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‘‘(F) facilitate pilot testing of new tech-
nologies or innovative conservation practices.’’; 
and 
(2) by striking subsection (b) and inserting the 
following new subsection: 
‘‘(b) REPORTING.—Not later than December 31, 2014, 
and every two years thereafter, the Secretary shall submit 
to the Committee on Agriculture, Nutrition, and Forestry 
of the Senate and the Committee on Agriculture of the 
House of Representatives a report on the status of projects 
funded under this section, including— 
‘‘(1) funding awarded; 
‘‘(2) project results; and 
‘‘(3) incorporation of project findings, such as 
new technology and innovative approaches, into the 
conservation efforts implemented by the Secretary.’’. 
SEC. 2207. EFFECTIVE DATE. 
(a) IN GENERAL.—The amendments made by this sub-
title shall take effect on October 1, 2013. 
(b) EFFECT ON EXISTING CONTRACTS.—The amend-
ments made by this subtitle shall not affect the validity or 
terms of any contract entered into by the Secretary of Agri-
culture under chapter 4 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3839aa et seq.) before Octo-
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ber 1, 2013, or any payments required to be made in con-
nection with the contract. 
Subtitle D—Agricultural 
Conservation Easement Program 
SEC. 2301. AGRICULTURAL CONSERVATION EASEMENT PRO-
GRAM. 
(a) ESTABLISHMENT.—Title XII of the Food Security 
Act of 1985 is amended by adding at the end the following 
new subtitle: 
‘‘Subtitle H—Agricultural 
Conservation Easement Program 
‘‘SEC. 1265. ESTABLISHMENT AND PURPOSES. 
‘‘(a) ESTABLISHMENT.—The Secretary shall establish 
an agricultural conservation easement program for the con-
servation of eligible land and natural resources through 
easements or other interests in land. 
‘‘(b) PURPOSES.—The purposes of the program are 
to— 
‘‘(1) combine the purposes and coordinate the 
functions of the wetlands reserve program established 
under section 1237, the grassland reserve program es-
tablished under section 1238N, and the farmland pro-
tection program established under section 1238I, as 
such sections were in effect on September 30, 2013;
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‘‘(2) restore, protect, and enhance wetlands on el-
igible land; 
‘‘(3) protect the agricultural use and related con-
servation values of eligible land by limiting non-
agricultural uses of that land; and 
‘‘(4) protect grazing uses and related conserva-
tion values by restoring and conserving eligible land. 
‘‘SEC. 1265A. DEFINITIONS. 
‘‘In this subtitle: 
‘‘(1) AGRICULTURAL
LAND
EASEMENT.—The 
term ‘agricultural land easement’ means an easement 
or other interest in eligible land that— 
‘‘(A) is conveyed for the purpose of pro-
tecting natural resources and the agricultural 
nature of the land; and 
‘‘(B) permits the landowner the right to 
continue agricultural production and related 
uses subject to an agricultural land easement 
plan, as approved by the Secretary. 
‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible enti-
ty’ means— 
‘‘(A) an agency of State or local government 
or an Indian tribe (including a farmland protec-
tion board or land resource council established 
under State law); or
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‘‘(B) an organization that is— 
‘‘(i) organized for, and at all times 
since the formation of the organization has 
been operated principally for, 1 or more of 
the conservation purposes specified in clause 
(i), (ii), (iii), or (iv) of section 170(h)(4)(A) 
of the Internal Revenue Code of 1986; 
‘‘(ii) an organization described in sec-
tion 501(c)(3) of that Code that is exempt 
from taxation under section 501(a) of that 
Code; or 
‘‘(iii) described in— 
‘‘(I) paragraph (1) or (2) of sec-
tion 509(a) of that Code; or 
‘‘(II) section 509(a)(3) of that 
Code and is controlled by an organiza-
tion described in section 509(a)(2) of 
that Code. 
‘‘(3) ELIGIBLE LAND.—The term ‘eligible land’ 
means private or tribal land that is— 
‘‘(A) in the case of an agricultural land 
easement, agricultural land, including land on a 
farm or ranch—
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‘‘(i) that is subject to a pending offer 
for purchase of an agricultural land ease-
ment from an eligible entity; 
‘‘(ii) that— 
‘‘(I) has prime, unique, or other 
productive soil; 
‘‘(II) contains historical or ar-
chaeological resources; or 
‘‘(III) the protection of which will 
further a State or local policy con-
sistent with the purposes of the pro-
gram; and 
‘‘(iii) that is— 
‘‘(I) cropland; 
‘‘(II) rangeland; 
‘‘(III) grassland or land that con-
tains forbs, or shrubland for which 
grazing is the predominate use; 
‘‘(IV) pastureland; or 
‘‘(V) nonindustrial private forest 
land that contributes to the economic 
viability of an offered parcel or serves 
as a buffer to protect such land from 
development;
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‘‘(B) in the case of a wetland easement, a 
wetland or related area, including— 
‘‘(i) farmed or converted wetlands, to-
gether with adjacent land that is function-
ally dependent on that land, if the Sec-
retary determines it— 
‘‘(I) is likely to be successfully re-
stored in a cost-effective manner; and 
‘‘(II) will maximize the wildlife 
benefits and wetland functions and 
values, as determined by the Secretary 
in consultation with the Secretary of 
the Interior at the local level; 
‘‘(ii) cropland or grassland that was 
used for agricultural production prior to 
flooding from the natural overflow of— 
‘‘(I) a closed basin lake and adja-
cent land that is functionally depend-
ent upon it, if the State or other entity 
is willing to provide 50 percent share 
of the cost of an easement; and 
‘‘(II) a pothole and adjacent land 
that is functionally dependent on it; 
‘‘(iii) farmed wetlands and adjoining 
lands that—
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‘‘(I) are enrolled in the conserva-
tion reserve program; 
‘‘(II) have the highest wetland 
functions and values, as determined by 
the Secretary; and 
‘‘(III) are likely to return to pro-
duction after they leave the conserva-
tion reserve program; 
‘‘(iv) riparian areas that link wetlands 
that are protected by easements or some 
other device that achieves the same purpose 
as an easement; or 
‘‘(v) other wetlands of an owner that 
would not otherwise be eligible, if the Sec-
retary determines that the inclusion of such 
wetlands in a wetland easement would sig-
nificantly add to the functional value of the 
easement; or 
‘‘(C) in the case of either an agricultural 
land easement or wetland easement, other land 
that is incidental to land described in subpara-
graph (A) or (B), if the Secretary determines 
that it is necessary for the efficient administra-
tion of the easements under this program.
