The top foreign country in terms of ownership of U.S. agricultural land is Canada

Foreign Ownership of U.S. Farmland: Debunking the China Myth

Introduction

This report aims to provide an analysis of foreign ownership of farmland in the United States, with a specific focus on debunking the myth that China is buying or leasing all the farmland. The research is based on a federal dataset of over 40,000 foreign investments in U.S. agricultural land as of 2020. The findings emphasize the importance of the Sustainable Development Goals (SDGs) in understanding and addressing foreign ownership of farmland.

Key Findings

1. Countries classified as “adversary” by the federal government, including China, held only 1% of the roughly 40 million acres of foreign-owned farmland. Canada, on the other hand, owned about a third of the foreign-owned farmland, primarily in Maine and Michigan forestland.
2. Long-term leasing, particularly leases of 10 years or more, is the main driver of increasing foreign interests in U.S. farmland over the past two decades. Renewable energy development is a significant factor in foreign transactions.
3. Companies and individuals from “adversary” countries, such as China, Venezuela, Iran, Cuba, and Russia, account for only 1% of all foreign-owned agricultural land in the United States.

Research Methodology

The research utilized the Agricultural Foreign Investment Disclosure Act (AFIDA) database, obtained through a Freedom of Information Act request. The database contains information about foreign entities that hold U.S. agricultural land, including their nationality, location, acquisition methods, and land use.

Discussion

Contrary to popular belief, China ranks low in terms of total holdings of U.S. farmland. Canada holds the majority share of foreign-owned farmland. However, it is important to note that Canada and China pose different national security risks, leading to varying reactions.

While there are restrictions on foreign ownership of land in 24 states, each state has its own set of regulations. Recent events, such as the Chinese spy balloon episode and concerns about national security, have intensified the debate on foreign ownership of U.S. agricultural acreage.

The Agricultural Foreign Investment Disclosure Act (AFIDA) of 1978 requires foreign investors to report their holdings and transactions to the secretary of agriculture. However, better data tracking and sharing within government agencies are needed to ensure the reliability of information reported to Congress or the public.

Conclusion

This research debunks the myth of China’s dominance in foreign ownership of U.S. farmland. While foreign ownership has increased over the past two decades, the overall share remains relatively low. The findings highlight the need for more scrutiny and concern regarding foreign ownership, while also recognizing the importance of long-term leasing and renewable energy development in driving foreign interests in U.S. farmland.

For more information on foreign land holdings in New York state’s agricultural land, refer to the Dyson Extension Bulletin provided by the authors.

This research was supported in part by the U.S. Department of Agriculture’s National Institute of Food and Agriculture.

SDGs, Targets, and Indicators Analysis

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 2: Zero Hunger – The article discusses foreign ownership and leasing of U.S. farmland, which is relevant to ensuring food security and promoting sustainable agriculture.
• SDG 15: Life on Land – The article mentions the ownership and use of agricultural land, which relates to the conservation and sustainable use of terrestrial ecosystems.
• SDG 16: Peace, Justice, and Strong Institutions – The article touches on national security concerns related to foreign ownership of land near sensitive military or intelligence installations.

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 2.4: By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding, and other disasters, and that progressively improve land and soil quality.
• SDG 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.
• SDG 16.7: Ensure responsive, inclusive, participatory, and representative decision-making at all levels.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator for SDG 2.4: Percentage of agricultural land owned or leased by foreign entities involved in sustainable food production systems and resilient agricultural practices.
• Indicator for SDG 15.1: Percentage of foreign-owned agricultural land that is managed sustainably and contributes to the conservation and restoration of terrestrial ecosystems.
• Indicator for SDG 16.7: Existence of legislation and regulations at the state level that address foreign ownership of agricultural land and ensure inclusive decision-making processes.

Table: SDGs, Targets, and Indicators

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Fuente: wisfarmer.com

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