Wisconsin Ag Connection - A.G. Issues Clarification on Farmland Ownership by Foreigners

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A.G. Issues Clarification on Farmland Ownership by Foreigners
Wisconsin Ag Connection - 12/22/2014

Wisconsin's outgoing attorney general has stated in a formal opinion that state farm and forest land can be owned by foreign buyers under certain scenarios, but there are some limits. Responding to a request by lawmakers to clarify the state's law on foreign property ownership, J.B. Van Hollen said Friday that current statutes prohibit citizens and companies from other countries from owning more than 640 acres if they are using it for agricultural or forestry purposes.

Van Hollen issued the opinion at the request of Assembly Speaker Robin Vos, who chairs the Assembly Committee on Organization. His panel wanted to know if the 20-year-old General Agreement on Trade in Services treaty overrides a 127-year-old state law that bans foreign ownership of farmland.

"While the General Agreement on Trade in Services treaty requires equal treatment for services and service suppliers, the statute does not limit land acquisition by non-resident aliens and foreign corporations for service-related uses," Van Holland noted in his opinion. "Instead, the acreage limitation applies to agricultural and forestry uses only. On the other hand, the statute contains a treaty exception, which exempts from the acreage limitation foreign citizens and subjects whose right to hold quantities of land above the statutory acreage limit is secured by treaty. The treaty exception applies to the GATS, and protects foreign corporations and similar entities as well as nonresident alien individuals."

In June of this year, the Congressional Research Service issued its own opinion on the matter at the request of Sen. Tammy Baldwin. They found the GATS treaty did not remove restrictions on the purchase of land by nonresident aliens. But a provision in the statutes established in 1983 does allow for unlimited foreign ownership of land for other types of business activity.

Back in January, Wisconsin Ag Connection reported that Republican members of Vos' committee voted to request Van Hollen's opinion on the issue. At the time, Democrats Andy Jorgensen of Milton, a member of the panel, and Amy Sue Vruwink from Milladore attempted unsuccessfully to overturn the actions through a resolution in the full Assembly.

Jorgensen says the idea of allowing international buyers to purchase large parcels of rural property to the highest bidder will end up endangering Wisconsin's farming tradition and other natural resources. He also criticized committee members in January for passing the measure without a public hearing.

"I grew up on a dairy farm, and my family poured their blood, sweat, and tears into maintaining our land, in the hopes it would not only provide for our needs, but also be preserved for future generations," Jorgensen said after Friday's opinion was issues. "I will be watching Republicans closely in the session to come, because I'm afraid this fight isn't over."

Vos has yet to comment on Van Hollen's conclusions.

According to a report by the Farm Service Agency, foreign ownership of land in Wisconsin nearly doubled in 2011 to total over 230,000 acres. That level has since dropped a bit, the FSA said.

Governor Scott Walker had proposed ending the ban in his last proposed state budget, but the provision did not survive the legislative process because farm and real estate groups opposed it.

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