Foreign investments in U.S. agricultural land have surged over the past decade, with the most recent data from the Farm Service Agency indicating that foreign entities held interests in nearly 43.4 million acres at the start of 2023. This trend has prompted federal policymakers to take a closer look at the implications of such investments, particularly as they relate to national security and the integrity of the agricultural sector. Although there is currently no federal law limiting the amount of farmland that can be owned by foreign investors, the 118th Congress has introduced several measures aimed at increasing oversight and potentially restricting these acquisitions.
One of the most significant proposals is the Agriculture and National Security Act of 2024, which seeks to require the U.S. Department of Agriculture (USDA) to conduct a comprehensive assessment of vulnerabilities in the food and agricultural sector related to foreign investments. This legislation would mandate that the USDA report to Congress every two years on potential risks stemming from foreign ownership of agricultural land, intellectual property, and data. The bill emphasizes the need for the USDA to prioritize national security concerns, particularly in light of increasing foreign influence in critical areas such as supply chains, cybersecurity, and agricultural inputs.
The act also proposes the establishment of a Senior Advisor for National Security within the USDA, who would serve as a liaison with the National Security Council and other federal agencies. This advisor would be responsible for identifying national security vulnerabilities and recommending policies to mitigate risks associated with foreign investments. The focus on enhancing USDA’s capacity to address these challenges underscores the growing recognition of agriculture as a vital component of national security.
In addition to the Agriculture and National Security Act, Congress is considering the Intelligence Authorization Act for Fiscal Year 2025. This legislation would require the Director of National Intelligence, alongside several federal departments, to analyze the risks posed by foreign investments in U.S. agricultural land, particularly from countries identified as national security threats. The study would focus on landholdings near military installations and critical infrastructure, assessing the potential dangers of foreign adversaries leveraging agricultural assets for malicious purposes. This comprehensive approach reflects a serious commitment to understanding and addressing the complex interplay between agriculture and national security.
Another significant proposal is the Securing American Agricultural Act, which aims to provide Congress with a detailed understanding of the U.S. dependency on critical agricultural products that could be exploited by foreign powers, particularly China. This legislation would require the USDA to assess the production capacity of critical inputs such as fertilizers, seeds, and veterinary drugs, and identify vulnerabilities in the supply chain that could be exploited. By focusing on the potential for foreign adversaries to “weaponize” agricultural dependencies, this act highlights the strategic importance of self-sufficiency in food production.
The implications of these legislative measures are profound. As foreign investments in U.S. agricultural land continue to rise, the federal government is recognizing the need for greater oversight and proactive measures to safeguard national interests. The proposed assessments and reporting requirements would not only enhance transparency but also enable policymakers to make informed decisions about foreign ownership in agriculture. As the global landscape continues to shift, the intersection of agriculture and national security is likely to remain a focal point of legislative action, reflecting a growing understanding of the critical role that food security plays in national stability.
With these developments, stakeholders in the agricultural sector, including farmers, investors, and policymakers, will need to navigate an increasingly complex regulatory environment. The push for greater scrutiny of foreign investments could reshape the landscape of U.S. agriculture, prompting a reevaluation of ownership structures and investment strategies. As Congress deliberates on these measures, the future of foreign investment in U.S. farmland hangs in the balance, with implications that extend far beyond the agricultural sector itself.