Over the past few years, the topic of foreign investments in U.S. agricultural land has gained significant traction among federal and state lawmakers. While there is no federal law outright restricting foreign investments in agricultural land, the federal government has been keeping a close eye on such acquisitions through the Agricultural Foreign Investment Disclosure Act (AFIDA) of 1978. This act requires foreign entities to disclose their interests in U.S. farmland to the U.S. Department of Agriculture (USDA).
AFIDA was enacted to address growing concerns about the impact of foreign investments on family-farm operations and farmland prices. However, the lack of comprehensive data on foreign investment activity made it challenging to assess the full extent of these impacts. To bridge this gap, AFIDA mandates that foreign persons acquiring or transferring any interest in agricultural land must disclose their holdings to the USDA. This information is then compiled into an annual publication, providing insights into the extent of foreign ownership across various types of agricultural land.
Recently, the landscape of foreign agricultural land investments has evolved, prompting new legislative actions. According to the latest AFIDA report, foreign entities held interests in nearly 45 million acres of U.S. agricultural land as of December 31, 2023. This trend has sparked a series of bills aimed at increasing oversight and restricting foreign investments in U.S. farmland. Among these, the Farmland Security Act of 2025 (S. 845) stands out, introduced by Senators Tammy Baldwin (D-WI) and Chuck Grassley (R-IA).
The Farmland Security Act of 2025 seeks to amend AFIDA to enhance monitoring and transparency of foreign investments in U.S. farmland. One of the key provisions of the bill targets shell corporations, which are business entities with no or nominal operations. The legislation proposes penalizing shell corporations that fail to disclose their agricultural landholdings to the USDA, imposing a penalty equal to the fair market value of the entity’s interest in the land. This move aims to ensure that all foreign-owned shell corporations comply with AFIDA reporting requirements, thereby increasing transparency.
The bill also mandates annual audits of at least 10% of AFIDA disclosures received by the USDA to ensure the completeness and accuracy of the information submitted. Additionally, it requires the USDA to provide training to state and county-level employees to identify agricultural and forestland with foreign ownership and to report any unreported farmland. The legislation further directs the USDA to conduct research on leases of agricultural land by foreign persons and their impact on family farms, rural communities, and the U.S. food supply. This research will be submitted to Congress annually, providing a comprehensive overview of foreign participation in the U.S. agricultural economy.
The Farmland Security Act of 2025 also allocates $2 million annually to the USDA from 2025 through 2030 to carry out the tasks mandated by the legislation. This funding will support the auditing of AFIDA disclosures and the conduct of the required research.
The introduction of the Farmland Security Act of 2025 marks a significant step in addressing the concerns surrounding foreign investments in U.S. agricultural land. As the bill progresses through the legislative process, it will be crucial to monitor its developments and the potential implications for the agricultural sector. The bill’s provisions, if enacted, could lead to greater transparency and oversight, potentially mitigating some of the economic pressures faced by family farms and ensuring the security of the U.S. food supply.