Why It Matters
The extent to which the U.S. government can monitor and restrict foreign investment in agricultural land is examined in a recent Congressional Research Service report.
As of 2024, foreign investors held an interest in approximately 47.2 million acres of U.S. agricultural land, representing 3.6 percent of all privately held farmland.
Federal law currently does not restrict foreign ownership of U.S. agricultural land, instead requiring only disclosure through the Agricultural Foreign Investment Disclosure Act (AFIDA).
For Congress and the Trump administration, the report underscores a critical gap: existing tools lack the authority to block acquisitions by foreign adversaries, particularly China.
The Big Picture
AFIDA mandates that foreign persons report acquisitions or transfers of U.S. agricultural land to the Department of Agriculture within 90 days, but imposes no restrictions on those transactions. The law's regulations had not been updated since 2006 until a proposed rulemaking was initiated in late 2025. That proposed rule invites public comment on updating definitions of agricultural land and foreign person, improving USDA verification, and enhancing penalties for non-compliance.
The Committee on Foreign Investment in the United States (CFIUS) can review foreign investment for national security risks, but its jurisdiction over agricultural land is limited to real estate transactions near specific listed military installations or certain ports.
In 2022, the Department of the Treasury determined CFIUS lacked jurisdiction to review a People's Republic of China firm's land purchase near Grand Forks Air Force Base in North Dakota. A PRC surveillance balloon flew over U.S. missile sites in 2023, and five PRC nationals were charged in 2023 for allegedly concealing a visit to Camp Grayling in Michigan during U.S.-Taiwan military training.
High-profile acquisitions by PRC-linked entities have intensified congressional concern. WH Group purchased Smithfield Foods in 2013, and ChemChina acquired Syngenta in 2017. USDA is currently not a permanent member of CFIUS, though Section 739 of P.L. 119-37 specified the Secretary of Agriculture shall be included in CFIUS for relevant transactions.
A 2025 memorandum of understanding between USDA and Treasury formalized some arrangements regarding CFIUS participation, yet current practice does not provide USDA the full rights and responsibilities of a permanent CFIUS member agency.
The Bottom Line
Congress is actively considering legislation that would expand CFIUS review power over farmland transactions and ban purchases of agricultural land by entities from foreign adversary nations.
The Farm, Food, and National Security Act of 2026 (H.R. 7567), a House-passed farm bill, includes Title XII, Subtitle C addressing AFIDA reform, CFIUS membership for USDA, and prohibitions on purchases by foreign adversaries.
The Trump administration's 2025 America First Investment Policy commits to using CFIUS to restrict PRC-tied persons from investing in certain sectors, including agriculture, and to strengthen CFIUS authority over greenfield investments in consultation with Congress.
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