Foreign Ownership of U.S. Agricultural Land: A Growing Concern

The topic of foreign ownership of U.S. agricultural land has been a widely debated and controversial issue for many years. However, recent data from 2022 and 2023 has shed new light on the extent and nature of this ownership, with some surprising findings. According to Daniel Munch, an economist with the American Farm Bureau Federation, only a small portion of this land is held by adversarial nations.

Munch notes that foreign ownership of U.S. agricultural land increased by 1.6 million acres between 2022 and 2023, reaching a total of 45.9 million acres. This represents 3.6 percent of total privately-held agricultural land in the United States. Interestingly, land ownership by Chinese, Russian, and Iranian-based investors decreased by 36,000 acres, or nine percent, to the smallest levels in a few years. This decline is a positive development, as it reduces the potential national security risks associated with foreign ownership.

However, the majority of foreign-owned land in the United States is held by our neighbors to the north, Canada. Canadian investors own 15.4 million acres or about a third of all foreign-owned agricultural land in the country. Following Canada, investors from the Netherlands, Italy, the United Kingdom, and Germany hold significant amounts of land, with holdings ranging from 5.2 million acres down to 2.5 million acres. Collectively, these nations hold 62 percent of all foreign-owned agricultural land in the United States.

While much of these investments are tied to timber and renewable energy projects, there are still concerns regarding foreign ownership of American agricultural land. Some worry that adversarial nations could use land acquisitions for purposes contrary to U.S. interests, such as controlling critical resources. Others are concerned about the conversion of farmland into non-agricultural uses, such as renewable energy projects.

To address these concerns, it is essential to monitor and regulate foreign investments in the agricultural sector. The U.S. Department of Agriculture (USDA) and other relevant agencies should continue to scrutinize foreign investments, particularly those from adversarial nations. Additionally, policymakers should consider implementing policies that encourage domestic investment in agriculture and promote sustainable farming practices.

In conclusion, while foreign ownership of U.S. agricultural land has increased in recent years, the majority of this land is held by allied nations, with a decline in ownership by adversarial nations. However, concerns about national security and food security remain, and it is crucial for policymakers to address these issues to ensure the long-term stability and sustainability of the U.S. agricultural sector.