S3916

An Act concerning grants for deer fencing, supplementing P.L.2016, c.12 (C.13:8C-43 et seq.), and amending P.L.2021, c.451.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) Notwithstanding any rule or regulation adopted pursuant to P.L.2016, c.12 (C.13:8C-43 et seq.) to the contrary, a person who leases land acquired for farmland preservation purposes and actively engages in the use of that land for agricultural or horticultural purposes shall be eligible to apply to the committee for a farmland stewardship deer fencing grant made available with funding allocated by the committee for stewardship activities pursuant to paragraph (2) of subsection b. of section 8 of P.L.2016, c.12 (C.13:8C-50), provided the lessee has written approval to install deer fencing on the land from the owner of the land on which the deer fencing is to be installed.

2. Section 1 of P.L.2021, c.451 (C.4:20-6.1) is amended to read as follows:

1. a. There is established in the Department of Agriculture a matching grant program for the purpose of providing funding for deer fencing to the owner [or] , operator, or lessee of:

(1) unpreserved farmland;

(2) a farm for which pinelands development credits have been sold or otherwise conveyed pursuant to the "Pinelands Development Credit Bank Act," P.L.1985, c.310 (C.13:18A-30 et seq.); or

(3) a farm that is located in a sending zone pursuant to section 13 of the "Highlands Water Protection and Planning Act," P.L.2004, c.120 (C.13:20-13).

b. (1) The department shall award grants of [up to $200 per acre, not to exceed a total of $20,000 per applicant for] up to 50 percent of eligible project costs, not to exceed a total of $50,000 per applicant.

(2) Eligible project costs to be funded by a matching grant under the program shall include the cost to purchase deer fencing, the maintenance costs of existing deer fencing, and any other costs established as eligible project costs pursuant to rules and regulations adopted by the department pursuant to subsection f. of this section.

c. The owner [or] , operator, or lessee of a farm, as set forth pursuant to subsection a. of this section, shall be eligible for a matching grant for eligible project costs and may apply in the form and manner prescribed by the department, provided that:

(1) the applicant's farming operation has a minimum of $10,000 in gross sales in the preceding calendar year from agricultural or horticultural products grown or derived from the applicant's farm operation, as reflected in either personal or business federal tax return forms; and

(2) if the applicant is a lessee, the applicant has written approval to install deer fencing on the land from the owner of the land on which the deer fencing is to be installed.

d. (1) The owner [or] , operator, or lessee of a farm awarded a grant pursuant to this section shall, as a condition of receipt of the grant, enter into an agreement with the Department of Agriculture that requires the land to be retained in agricultural or horticultural production for eight years immediately following the receipt of the grant. An agreement entered into pursuant to this subsection shall [constitute a restrictive covenant and shall be filed with the municipal tax assessor and recorded with the county clerk in the same manner as a deed] not be required to be filed with the municipal tax assessor and recorded with the county clerk in the same manner as a deed. The department shall retain a copy of the agreement for the period of eight years provided for in the agreement, and shall require any repayment of the grant as may be necessary pursuant to paragraphs (2) and (3) of this subsection.

(2) If the owner [or] , operator, or lessee of a farm awarded a grant pursuant to this section (a) does not retain the land in agricultural or horticultural production or (b) the owner sells the land prior to the expiration of the eight-year period required pursuant to paragraph (1) of this subsection, the owner [or] , operator, or lessee receiving the grant shall be required to repay the grant to the department on a pro rata basis as provided in paragraph (3) of this subsection.

(3) (a) If, within the first five years of the eight-year period required pursuant to paragraph (1) of this subsection, the owner, operator, or lessee of a farm awarded a grant pursuant to this section (i) does not retain the land in agricultural or horticultural production or (ii) the owner sells the land, the owner, operator, or lessee of the farm who received the grant shall be required to repay the sum of 100 percent of the total amount of the awarded grant.

(b) If, within the sixth or seventh year of the eight-year period required pursuant to paragraph (1) of this subsection, the owner, operator, or lessee of a farm awarded a grant pursuant to this section (i) does not retain the land in agricultural or horticultural production or (ii) the owner sells the land, the owner, operator, or lessee of the farm who received the grant shall be required to repay the sum of 75 percent of the total amount of the awarded grant.

(c) If, in the eighth year of the eight-year period required pursuant to paragraph (1) of this subsection, the owner, operator, or lessee of a farm awarded a grant pursuant to this section (i) does not retain the land in agricultural or horticultural production or (ii) the owner sells the land, the owner, operator, or lessee of the farm who received the grant shall be required to repay the sum of 50 percent of the total amount of the awarded grant.

(d) If the recipient of the grant is an operator or lessee who the current owner of the land allows to continue to operate or lease the land for agricultural or horticultural production, and the operator or lessee continues to use the land for agricultural or horticultural production, the recipient of the grant shall not be required to repay the grant or portion thereof in accordance with this paragraph, provided the land is used for agricultural or horticultural production during the eight-year period required pursuant to paragraph (1) of this section.

e. The Department of Agriculture shall request annually, as part of its annual budget proposal, such amount as may be necessary to fund the grants authorized pursuant to this section. The department shall also coordinate with the Division of Fish and Wildlife in the Department of Environmental Protection, the United States Department of Agriculture, and any other applicable State or federal agency, to pursue any available federal, State, local, and private funding for the grants authorized pursuant to this section.

f. The Department of Agriculture shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary to implement this [act] section, including, but not limited to, establishing:

(1) information required to be submitted to the department to determine if a farm is eligible for funding pursuant to subsections a. and c. of this section;

(2) costs that qualify as eligible project costs in addition to those set forth in section b. of this section;

(3) the manner in which an owner [or] , operator, or lessee of a farm eligible for funding pursuant to this section shall provide evidence of the required 50 percent match for a grant;

(4) the manner in which an owner [or] , operator, or lessee of a farm awarded a grant pursuant to this section shall repay the grant on a pro rata basis to the department if the land is sold or is not retained in agricultural or horticultural production for eight years following the receipt of the grant; and

(5) requirements to be included in an agreement entered into by a grant recipient with the department pursuant to subsection d. of this section.

g. As used in this section, "unpreserved farmland" means a commercial farm, as that term is defined in section 3 of P.L.1983, c.31 (C.4:1C-3), on which a development easement has not been conveyed to, or retained by, the State Agriculture Development Committee, a county agriculture development board, a county, a municipality, or a qualifying tax exempt nonprofit organization
pursuant to any State law enacted for farmland preservation purposes.

(cf: P.L.2021, c.451, s.1)

3. This act shall take effect immediately.

STATEMENT

This bill establishes the eligibility of lessees of farmland to apply for deer fencing grants pursuant to the State Agriculture Development Committee’s farmland stewardship deer fencing grant program, established pursuant to P.L.2016, c.12 (C.13:8C-43 et seq.), and the Department of Agriculture’s matching grant program, established pursuant to P.L.2021, c.451 (C.4:20-6.1). In order to be eligible for a grant, the bill would require a lessee of farmland to obtain written approval from the land owner.

The bill also revises P.L.2021, c.451 to specify that the agreement required between the owner, operator, or lessee of the farm and the Department of Agriculture is not required to be filed as a deed restriction with the municipal tax assessor and recorded with the county clerk in the same manner as a deed. In addition, the bill provides for the repayment of an awarded grant, or portion thereof, if the owner, operator, or lessee of a farm awarded a grant either does not retain the land in agricultural or horticultural production, or the owner sells the land, prior to the expiration of the eight-year period established in the agreement with the Department of Agriculture.