This bill amends the Agricultural Credit Act of 1978 to address preagreement costs for emergency watershed protection measures, allowing State, local, and Tribal governments (defined as sponsors) to incur certain expenses before a formal agreement with the Secretary of Agriculture. The Secretary is mandated to identify eligible measures and establish a procedure for sponsors to request additional preagreement measures for natural disasters. If an agreement is subsequently reached, these preagreement costs can be considered part of the sponsor's contribution to the project. However, sponsors undertaking these measures prior to an agreement assume the full financial risk for those expenditures. The bill explicitly states that it does not require the Secretary to enter into an agreement with any sponsor, preserving the Secretary's discretion.