A bill to amend the Soil Conservation and Domestic Allotment Act to provide an updated national direction to the conditions under which the Federal Government will provide financial assistance to agricultural producers for needed soil, water, wood, and wildlife conservation on agricultural lands.

Amends the Soil Conservation and Domestic Allotment Act to revise policy directives for Federal financial assistance to agricultural producers under such Act. Requires that eligibility criteria for the receipt of such assistance take into consideration: (1) the need to control erosion and sedimentation; (2) national environmental policy priorities; (3) encouragement of voluntary compliance to solve nonpoint source pollution problems; (4) conservation measures likely to provide a return in the form of increased production or increased land values; and (5) contribution to the national objective of adequate food and fiber for maintenance of a strong and healthy people and economy.

Stipulates that funds appropriated for such purposes may not be utilized to assist drainage on officially-designated wetlands areas. Stipulates that payments shall be allotted to landlords, tenants, and sharecroppers in proportion to the contribution of each group to the cost of conservation and environmental enhancement measures.

Repeals: (1) the use of surplus appropriations to expand domestic and foreign markets; (2) permission to use regional associations of producers in lieu of State, county and local committees in the administration of naval stores conservation programs; (3) the $500,000,000 maximum limit on obligations for various soil and water conservation programs for any calendar year; and (4) the provision for making agreements with retiring farmers for the conversion of their farmland to conservation uses.

Transfers the administration of various soil and water conservation programs from the Production and Marketing Administration to the Agricultural Stabilization and Conservation Service.