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HB1325 • 2026

Agriculture, Dept. of

AN ACT to amend Tennessee Code Annotated, Title 43, Chapter 1, Part 1, relative to the farmland preservation fund.

Agriculture Budget Land
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Lamberth, Johnson
Last action
2025-05-15
Official status
Comp. became Pub. Ch. 470
Effective date
Not listed

Plain English Breakdown

The exact conditions for transferring conservation easements were modified by an amendment, but the overall intent remains to limit such transfers.

Farmland Preservation Fund Act

This law establishes a fund and grant program to help preserve farmland and forestland in Tennessee by providing grants for conservation easements.

What This Bill Does

  • Establishes the Farmland Preservation Fund within the state's budget to support programs that protect farmland and forestland.
  • Develops a grant program within this fund for farmers and landowners who want to enroll their land in permanent conservation agreements with nonprofit organizations.
  • Requires these nonprofits, called 'qualified easement holders,' to meet certain conditions set by the commissioner of agriculture before they can receive grants.
  • Limits how qualified easement holders can use or transfer the conservation easements they acquire through this program.

Who It Names or Affects

  • Farmers and landowners who want to protect their farmland or forestland.
  • Nonprofit organizations that work on preserving agricultural lands in Tennessee.

Terms To Know

Conservation Easement
A legal agreement between a landowner and a nonprofit organization where the landowner agrees to limit certain uses of their property for conservation purposes, while retaining ownership.
Qualified Easement Holder
A 501(c)(3) nonprofit organization that meets specific criteria set by the Tennessee Department of Agriculture and is eligible to participate in the grant program.

Limits and Unknowns

  • The exact amount and timing of expenditures from the Farmland Preservation Fund cannot be predicted.
  • Governmental entities are not allowed to participate directly in this grant program.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Amendment 1-0 to HB1325

Plain English: This amendment adds new provisions to Tennessee law to establish a farmland preservation fund and grant program for conservation easements.

  • Establishes the Farmland Preservation Fund within the general fund of Tennessee, which will provide grants for conservation easements on farmland and forestland.
  • Defines 'qualified easement holder' as a nonprofit organization that meets certain criteria to hold conservation easements.
  • Sets up a grant program where farmers or landowners can apply for funds to enroll their land in permanent conservation easements.
  • The amendment does not specify the exact amount of funding allocated to the Farmland Preservation Fund, which may be determined by annual appropriations.

Bill History

  1. 2025-05-15 Tennessee General Assembly

    Comp. became Pub. Ch. 470

  2. 2025-05-15 Tennessee General Assembly

    Effective date(s) 05/12/2025, 07/01/2025

  3. 2025-05-15 Tennessee General Assembly

    Pub. Ch. 470

  4. 2025-05-12 Tennessee General Assembly

    Signed by Governor.

  5. 2025-05-01 Tennessee General Assembly

    Transmitted to Governor for action.

  6. 2025-04-30 Tennessee General Assembly

    Signed by H. Speaker

  7. 2025-04-29 Tennessee General Assembly

    Signed by Senate Speaker

  8. 2025-04-23 Tennessee General Assembly

    Enrolled and ready for signatures

  9. 2025-04-21 Tennessee General Assembly

    Concurred, Ayes 25, Nays 4 (Amendment 1 - HA0216)

  10. 2025-04-17 Tennessee General Assembly

    Placed on Senate Message Calendar for 4/21/2025

  11. 2025-04-16 Tennessee General Assembly

    Comp. SB subst.

  12. 2025-04-16 Tennessee General Assembly

    Sponsor(s) Added.

  13. 2025-04-16 Tennessee General Assembly

    Passed H., as am., Ayes 84, Nays 8, PNV 3

  14. 2025-04-16 Tennessee General Assembly

    H. adopted am. (Amendment 1 - HA0216)

  15. 2025-04-16 Tennessee General Assembly

    Subst. for comp. HB.

