By Scout Nelson
Foreign investors owned 46 million acres of U.S. farmland in 2023, representing less than 4% of total American farmland. This marks an increase of 1.6 million acres from the previous year, according to a report by the American Farm Bureau Federation based on U.S. Department of Agriculture data.
Canadian investors hold the largest share, owning about one-third of foreign-owned farmland. Renewable energy projects, particularly wind energy, have driven much of the recent growth in foreign ownership. Over half of the increase from 2022 to 2023 involved entities linked to renewable energy.
Despite the rising numbers, experts like agricultural economist Bruce Sherrick suggest concerns about foreign ownership may be overstated, given the small fraction of land involved.
However, public concerns often focus on land owned by nations considered adversarial to the U.S., such as China or Russia, which collectively own only 0.03% of American farmland. Notably, land holdings from these nations decreased between 2022 and 2023.
Some concerns centre on foreign-owned land near sensitive locations. For example, in 2023, Grand Forks, North Dakota, blocked a Chinese company from using agricultural land near a military base due to security concerns.
Federal and state laws aim to regulate foreign ownership. The Agricultural Foreign Investment Disclosure Act of 1978 requires reporting on foreign-owned farmland. Additionally, about 25 states restrict foreign ownership of agricultural land, with Iowa enforcing some of the strictest rules.
Efforts to strengthen regulations include proposed federal legislation to restrict land purchases by entities from China, Russia, North Korea, and Iran. Lawmakers are also advocating for enhanced data collection on foreign investments and broader oversight through committees like the Committee on Foreign Investments in the United States.
As debates continue, many states are considering new laws to address foreign investments in farmland, reflecting agriculture's critical role in the U.S. economy and national security.
Photo Credits:american-farm-bureau-federation
Categories: National, Government & Policy