516 
the Food Security Act of 1985 (16 U.S.C. 3801)), 
the Secretary may require the use of specified con-
servation practices on the land as a condition of the 
sale or lease of the land. 
‘‘(7) NO EFFECT ON ACREAGE ALLOTMENTS, 
MARKETING
QUOTAS, OR
ACREAGE
BASES.—Not-
withstanding any other law, compliance by the Sec-
retary with this subsection shall not cause any acre-
age allotment, marketing quota, or acreage base as-
signed to the property to lapse, terminate, be re-
duced, or otherwise be adversely affected. 
‘‘(8) NO PREEMPTION OF STATE LAW.—If a 
conflict exists between any provision of this sub-
section and any provision of the law of any State 
providing a right of first refusal to the owner of 
farmland or the operator of a farm before the sale 
or lease of land to any other person, the provision 
of State law shall prevail. 
‘‘(d) RELEASE OF NORMAL INCOME SECURITY.— 
‘‘(1) DEFINITION OF NORMAL INCOME SECU-
RITY.—In this subsection: 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘normal income se-
curity’ means all security not considered basic 
security, including crops, livestock, poultry 
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517 
products, Farm Service Agency payments and 
Commodity Credit Corporation payments, and 
other property covered by Farm Service Agency 
liens that is sold in conjunction with the oper-
ation of a farm or other business. 
‘‘(B) EXCEPTIONS.—The term ‘normal in-
come security’ does not include any equipment 
(including fixtures in States that have adopted 
the Uniform Commercial Code), or foundation 
herd or flock, that is— 
‘‘(i) the basis of the farming or other 
operation; and 
‘‘(ii) the basic security for a farmer 
program loan. 
‘‘(2) GENERAL RELEASE.—The Secretary shall 
release from the normal income security provided for 
a loan an amount sufficient to pay for the essential 
household and farm operating expenses of the bor-
rower, until such time as the Secretary accelerates 
the loan. 
‘‘(3) NOTICE
OF
REPORTING
REQUIREMENTS 
AND RIGHTS.—If a borrower is required to plan for 
or to report as to how proceeds from the sale of col-
lateral property will be used, the Secretary shall no-
tify the borrower of— 
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‘‘(A) the requirement; and 
‘‘(B) the right to the release of funds 
under this subsection and the means by which 
a request for the funds may be made. 
‘‘(e) EASEMENTS ON INVENTORIED PROPERTY.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
in the disposal of real property under this section, 
the Secretary shall establish perpetual wetland con-
servation easements to protect and restore wetland 
or converted wetland that exists on inventoried prop-
erty. 
‘‘(2) LIMITATION.—The Secretary shall not es-
tablish a wetland conservation easement on an 
inventoried property that— 
‘‘(A) was cropland on the date the prop-
erty entered the inventory of the Secretary; or 
‘‘(B) was used for farming at any time 
during the period— 
‘‘(i) beginning on the date that is 5 
years before the property entered the in-
ventory of the Secretary; and 
‘‘(ii) ending on the date on which the 
property entered the inventory of the Sec-
retary. 
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519 
‘‘(3) NOTIFICATION.—The Secretary shall pro-
vide prior written notification to a borrower consid-
ering homestead retention that a wetland conserva-
tion easement may be placed on land for which the 
borrower is negotiating a lease option. 
‘‘(4) APPRAISED VALUE.—The appraised value 
of the farm shall reflect the value of the land due 
to the placement of wetland conservation easements. 
‘‘SEC. 3410. CONTRACTS ON LOAN SECURITY PROPERTIES. 
‘‘(a) CONTRACTS
ON
LOAN
SECURITY
PROP-
ERTIES.—Subject to subsection (b), the Secretary may 
enter into a contract related to real property for conserva-
tion, recreation, or wildlife purposes. 
‘‘(b) LIMITATIONS.—The Secretary may enter into a 
contract under subsection (a) if— 
‘‘(1) the property is wetland, upland, or highly 
erodible land; 
‘‘(2) the property is determined by the Sec-
retary to be suitable for the purpose involved; and 
‘‘(3)(A) the property secures a loan made under 
a law administered and held by the Secretary; and 
‘‘(B) the contract would better enable a quali-
fied borrower to repay the loan in a timely manner, 
as determined by the Secretary. 
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