Foreign Investment in U.S Agricultural Land: Current Issues

June 24, 2026

Foreign Investment in U.S Agricultural Land: Current Issues

In general, U.S. federal law does not restrict foreign

investment in or ownership of U.S. agricultural land.

Foreign persons are required to disclose to the U.S.

Department of Agriculture (USDA) information related to

foreign investment in and ownership of agricultural land

under the Agricultural Foreign Investment Disclosure Act

(AFIDA, 7 U.S.C. §§3501-3508). The Committee on

Foreign Investment in the United States (CFIUS), an

interagency body chaired by the Secretary of the Treasury,

may review a subset of foreign investment transactions for

potential U.S. national security risks. CFIUS derives its

authorities from Section 721 of the Defense Production Act,

as amended (50 U.S.C. §4565) and regulations (31 C.F.R.

Chapter VIII). Some states and localities have instituted

restrictions and requirements that apply to state and local

agricultural land transactions within their respective

jurisdictions. In 2026, USDA reported that, as of 2024,

foreign investors, including long-term lease holders, held an

interest in about 47.2 million acres of U.S. agricultural land,

or 3.6% of all privately-held agricultural land. Such data is

based on AFIDA filings and may underreport holdings.

Members continue to debate the role and effects of foreign

investment in the U.S. agricultural sector, including

acquisitions of land. Debates have centered on amending

the disclosure requirements for U.S. agricultural land in

AFIDA, the jurisdiction of CFIUS with respect to real

estate and land transactions, and USDA’s role in CFIUS

review. Various Members have introduced dozens of bills

on these issues regarding the quality, comprehensiveness,

and use of data collected by USDA; perceived limits of

CFIUS’ jurisdiction and extent of its ability to prohibit

foreign investments of congressional concern; and

investments by entities tied to the People’s Republic of

China (PRC or China), including the use of third-parties,

effects of aggregate PRC investments, and proximity of

high-profile PRC-tied investments to sensitive U.S. military

sites.

Developments since 2022 have galvanized some Members’

concerns about PRC investments in U.S. agricultural land,

and PRC targeting and proximity of investments to

sensitive U.S. sites. In particular, in 2022, the Department

of the Treasury (“Treasury”) determined that CFIUS did not

have jurisdiction to review a PRC firm’s land purchase tied

to a corn milling facility near Grand Forks Air Force Base

(AFB) in North Dakota. In 2023, the PRC flew a dirigible

with surveillance equipment across U.S. missile sites. Also

in 2023, five PRC nationals were charged for conspiring to

cover up a visit to Camp Grayling in Michigan during U.S.Taiwan training. Past high-profile large PRC acquisitions of

agricultural companies that involved CFIUS review, such as

WH Group’s acquisition of Smithfield Foods in 2013 and

ChemChina’s acquisition of Syngenta in 2017, received

considerable congressional attention.

USDA and AFIDA

AFIDA requires any foreign person who acquires or

transfers interest, other than a security interest (a mortgage

or debt securing interest), in U.S. agricultural land to submit

a report to USDA within 90 days of the acquisition or

transfer. AFIDA governs a nationwide system for collecting

information on foreign purchasers of farm assets. Congress

defined agricultural land in AFIDA as land that is used for

agricultural, forestry, or timber production. Foreign person

(7 U.S.C. §3508) is defined to include any foreign

government; individuals who are not U.S. citizens or

nationals, with certain exceptions for permanent residents

and parolees; and legal entities controlled by covered

governments or individuals, created or organized under the

laws of a foreign government, or with a principal place of

business outside the United States. USDA requires that

foreign persons disclose their holdings or transactions of

agricultural land to USDA directly or to the Farm Service

Agency (FSA) county office where the land is located.

Persons that fail to comply with AFIDA reporting

requirements may be subject to a civil penalty (7 U.S.C.

§3502). USDA also may take investigative actions (7

U.S.C. §3503) to monitor compliance with the reporting

requirements and verify that submitted information is

accurate and fully reveals the ownership of the land.

USDA compiles and reports data submitted under AFIDA

annually in a publicly released report to Congress. The most

recent report covers 2024. Congress also directed USDA in

appropriations laws (e.g., P.L. 117-328 and P.L. 118-42) to

report to Congress on foreign investments in agricultural

land in the U.S., and the impact of foreign ownership on

family farms, rural communities, and domestic food supply.

A 2024 Government Accountability Office (GAO) report

raised issues regarding USDA data collection and reporting

with respect to foreign investments in farmland. GAO

recommended that USDA reform the collection and sharing

of AFIDA data; use AFIDA data to inform CFIUS

decision-making;, improve the quality of information

gathered in AFIDA forms; sign memoranda of

understanding (MOU) with Treasury and the Department of

Defense (which is using a secondary Department of War

designation under Executive Order 14347) to share AFIDA

transaction information; update the AFIDA handbook;

develop an online submission system; develop ways to

verify information received in AFIDA reporting and

identify non-filers; and develop methods to capture

additional information beyond the primary investor.

USDA has implemented changes under Congress’s

direction and in response to GAO recommendations. For

https://crsreports.congress.gov

Foreign Investment in U.S Agricultural Land: Current Issues

example, P.L. 118-42 directed USDA to establish, within

two years of enactment, a streamlined process for electronic

submission of disclosures and an internet database with

disaggregated data from AFIDA disclosures. USDA

launched a portal in January 2026. In late 2025, USDA

released a proposed rule and request for comments on

revising AFIDA requirements following direction from

Congress and GAO. The proposed rule invited discussion

on subjects such as the definitions of agricultural land and

foreign person; the information required on AFIDA forms;

and USDA verification of filed information. Some

stakeholders expressed support for stricter disclosure

requirements for foreign investors from adversarial

countries and investors that use complex organizational

structures, improvements to data collection generally, and

better reporting of AFIDA data to states. Others expressed

concern over the potential burdens of more reporting

requirements and the potential for discrimination.

