Farmland Security Act of 2025: New Rules Target Foreign Ownership, Shell Corps Face Hefty Fines

The Farmland Security Act of 2025 aims to tighten the screws on foreign ownership of U.S. agricultural land, primarily by going after shell corporations that hide ownership details. It's an update to the Agricultural Foreign Investment Disclosure Act of 1978, adding some serious teeth to the reporting requirements.

Digging Deeper into Disclosure

This bill significantly increases the penalties for foreign-owned shell corporations that fail to disclose their agricultural land holdings. We're not talking about a slap on the wrist; the penalty is now set at 100% of the land's fair market value. So, if a shell corporation owns a farm worth $1 million and doesn't report it, they could be on the hook for a $1 million fine. Ouch. However, if they correct the error within 60 days of being notified, they're off the hook. (SEC. 2).

Show Us the Land!

The Act isn't just about punishing wrongdoers; it's about finding them. The Secretary of Agriculture has to start doing annual compliance audits, checking at least 10% of the reports submitted to make sure everything's on the up-and-up. Plus, state and county personnel will get annual training to help them spot agricultural land that might have slipped through the cracks and isn't properly reported. (SEC. 2).

Reporting for Duty

Starting within 180 days of this Act becoming law, the Secretary of Agriculture will deliver annual reports to Congress. These reports are going to dive deep into a few key areas: (SEC. 2).

• How foreign entities are leasing agricultural land in the U.S., and what impact that's having.
• Trends in agricultural land purchases by those pesky foreign-owned shell corporations.
• Just how much agricultural production capacity and economic activity in the U.S. is under foreign ownership.

Show Me the Money

To make all this happen, the bill authorizes $2,000,000 to be appropriated to the Secretary of Agriculture each year from 2025 through 2030. That's taxpayer money funding these oversight and enforcement efforts.(SEC. 2).

Real-World Implications

Imagine a foreign-owned company, disguised as a shell corporation, buys up large tracts of farmland in a rural county. Local farmers, who have been working the land for generations, might find themselves competing with a massive, opaque entity. This Act aims to level the playing field by bringing that ownership into the light. On the flip side, a legitimate foreign investor, say, a Canadian pension fund with a small stake in a U.S. agricultural operation, could get caught in the crosshairs if their paperwork isn't perfect. The "shell corporation" definition will be key – and potentially a source of legal wrangling.

This bill could make a significant change in how we track and regulate foreign investment in one of our most vital resources: the land that feeds us.