Navigating USDA Policy Shifts: Agricultural Security and Equity Reforms Create Strategic Investment Opportunities

The Biden-era focus on diversity, equity, and inclusion (DEI) programs in agriculture has given way to a stark new priority under USDA Secretary Brooke L. Rollins: national security. The National Farm Security Action Plan (NFSAP), announced in July 2025, marks a seismic shift toward safeguarding farmland, supply chains, and research from foreign adversaries while dismantling “woke” equity reforms deemed counterproductive to American agricultural interests. For investors, this pivot creates clear opportunities in farmland ownership, pest control technology, and supply chain resilience. Here's how to capitalize on it.

Farmland Ownership: Securing America's Breadbasket

The NFSAP's first pillar—securing American farmland—targets foreign ownership by adversaries like China, Russia, and Iran. Over 265,000 acres owned by Chinese nationals are under scrutiny, with penalties for non-compliance rising to 25% of land value. This creates a buyer's market for U.S.-based entities to reclaim strategic farmland, particularly near military installations.

Key Plays:
- American Farmland Trust (AFT): A nonprofit focused on preserving farmland could partner with private equity firms to acquire reclaimed land.
- BlackRock's Agriculture ETF (ARCA): Tracks farmland investment trusts and could benefit as demand for U.S.-controlled farmland surges.

Pest Control Tech: Combating Biosecurity Threats

The NFSAP prioritizes biosecurity, citing threats like avian flu, invasive species, and agroterrorism. With $148.6 million reallocated from DEI programs, companies developing vaccines, pest-resistant crops, and detection systems stand to gain.

The USDA's collaboration with the Defense Advanced Research Projects Agency (DARPA) signals a push for military-grade solutions.

Key Plays:
- Corteva Agriscience (CTVA): A leader in biotech crop solutions, including pest-resistant seeds.
- BioSafe Systems (privately held): Specializes in biosecurity systems for livestock and crops.

Supply Chain Resilience: Reducing Foreign Dependence

The NFSAP aims to eliminate reliance on adversarial nations for critical inputs like fertilizers, seeds, and equipment. U.S. companies in logistics, traceability tech, and alternative supply chains will benefit.

Key Plays:
- C.H. Robinson (CHRW): A global logistics leader positioned to dominate domestic supply chain reconfiguration.
- Descartes Systems (DSCT): Provides supply chain software to optimize U.S. agricultural distribution.

Risks and Considerations

• Geopolitical Tensions: Escalation with China or Russia could accelerate farmland buybacks but risk retaliatory trade measures.
• Legal Challenges: DEI advocates may sue to reinstate terminated programs, creating regulatory uncertainty.
• Overregulation: The 25% penalty for AFIDA violations could deter foreign buyers, but overreach might stifle legitimate cross-border investments.

Investment Strategy: Focus on Security-First Plays

1. Farmland: Invest in ARCA or directly in farmland REITs.
2. Pest Tech: Buy CTVA or explore venture capital stakes in startups like BioSafe.
3. Supply Chain: Allocate to CHRW and DSCT for logistics and tech dominance.

The USDA's pivot underscores a broader theme: agricultural security is national security. Investors who align with this vision—while hedging against geopolitical risks—can capitalize on a once-in-a-generation reallocation of capital and policy focus.

Final Note: Monitor USDA's Foreign Farm Land Purchases map and quarterly reports for real-time data on foreign ownership trends.