FARMLAND Act: New Bill Cracks Down on Foreign Ownership of US Farms, Starting 2025

The "Foreign Agricultural Restrictions to Maintain Local Agriculture and National Defense Act of 2025," or FARMLAND Act, aims to tighten the reins on foreign investment in U.S. agricultural land, citing national security concerns. The bill zeroes in on "strategic competitors," particularly China, and their efforts to dominate the global agriculture industry. It's all about preventing agricultural espionage and intellectual property theft by what the bill calls "foreign entities of concern." (Sec. 2)

Digging Deeper into Disclosure

The Act plans to modernize and enforce existing laws, making sure foreign entities are transparent about their dealings on U.S. farms. If companies fail to submit required reports or provide false information, they'll face hefty penalties. The penalty for non-compliance will be "not less than 5 percent, but not more than 25 percent" of the value involved. (Sec. 2) The Secretary of Agriculture is also required to publicly disclose the names of those who have paid civil penalties. (Sec. 2) Think of it like this: if a foreign company doesn't play by the rules, they'll not only pay up, but everyone will know about it.

Spying on the Farm?

One of the most significant parts of the bill is its focus on national security. It requires an annual report to Congress on the national security risks associated with agricultural land purchases by specific foreign countries, particularly China, Russia, and state sponsors of terrorism. (Sec. 3) This report will break down how much land is owned by these "covered foreign persons," state by state, and analyze potential threats to food security, biosecurity, and even environmental protection. (Sec. 3) Imagine a scenario where a foreign-owned farm is located near critical infrastructure – the bill wants to assess the risk of that farm being used to monitor or disrupt activities vital to national security. (Sec. 3)

Beefing Up Oversight

The FARMLAND Act also creates a new top dog within the Department of Agriculture: a Chief of Operations of Investigative Actions. (Sec. 4) This person will be responsible for monitoring compliance, conducting investigations, and working with other federal agencies to prevent "malign efforts to steal agricultural knowledge/technology." (Sec. 4) They'll also have the power to refer transactions that raise red flags to the Committee on Foreign Investment in the United States (CFIUS). (Sec. 4)

CFIUS Gets More Muscle

Speaking of CFIUS, this bill gives them significantly more authority to review real estate purchases by "foreign entities of concern." (Sec. 5) Specifically, deals over $5,000,000 or involving more than 320 acres of land used for agriculture, fossil fuels, renewable energy, or critical materials will be under the microscope. (Sec. 5) This means that if a company from a "country of concern" tries to buy a large chunk of farmland, CFIUS can step in and scrutinize the deal for potential national security risks.

No More Farm Aid for Foreign Owners

Perhaps the most direct impact on individuals and businesses is the bill's prohibition of foreign persons from participating in Farm Service Agency (FSA) programs. (Sec. 7) This means that if you're a foreign national or a foreign-owned entity operating or owning a farm in the U.S., you won't be eligible for FSA benefits. The bill mandates penalties up to 125% of any benefits received, and collected funds will be used to enforce the rule. (Sec.7) For example if a foreign-owned farm operation currently receives subsidies or support through FSA programs, they'll be cut off.

Tracking the Land

Finally, the bill calls for the creation of a comprehensive database of agricultural land owned by foreign entities within three years. (Sec. 6) This database will combine data from various sources, making it easier to track foreign ownership and ensure compliance with reporting requirements. The Chief of Operations will audit this database annually to ensure its accuracy. (Sec. 6)