives of the proposed agreement and a list of services to be provided, or a management plan to be implemented, or both, under the proposed agreement;

            "(3) if the application and list are accepted by the Secretary, enter into an agreement that details the purpose and objectives of the agreement and the services to be provided, or management plan to be implemented, or both, and requires compliance with the other terms of the agreement.

            "(b) APPLICATION ON BEHALF OF AN OWNER OR OPERATOR.—A designated contracting agency may submit the application required by subsection (a) on behalf of an owner or operator if the contracting agency has secured the consent of the owner or operator to enter into an agreement.

            “(c) DELEGATION OF RESPONSIBILITY.—The Secretary may delegate responsibility for reviewing and approving applications from or on behalf of an owner or operator to the state department of agriculture or other designated agency in the State in which the property is located, provided that the designated agency follows the criteria for reviewing and approving applications as established by the Secretary and consults with the agencies with management authority and responsibility for the resources affected on properties on which Farmland Stewardship Agreements are negotiated and assembled.  

"Sec. 1239E. CREATION OF A FARMLAND STEWARDSHIP COUNCIL REGARDING PROGRAM.

            "(a) APPOINTMENT .—The Secretary shall appoint a advisory committee to assist the Secretary in carrying out the Farmland Stewardship Program.

            “(b) IN GENERAL.—The Committee shall be known as the Farmland Stewardship Council and shall operate on the federal level in the same manner, with the same roles and responsibilities and the same membership requirements as provided in the policies and guidelines governing State Technical Committees in Subpart B of Part 501 of the U.S. Department of Agriculture’s directives to the Natural Resources Conservation Service regarding Conservation Program Delivery.

            "(c) DUTIES.—The Farmland Stewardship Council shall cooperate in all respects with the State Technical Committees and Resource Advisory Committees in each state.  In addition to the roles and responsibilities set forth for these committees, the Farmland Stewardship Council shall assist the Secretary in —

            "(1) drafting such regulations as are necessary to carry out the Program;

            "(2) developing the documents necessary for executing farmland stewardship agreements;

            "(3) developing procedures and guidelines to facilitate partnerships with other levels of government and nonprofit organizations and assist contracting agencies in gathering data and negotiating agreements;

            "(4) designing criteria to consider applications submitted under sections 1239C and 1239D;

            "(5) providing assistance and training to designated state agencies, project partners and contracting agencies;

            "(6) assisting designated state agencies, project partners and contracting agencies in combining together other conservation programs into agreements;

            "(7) tailoring the agreements to each individual property;

            "(8) developing agreements that are highly flexible and can be used to respond to and fit in with the conservation needs and opportunities on any property in the U.S.;

            "(9) developing a methodology for determining a fair market price in each state for each service rendered by a private owner or operator under a Farmland Stewardship Agreement;

            "(10) developing guidelines for administering the Farmland Stewardship Program on a national basis that respond to the conservation needs and opportunities in each state and in each rural community in which Farmland Stewardship Agreements may be implemented;

            "(11) monitoring progress under the agreements; and

            "(12) reviewing and recommending possible modifications, additions, adaptations, improvements, enhancements, or other changes to the Program to improve the way in which the program operates.

            "(d) MEMBERSHIP.—The Farmland Stewardship Council shall have the same membership requirements as the State Technical Committees, except that —

            “(1) All participating members must have offices located in the Washington, D.C. metropolitan area;

            “(2) The list of members representing “Federal Agencies and Other Groups Required by Law” shall be expanded to include all federal agencies whose programs might be included in Farmland Stewardship Program;

            “(3) State agency representation shall be provided by the organizations located in the Washington, D.C. metropolitan area representing state agencies and shall include individuals from organizations representing wetland managers, environmental councils, fish and wildlife agencies, counties, resource and conservation development councils, state conservation agencies, state departments of agriculture, state foresters, and governors; and

            “(4) Private Interest Membership shall be comprised of 21 members representing the principal agricultural commodity groups, farm organizations, national forestry associations, woodland owners, conservation districts, rural stewardship organizations, and up to a maximum of seven (7) conservation and environment organizations, including organizations with an emphasis on wildlife, rangeland management and soil and water conservation.

            “(5) The Secretary shall appoint one of the Private Interest Members to serve as chair. The Private Interest Members shall appoint another member to serve as co-chair.

            “(6) The Secretary shall follow equal opportunity practices in making appointments to the Farmland Stewardship Council.  To ensure that recommendations of the Council take into account the needs of the diverse groups served by the U.S. Department of Agriculture, membership will include, to the extent practicable, individuals with demonstrated ability to represent minorities, women, and persons with disabilities.

            “(e) PERSONNEL COSTS.—The technical assistance funds designated in  Sec. 1239A(g)(1)(B) may be used to provide staff positions and support for the Farmland Stewardship Council to–

            “(1) carry out its duties as provided in subsection (c);

            “(2) ensure communication and coordination with all federal agencies, state organizations and Private Interest Members on the council, and the constituencies represented by these agencies, organizations and members;

            “(3) ensure communication and coordination with the State Technical Committees and Resource Advisory Committees in each state;

            “(4) solicit input from agricultural producers and owners and operators of private forestry operations and woodlands through the organizations represented on the council and other organizations, as necessary; and

            “(5) take into consideration the needs and interests of producers of different agricultural commodities and forest products in different regions of the nation.

            “(6) Representatives of federal agencies and state organizations shall serve without additional compensation, except for reimbursement of travel expenses and per diem costs which are incurred as a result of their Council responsibilities and service.

            “(7) Payments may be made to the organizations serving as Private Interest Members for the purposes of providing staff and support to carry out paragraphs (1) through (5).