New Bill Bans China, Russia, Iran, and North Korea-Linked Entities from Buying U.S. Farmland and Accessing USDA Programs

The "Prohibition of Agricultural Land for Foreign Adversaries Act" is a straightforward piece of legislation with complex implications. Simply put, this bill bans individuals or organizations linked to the governments of four specific countries—China, Russia, Iran, and North Korea—from purchasing any agricultural land, public or private, within the United States. It’s a move clearly framed around national security and control over the nation’s food supply. Beyond the ban on buying land, the bill also prohibits these same “covered persons” from participating in most programs run by the Department of Agriculture (USDA), with a single exception for food inspection and general food safety rules.

The Land Lockout: Who Gets Sidelined in Real Estate

Section 3 puts the hammer down on real estate transactions. If you are deemed a “covered person”—meaning you are tied to the government of any of the four named countries—you can no longer acquire U.S. farmland. This isn't just about massive corporate farms; the bill uses the existing definition of agricultural land from a 1978 law, which covers a lot of ground. For anyone involved in agricultural real estate, this means a new layer of intense scrutiny for buyers connected even loosely to these nations. The President is directed to enforce this ban using the International Emergency Economic Powers Act (IEEPA). Why should you care about IEEPA? Because it’s the legal tool used to impose sanctions, and it comes with serious penalties for violations, meaning if someone tries to skirt this rule, the consequences could be severe, including massive fines and jail time.

Shutting the Door on USDA Access

Section 4 deals with participation in government programs. For those same “covered persons,” the door to the USDA is largely closed. This means no access to crucial resources like conservation grants, crop insurance programs, or commodity support. Think about a research group or a legitimate business entity tied to one of these countries that might be doing agricultural science or operating a small farm here. They are suddenly cut off from the standard programs that virtually every other U.S. farmer relies on to manage risk and maintain modern operations. The only exception is if the program is strictly about food safety inspection—the kind of basic check that ensures your groceries won't make you sick.

The Fine Print and the Executive Power Question

While the goal of protecting the food supply is clear, the implementation raises practical questions. The term “covered person” is defined as being “linked to the government” of the specified countries (Sec. 2). This linkage is highly subjective and could be interpreted broadly, potentially affecting individuals or businesses with only tenuous ties. By leveraging IEEPA, the bill grants the Executive Branch significant, sweeping power to designate who is covered and to impose penalties without much immediate judicial oversight. This concentration of authority over property rights and economic participation is a significant detail, especially for the real estate industry and any entity that might fall into this vaguely defined category.