  16. 2025-04-15 Tennessee General Assembly

    H. Placed on Regular Calendar for 4/16/2025

  17. 2025-04-15 Tennessee General Assembly

    Placed on cal. Calendar & Rules Committee for 4/15/2025

  18. 2025-04-15 Tennessee General Assembly

    Rec. for pass; ref to Calendar & Rules Committee

  19. 2025-04-14 Tennessee General Assembly

    Placed on cal. Finance, Ways, and Means Committee for 4/15/2025

  20. 2025-04-14 Tennessee General Assembly

    Rec. for pass by s/c ref. to Finance, Ways, and Means Committee

  21. 2025-04-09 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2025

  22. 2025-04-08 Tennessee General Assembly

    Assigned to s/c Finance, Ways, and Means Subcommittee

  23. 2025-04-08 Tennessee General Assembly

    Sponsor(s) Added.

  24. 2025-04-07 Tennessee General Assembly

    Sponsor(s) withdrawn.

  25. 2025-04-07 Tennessee General Assembly

    Sponsor(s) Added.

  26. 2025-04-07 Tennessee General Assembly

    Rec. for pass; ref to Finance, Ways, and Means Committee

  27. 2025-04-02 Tennessee General Assembly

    Placed on cal. Government Operations Committee for 4/7/2025

  28. 2025-04-01 Tennessee General Assembly

    Rec. for pass. if am., ref. to Government Operations Committee

  29. 2025-03-31 Tennessee General Assembly

    Sponsor(s) Added.

  30. 2025-03-27 Tennessee General Assembly

    Sponsor(s) Added.

  31. 2025-03-26 Tennessee General Assembly

    Placed on cal. Agriculture & Natural Resources Committee for 4/1/2025

  32. 2025-03-26 Tennessee General Assembly

    Rec for pass if am by s/c ref. to Agriculture & Natural Resources Committee

  33. 2025-03-26 Tennessee General Assembly

    Sponsor(s) Added.

  34. 2025-03-19 Tennessee General Assembly

    Placed on s/c cal Agriculture & Natural Resources Subcommittee for 3/26/2025

  35. 2025-03-19 Tennessee General Assembly

    Action Def. in s/c Agriculture and Natural Resources Subcommittee to 3/26/2025

  36. 2025-03-17 Tennessee General Assembly

    Rcvd. from S., held on H. desk.

  37. 2025-03-13 Tennessee General Assembly

    Placed on s/c cal Agriculture & Natural Resources Subcommittee for 3/19/2025

  38. 2025-03-13 Tennessee General Assembly

    Engrossed; ready for transmission to House

  39. 2025-03-13 Tennessee General Assembly

    Sponsor(s) Added.

  40. 2025-03-13 Tennessee General Assembly

    Passed Senate, Ayes 27, Nays 4, PNV 0

  41. 2025-03-11 Tennessee General Assembly

    Placed on Senate Regular Calendar for 3/13/2025

  42. 2025-03-11 Tennessee General Assembly

    Sponsor(s) Added.

  43. 2025-03-04 Tennessee General Assembly

    Recommended for passage, refer to Senate Calendar Committee

  44. 2025-02-25 Tennessee General Assembly

    Sponsor(s) Added.

  45. 2025-02-25 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 3/4/2025

  46. 2025-02-20 Tennessee General Assembly

    Sponsor(s) Added.

  47. 2025-02-20 Tennessee General Assembly

    Sponsor(s) Added.

  48. 2025-02-19 Tennessee General Assembly

    Recommended for passage, refer to Senate Finance, Ways, and Means Committee

  49. 2025-02-12 Tennessee General Assembly

    Assigned to s/c Agriculture & Natural Resources Subcommittee

  50. 2025-02-12 Tennessee General Assembly

    P2C, ref. to Agriculture & Natural Resources Committee - Government Operatons for Review

  51. 2025-02-12 Tennessee General Assembly

    Placed on Senate Energy, Ag., and Nat. Resources Committee calendar for 2/19/2025

  52. 2025-02-12 Tennessee General Assembly

    Sponsor(s) Added.

  53. 2025-02-10 Tennessee General Assembly

    Intro., P1C.

  54. 2025-02-10 Tennessee General Assembly

    Sponsor(s) Added.

  55. 2025-02-10 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Energy, Ag., and Nat. Resources Committee

  56. 2025-02-06 Tennessee General Assembly

    Filed for introduction

  57. 2025-01-27 Tennessee General Assembly

    Introduced, Passed on First Consideration

  58. 2025-01-16 Tennessee General Assembly

    Filed for introduction

Official Summary Text

FARMLAND
PRESERVATION FUND

Subject to annual appropriations, this bill establishes a fund for the development and implementation of programs that benefit Tennesseans by preserving farmland and forestland, including a grant program for conservation easements. Wit
hin such fund, this bill establishes a special agency account, to be known as the farmland preservation fund, which must be administered by the commissioner of agriculture, for funds allocated to the department of agriculture for purposes of this bill.

