(a) After consulting with the Board of Agriculture and Conservation (AS 03.09.010), on a determination that the highest and best use of unoccupied land is for agricultural purposes and that it is in the best interests of the state to sell or lease the land, the commissioner shall grant to an Alaska resident owning and using or leasing and using land for agricultural purposes a first option to purchase or lease the unoccupied land situated adjacent to land presently held by the Alaska resident for the amount of the high bid received at public auction or by sealed bid. If more than one Alaska resident qualifies for a first option under this section, eligibility for the first option shall be determined by lot, and the option must be exercised on the conclusion of the public auction or opening of sealed bids. A parcel of agricultural land sold under this section may not be less than 20 acres, and a parcel of agricultural land that is acquired by exercise of the option granted in this subsection may not exceed 320 acres. Agricultural land that is acquired under this section must be used for agricultural purposes as required by law.

(b) [Repealed, § 88 ch 152 SLA 1984.]

(c) Under this section,

(1) the director may transfer state land classified for agriculture only for agricultural purposes;

(2) the sale or lease shall be at public auction or by sealed bid.

(d) When not in conflict with this section, the provisions of AS 38.05.045 - 38.05.105 apply to disposals under this section.

(e) Nothing in (c) of this section affects the disposal of minerals under AS 38.05.135 - 38.05.183.

(f) In this section,

(1) “adjacent” means that a tract of land has one common boundary point with presently held land or is separated from the presently held land only by a physical barrier such as a road or stream;

(2) “agricultural purposes” includes farming, ranching, grazing, and storage or control of agricultural crops or livestock.