What Happened?

Foreign investors owned about 47.2 million acres of U.S. farmland as of 2024, roughly one out of every 28 acres of privately held agricultural land in the country. A recent report from the Congressional Research Service (CRS), the nonpartisan agency that provides research to Congress, found that federal law does not block any of those purchases. It only requires buyers to report them.

That reporting requirement comes from the Agricultural Foreign Investment Disclosure Act (AFIDA), which tells foreign buyers to notify the U.S. Department of Agriculture (USDA) within 90 days of acquiring farmland. No transaction can be stopped under that law. The rules governing it had not been updated since 2006 until a proposed rule change was introduced in late 2025.

Why Does it Matter to Me?

The gap in oversight means foreign buyers, including those from countries the U.S. government considers adversaries, can purchase American farmland without federal approval. The CRS report points to a 2022 case where a firm tied to the People's Republic of China (PRC) bought land near Grand Forks Air Force Base in North Dakota, and the Committee on Foreign Investment in the United States (CFIUS), the federal body that screens foreign deals for national security risks, determined it had no authority to review the purchase.

CFIUS can only review farmland deals near specific military bases or certain ports. Most American farmland falls outside that boundary entirely.

For rural communities, that means the land surrounding local farms, water sources, and food supply chains can change hands to foreign-controlled entities with no federal review or approval required.

Both Sides, Now

Supporters of tighter rules argue the current system creates real security risks. They point to the 2022 North Dakota land purchase, a PRC surveillance balloon that flew over U.S. missile sites in 2023, and charges filed that same year against five PRC nationals accused of concealing a visit to a military training site in Michigan.

Those who caution against broad restrictions note that foreign investment in U.S. land is not new and that most foreign-held farmland is owned by investors from allied nations. Blanket bans could complicate trade relationships or face legal challenges.

Congress is considering H.R. 7567, the Farm, Food, and National Security Act of 2026, a House-passed farm bill that would expand CFIUS authority over farmland deals, add USDA as a CFIUS member, and ban purchases by entities from foreign adversary nations. The Trump administration's 2025 America First Investment Policy also commits to using CFIUS to restrict PRC-tied investors in agriculture and to work with Congress to strengthen oversight of new foreign investments.

What Happens Next?

The House has passed H.R. 7567, but the Senate has not yet acted on it. For any new restrictions to take effect, the Senate would need to pass its own version and both chambers would need to agree on final language. Separately, the proposed AFIDA rule update is open for public comment, but a final rule has not been issued.

Until Congress acts or a new rule takes effect, the disclosure-only system remains in place.

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