Amends the Consolidated Farm and Rural Development Act to direct the Secretary of Agriculture to administer farmland acquired by the Farmers Home Administration in conformity with specified requirements. Prohibits the offer of such land for sale or lease in any State or locality which has suffered substantial reduction in the average value of farmland since 1980 until the average farmland value in the State or locality equals or exceeds, for 12 consecutive months, the average value at the start of such 12-month period. Prohibits the lease or operation of such property for the production of any commodity in surplus supply. Requires devotion of such property to conserving uses.