(a) In determining the amount of funding to be provided for an agricultural conservation easement or fee acquisition grant, the department shall take reasonable steps to ensure that the total purchase price of the agricultural conservation easement or, in the case of a fee title acquisition, the total purchase price of the subject property does not exceed fair market value, taking into consideration the funding from all sources. The determination of fair market value shall be accomplished, as follows:
(1) An applicant shall select and retain an independent real estate appraiser to determine the value of the subject property, including any proposed agricultural conservation easement.
(2) The department shall review and consider an applicant’s appraisal and may, at its sole discretion, require or obtain an additional appraisal.
(3) The easement value shall be calculated by determining the difference between the fair market value and the restricted value of the property.
(b) The department may conditionally approve grant applications prior to completion of final appraisals, provided an acceptable appraisal and all other requirements of this division are met before any disbursement of grant funds.
(c) The department shall have final authority to determine the acceptability of an appraisal pursuant to this division.