Reclamation Act of 1979

Reclamation Act of 1979 - Establishes a 1,600 acre limitation on a landholding to be served with reclamation project water.

States that in order for an individual, which term includes brothers and sisters, spouse, and dependents, who has farmed the land for less than five years to be eligible to receive reclamation water, one of three tests must be met as follows: (1) residence within 50 miles of the land; (2) provision of more than one-half of the capital and labor to operate the land; or (3) derivation of primary income from the land. Allows family corporations and small businesses to be eligible if their beneficial owners meet the three test requirements.

Exempts certain lands owned by States and political subdivisions and agencies and lands owned by charitable, religious, tax-exempt organizations from the acreage limitation provisions of the Federal reclamation laws.

Permits larger acreages, equivalent to 1,600 acres of class I land, to receive project water where the land is of lesser productive potential.

Exempts landholdings from acreage limitations if the contracting entity has made full payment or will make an immediate lump-sum payment of the balance remaining on the construction repayment obligation. Applies a 4,800 acre limitation on a landholding if the contracting entity enters into an amendatory contract agreeing to pay the United States an amount equal to the remaining unpaid share of construction costs for such project together with interest compounded annually on the construction costs and the cost of the project irrigation benefits.

Permits an owner of excess land to designate which land shall receive project water as nonexcess land. Allows excess lands to be sold at the fair market value. Allows the seller to retain interest in mineral rights, surface rights, and security rights.

Stipulates that two years after the date of the enactment all recipients must meet the acreage limitation requirements. Authorizes the Secretary to amend any existing contract which is inconsistent with the provisions of this Act.