NASHVILLE, TN – Governor Bill Lee has signed into law the Tennessee Farmland Preservation Act, Senate Bill 207 / House Bill 1325, a landmark piece of legislation set to transform agriculture and land conservation across the Volunteer State. Starting July 1, 2025, this Act creates a dedicated fund and grant program to protect Tennessee’s valuable farmlands and forestlands from ongoing development pressures. The passage of this bill underscores a growing recognition within the state of the vital importance of preserving agricultural resources for the economic, environmental, and societal benefits of future generations.
Key Provisions of the Legislation
The core of the Tennessee Farmland Preservation Act centers on creating a Farmland Preservation Fund. Subject to annual appropriations, this fund will be managed by the Tennessee Department of Agriculture and allocated for the development and implementation of programs that conserve farmland and forestland.
A key part of this initiative is a grant program for conservation easements. This program enables farmers and forest landowners to voluntarily enter into permanent conservation easements with qualified 501(c)(3) nonprofit organizations or directly with the Department of Agriculture. These easements legally restrict future development on the land, ensuring it remains available for agricultural and forestry purposes. Significantly, these easements can only be altered or accessed with the landowner’s explicit consent, protecting private property rights.
The legislation clearly states that government entities are not eligible to participate in this grant program. The Commissioner of Agriculture is authorized to establish rules necessary to fully implement the Act, including setting detailed eligibility criteria for both landowners and qualified easement holders.
Impacts on State Taxpayers and Budget
The Farmland Preservation Act allocated an initial $25 million to establish the grant fund. The law intends for the funding to be recurring, subject to annual legislative approval. While this marks a new line item in the state budget, proponents argue it is a critical investment.
“For it to help farmers preserve their land, losing 10 acres an hour, that seems like a fairly affordable price to pay,” stated Senator Shane Reeves, Chairman of the Energy, Agriculture, and Natural Resources Committee, regarding the initial $25 million appropriation. This sentiment reflects the belief that the long-term benefits of farmland preservation, including food security and economic stability, outweigh the upfront costs.
Opponents, such as those from American Stewards, have raised concerns about creating a new government spending program, suggesting such programs rarely end once established. However, the legislation emphasizes voluntary participation, which may help alleviate some fears of government overreach. Funds from the Farmland Preservation Fund will be invested, with the interest earned being reinvested back into the fund, potentially creating a sustainable financial mechanism over time.
Benefits for Farmers and Other Stakeholders
The primary beneficiaries of this legislation are Tennessee’s farmers and forest landowners. The Act offers an essential incentive to protect their land through financial support for conservation easements. Increasing land prices and development pressures often make it difficult for farmers to resist selling their land for non-agricultural purposes. This grant program aims to counteract those pressures. “This is about preserving more than just open space; it is about protecting a way of life that has defined our state for generations,” remarked Senate Majority Leader Jack Johnson (R-Franklin).
For Farmers:
Financial Viability: The grant fund helps cover the costs of establishing a conservation easement, including legal fees, surveys, and appraisals. It may also compensate farmers for giving up future development opportunities.
Long-term Security: Permanent conservation easements provide long-term protection against unwanted development, ensuring that family farms can remain in agricultural production for generations.
Continued Ownership and Use: Landowners retain full ownership of their property and can continue all agricultural and forestry operations as they deem necessary. The legislation designed easements to accommodate necessary farm structures and ongoing farming practices.
Lending Assurances: The legislation includes provisions to address concerns about farmers’ ability to secure mortgages on preserved land, ensuring continued access to financing.
For the State and General Public:
Food and Fiber Security: Preserving farmland helps ensure a stable local food supply for Tennessee residents.
Economic Stability: Agriculture remains a vital economic driver in Tennessee, significantly contributing to the state’s economy. The Act supports the financial health of rural communities.
Environmental Protection: Preserved farmland provides valuable ecosystem services, including water filtration, wildlife habitat, and carbon sequestration, all of which are essential for maintaining a healthy environment.
Cultural Preservation: The Act recognizes and aims to protect the historical and cultural significance of agricultural efforts on Tennessee’s identity.
Governor Lee, a cattle farmer himself, has been a strong supporter of this initiative, stating, “Agriculture is the top driver of Tennessee’s economy, and our farmers play an important role in our state’s success. As Tennessee experiences unprecedented economic growth and job creation, the Farmland Preservation Act ensures that someone can preserve their land well into the future.”
Agriculture Commissioner Charlie Hatcher, D.V.M., enthusiastically said, “Tennessee is facing a serious challenge with the rapid loss of our valuable farm and forest land. Once it is changed, we cannot revert it! This wonderful voluntary program gives us a great chance to protect our land for future generations, keeping agriculture and forestry as vital cornerstones of Tennessee’s vibrant economy, beautiful landscape, and rich identity!”
The Land Trust for Tennessee, along with other conservation groups, has been a key supporter of this legislation, highlighting the alarming rate of farmland loss in the state, estimated at 10 acres per hour. They see this Act as a vital tool to reverse this trend.
Analysis and Outlook
The Tennessee Farmland Preservation Act places Tennessee among other states that have adopted similar Purchase of Agricultural Conservation Easements (PACE) programs. As of December 2024, 29 states run and fund PACE programs, which have collectively conserved over 3 million acres of farmland. The legislation’s voluntary nature is a key feature, ensuring landowners decide whether and when to participate.
The rulemaking process, currently underway by the Department of Agriculture, will be crucial in setting specific eligibility criteria, application procedures, and project prioritization. The Tennessee Farm Bureau, which identifies this as a top legislative priority, will closely monitor its implementation. The success of the Farmland Preservation Act is measured by its ability to curb farmland loss and promote a sustainable future for agriculture in Tennessee, balancing the state’s rapid growth with its valued rural heritage.
Sources:
BillTrack50. (n.d.). TN HB1325. https://www.billtrack50.com/billdetail/1823512
Farmonaut. (2025, May 13). Tennessee Farmland Preservation Act: 5 Powerful Ways to Protect Farms. https://farmonaut.com/usa/tennessee-farmland-preservation-act-5-powerful-ways-to-protect-farms
Food as a Verb. (2025, February 19). Good News: Farmland Preservation Fund Update! https://www.foodasaverb.com/post/good-news-farmland-preservation-fund-update
LegiScan. (n.d.). TN SB0207 | 2025-2026 | 114th General Assembly.
https://legiscan.com/TN/bill/SB0207/2025
The Land Trust for Tennessee. (n.d.). The Farmland Preservation Act: What It Means for Tennessee Farmers. https://www.landtrusttn.org/blog/the-farmland-preservation-act-what-it-means-for-tennessee-farmers/
Tennessee.gov. (2025, May 12). Gov. Lee Signs Farmland Preservation Act Into Law. https://www.tn.gov/governor/news/2025/5/12/gov–lee-signs-farmland-preservation-act-into-law.html
Local family-owned farm owners react: Governor Bill Lee signs the Farmland Preservation Act into law: Local farmers on the Farmland Preservation Act. https://www.youtube.com/watch?v=gGTTxx6Y6pQ