What Happened?

Foreign holdings of U.S. agricultural land have grown by an average of more than 2.4 million acres a year since 2017, and Congress is weighing bills that would change what foreign owners must report. ​

The House passed a farm bill carrying changes to the foreign-investment disclosure law on April 30, and the Senate Committee on Agriculture, Nutrition, and Forestry approved its own version Sept. 16 and formally reported it Sept. 24, according to a Legis1 review of a Congressional Research Service report.

The U.S. Department of Agriculture (USDA) reports that foreign nationals and entities held interests in more than 47 million acres as of Dec. 31, 2024. That represents 3.6% of privately owned agricultural land. The total includes land held by U.S. entities with significant foreign ownership interests.

The Agricultural Foreign Investment Disclosure Act (AFIDA) requires foreign nationals and entities to report acquisitions and transfers to USDA within 90 days. Three bills would change federal requirements:

  • House farm bill: The Farm, Food, and National Security Act of 2026 would amend AFIDA, make USDA a permanent member of the Committee on Foreign Investment in the United States (CFIUS), and restrict certain agricultural land purchases by foreign adversaries.
  • Senate farm bill: The Agricultural Act of 2026 (S. 5526) would amend AFIDA reporting requirements and penalties, including reporting requirements for leases of five years or more.
  • Boundary maps: The PLOT Act of 2026, introduced by Sen. Pete Ricketts (R-NE), would require geospatial boundary data in AFIDA reports.

Why Does it Matter to Me?

Current federal law imposes no general nationwide cap on how much U.S. agricultural land foreign investors can hold, although certain transactions may face national security review or restrictions under other federal and state laws. AFIDA primarily requires disclosure rather than prohibiting ownership. USDA data show Canada accounts for 34% of foreign-held acres, while investors from five countries together account for approximately 61%.

Chinese investors hold 247,659 acres, approximately 0.5% of reported foreign holdings, USDA reports. Some members of Congress have raised national security concerns about foreign adversaries, particularly investments near sensitive military installations. USDA cautions that reported holdings may understate actual foreign interests because disclosure data are limited. According to the National Agricultural Law Center, no state prohibits all foreign ownership of agricultural land.

Both Sides, Now

Supporters of tighter restrictions point to national security concerns. The Trump administration's National Farm Security Action Plan, released July 9, 2025, identifies foreign ownership of agricultural land as a potential national security threat and calls for stronger reporting and enforcement.

A 2024 Government Accountability Office report identified gaps in how AFIDA data are collected and shared. GAO found that USDA did not consistently share timely, detailed information with agencies responsible for reviewing foreign investments.

Skeptics cite economic concerns. A 2024 North Dakota State University paper reported that restrictions on foreign ownership were associated with lower agricultural land prices, while effects on farm productivity were not statistically significant.

Some commenters on USDA's proposed regulatory changes questioned whether extending reporting requirements to land used for solar and wind energy projects would exceed AFIDA's statutory authority.

What Happens Next?

USDA's proposed rule, published June 25, would codify the transfer of AFIDA administration to the USDA Office of Homeland Security. It would expand reporting requirements for leases longer than one year and revise civil penalties, including distinctions based on whether a filer is associated with a foreign adversary.

The public comment period closed Aug. 10. For either farm bill to become law, the House and Senate must pass identical legislation and send it to the president for signature. The House passed its version, H.R. 224, while the Senate version still awaits floor consideration. The PLOT Act of 2026 remains in the Senate Agriculture Committee.

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