US lawmakers aim to restrict corporate and foreign ownership of farmland
US lawmakers aim to restrict corporate and foreign ownership of farmland
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U.S. Lawmakers Seek to Curb Corporate Ownership of Farmland
In a bipartisan effort, U.S. lawmakers are coming together to introduce legislation aimed at limiting corporate ownership of American farmland. One such effort is being championed by Democratic Senator Cory Booker, who has recently introduced the Farmland for Farmers Act. This legislation seeks to address concerns raised by farm groups and lawmakers that the increased purchase of farmland by investors and foreign countries is driving up prices and posing a threat to national security.
The Farmland for Farmers Act, introduced by Senator Booker, proposes a ban on most corporations, pension funds, and investment funds from buying or leasing farmland. By implementing such restrictions, the bill aims to protect farmland from becoming a mere investment strategy for large corporations. Corporate ownership of farmland has been a growing concern for rural communities, as it significantly impacts land prices and makes it difficult for individual farmers to compete against multinational corporations.
According to the National Council of Real Estate Investment Fiduciaries’ Farmland Index, institutional investors, including Nuveen Natural Capital and UBS Farmland Investors, currently own $15.9 billion worth of farmland. This figure highlights the extent to which corporate ownership has become embedded in the agricultural sector.
Foreign ownership of farmland is also a matter of concern for U.S. lawmakers. Senators Joni Ernst from Iowa and Jon Tester from Montana have recently introduced bills to limit foreign ownership, citing fears that adversaries may acquire U.S. land to gain influence. To further address this issue, an amendment to the National Defense Authorization Act was passed in the Senate on Tuesday. This amendment aims to enhance federal review of foreign farmland purchases and restrict certain purchases made by countries such as China, Russia, Iran, and North Korea.
While China holds less than 1% of U.S. foreign-owned farmland according to the Department of Agriculture (USDA), it is Canada that currently owns the largest percentage at 31%. These statistics underscore the need for careful examination of foreign ownership and its potential implications.
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The average price of an acre of farmland has reached a record high of $3,800 in 2022, a staggering increase of 75% since 2008, according to USDA data. This dramatic rise in prices further emphasizes the urgency to address the issue of farmland ownership in the United States.
Senator Booker is hopeful that his bill will find its place in this year’s farm bill, a comprehensive package that is passed every five years to fund farm and nutrition programs. The inclusion of his proposed legislation in this bill would serve as a milestone in the efforts to regulate and preserve the ownership of American farmland.
Conclusion
The movement to limit corporate and foreign ownership of American farmland has gained significant momentum, with bipartisan support from U.S. lawmakers. Concerns over rising prices, threats to national security, and the impact on rural communities have prompted the introduction of legislation such as the Farmland for Farmers Act, proposed by Senator Cory Booker. By limiting corporate ownership and enhancing oversight of foreign purchases, lawmakers aim to strike a balance that protects the interests of individual farmers and the greater agricultural sector. As discussions continue, it remains to be seen how these measures will be implemented and the long-term impact they will have on the landscape of American farmland ownership.
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