Who owns America’s farmland
Who owns America’s farmland

This movement is driven by mounting concerns over national security, food supply integrity, and economic sovereignty.​

Escalating Legislative Measures

At both federal and state levels, lawmakers are introducing bills to curb foreign acquisitions of U.S. farmland. Senators Jim Banks of Indiana and Tommy Tuberville of Alabama have spearheaded legislation designed to prevent entities associated with China, Russia, Iran, and North Korea from purchasing or leasing American agricultural land. Senator Banks emphasized the importance of this initiative, stating, "Allowing foreign adversaries to purchase and control any part of our country is foolish, let alone agricultural land that Americans rely on for nutrition." ​

This federal momentum is mirrored at the state level. For instance, Indiana enacted a law in July 2024 prohibiting citizens from these nations from owning or leasing farmland within the state. State Representative Kendell Culp, who introduced the bill, highlighted its significance: "This is about our country’s national security in ensuring that adversaries... do not gain a foothold on American soil." ​

Learn more: Top 10 Largest Farms & Farmland Owners in the US

National Security Concerns

The crux of these legislative efforts lies in national security apprehensions. Incidents such as a Chinese company's attempt to develop farmland near a North Dakota Air Force base have amplified fears about potential espionage and surveillance. This particular case led to heightened scrutiny and a cascade of legislative proposals across various states aiming to restrict foreign ownership of critical lands. ​

Moreover, reports of drones operating near U.S. military installations adjacent to Chinese-owned farmland have intensified these concerns. In December 2024, at least 17 military bases reported drone sightings, raising suspicions about potential surveillance activities. House Foreign Affairs Committee Chairman Michael McCaul remarked, "Based on my experience, these could very well be spy drones from China." ​

Current Landscape of Foreign Farmland Ownership

Despite the heightened focus, foreign ownership constitutes a small fraction of U.S. agricultural land. As of 2023, foreign investors held an interest in 3.5% of all privately held U.S. agricultural land, totaling approximately 45.85 million acres. Canadian investors represent the largest share, owning 33.5% of foreign-held agricultural land. In contrast, Chinese holdings account for less than 1% of foreign-owned acres, with a slight decrease observed from the previous year. ​

Learn more: US Farmland Prices: 10 Biggest Owners and Cheapest & Most Expensive Places to Buy

Diverse State-Level Responses

State responses to foreign land ownership vary widely. While some states have enacted stringent measures, others have adopted a more lenient approach. For example, South Dakota Governor Kristi Noem signed a bill in March 2024 barring China and five other countries from purchasing farmland in the state. Governor Noem articulated the rationale behind the legislation: "They are buying up our entire food supply chain, and when America can’t feed itself and we rely on another country to feed us, it becomes a national security issue."

Conversely, states like Maine, which has a significant portion of its privately held agricultural land owned by foreign entities (primarily Canadian timber companies), have not pursued aggressive restrictions. This disparity underscores the complex interplay between economic interests and security concerns influencing state-level policies.​

Political and Social Implications

The legislative push to restrict foreign ownership has ignited political debates and social ramifications. Critics argue that some measures may inadvertently foster xenophobia and discrimination, particularly against individuals of Asian descent. In Florida, a law prohibiting property ownership by Chinese nationals without permanent U.S. residency has prompted members of the Chinese-American community to reassess their political affiliations and activism. Diana Xue, a China-born U.S. citizen, expressed her concerns: "I never thought something like this could happen in America."

Furthermore, the political discourse surrounding this issue has permeated election campaigns. In the 2024 election cycle, opposition to Chinese ownership of U.S. farmland emerged as a focal point, with significant campaign funds allocated to advertisements addressing the topic. This trend reflects the growing salience of foreign land ownership in the American political landscape. ​

Balancing Security and Economic Interests

While national security remains a paramount concern, it's essential to balance these measures against potential economic repercussions. Foreign investments often contribute to local economies, and overly restrictive policies might deter beneficial investments. Mary Gallagher, a fellow at the Brookings Institution, cautioned, "Sweeping restrictions... hurt the country's reputation as an open place governed by the rule of law." ​

As the U.S. navigates this complex issue, policymakers must weigh the imperative of safeguarding national interests against the potential economic and social impacts of restrictive legislation. The evolving landscape of foreign farmland ownership will undoubtedly continue to shape the discourse on national security and economic policy in the years to come.