This bill adds the Secretary of Agriculture to the Committee on Foreign Investment in the United States to address agricultural land transactions involving foreign adversaries.
Roger Marshall
Senator
KS
The "Protecting American Agriculture from Foreign Adversaries Act of 2025" adds the Secretary of Agriculture to the Committee on Foreign Investment in the United States to address transactions involving agricultural land, biotechnology, and industry. It mandates the Committee to review agricultural land transactions involving foreign entities from countries of concern like China, North Korea, Russia, and Iran, as identified by the Secretary of Agriculture. This ensures scrutiny of foreign investments in U.S. agriculture that could pose national security risks. The requirements terminate for a covered country once it is removed from the list of foreign adversaries.
Foreign Adversaries Banned from Buying U.S. Farmland Under New Bill
The Protecting American Agriculture from Foreign Adversaries Act of 2025 aims to tighten control over foreign investment in U.S. agriculture. The core change? It adds the Secretary of Agriculture to the Committee on Foreign Investment in the United States (CFIUS) for any deals involving agricultural land, biotechnology, or the broader agriculture industry, as per the amended Defense Production Act of 1950. Essentially, this gives agriculture a seat at the table when national security concerns arise from foreign investments.
Fields of Change
This bill focuses on transactions involving entities from "covered countries"—specifically China, North Korea, Russia, and Iran (Section 2). If a company or individual from these nations wants to buy U.S. agricultural land, the Secretary of Agriculture can flag it for CFIUS review. This is a big shift, requiring CFIUS to determine if these agricultural deals pose a national security risk. It's not just about land; it includes agricultural transportation, storage, and processing (Section 2).
For example, imagine a Chinese firm wants to purchase a large tract of farmland in Iowa. Under this bill, the Secretary of Agriculture could notify CFIUS, triggering a review to ensure the sale doesn't threaten U.S. interests. Or consider a Russian company investing in a major grain storage facility. This too could be flagged for review, examining potential risks to the food supply chain.
Sowing Seeds of Security?
While the bill aims to protect a vital sector, there are real-world considerations. The law hinges on the definition of "reportable agricultural land transaction," which includes any deal the Secretary of Agriculture believes is a "covered transaction" and involves acquiring an interest in agricultural land by a foreign person from a listed country (Section 2). This could potentially slow down investments, as the review process adds extra steps and scrutiny.
Moreover, the requirements terminate for a country once it's removed from the list of foreign adversaries (Section 2), meaning the rules could change based on shifting geopolitical dynamics. This adds a layer of uncertainty for long-term agricultural investments. The bill's impact will largely depend on how these definitions are interpreted and applied, affecting everything from farmland values to international trade relationships.