Sioux City Times

U.S. Representative Randy Feenstra has introduced a new legislative measure aimed at increasing oversight of foreign purchases of American farmland. The Foreign Agricultural Restrictions to Maintain Local Agriculture and National Defense (FARMLAND) Act proposes that the Committee on Foreign Investment in the United States (CFIUS) review all transactions involving American farmland by foreign entities exceeding $5,000,000 or 320 acres.

The legislation also mandates an annual report from the Secretary of Agriculture and the Secretary of Homeland Security on any national security risks posed by foreign investments in U.S. farmland. Additionally, it directs the development of a public database detailing all farmland owned by foreign governments and other entities while limiting their participation in Farm Service Agency programs.

Senator Joni Ernst has introduced similar legislation in the Senate. She stated, "For far too long, an outdated system has allowed China’s malign influence to threaten our security by buying up our nation’s land."

Rep. Feenstra emphasized the need for this bill: "It is in the interest of the United States to review purchases of American farmland by foreign entities to protect our farms and agricultural production from our foreign adversaries, especially China."

Under current law, through the Agricultural Foreign Investment Disclosure Act (AFIDA), foreign investors must report their holdings and transactions involving U.S. farmland to the Secretary of Agriculture. However, enforcement has been limited due to a lack of investigative authority among federal agencies.

The FARMLAND Act seeks to address these issues by modernizing AFIDA's reporting process and enhancing national security for farmers and rural communities.

As background context, between 2019 and 2020 alone, China's ownership of American farmland increased significantly—by 30%. Furthermore, as noted in September 2022 records from the U.S. Department of Agriculture, only eight financial penalties had been assessed against foreign investors since 2012.

In a related move last year, Rep. Feenstra sponsored an amendment banning China from purchasing American farmland suitable for domestic energy production—a measure passed with overwhelming support in the House.