Conference report to the 3rd edition makes the following changes. Amends the act’s short title.

Section 1

Changes the due date of the report the Department of Agriculture and Consumer Services must make to the specified NCGA committee on the development of the water plan and necessary legislative changes to January 1, 2027 (was, October 1, 2026).

Removes Section 3 that amended GS 160D-705 by allow denying special use permits for negative impact on agricultural production.

Removes Section7 that amended GS 106-549.97 concerning species susceptible to chronic wasting disease.

Moves Section 15.5 into Section 7 and changes the due dates of the Collaboratory’s reports on its study on shellfish aquaculture leasing and moratorium on shellfish leasing, so that the interim report is now due by December 1, 2026, and the final report is due by May 1, 2027.

Section 8

Adds that rules adopted under the section (concerning requirements for composting of equine and bovine mortality) are not subject to GS 150B-21.3(b3) and GS 150B-19.4. Adds that the section and rules adopted under the section must not modify, limit, repeal, condition, or otherwise affect any exemption from permitting or regulation applicable to a farming operation, silvicultural operation, or other agricultural activity under the specified regulation.

Section 14

Amends the due date of the Agriculture and Forestry Awareness Study Commission’s study on low hanging communication lines so that it is now due before the convening of the 2027 Regular Session of the NCGA.

Section 15

Changes the effective date of the changes to GS 113-187 concerning penalties for certain shellfish aquaculture violations so that it applies to offenses committed on or after December 1, 2026.

Section 16

Adds the following. Amends GS 113-218 by making organizational and clarifying changes. Amends when actual knowledge that it is a marine aquaculture leased area is presumed by clarifying what must be included on the identification signs. Removes the current Class A1 misdemeanor designation and the fine of up to $5,000 and instead makes it a: (1) Class H felony for a first offense, punishable by a fine of not less than $250 in addition to any other punishment prescribed for the offense; and (2) a Class G felony for a second or subsequent offense, punishable by a fine of not less than $500 in addition to any other punishment prescribed for the offense.

Amends GS 113-269, concerning robbing or injuring hatcheries and aquaculture operations, by removing the definition of shellfish lease. Instead of a Class 1 misdemeanor, sets out the following punishments: (1) Class H felony for a first offense, punishable by a fine of not less than $250 in addition to any other punishment prescribed for the offense; and (2) Class G felony for a second or subsequent offense, punishable by a fine of not less than $500 in addition to any other punishment prescribed for the offense.

Makes these changes, and those to GS 14-78, applicable to offenses committed on or after December 1, 2026.

Section 18

Changes the effective date of the section, concerning changes to propane assessments, to January 1, 2027.

Removes previous Section 20, concerning APA exemption for rules to modernize wastewater permitting, Section 20.1 through Section 20.4 concerning allowing the use of ungraded lumber, and Section 20.5 concerning the use of certain subsurface dispersal products for wastewater storage and dispersal in traffic-rated areas.

Adds the following.

Section 19

Amends GS 160D-903 prohibiting county zoning regulations from affecting property used for a bona fide farm purpose, as follows. Expands upon what is a bona fide farm purpose to include a building or structure used solely for the production of agricultural products and commodities derived from animal waste. Makes organizational and clarifying changes.

Amends GS 143-138 by amending the exclusion from building rules for specified farm buildings by expanding upon the definition of a farm building to also include a building used solely for the production of agricultural products and commodities derived from animal waste if the building is surrounded and adjoined by public ways and yards, no less than 60 feet wide. Requires the building owner to post a placard on the front of the building that meets the required size and appearance standards, and says "Ag. 31 Exempt."

Effective July 1, 2026.

Section 20

Amends GS 106-758, which defines terms applicable to Article 63, Aquaculture Development Act, by adding and defining the term shellfish.

Amends GS 106-761 by adding striped bass to the species that are exempt from special restrictions on introduction of exotic species except to prevent disease. Also amends that list by adding the scientific name of each species.

Section 21

Repeals GS 143B-289.57(f) which required the appointment of a three-member Shellfish Cultivation Lease Review Committee to hear appeals of decisions of the Secretary regarding the issuance of shellfish cultivation leases.

Amends GS 113-202(g) by making conforming deletions. Allows another aggrieved person, in addition to an applicant, who is dissatisfied with the decision on a shellfish cultivation lease to commence a contested case.

Specifies that any cases pending before the Shellfish Cultivation Lease Review Committee on the effective date of this section may be refiled as a contested case by filing a petition under GS 150B-23 within 30 days after the effective date of this section.

Section 22

Repeals Article 86, Farmed Cervid Industry Promotion Act, of GS Chapter 106.

Section 23

Amends GS 106-816.5 by limiting which assessments a dairy producer may request a refund for to those collected for the previous calendar year. Requires the dairy producer, after receiving the refund, to complete the form and provide proof of payment of the assessment no earlier than January 15 (was, December 15) and no later than January 31 (was, December 31) of a calendar year.

Specifies that a refund requested between January 15, 2027, and January 31, 2027, must be for the assessment collected for the period between December 1, 2025, and December 31, 2026.

Section 24

Amends Section 15(c) of SL 2024-32 by extending the sunset on the tax credit for donations of property useful for: (1) for forestland or farmland preservation, (2) for fish and wildlife conservation, (3) as a buffer to limit land use activities that would restrict, impede, or interfere with military training, testing, or operations on a military installation or training area or otherwise be incompatible with the mission of the installation, (4) for floodplain protection in a county that, in the five years preceding the donation, was the subject of a Type II or Type III gubernatorial disaster declaration as a result of a natural disaster, (5) for historic landscape conservation, or (6) for public trails or access to public trails so that it now expires for taxable years beginning on or after January 1, 2031 (was, 2027), for donations made on or after that date.

Amends Section 9(e) of SL 2025-4 by extending the sunset on the conservation tax credit so that it now expires for taxable years beginning on or after January 1, 2031 (was, 2027), for donations made on or after that date.