GRANT PROGRAM

This bill requires the department to 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 501(c)(3) nonprofit organization that
is exempt from federal income taxation and that acquires or proposes to acquire a conservation easement on farmland or forestland in the state, whether through purchase, donation, or other transfer ("qualified easement holder").

This bill authorizes the
department to award a grant to a qualified easement holder or directly to the farmer or forester. A grant application must include, at a minimum, proof satisfactory to the department that (i) the farmer or forester has entered into, or has contracted to
e
nter into, a conservation easement with a qualified easement holder; and (ii) the farmland or forestland covered by the conservation easement will be used for farm or forestry purposes.

PROHIBITIONS

This bill prohibits a qualified easement holder from s
elling, transferring, releasing, or otherwise divesting a conservation easement acquired by participating in the grant program. Additionally, this bill clarifies that governmental entities are not eligible to participate in the grant program.

RULEMAKING

This bill authorizes the commissioner to promulgate rules to effectuate this bill, including the establishment of eligibility criteria.

ON APRIL 16, 2025, THE HOUSE SUBSTITUTED SENATE BILL 207 FOR HOUSE BILL 1325, ADOPTED AMENDMENT #1, AND PASSED SENAT
E BILL 207, AS AMENDED.

AMENDMENT #1 makes the following revisions:



Applies the bill to farmers and forest landowners, instead of farmers and foresters.



Requires, in order to be a "qualified easement holder" as used in the bill, a 501(c)(3) nonprofit organization to meet any requirements established by the commissioner of agriculture by rule.



Removes the requirement that a grant application include a prohibition on a
qualified easement holder
from
sell
ing
, transfer
ring
, releas
ing
, or otherwise divest
ing
a conservation easement acquired by participating in the grant program.



Requires, instead, a
conservation easement acquired by participating in the grant program
to
include
all of
the following conditions:



The qualified easement holder
must
not sell, transfer, release, or otherwise divest the conservation easement except upon the consent of the farmer or forest landowner
.



A successor of a qualified easement holder
is
bound to the terms of a conservation easement
.



Any amendment to a conservation easement acquired under
the bill must
only be made upon the consent of the farmer or forest landowner and qualified easement holder and 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
.



The qualified easement holder
must
only have access to the property upon the consent of the farmer or forest landowner with reasonable notice at reasonable times
.



The conservation easement must permit the erection, construction, or reconstruction of any building or other structure for agricultural or forestry purposes and
must
not restrict agriculture or forestry.



Clarifies that
the Conservation Easement Act of 1981

applies to conservation easements created using grant funds from the farmland preservation fund.

Current Bill Text

Read the full stored bill text 
SENATE BILL 207
By Johnson

HOUSE BILL 1325
By Lamberth

HB1325
000920
- 1 -

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) It is the intent of the general assembly to preserve farmland and forestland in
Tennessee without limiting the ability of farmers and foresters 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.
Further, the general assembly finds Tennessee history and culture to be positively
impacted by agricultural endeavors and believes preserving farmland and forestland will
provide food security for generations to come.
(b) 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.
(1) 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.
(2) Any unencumbered moneys and unexpended balance of the fund
remaining at the end of a fiscal year does not revert to the general fund but must
be carried forward and maintained until expended in accordance with this

- 2 - 000920

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.
(3) 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 is exempt from federal income taxation
under Section 501(c)(3) of the Internal Revenue Code (26 U.S.C. § 501(c)(3))
and that acquires or proposes to acquire a conservation easement on farmland
or forestland in the state, whether through purchase, donation, or other transfer.
(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 forester;
(B) A grant application must include, at a minimum, the following:
(i) Proof satisfactory to the department of agriculture that
the farmer or forester has entered into, or has contracted to enter
into, a conservation easement with a qualified easement holder;
and

- 3 - 000920

(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 qualified easement holder shall not sell, transfer, release, or
otherwise divest a conservation easement acquired by participating in the
grant program.
(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.
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 headings 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.