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‘‘(4) PROGRAM.—The term ‘program’ means the 
agricultural conservation easement program estab-
lished by this subtitle. 
‘‘(5) WETLAND EASEMENT.—The term ‘wetland 
easement’ means a reserved interest in eligible land 
that— 
‘‘(A) is defined and delineated in a deed; 
and 
‘‘(B) stipulates— 
‘‘(i) the rights, title, and interests in 
land conveyed to the Secretary; and 
‘‘(ii) the rights, title, and interests in 
land that are reserved to the landowner. 
‘‘SEC. 1265B. AGRICULTURAL LAND EASEMENTS. 
‘‘(a) AVAILABILITY OF ASSISTANCE.—The Secretary 
shall facilitate and provide funding for— 
‘‘(1) the purchase by eligible entities of agricul-
tural land easements and other interests in eligible 
land; and 
‘‘(2) technical assistance to provide for the con-
servation of natural resources pursuant to an agricul-
tural land easement plan. 
‘‘(b) COST-SHARE ASSISTANCE.— 
‘‘(1) IN GENERAL.—The Secretary shall protect 
the agricultural use, including grazing, and related
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conservation values of eligible land through cost-share 
assistance to eligible entities for purchasing agricul-
tural land easements. 
‘‘(2) SCOPE OF ASSISTANCE AVAILABLE.— 
‘‘(A) FEDERAL SHARE.—An agreement de-
scribed in paragraph (4) shall provide for a Fed-
eral share determined by the Secretary of an 
amount not to exceed 50 percent of the fair mar-
ket value of the agricultural land easement or 
other interest in land, as determined by the Sec-
retary using— 
‘‘(i) the Uniform Standards of Profes-
sional Appraisal Practice; 
‘‘(ii) an area-wide market analysis or 
survey; or 
‘‘(iii) another industry-approved meth-
od. 
‘‘(B) NON-FEDERAL SHARE.— 
‘‘(i) IN
GENERAL.—Under the agree-
ment, the eligible entity shall provide a 
share that is at least equivalent to that pro-
vided by the Secretary. 
‘‘(ii) SOURCE OF CONTRIBUTION.—An 
eligible entity may include as part of its 
share a charitable donation or qualified
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conservation contribution (as defined by 
section 170(h) of the Internal Revenue Code 
of 1986) from the private landowner if the 
eligible entity contributes its own cash re-
sources in an amount that is at least 50 
percent of the amount contributed by the 
Secretary. 
‘‘(C) EXCEPTION.—In the case of grassland 
of special environmental significance, as deter-
mined by the Secretary, the Secretary may pro-
vide an amount not to exceed 75 percent of the 
fair market value of the agricultural land ease-
ment. 
‘‘(3) EVALUATION
AND
RANKING
OF
APPLICA-
TIONS.— 
‘‘(A) CRITERIA.—The Secretary shall estab-
lish evaluation and ranking criteria to maximize 
the benefit of Federal investment under the pro-
gram. 
‘‘(B) CONSIDERATIONS.—In establishing the 
criteria, the Secretary shall emphasize support 
for— 
‘‘(i) protecting agricultural uses and 
related conservation values of the land; and
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‘‘(ii) maximizing the protection of 
areas devoted to agricultural use. 
‘‘(C) BIDDING DOWN.—If the Secretary de-
termines that 2 or more applications for cost- 
share assistance are comparable in achieving the 
purpose of the program, the Secretary shall not 
assign a higher priority to any of those applica-
tions solely on the basis of lesser cost to the pro-
gram. 
‘‘(4) AGREEMENTS WITH ELIGIBLE ENTITIES.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
enter into agreements with eligible entities to 
stipulate the terms and conditions under which 
the eligible entity is permitted to use cost-share 
assistance provided under this section. 
‘‘(B) LENGTH OF AGREEMENTS.—An agree-
ment shall be for a term that is— 
‘‘(i) in the case of an eligible entity 
certified under the process described in 
paragraph (5), a minimum of five years; 
and 
‘‘(ii) for all other eligible entities, at 
least three, but not more than five years. 
‘‘(C) MINIMUM TERMS AND CONDITIONS.— 
An eligible entity shall be authorized to use its