House Panel Eyes Better Tracking of Foreign Investment in Farmland

The farm bill that the House Agriculture Committee plans to mark up May 23 contains several foreign investment-related provisions, including a requirement that the Agriculture Department enter into a formal agreement with the Committee on Foreign Investment in the U.S. to ensure the two agencies share information on foreign transactions in a timely manner.

Another provision would require USDA to adopt the recommendations the Government Accountability Office made in January to improve how the department collects, tracks and shares information on foreign investment in U.S. farmland (see 2401190069). Among the GAO's recommendations is that USDA improve the reliability of data collected under the Agricultural Foreign Investment Disclosure Act of 1978 (AFIDA), which requires foreign buyers of U.S. farmland to report their transactions to USDA.

While the bill would require USDA to adopt an online submission system for AFIDA reports, the department told the GAO it has informed Congress that it lacks funding to create such a system.

The legislation would also create the position of chief of operations of investigative actions to oversee implementation of AFIDA. The new chief would have to inform CFIUS of land acquisitions that may threaten national security.

The bill would also require a report on agricultural land owned by entities or people with ties to China, Russia, Iran, North Korea or other state sponsors of terrorism. The report would have to identify potential threats from that land ownership.

A government spending package signed into law in March adds USDA to CFIUS to review agricultural transactions (see 2403110058). The addition reflects congressional concern that foreign adversaries are buying U.S. farmland near sensitive military sites to conduct spying, and that such purchases could jeopardize the U.S. food supply.

In addition to addressing foreign investment, the farm bill contains several trade-related provisions, including a requirement that USDA report to Congress on foreign barriers to U.S. specialty crop exports, and that USDA and the Office of the U.S. Trade Representative defend the right to use common food and drink names in foreign markets.