Senators crack down on foreign land buys

Wednesday, January 31, 2024

A bipartisan group of senators, led by Tammy Baldwin (D-WI) and joined by Mike Braun (R-IN) and Jon Tester (D-MT), has introduced the AFIDA Improvements Act of 2024, aiming to tighten reporting and enforcement of foreign investment in U.S. agricultural land.

This legislation stems from concerns raised by a recent Government Accountability Office (GAO) report, which highlighted alarming gaps in how the U.S. Department of Agriculture (USDA) tracks foreign land acquisitions.

"Wisconsin's farmland is the bedrock of our rural communities, and we must protect it for future generations," Senator Baldwin stated. "Foreign land purchases can not only endanger local economies but also pose risks to our food supply and national security. Our bipartisan bill will ensure transparency and accountability in foreign ownership of American agriculture."

The AFIDA Improvements Act tackles these concerns by strengthening the existing Agricultural Foreign Investment Disclosure Act (AFIDA). Drawing upon GAO recommendations, it proposes the following actions:

Enhanced Data Sharing: Streamlining data exchange between USDA and the Committee on Foreign Investment in the United States (CFIUS) within a year of enactment.
Modernized Handbook: Updating USDA's AFIDA data collection handbook, last revised in 2006, within one year.
Implemented AFIDA System: Requiring USDA to develop and report a timeline for implementing an online AFIDA submission system and public database, as mandated by Congress but currently lacking concrete plans.
Improved Data Verification: Empowering USDA to validate foreign ownership data collected under AFIDA.
Non-filer Identification: Utilizing Farm Service Agency data to identify potential AFIDA filing omissions by foreign investors.
Minority Stake Reporting: Expanding reporting requirements to include foreign persons with minority ownership stakes, including through tiered ownership structures or shell companies.

This bill builds on Senator Baldwin's longstanding efforts to increase oversight of foreign land acquisitions. In July 2023, she and Chuck Grassley (R-IA) introduced the Farmland Security Act of 2023, aiming for similar transparency and accountability measures while also investing in research to understand the impact of foreign land ownership on American food security, family farms, and rural communities.

The AFIDA Improvements Act has garnered bipartisan support, with senators from both parties recognizing the need to address potential risks associated with foreign investment in U.S. agriculture. Its passage would mark a significant step towards ensuring transparency and responsible management of this vital resource.

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