In a recent investigation conducted by the U.S. Government Accountability Office (GAO), it has been revealed that the Biden administration is failing to properly track foreign ownership of U.S. farmlands, raising concerns about national security. The investigation found that the Department of Agriculture (USDA) has not consistently shared timely data on foreign investments in U.S. agricultural land, as required by the 1978 Agricultural Foreign Investment Disclosure Act (AFIDA). This lack of data tracking and reporting has left potential national security risks related to foreign investments in U.S. agricultural land largely unnoticed.
The GAO report, published on Thursday, highlights the flawed processes of USDA in collecting, tracking, and reporting key information on foreign investments. USDA collects AFIDA data on paper forms filed with county or federal offices, making the process unclear and challenging to implement. Moreover, despite Congress mandating the agency to create an online AFIDA database by 2025, USDA has no plans or timelines for its creation.
The review of AFIDA data by the government watchdog agency also revealed errors in USDA’s reporting, including the duplication of the largest land holding associated with China. These findings have raised concerns among lawmakers, who emphasize the importance of food security as a national security issue. Congressional Western Caucus Chairman Dan Newhouse expressed his concerns, stating, “Food security is national security, and we cannot allow foreign adversaries to influence our food supply while we stick our heads in the sand.”
The increasing number of land purchases by foreign investors, particularly those from China, has led to heightened scrutiny and sparked fears that they may establish a stranglehold on key U.S. food and energy supplies. USDA’s most recent data shows that foreign investment in U.S. agricultural land has grown to approximately 40 million acres, with Chinese agricultural investment alone increasing tenfold between 2009 and 2016.
In response to these concerns, Republican lawmakers and local leaders have requested a probe into foreign investment in U.S. farmland and its impact on national security, trade, and food security. They argue that safeguarding farmland and the food supply requires a whole-of-government approach.
Instances of foreign land purchases near military bases have also come under scrutiny. In Grand Forks, North Dakota, a Chinese company’s proposed corn mill was rejected due to concerns about its proximity to a U.S. Air Force base. Similarly, a subsidiary of Chinese green energy firm Gotion High-Tech purchased land in Michigan within 60 miles of military armories and 100 miles from the largest U.S. National Guard training facility. Despite concerns raised by officials, the Committee on Foreign Investment (CFIUS) determined it did not have jurisdiction in these cases.
The USDA spokesperson acknowledged the complexity of the process to report and track foreign-owned agricultural land, which relies on self-reporting by foreign buyers and sellers. They also highlighted the need for congressional changes, including increased funding to modernize processes and improve data collection at the county level. However, concerns about producer privacy, the price of agricultural land, and individual seller interests have been raised with regards to implementing a comprehensive tracking system.
Interestingly, the GAO report coincidentally coincided with a meeting between Agriculture Secretary Tom Vilsack and Chinese Minister of Agriculture and Rural Affairs Tang Renjian. Vilsack expressed his hopes for further exchanges and cooperation to expand market access opportunities for U.S. farmers and ranchers in China.
As the importance of addressing national security risks posed by foreign ownership of U.S. farmland becomes increasingly apparent, lawmakers and agencies must work together to develop effective strategies and policies to safeguard the food supply and protect national interests.
Thomas Catenacci is a politics writer for Digital, providing the latest updates from the 2024 campaign trail and exclusive interviews with politicians. Subscribe to the newsletter for more politics content.
