Shown verbatim: the complete text as captured from the official PDF posted by the Tennessee General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the chaptered version. The official bill page.
···~..
~ti,~~~\: ·~-. .\
.f(!~:;:{1lAG :~.
: ¢~. ;;~~~::~;:: j~ ;
- ...... _..,
Sfrde ef J etYteSsee
PUBLIC CHAPTER NO. 470
SENATE BILL NO. 207
By Johnson, Yager, Seal, Reeves, Walley, Stevens, Haile, Massey, Bailey, Gardenhire, Rose
Substituted for: House Bill No. 1325
By Lamberth, Cochran, Renea Jones, Vital, Stinnett, Hawk, Alexander, Reedy, Powers, Maberry,
Russell, Burkhart, Bricken, Atchley, Baum, Travis, Hale, Howell, White, Littleton
AN ACT to amend Tennessee Code Annotated, Title 43, Chapter 1, Part 1, relative to the farmland
preservation fund.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 43, Chapter 1, Part 1, is amended by adding
the following as a new section:
43-1-1_. Farmland preservation fund.
(a)(1) It is the intent of the general assembly to preserve farmland and forestland in
this state without limiting the ability of farmers and forest landowners to use their
property for their agricultural pursuits. The general assembly intends to secure the
economic, environmental, and societal benefits of farmland and forestland for future
generations.
(2) The general assembly finds the history and culture of this state to be
positively impacted by agricultural endeavors and takes the position that preserving
farmland and forestland will provide food and fiber security for generations to come.
(b)(1) Subject to annual appropriations, there is established a fund for the
development and implementation of programs that benefit Tennesseans by
preserving farmland and forestland, including a grant program for conservation
easements.
(2) There is established within the general fund a special agency account to
be known as the farmland preservation fund for funds allocated to the department of
agriculture for purposes of this section.
(3) Any unencumbered moneys and unexpended balance of the fund
remaining at the end of a fiscal year do not revert to the general fund but must be
carried forward and maintained until expended in accordance with this section. The
state treasurer shall invest moneys in the fund for the fund's benefit pursuant to§ 9-4-
603. Interest accruing on investments and deposits of the fund must be returned to
the fund and remain a part of the fund. The fund must only consist of moneys
appropriated from the general fund or interest accruing on investments and deposits
in the fund.
(4) The commissioner of agriculture shall administer the fund.
(c)(1) As used in this subsection (c), "qualified easement holder" means a 501 (c)(3)
nonprofit organization that:
(A) Is exempt from federal income taxation under § 501 (c)(3) of the
Internal Revenue Code (26 U.S.C. § 501 (c)(3));
S8207
(8) Acquires or proposes to acquire a conservation easement on
farmland or forestland in the state, whether through purchase, donation, or
other transfer; and
(C) Meets any other requirements established by the commissioner in
rule.
(2) Subject to the following, the department of agriculture shall develop a grant
program within the farmland preservation fund for farmland and forestland owners to
enroll their land in a permanent conservation easement held by a qualified easement
holder:
(A) The department of agriculture may award a grant to a qualified
easement holder or directly to the farmer or forest landowner;
(8) A grant application must include, at a minimum, the following:
(i) Proof satisfactory to the department of agriculture that the
farmer or forest landowner has entered into, or has contracted to enter
into, a conservation easement with a qualified easement holder; and
(ii) Proof satisfactory to the department of agriculture that the
farmland or forestland covered by the conservation easement will be
used for farm or forestry purposes; and
(C) A conservation easement acquired by participating in the grant
program must include the following conditions:
(i) The qualified easement holder shall not sell, transfer,
release, or otherwise divest the conservation easement except upon
the consent of the farmer or forest landowner;
(ii) A successor of a qualified easement holder shall be bound
to the terms of a conservation easement;
(iii) Any amendment to a conservation easement acquired
under this section shall only be made upon the consent of the farmer
or forest landowner and qualified easement holder and shall become
effective and enforceable at the time that such amendment is recorded
in the register's office of the county in which the farmland or forestland
is located;
(iv) The qualified easement holder shall only have access to
the property upon the consent of the farmer or forest landowner with
reasonable notice at reasonable times; and
(v) The conservation easement must permit the erection,
construction, or reconstruction of any building or other structure for
agricultural or forestry purposes and shall not restrict agriculture, as
defined in §§ 1-3-105 and 43-1-113, or forestry, as defined in§ 11-4-
103.
(d) Governmental entities are not eligible to participate in a grant program created
pursuant to this section.
(e) The commissioner of agriculture is authorized to promulgate rules to effectuate
this section, including the establishment of eligibility criteria. The rules must be promulgated
in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(f) Except as otherwise provided in this section, the Conservation Easement Act of
1981, compiled in title 66, chapter 9, part 3, applies to conservation easements created using
grant funds from the farmland preservation fund.
SECTION 2. The heading in this act is for reference purposes only and does not constitute a
part of the law enacted by this act. However, the Tennessee Code Commission is requested to
include the heading in any compilation or publication containing this act.
SECTION 3. For purposes of promulgating rules, this act takes effect upon becoming a law,
the public welfare requiring it. For all other purposes, this act takes effect on July 1, 2025, the public
welfare requiring it.
2
SENATE BILL NO. 207
PASSED: April 21, 2025
Q. - A ~.. ~ ... ls:)~,''--'
RAND., \ ··••'-'I'll.,...... I
'
SPEAKER OF THE SENATE
-~
CAMERONSEXTON,SPEAKER
HOUSE OF REPRESENTATIVES
rk1a APPROVED this Q,_IJ.. day of J..~ 2025
BILL LEE, GOVERNOREvery fact on this page links to its source, starting with the official bill record.