(1) by redesignating paragraph (4) as para-
graph (5); and 
(2) by inserting after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) QUALIFIED STATE OR LOCAL ENTITY.— 
The term ‘qualified State or local entity’ means an 
eligible entity, public or private, that operates a 
farm and ranchland protection program under au-
thority of State law, which has— 
‘‘(A) for at least 3 calendar or fiscal years 
used or provided public or private funds to pur-
chase perpetual conservation easements or other 
interests in land on a cumulative total of at 
least 10 properties for the primary purpose of 
protecting the agricultural production capacity 
of eligible land; 
‘‘(B) the necessary authority under State 
law, as well as the technical and financial ca-
pacity, to monitor and enforce the terms of 
such conservation easements or other interests 
in land so that their purpose is carried out in 
perpetuity, or in the case of a governmental en-
tity, to legally require other public or private 
holders of such easements or interests in land 
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acquired with public funding to hold, monitor, 
and enforce them for the same purpose; and 
‘‘(C) financial control policies in place to 
assure that on average the purchase price of 
conservation easements and other interests in 
land purchased by the eligible entity or pur-
chased using funds provided by the eligible enti-
ty does not exceed their appraised fair market 
value.’’. 
(c) FARMLAND PROTECTION PROGRAM CHANGES.— 
Section 1238I of such Act (16 U.S.C. 3838i) is amended 
to read as follows: 
‘‘SEC. 1238I. FARMLAND PROTECTION. 
‘‘(a) 
ESTABLISHMENT.—The 
Secretary, 
acting 
through the Natural Resources Conservation Service, shall 
establish and carry out a farm and ranchland protection 
program under which the Secretary shall facilitate and 
fund the purchase of conservation easements or other in-
terests in eligible land for the purpose of protecting the 
agricultural production capacity of the land by limiting in-
compatible nonagricultural uses of the land. 
‘‘(b) PROTECTION PRIORITIES.—The program shall 
give the highest priority to protecting eligible land with 
prime, unique, or other productive soils that are at risk 
of non-farm development. 
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‘‘(c) GRANTS.— 
‘‘(1) GRANTS TO QUALIFIED STATE OR LOCAL 
ENTITIES.—Not less than 75 percent of the funds 
made available to carry out the program shall be 
awarded as grants, administered by Natural Re-
sources Conservation Service state conservationists, 
to qualified State and local entities. The Secretary 
shall distribute such grant funds among States 
based on demonstrated need for farm and ranch 
land protection and on the relative contribution of 
funds dedicated by States and eligible entities for 
this purpose. 
‘‘(2) MULTIPLE
TRANSACTIONS.—Grants may 
be made under the program for multiple trans-
actions without regard for whether pending purchase 
offers are outstanding, so long as all grant funds are 
used for the purpose of purchasing conservation 
easements or other interests in eligible land. 
‘‘(3) DISTRIBUTION OF EXCESS FUNDS.—Any 
funds not granted to qualified State or local entities 
under the program shall be available for distribution 
to other eligible entities as matching funds for indi-
vidual purchases of conservation easements and 
other interests in eligible land. 
‘‘(d) GRANT AGREEMENTS.— 
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‘‘(1) AGREEMENTS
AUTHORIZED.—The Sec-
retary, acting through the Natural Resources Con-
servation Service, may enter into an agreement with 
a qualified State or local entity, under which the 
State or local entity may purchase conservation 
easements or other interests in eligible land using a 
combination of grant funds provided under sub-
section (c) and other funds available to the entity. 
‘‘(2) TERMS AND CONDITIONS.—An agreement 
under this subsection shall stipulate the terms and 
conditions under which the qualified State or local 
entity shall use funds provided by the Secretary 
under the program, subject to the following: 
‘‘(A) The qualified State or local entity 
shall be authorized to determine their own cri-
teria and priorities for purchasing conservation 
easements and other interests in eligible land. 
‘‘(B) The qualified State or local entity 
may determine the terms and conditions for 
conservation easements and other interests in 
eligible land purchased using grant funds, if the 
attorney general of the State in which the land 
is located certifies that such terms and condi-
tions are adequate under State law to achieve 
and permit effective enforcement of the con-
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