NJ A4636

Requires the State Agriculture Development Committee (SADC) and local county boards to provide landowners with a good faith advance payment equal to 20% of the appraised fair market value or final negotiated purchase price of farmland being acquired for preservation purposes, whichever is higher.

The advance payment must be disbursed as a single lump sum after the SADC or local board determines the purchase is likely to occur, and the amount will be deducted from the final purchase price at settlement.

If settlement does not occur or the purchase agreement is cancelled, the landowner must fully repay the advance payment, and the unpaid debt becomes a lien on all property owned by the landowner with priority over other claims on the subject farmland.

Written acceptance notices to landowners must include the fair market value, negotiated purchase price, advance payment amount with calculations, and a summary of the landowner's repayment obligations if the transaction fails.

Landowners must accept or reject the offer within 30 days of receipt, and rejected offers trigger mandatory repayment of any advance payments already disbursed.