Since early 2021, a notable trend has emerged across the United States, as states increasingly seek to regulate foreign investments in agricultural land. By 2023, the number of states with laws aimed at restricting foreign ownership of agricultural land grew from fourteen to twenty-five, reflecting a heightened concern over national security and economic sovereignty. As legislative sessions commence in 2025, this momentum appears set to continue, with proposals already introduced in nineteen states, including Alabama, Arizona, and New York. This article delves into recent legislative efforts in Hawaii, Idaho, and Michigan, highlighting the implications of these developments for foreign investors and local agricultural economies.
In Hawaii, the state has historically prohibited nonresident individuals from acquiring public agricultural land but has allowed foreign entities to hold private land. However, recent legislative proposals signal a shift in this permissive stance. Senate Bill 1 (SB 1) aims to prohibit foreign parties from acquiring any interest in agricultural land, drawing inspiration from Arkansas’ foreign ownership law. The bill outlines a comprehensive definition of prohibited foreign parties, including individuals and entities from countries subject to the federal International Traffic in Arms Regulations (ITAR). Notably, the bill exempts “resident aliens,” allowing individuals from ITAR countries who reside in the U.S. to invest in Hawaii’s agricultural land. If passed, SB 1 would establish an Office of Agricultural Intelligence tasked with investigating potential violations and could result in significant penalties for non-compliance, including the forced sale of illegally held land.
Additionally, two other bills under consideration, Senate Bill 242 (SB 242) and House Bill 192 (HB 192), seek to limit foreign ownership of agricultural land by imposing acreage restrictions. While these measures provide some leeway for foreign businesses, they lack specific definitions for “controlling interest” and do not set clear acreage limits, leaving uncertainty for potential investors. Another proposal, Senate Bill 206 (SB 206), diverges from the focus on agricultural land, aiming to restrict nonresident aliens from acquiring residential property, marking a broader approach to foreign investment regulation in Hawaii.
Turning to Idaho, the state enacted a foreign ownership law in 2023 that restricts foreign governments and their enterprises from acquiring agricultural land, along with associated water rights and mining claims. In the current legislative session, House Bill 12 (H12) proposes to expand these restrictions to foreign principals from designated “foreign adversary” countries, including China and Russia. This bill not only seeks to limit foreign ownership but also mandates that foreign principals divest their interests within 180 days of the law’s enactment. The implications of H12 are significant, as it could further isolate foreign adversaries from Idaho’s agricultural and natural resources, while requiring compliance with new registration and reporting obligations.
Michigan is also considering measures to address foreign ownership in agriculture, reflecting a growing concern shared by many states. While specific details on Michigan’s proposals were not covered in this article, the general trend indicates a collective push among states to safeguard their agricultural resources from foreign control.
The implications of these legislative initiatives are profound. For foreign investors, navigating the evolving landscape of state laws may become increasingly complex, requiring careful consideration of compliance and potential legal ramifications. For local farmers and agricultural businesses, these measures could foster a more favorable environment for domestic investment, potentially stabilizing local economies and protecting them from foreign influences. As states continue to grapple with the balance between attracting investment and ensuring security, the outcome of these legislative proposals will be closely watched by stakeholders across the agricultural sector.