House Ways and Means Committee Chair, Rep. Jason Smith (R-Mo.), has sponsored a bill that seeks to prevent foreign adversaries, such as China, Russia, Iran, North Korea, Cuba and Venezuela, from acquiring U.S. agricultural land by imposing a 60% excise tax on their purchases. The measure, co-sponsored by Rep. Beth Van Duyne (R-Texas), is an extension of state and federal efforts to restrict farmland ownership to Americans and U.S. allies, aiming to bolster food and economic security.
Foreign entities own 3.1% of America’s private land (40.8 million acres of agricultural land), with China owning about 0.9% of the total. The Smith/Van Duyne bill also proposes a 10% to 50% excise tax on purchases by publicly traded companies with up to 50% ownership by disqualified persons.
Texas has already banned Chinese firms’ access to the state power grid, setting a precedent for further restrictions.
