LAND Act Ties Foreign Ag Land Buys to Buyer's Home Country Rules, Creates New Oversight Task Force

The Land And National Defense Act, or "LAND Act," introduces significant new rules for foreign entities looking to purchase agricultural land in the United States. The core idea is reciprocity: a foreign buyer faces the same restrictions on buying U.S. agricultural land as a U.S. citizen would face trying to buy similar land in the buyer's home country. This applies whether the buyer is an individual, a company, or a foreign government. The bill defines 'agricultural land' and 'foreign purchaser' by referencing the existing Agricultural Foreign Investment Disclosure Act of 1978.

Leveling the Field or Locking the Gate?

So, how does this work in practice? Section 2 lays out the specifics. For individuals, their 'home country' is their country of citizenship. If someone holds dual or multiple citizenships (including U.S. citizens with other citizenships), their 'home country' for this purpose becomes the one with the strictest laws regarding agricultural land purchases. For companies, if citizens from a particular country hold at least 5% ownership, that country's laws are considered; again, the strictest rules apply if multiple nationalities are involved. This determination of the 'strictest' laws falls to a new Task Force created by the Act. For example, if Country X completely prohibits U.S. citizens from buying its farmland, then under the LAND Act, citizens and companies tied to Country X would be prohibited from buying U.S. agricultural land. This approach aims to create a more level playing field, but the complexity in determining 'home country' status and comparing international laws could create hurdles.

Eyes on the Acres: Reporting and Oversight

The Act doesn't just set rules; it sets up a system to watch these transactions. Anyone selling agricultural land to a foreign buyer must report the sale to the Secretary of Agriculture. The Secretary then has to inform the Senators from that state and the local Congressional Representative. To oversee this and track trends, the bill establishes a specific Task Force chaired by the Secretary of Agriculture and including members from the Committee on Foreign Investment in the United States (CFIUS), the DOJ's National Security Division, and the Secretary of State. This Task Force is required to report to Congress every six months on details like the percentage of agricultural land sold to foreign buyers, where it's located, average costs, and importantly, whether the land is within 100 miles of a military installation, highlighting a national security focus.

The Real-World Ripple Effect

These changes could have noticeable impacts. Sellers of agricultural land face a new federal reporting requirement, adding a step to the sales process. Foreign investors, particularly from countries with restrictive land ownership laws, will find it harder, or impossible, to purchase U.S. agricultural land. This could potentially reduce foreign investment in the U.S. agricultural sector. The process of determining 'home country' status and the applicable laws, especially for complex corporate structures or individuals with multiple citizenships, relies heavily on the interpretation and findings of the new Task Force. While aiming for transparency and national security, the implementation details and how the Task Force exercises its authority will be key factors in how these regulations affect the agricultural land market day-to-day.