By Jamie Martin
The landscape of foreign ownership of U.S. agricultural land is changing rapidly as states adopt stricter regulations and federal agencies implement new oversight measures.
Over the past several years, many states have introduced laws restricting foreign ownership of farmland or limiting purchases by businesses connected to countries considered foreign adversaries. As a result, the number of states with few or no restrictions on foreign ownership has declined substantially.
Nationally, foreign entities own millions of acres of agricultural land, with ownership concentrated in several states. At the same time, some states have reported decreases in foreign-owned acreage as enforcement actions and new laws encourage divestment.
Agricultural policy specialists say modern restrictions are largely driven by concerns related to national security, food systems, critical infrastructure, and land located near military installations. These concerns have encouraged lawmakers to strengthen review processes and provide greater authority to state agencies responsible for enforcement.
Attention is also focused on updates to the Agricultural Foreign Investment Disclosure Act. The federal law requires foreign individuals and businesses to report agricultural land holdings and transactions to the U.S. Department of Agriculture. Recent reforms have modernized the reporting process through electronic filing systems and improved data management.
Federal officials are also working to strengthen coordination between agencies responsible for agriculture and national security. New initiatives are designed to improve access to ownership information, increase transparency, and support the evaluation of potential security risks linked to agricultural land transactions.
“There were states that didn’t address enforcement and came back to clear up that up, often with the attorney general having authority to report to the appropriate state or federal law enforcement, to CFIUS, which can result in divestiture — selling a property,” said Harrison Pittman, director of the National Agricultural Law Center.
Industry observers expect additional policy updates as governments continue reviewing foreign ownership rules. Future changes may expand reporting requirements, update land ownership definitions, and improve enforcement tools.
Photo Credit: istock-alenamozhjer
Categories: National