Public Resources Code section 10110
(a)
Except as provided in subdivision (b), a qualified entity that receives funding under the program shall do either of the following within five years of acquiring agricultural land with funds provided under the program:(1)
Transfer the agricultural land to a qualified farmer participant in accordance with both of the following criteria:(A)
The agricultural land is subject to an easement that meets the requirements of Chapter 4 (commencing with Section 815) of Title 2 of Part 2 of Division 2 of the Civil Code and that is recorded before or simultaneously with the transfer to the qualified farmer participant.(B)
The agricultural land is subject to any additional appropriate resale restrictions required by the department, such as affordability provisions, preemptive purchase rights, or shared appreciation, consistent with the purposes of the program.(2)
Enter into a long-term lease of the agricultural land with a qualified farmer participant in accordance with all of the following criteria:(A)
(i)The term of the lease is at least 10 years and no more than the time period described in Section 717 of the Civil Code.(ii)
Notwithstanding clause (i), the duration of the lease may be fewer than 10 years if the initial term combined with options to renew the lease on the same or similar terms as the initial term collectively amount to at least 20 years.(B)
The lease authorizes, during the term of the lease, the qualified farmer participant to terminate the lease with advanced notice.(C)
The lease provides the qualified farmer participant with the opportunity to purchase the land at or before the end of the lease term through a purchase option or a right of first refusal in the lease agreement.(D)
The agricultural land is subject to an easement that meets the requirements of Chapter 4 (commencing with Section 815) of Title 2 of Part 2 of Division 2 of the Civil Code and that is recorded before or simultaneously with the lease to the qualified farmer participant.(E)
The agricultural land is subject to any additional appropriate resale restrictions required by the department, such as affordability provisions, preemptive purchase rights, or shared appreciation consistent with the purposes of the program.(b)
If a farmer cooperative receives a grant pursuant to the program, the farmer cooperative may maintain ownership of the agricultural land if it records a conservation easement against the agricultural land that meets the requirements of Chapter 4 (commencing with Section 815) of Title 2 of Part 2 of Division 2 of the Civil Code and it records any additional appropriate resale restrictions required by the department, such as affordability provisions, preemptive purchase rights, or shared appreciation, consistent with the purposes of the program.
Source:
Section 10110, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=10110. (updated Sep. 18, 2026; accessed Sep. 28, 2026).
