In the evolving landscape of U.S. agricultural policy, Arkansas stands at the forefront of a growing trend to restrict foreign investments in land, particularly in the agricultural sector. Since January 2021, nearly every state has proposed legislation to prohibit or restrict foreign landholdings, with the number of states enacting such laws increasing from fourteen to twenty-five. This trend shows no signs of slowing down, with the majority of states in the U.S. considering measures to enact or amend foreign ownership laws in 2025.
Arkansas, one of the twenty-five states with a foreign ownership law, is currently seeking to amend certain portions of its existing legislation. In 2023, the state enacted Act 636, which established restrictions on foreign investments in real property. The law defines a “prohibited foreign party” (PFP) as an individual, business entity, or foreign government from countries subject to the federal International Traffic in Arms Regulations (ITAR), including China, Iran, North Korea, and Russia. PFPs are barred from acquiring any interest in agricultural land within the state. Additionally, a “prohibited foreign-party-controlled business” (PFPCB) is prohibited from acquiring any interest in real property if a PFP holds a controlling interest of 50% or more.
Arkansas made headlines when it became the first state to enforce its foreign ownership law, ordering a subsidiary of Syngenta Seeds, a Chinese-owned company, to divest itself of farmland. More recently, Jones Eagle, LLC, a data center business, filed a lawsuit against the state, alleging that Arkansas’ foreign ownership law violates the U.S. Constitution. A federal court in Arkansas issued a preliminary injunction in favor of Jones Eagle, preventing the state from initiating enforcement actions against the business.
During the 2025 legislative session, Arkansas is considering two significant bills that could further restrict foreign landholdings. House Bill 1680 (HB 1680) aims to prohibit PFPs and PFPCBs from holding any interest in land, including public or private agricultural land, within a ten-mile radius of critical infrastructure. This definition encompasses a broad range of assets, from military installations to cybersecurity information storage systems. The bill also seeks to clarify that PFPs and PFPCBs are prohibited from leasing land within the state, amending the current language that restricts acquisition methods.
Additionally, HB 1680 proposes to reduce the divestment period for PFPs who are no longer resident aliens from two years to one year. This measure aims to ensure that foreign landholders who lose their resident alien status must quickly divest their agricultural landholdings.
Senate Bill 317 (SB 317) takes a different approach by prohibiting institutions of higher education in Arkansas from engaging in certain activities with PFPs. These activities include conducting classified research, selling agricultural products, producing agricultural products, and entering into nondisclosure agreements. The bill passed the Arkansas Senate on March 6, 2025, and is now under consideration by the House.
The implications of these legislative efforts are significant. Arkansas’ proactive stance on foreign land ownership reflects a broader national trend, with many states introducing similar legislation. The proposed amendments to Arkansas’ foreign ownership law could set a precedent for other states grappling with the same issues. As the legislative session progresses, the outcomes of these bills will shape the future of foreign investments in U.S. agricultural land, potentially influencing national security, economic stability, and agricultural productivity.