Addressing Foreign Investment in U.S. Agricultural Land: A Growing Concern

February 18, 2025 - WASHINGTON, D.C. - Senator Tuberville's Efforts to Protect National Security

The United States has witnessed an alarming surge in foreign investment across its agricultural sector, posing significant threats to national security and economic stability. This issue, particularly exacerbated by investments from China, has prompted legislative action aimed at safeguarding the country's essential resources. One such legislative effort is spearheaded by Senator Tuberville, who has been a fervent advocate against foreign ownership of American farmland and elements within the food supply chain.

The Provisions of the Bill

The proposed bill encompasses several stringent measures designed to curtail foreign influence in U.S. agricultural land ownership and bolster transparency. Key provisions include:

• Prohibition of Participation: Individuals from Iran, North Korea, China, and Russia are prohibited from participating in specific USDA programs.

• Closing Loopholes: Ensuring robust reporting mechanisms for foreign-owned U.S. agricultural land.

• Federal Tax Liens and Civil Penalties: Establishing federal tax liens and amending civil penalties for violations.

• Public Data Sets: Creating comprehensive public data sets accessible through an online database.

• Mandatory Reporting: Requiring the U.S. Department of Agriculture (USDA), Department of National Intelligence (DNI), and Government Accountability Office (GAO) to submit detailed reports to Congress.

Background and Rationale

In recent years, the U.S. has seen a rapid increase in foreign investment within its agricultural sector, notably from China. Such investments in agriculture, healthcare, and energy sectors pose significant threats to national security and the nation's resilience. Senator Tuberville, a prominent critic of foreign ownership of American farmland, has vigorously opposed this trend, highlighting the dangers it presents to the country's food supply chain.

According to USDA data from December 2023, foreign investors now own approximately 45 million acres of U.S. agricultural land, marking an increase of over 1.5 million acres in just one year. While foreign ownership grew modestly from 2012 to 2017, averaging an increase of 0.6 million acres annually, the rate of increase soared to an average of 2.6 million acres annually since 2017. The most striking shift is observed in land ownership by entities or individuals from China, which ballooned more than twentyfold between 2010 and 2021, from 13,720 acres to 383,935 acres.

Alabama, Senator Tuberville's home state, ranks fourth in the nation for foreign-owned agricultural land, with 2.2 million acres, primarily forestland.

The Foreign Adversary Risk Management (FARM) Act

In response to these concerns, Senator Tuberville reintroduced the Foreign Adversary Risk Management (FARM) Act earlier this year. This bipartisan, bicameral bill aims to fortify the Committee on Foreign Investment in the United States (CFIUS) by integrating the Secretary of Agriculture as a permanent member. Historically, CFIUS has not directly addressed the needs of the agricultural industry when evaluating foreign investments and ownership in domestic businesses. By acknowledging the critical importance of the agricultural sector, the FARM Act seeks to ensure that future foreign investments are scrutinized with a heightened awareness of their potential impact on national security and the food supply chain.

The Growing Need for Legislative Action

The rapid increase in foreign ownership of U.S. agricultural land underscores the urgent need for legislative measures to protect national interests. Foreign investments in critical industries, such as agriculture, must be carefully monitored to prevent potential threats to national security. Senator Tuberville's ongoing efforts highlight the importance of safeguarding American farmland from foreign control and ensuring the sustainability and security of the nation's food supply.

Implications for the Future

The proposed legislation carries significant implications for the future of U.S. agriculture and national security. By placing stricter controls on foreign ownership and mandating comprehensive reporting, the bill aims to enhance transparency and accountability. The inclusion of the Secretary of Agriculture in CFIUS ensures that the agricultural sector receives the attention it deserves in national security considerations.

Supporting National Security and Economic Stability

Senator Tuberville's initiatives reflect a broader understanding of the interconnectedness of national security and economic stability. Protecting American agricultural land from foreign ownership not only safeguards the nation's food supply but also ensures the longevity and resilience of the agricultural sector. Enhanced reporting and transparency measures provide a clearer picture of foreign investments, allowing for informed decision-making at the highest levels of government.

Conclusion

As foreign investments in U.S. agricultural land continue to rise, sponsors say that it is imperative to implement robust legislative measures to safeguard national interests. Senator Tuberville's proposed bill addresses these concerns by introducing stringent controls, enhancing transparency, and integrating agricultural considerations into national security evaluations. By taking proactive steps to protect American farmland, the bill seeks to ensure the sustainability, security, and prosperity of the nation's agricultural sector. The ongoing efforts to curb foreign influence in critical industries reflect a commitment to preserving national security and economic stability in the face of evolving global challenges.