The Latest Numbers on Foreign Investment in U.S. Ag Land
The Latest Numbers on Foreign Investment in U.S. Ag Land Northern Ag Network
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Foreign Investment in U.S. Agricultural Land: An Analysis of AFIDA Data
Introduction
Foreign investment in U.S. agricultural land is a topic of concern, particularly due to fears that adversarial nations may purchase land for potentially hostile purposes. This report aims to address several key questions regarding this issue, including the extent of foreign ownership of U.S. agricultural land, the countries from which these investors originate, and the types of land they own. Additionally, changes in these numbers over recent years will be examined.
AFIDA and Foreign Ownership of U.S. Ag Land
The Agricultural Foreign Investment Disclosure Act of 1978 (AFIDA) established a system for collecting information on foreign ownership of U.S. agricultural land. Under AFIDA, foreign persons are defined as individuals, corporations, companies, associations, partnerships, societies, joint stock companies, trusts, estates, or any other legal entity under the laws of a foreign government or with a principal place of business outside the United States. U.S. citizens and green card holders are excluded from AFIDA requirements.
Foreign persons who buy, sell, or gain interest in U.S. agricultural land are required to disclose their holdings and transactions to the USDA or the Farm Service Agency office where the land is located. Failure to disclose this information may result in penalties and fines. The accuracy of the disclosed data relies on voluntary compliance and self-reporting by the foreign entities.
Summary of USDA AFIDA Data
According to the latest AFIDA report based on 2021 data, over 40 million acres of U.S. agricultural land are owned by foreign investors and companies. This corresponds to 3.1% of all privately held agricultural land and 1.8% of all land in the United States.
Canadian investors own the largest portion of foreign-held U.S. agricultural land with 31% (12.8 million acres) of the total. Investors from the Netherlands, Italy, the United Kingdom, and Germany also own significant amounts of U.S. agricultural land.
The majority of the reported acreage is listed under limited liability companies (LLCs), followed by corporations, partnerships, and individuals. The breakdown of foreign-investor-held land by predominant origin nation can be seen in Figure 2.
County, State, and Land Use Data
Of the 3,142 counties and parishes in the U.S., 2,494 (79%) have at least one foreign investor present. In 2,041 counties (65% of counties), foreign investors own between 1 and 19,999 acres of land.
The top four counties with the highest acreage of foreign-investor-held agricultural land are located in northern Maine and are owned by Canada-based investors. Hawaii has the second-largest percentage of foreign-held U.S. agricultural land.
Forestland comprises the largest proportion of foreign-investor-held agricultural land, followed by cropland, pastureland, and other agricultural land. The distribution of these land types varies by state.
Analyzing Trends
Over the past four decades, there has been a significant increase in reported foreign-investor-held U.S. agricultural land, reflecting an increase from 1% to 3.1% of total privately held agricultural land. Between 2010 and 2021, there was a 15.8 million-acre increase in foreign-investor-held agricultural land, with cropland experiencing the highest percentage increase.
States showing the highest increases in foreign-investor-held agricultural acres between 2020 and 2021 were Texas, Arkansas, and North Carolina. Hawaii, Iowa, and Utah were the only states showing a decrease in foreign-held agricultural acres.
The top 10 entities reporting foreign-investor-held agricultural land hold a significant portion of U.S. agricultural land. Most of these entities are involved in timber or energy production, with only one entity unrelated to these sectors.
The National Security Factor
China is ranked 18th in terms of ownership of U.S. agricultural land, with less than 1% of total foreign-owned U.S. agricultural land. Other adversarial nations, such as Cuba, Iran, North Korea, Russia, and Venezuela, hold a very small portion of foreign-investor-held agricultural land.
Committee on Foreign Investment in the United States
The Committee on Foreign Investment in the United States (CFIUS) reviews national security concerns related to foreign investments in U.S. companies and assets. The Secretary of Agriculture is not currently an active member of CFIUS.
Data Limitations
AFIDA data has limitations, including the lack of enforcement and the inability to require disclosure beyond a third tier of ownership. There are also uncategorized acres of foreign-investor-held agricultural land due to incomplete reporting.
Policy Considerations
There are ongoing discussions at the state and federal level regarding restrictions on foreign ownership of U.S. agricultural land and improvements to data collection and enforcement. Arguments for and against further restrictions have been made, considering factors such as national security, individual property rights, and the impact on farm transitions.
Conclusion
Foreign ownership of U.S. agricultural land remains relatively small but has increased over the years. The majority of foreign-held land is owned by investors from friendly nations, with forestry and energy production as the main interests. Adversarial nations’ investments are minimal. Improvements in data collection and enforcement are necessary to better understand this issue. Policy actions should consider the specific circumstances of each investor and their implications for regional agriculture.
SDGs, Targets, and Indicators
1. No Poverty
- Target 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance.
- Indicator 1.4.2: Proportion of total adult population with secure tenure rights to land, (a) with legally recognized documentation, and (b) who perceive their rights to land as secure, by sex and type of tenure.
2. Zero Hunger
- Target 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets and opportunities for value addition and non-farm employment.
- Indicator 2.3.1: Volume of production per labour unit by classes of farming/pastoral/forestry enterprise size.
5. Gender Equality
- Target 5.a: Undertake reforms to give women equal rights to economic resources, as well as access to ownership and control over land and other forms of property, financial services, inheritance and natural resources, in accordance with national laws.
- Indicator 5.a.1: (a) Proportion of total agricultural population with ownership or secure rights over agricultural land, by sex; and (b) share of women among owners or rights-bearers of agricultural land, by type of tenure.
11. Sustainable Cities and Communities
- Target 11.3: By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management in all countries.
- Indicator 11.3.1: Ratio of land consumption rate to population growth rate.
15. Life on Land
- Target 15.1: By 2020, ensure the conservation, restoration and sustainable use of terrestrial and inland freshwater ecosystems and their services, in particular forests, wetlands, mountains and drylands, in line with obligations under international agreements.
- Indicator 15.1.1: Forest area as a proportion of total land area.
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| No Poverty | Target 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance. | Indicator 1.4.2: Proportion of total adult population with secure tenure rights to land, (a) with legally recognized documentation, and (b) who perceive their rights to land as secure, by sex and type of tenure. |
| Zero Hunger | Target 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets and opportunities for value addition and non-farm employment. | Indicator 2.3.1: Volume of production per labour unit by classes of farming/pastoral/forestry enterprise size. |
| Gender Equality | Target 5.a: Undertake reforms to give women equal rights to economic resources, as well as access to ownership and control over land and other forms of property, financial services, inheritance and natural resources, in accordance with national laws. | Indicator 5.a.1: (a) Proportion of total agricultural population with ownership or secure rights over agricultural land, by sex; and (b) share of women among owners or rights-bearers of agricultural land, by type of tenure. |
| Sustainable Cities and Communities | Target 11.3: By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management in all countries. | Indicator 11.3.1: Ratio of land consumption rate to population growth rate. |
| Life on Land | Target 15.1: By 2020, ensure the conservation, restoration and sustainable use of terrestrial and inland freshwater ecosystems and their services, in particular forests, wetlands, mountains and drylands, in line with obligations under international agreements. | Indicator 15.1.1: Forest area as a proportion of total land area. |
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Source: northernag.net
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