New Bill Targets Foreign Ownership of U.S. Farmland
Amid growing concerns over national security, Nebraska Senator Pete Ricketts has taken a significant step by introducing the Property Location Oversight and Transparency Act (PLOT Act) to the U.S. Senate. This legislation aims to tighten the monitoring of foreign land ownership in the United States, particularly focusing on Chinese investments in American farmland.
During a press call, Sen. Ricketts stressed the urgency of the issue, pointing out the strategic locations targeted by Chinese entities. “They have targeted sensitive sites surrounding army bases and airfields,” Ricketts noted, referencing acquisitions near Grand Forks Air Force Base in North Dakota and Fort Bragg in North Carolina. “We can’t let Communist China spy on our military bases from our cornfield,” he added.
Chinese ownership of American agricultural land has reportedly expanded significantly, with holdings increasing 30 times from 2010 to 2021, reaching nearly 277,000 acres by 2023. The PLOT Act seeks to amend the 1978 Agriculture Foreign Investment Disclosure Act by lowering the reporting threshold for foreign ownership. Currently, disclosures are required when foreign interests surpass 10% ownership stakes or when foreign individuals own over 50% of a domestic company controlling the land. The new bill proposes reducing these thresholds to 5% and 10%, respectively.
The U.S. Department of Agriculture (USDA) would be responsible for overseeing compliance with the new regulations, which include submitting detailed maps of foreign-owned farmlands for public and governmental access via an online portal. The USDA would also collaborate with national defense authorities to identify potential security threats linked to these acquisitions, considering factors like proximity to military installations and critical infrastructure.
Similar provisions have been included in the latest draft of a Farm Bill put forward by the U.S. House Agriculture Committee. John Hansen, President of the Nebraska Farmers Union, supports the enhanced data collection, stating it will bolster national security. Hansen pointed to the example of Chinese company Smithfield, which has substantial operations in Nebraska, to illustrate the broader implications of foreign ownership in the agriculture sector.
Smithfield’s operations were enabled by Nebraska’s LB176, a law passed in 2016 allowing meatpacking corporations, including foreign entities, to own hog feeding operations in the state. Hansen questioned the wisdom of facilitating such foreign control, expressing concerns over the strategic implications.
Amid this backdrop, Hansen highlighted the pressing need for a comprehensive Farm Bill, especially given what he describes as “the worst farm crisis since the mid-1980s.” Farmers have increasingly turned to support lines for help with financial difficulties. Hansen called for decisive leadership from agricultural state senators to prioritize the passage of an updated Farm Bill.
