; (II) projects addressing water quality or quantity concerns in coordination with producers, including the development and implementation of watershed plans; (III) projects that use innovative approaches to leveraging the Federal investment in conservation with private financial mechanisms, in conjunction with agricultural production or forest resource management, such as— (aa) the provision of performance-based payments to producers; and (bb) support for an environmental market; (IV) projects that facilitate pilot testing of new conservation practices, technologies, or activities; (V) projects that promote the long-term viability and sustainability of agricultural land through innovative agricultural land protection strategies and mechanisms, including projects that support the transfer of land to beginning farmers and ranchers, veteran farmers and ranchers, socially disadvantaged farmers and ranchers, and limited resource farmers and ranchers, as determined by the Secretary; and (VI) other projects for which the Secretary determines that the goals and objectives of the program would be easier to achieve through the grant agreement; and (iii) the Secretary may provide technical and administrative assistance, as mutually agreed by the parties. (C) Nonapplicability of adjusted gross income limitation The adjusted gross income limitation described in section 1001D(b)(1) shall not apply to the receipt by an eligible partner of a grant under this paragraph. (D) Limitation The Secretary may not use more than 30 percent of funding made available to carry out the program for grant agreements. (E) Reports An eligible partner that enters into a grant agreement under this paragraph shall submit to the Secretary— (i) any information that the Secretary requires to prepare the report under section 1271E(b); and (ii) an annual report that describes the status of the project carried out by the eligible partner, including a description of— (I) the use of the grant funds; (II) any subcontracts awarded using grant funds