The "Farmland Security Act of 2025" increases penalties for foreign-owned shell corporations that fail to report agricultural land holdings, mandates audits, provides training to state and county personnel, and requires reports to Congress on foreign investment in U.S. agriculture.
Tammy Baldwin
Senator
WI
The "Farmland Security Act of 2025" amends the Agricultural Foreign Investment Disclosure Act of 1978, increasing penalties for foreign-owned shell corporations that fail to report their agricultural land holdings, mandating annual audits of submitted reports, and requiring training for state and county personnel to identify unreported foreign-owned land. It also directs the Secretary to report to each state and submit an annual report to Congress detailing research on foreign agricultural activities and trends. Finally, it authorizes $2,000,000 to be appropriated to the Secretary for each of the fiscal years 2025 through 2030 to carry out the Act.
Farmland Security Act Targets Foreign Shell Corps with 100% Value Penalties, Mandates Audits
This bill, the "Farmland Security Act of 2025," significantly ramps up scrutiny on foreign ownership of U.S. agricultural land by amending a 1978 law. It introduces hefty penalties, particularly a 100% land value fine for non-compliant "shell corporations," mandates annual audits on 10% of filings, requires training for local officials to spot unreported land, and increases reporting to states and Congress. The core goal appears to be enhancing transparency and control over who owns American farmland.
Upping the Ante on Disclosure
The biggest headline grabber here is the potential penalty for foreign-owned "shell corporations" – defined simply as entities with "no or nominal operations" – that fail to properly report their U.S. farmland holdings. Instead of a smaller fine, they could face a civil penalty equal to 100% of the land's fair market value assessed on the day the penalty hits. There's a 60-day window to fix reporting errors after being notified to avoid this hammer. To back this up, the bill requires the Secretary of Agriculture to audit at least 10% of foreign ownership reports each year, aiming to catch inaccuracies or missing information.
More Eyes on the Ground and Up the Chain
It's not just about penalties; the bill aims to improve detection. It mandates annual training for state and county personnel – think your local land records office – to help them identify agricultural land that should be reported by foreign owners but hasn't been. Information is also set to flow more freely, with requirements for the Secretary to report findings to individual states and submit detailed annual reports to Congress starting within 180 days of enactment. These reports will dig into trends like land leasing by foreign entities, shell corporation purchases, and the overall impact on family farms, rural communities, and the domestic food supply.
The Bottom Line: Transparency vs. Practical Hurdles
So, what does this mean in practice? The idea is clearer insight into who owns U.S. farmland, potentially helping domestic farmers and rural communities by providing more data on foreign investment patterns and possibly deterring opaque ownership structures. However, the effectiveness hinges on execution. The definition of a "shell corporation" might need further clarification in practice to ensure it targets the intended entities without catching legitimate businesses or causing confusion during implementation. While the hefty penalty is a strong deterrent, ensuring it's applied fairly, especially distinguishing intentional non-compliance from unintentional errors, will be crucial. The bill authorizes $2 million annually from fiscal year 2025 through 2030 for these efforts, raising the practical question of whether this funding is sufficient for robust nationwide auditing, training, and reporting.