(1) The agriculture pollution prevention fund is created in the state treasury.

  (2) The state treasurer may receive money or other assets from any source for deposit into the fund, including state and federal revenues, gifts, bequests, and other donations. The state treasurer shall direct the investment of the fund and shall credit to the fund interest and earnings from fund investments.

  (3) Money in the fund or in any account within the fund at the close of the fiscal year shall remain in the fund or account and shall not lapse to the general fund. The department shall be the administrator of the fund for auditing purposes.

  (4) Money in the fund shall be expended, upon appropriation, only for 1 or more of the following:

  (a) For payments, financial incentives, or reimbursement for rental payments for the implementation of conservation practices.

  (b) For payments required under contracts entered into under this part.

  (c) For the purchase of conservation easements.

  (d) For monitoring and enforcement of conservation easements.

  (e) For awards to participants in conservation programs established by the department under this part.

  (f) For the promotion of conservation programs established by the department under this part.

  (g) Not more than 20% of the annual appropriations from the fund for the administrative costs of the department in implementing this part. As used in this subdivision, administrative costs include, but are not limited to, costs incurred in doing 1 or more of the following:

  (i) Developing and implementing conservation programs.

  (ii) Managing payments and financial incentives.

  (iii) Monitoring and verifying the implementation of conservation practices and enforcing contracts or agreements concerning conservation practices.

  (iv) Coordinating conservation programs with the United States department of agriculture and other state agencies with jurisdiction over conservation programs.