The House is preparing to vote next week on legislation aimed at restricting foreign ownership of U.S. agricultural land, particularly targeting purchases by entities connected to China.
Rep. Dan Newhouse (R-Wash.) introduced the “Protecting American Agriculture from Foreign Adversaries Act” on Aug. 30. Newhouse, who chairs the Congressional Western Caucus and serves on the House Select Committee on the Chinese Communist Party, has made Chinese land acquisitions a key focus of his work. The bill would:
· Add the Secretary of Agriculture as a member of the Committee on Foreign Investment in the United States (CFIUS)
· Require the USDA Secretary to report to CFIUS any purchase of U.S. agricultural land by “foreign adversaries” that may pose national security risks.
This legislation aims to make permanent similar provisions included in the FY 2024 Agriculture-FDA appropriations package passed in March 2024, which are set to expire at the end of September. The vote is part of the House’s “China Week” legislative lineup, reflecting growing concerns about Chinese land purchases in the U.S. There are concerns that some foreign investments in U.S. agricultural land, especially near military installations, may have national security implications.
Current foreign ownership landscape
· As of 2021, foreign investment in U.S. agricultural land totaled approximately 40 million acres, a 40% increase since 2016.
· Canada owns the largest share (32%) of foreign-held U.S. agricultural land, followed by the Netherlands (12%), Italy and the United Kingdom (6% each) and Germany (5%).
· China’s ownership interest in U.S. agricultural land is relatively small at 0.9%.
CFIUS is an interagency committee that reviews certain foreign investments in the U.S. for national security implications. Currently, USDA is not a permanent member of CFIUS but participates as a voting member when Treasury determines a transaction involves agricultural issues.
For leading ag policy updates, sign up for more from Pro Farmer - start 30 day free trial.
