New Bill Bans Certain Foreign Governments from Buying U.S. Farmland, USDA Program Access Limited

The "Protecting America's Agricultural Land from Foreign Harm Act of 2025" aims to tighten control over who owns and uses U.S. farmland. Here's the lowdown on what it changes and how it might affect you:

No More Farmland for Adversaries?

This bill, if passed, straight-up prohibits individuals or entities connected to the governments of Iran, North Korea, China, and Russia (defined as "covered persons") from buying or leasing any U.S. agricultural land, both public and private. This includes land used for ranching, too (SEC. 2). If you're a U.S. citizen or legal permanent resident, this doesn't apply to you. The President gets the power to enforce this ban, and violators face penalties under the International Emergency Economic Powers Act (SEC. 3).

• Real-World Impact: Imagine a Chinese-owned company wants to buy a large soybean farm in Iowa. Under this law, that deal would be blocked. However, if a private Chinese citizen, not connected to the government, wants to buy the same farm, that purchase would likely still be allowed. This is a big distinction. Existing ownership is grandfathered in, it does not require covered individuals to sell land they already own.

USDA Program Lockdown

Beyond just buying land, the bill also restricts "covered persons" who already own or lease U.S. agricultural land from participating in most USDA programs (SEC. 4). The exceptions are pretty narrow: food safety inspections, worker health and safety programs, and programs directly related to enforcing this new law or the existing Agricultural Foreign Investment Disclosure Act of 1978 (AFIDA).

• Real-World Impact: A Russian-owned ranch in Montana that currently receives USDA subsidies for conservation practices? That funding stream would likely dry up. They'd still have to comply with food safety rules, but most other support would be cut off.

Cracking Down on Disclosure (and Penalties)

This bill significantly beefs up AFIDA (SEC. 5). Here's what's changing:

• More Reporting: Foreign investors will now have to report any security interest or lease of agricultural land, no matter how short the lease term. Previously, there were loopholes for shorter leases.

• Bigger Fines: Penalties for not reporting, or reporting incorrectly, are going up. The minimum penalty is now "less than 15 percent" of the land's value, and the maximum is 30 percent (it used to be a flat 25 percent).

• Liens on Land: If you don't pay the penalty, the Secretary of Agriculture must put a lien on your land until you do.

• Public Database: The USDA has to create a public, searchable database with all the data from these foreign investment reports. This includes purchase prices, estimated land values, and details on foreign owners holding at least a 1% stake. This database must be updated within 30 days of receiving a new report.

• Expanded Definition of "Foreign Person": This now includes any entity (not individuals) that primarily trades its stock on exchanges within Iran, North Korea, China, or Russia.

• Real-World Impact: This means more paperwork and higher stakes for foreign investors. The increased transparency could help track foreign influence, but it also creates a potential administrative burden. The lien provision is particularly strong, giving the government real leverage to enforce penalties.

Reports, Reports, Reports (SEC. 6)

Finally, the bill requires a series of reports to Congress:

• From the Secretary of Agriculture: An annual report (for the first year, then every two years) on the risks and benefits of foreign ownership of farmland, problems with misreporting, and how state/local governments are tracking this issue.
• From the Director of National Intelligence: An annual report (for the first year, then every two years) analyzing "foreign malign influence" in the U.S. agriculture industry and the motives of foreign investors buying farmland. This report is unclassified (with a possible classified annex).
• From the Government Accountability Office (GAO): A one-time report reviewing the resources and effectiveness of AFIDA, along with any recommended changes.

These reports are designed to give Congress more information to potentially refine these rules in the future. The requirement for a plan to protect personally identifiable information in the USDA report acknowledges privacy concerns related to the public database.