CFIUS and National Security

Under 50 U.S.C. §4565, CFIUS may review the national

security risks of mergers and acquisitions that could result

in foreign control of a U.S. business, including those in the

agricultural sector. Since 2018 statutory reforms, CFIUS

also may review some noncontrolling investments in certain

U.S. businesses (e.g., involved in critical technology); and

certain foreign purchases/leases of U.S. real estate, such as

agricultural land, if the transaction is within certain air or

maritime ports, or in “close proximity” to a sensitive U.S.

military installation that is listed in regulations, and meets

other criteria. CFIUS has authority to review or mitigate

national security risks arising from such transactions. If

CFIUS finds a risk cannot be mitigated, it may recommend

to the President that the transaction be prohibited.

CFIUS is composed of nine permanent member agencies.

Currently, USDA is not a permanent member and does not

participate fully at the working and senior policy levels.

Treasury may consult with, and the President may include,

USDA or other non-member government agencies on a

case-by-case basis. Section 739 of P.L. 119-37 specified

that the Secretary of Agriculture “shall be included as a

member” of CFIUS for covered transactions “involving

agricultural land, agriculture biotechnology, or the

agriculture industry” (including transportation, storage, and

processing), as determined by Treasury in coordination with

the Secretary of Agriculture. In 2025, USDA had also

entered into an MOU with Treasury to affirm this

arrangement and related practices. Current practice under

Sec. 739 and the MOU does not provide USDA the full

rights and responsibilities of a permanent CFIUS member

agency. Such rights include the ability to review, deliberate,

and decide matters on all transactions before CFIUS and to

have full information on all transactions to decide when

USDA has equities and should lead on cases.

Executive Order 14083, issued in 2022 by President Biden,

elaborated on certain national security factors that CFIUS is

required to consider in its reviews, including issues relevant

to the agricultural sector. It made explicit key sectors for

supply chain resiliency, including biotechnology and

elements of the agriculture industrial base that have

implications for food security. Following the proposed PRC

investment near Grand Forks AFB and review of sensitive

sites, in 2023 and 2024, Treasury added Grand Forks and

other military installations to the appendix of 31 C.F.R. Part

802. In its 2025 “America First Investment Policy,” the

Trump Administration said it would use tools such as

CFIUS to restrict PRC-tied persons from investing in

certain sectors, including agriculture; protect U.S. farmland

near sensitive facilities; and strengthen CFIUS’ authority

over greenfield investments in consultation with Congress.

Issues for Congress

The 119th Congress is considering bills to amend AFIDA

and enhance reporting requirements for foreign purchases

of land. Some bills would expand CFIUS’ jurisdiction to

review or prohibit certain investments by foreign

adversaries related to agriculture, and would codify and

clarify USDA’s role. Congress may consider issues such as

to what extent current authorities are sufficient to address

congressional concerns; how to integrate the agriculture

sector into national security policy tools; and how USDA

and Treasury might implement any enacted proposals.

Some provisions in the Farm, Food, and National Security

Act of 2026 (H.R. 7567), as passed by the House, reflect

GAO recommendations and provisions in appropriations

laws. Title XII, Subtitle C of H.R. 7567, for example,

would require USDA to sign an MOU with CFIUS

regarding sharing information submitted under AFIDA with

CFIUS; and update the AFIDA handbook and revise it

every 10 years. The bill would require USDA to appoint a

Chief of Operations to coordinate AFIDA-related

investigative actions and refer to CFIUS certain agricultural

transactions that may raise national security concerns. The

bill also would add differentiation in civil penalty amounts

and require public disclosure of penalties.

Subtitle C also would require that the President direct

federal agencies to issue regulations that prohibit the

purchase of U.S. agricultural land by foreign adversaries or

state sponsors of terrorism. It would amend CFIUS

authorities to require that the Secretary of Agriculture be a

member of CFIUS with respect to transactions involving

agriculture. The bill would require CFIUS, after receiving

notification from the Secretary of Agriculture of a

“reportable agricultural land transaction,” to determine

whether the transaction is under its jurisdiction and whether

to initiate CFIUS review or take other action. It also would

require annual reports by USDA to Congress on the

national security risks of transactions of agricultural assets

by “covered foreign persons,” which include those by a

foreign person of the PRC, North Korea, Russia, and Iran,

and subject to AFIDA reporting. Other bills would expand

CFIUS’ jurisdiction over real estate and land (S. 1012; H.R.

1920/S. 886); ban some agricultural investments by foreign

adversaries (S. 903; H.R. 5760); and add the Secretary of

Agriculture as a permanent member of CFIUS (H.R. 620).

H.R. 7053 would preempt state-level restrictions on

purchases of property based on an individual’s country of

citizenship, due to some Members’ concerns over the

potential for discrimination.

Zachary T. Neuhofer, Analyst in Agricultural Policy

Cathleen D. Cimino-Isaacs, Specialist in International

Trade and Finance

https://crsreports.congress.gov

Foreign Investment in U.S Agricultural Land: Current Issues

IF13255

Karen M. Sutter, Specialist in Asian Trade and Finance

Disclaimer

This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to

congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.

Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has

been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the

United States Government, are not subject to copyright protection in the United States. Any CRS Report may be

reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include

copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you

wish to copy or otherwise use copyrighted material.

https://crsreports.congress.gov | IF13255 · VERSION 1 · NEW