Committee adopts substitute to expand agricultural leasing options, extend terms to 20 years

Senator Jesse Bjorkman and his staff walked the Senate Resources Committee through a new committee substitute for Senate Bill 208 on April 10, describing multiple changes designed to make state land leasing and sales more workable for farmers.

Laura Ashey, staff to Senator Bjorkman, said the substitute (version T) moves some sales to a department-driven merit process rather than a buyer-driven auction and asks the Division of Mining, Land and Water to consult the Division of Agriculture when scoring applications. "The department will select the parcels that are available and offer them for sale the same as they would do under their highest-bidder version of auctions," Ashey told the committee.

Key changes: Ashey and sponsor described a schedule of regional per-acre pricing that can be set below market in some regions, a change from 10- to 20-year initial and renewal lease terms to improve borrowers’ ability to obtain financing, incorporation of approved agricultural development plans and timelines into lease terms, and the ability to sublet or transfer leases with department approval. The substitute also allows the department discretion to waive appraisal and survey requirements in appropriate cases to reduce upfront costs for applicants.

Affected stakeholders: Emily Garrity, owner/operator of Twitter Creek Gardens in Homer, said she has been navigating the leasing process for four years and that the bill’s changes — especially waivers of costly appraisal and survey requirements and regional pricing — could materially help small farmers. Rachel Longacre, chief of operations at the Division of Mining, Land and Water, said the division can work with existing applicant findings and that some changes would be discretionary and tied to director determination.

Committee action: Chair Giesel removed her objection and the committee adopted the committee substitute version T as the working document with no recorded objections. The chair set an amendment deadline of Wednesday, April 15 at noon and said the bill would be set aside for further refinement at that deadline.

Next steps: Staff and the sponsor will accept amendments through April 15 and work with the division to ensure the statutory language aligns with intended department discretion.