Arkansas orders Chinese-owned seed producer Syngenta to sell US farmland | CNN Business
Arkansas orders Chinese-owned seed producer Syngenta to sell US farmland CNN
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Syngenta Ordered to Sell Farmland in Arkansas
Reuters
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Introduction
Arkansas has ordered Syngenta, a Chinese-owned company, to sell 160 acres (65 hectares) of farmland in the U.S. state within two years. This decision has drawn a sharp rebuke from the global seeds producer.
Concerns about National Security
U.S. farm groups and lawmakers are increasingly scrutinizing foreign land ownership due to concerns about national security.
Statement from Arkansas Governor
“This is about where your loyalties lie,” Arkansas Governor Sarah Huckabee Sanders said at a news conference.
Syngenta’s Response
Syngenta expressed disappointment with the decision and called it “a shortsighted action” that will hurt Arkansas farmers. The company owns about 1,500 acres (610 hectares) of U.S. agricultural land for research, development, and regulatory trials on products used by U.S. farmers.
“Our people in Arkansas are Americans led by Americans who care deeply about serving Arkansas farmers,” said Syngenta spokesman Saswato Das. The company has owned the site in Craighead County for 35 years.
Arkansas’ First Enforcement Action
The order is Arkansas’ first enforcement action under a state law passed this year that prohibits certain foreign parties from acquiring or holding land. China is among the prohibited parties due to U.S. arms export controls known as the International Traffic in Arms Regulations (ITAR), according to Arkansas Attorney General Tim Griffin.
Background on Syngenta
Syngenta, a Swiss agrichemicals and seeds group, was bought for $43 billion by ChemChina in 2017 and folded into Sinochem Holdings Corp in 2021. ChemChina is a “state-owned enterprise” in China, according to Griffin.
Syngenta’s IPO Plans
Syngenta is currently pursuing an initial public offering in Shanghai.
Consequences for Syngenta
If Syngenta fails to sell its land, owned by subsidiary Northrup King Seed Co, legal action can be taken to force them out of Arkansas. The state has also fined Syngenta $280,000 for failure to report foreign ownership in a timely manner.
Syngenta’s Ownership Examination
According to Syngenta spokesman Saswato Das, all Syngenta land holdings have been examined by the U.S. government during the transition to ChemChina ownership.
Foreign Land Ownership in the U.S.
cnn.com
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