Farmland Security Act of 2025
Farmland Security Act of 2025
Plain Language Summary
# Farmland Security Act of 2025 - Plain Language Summary **What the Bill Would Do** This bill aims to strengthen U.S. control over foreign ownership of American farmland by increasing penalties for violations of existing disclosure rules. Currently, foreign investors who buy or hold interests in U.S. agricultural land must report these transactions to the Department of Agriculture (USDA). The bill would remove the cap on fines for violations, allowing USDA to impose larger penalties for breaking these reporting rules.
It would also increase funding for USDA research and oversight of foreign agricultural investments. **Who It Affects and Key Provisions** The bill primarily affects foreign investors and companies attempting to purchase or conceal ownership of U.S. farmland. A major provision imposes particularly strict penalties—100% of the property's value—for violations involving shell corporations (companies created to hide true ownership). The bill also grants USDA broader authority to monitor and study foreign investment trends in American agriculture. Currently in committee, the bill has not yet been voted on by Congress.
CRS Official Summary
Farmland Security Act of 2025This bill authorizes increased civil penalties for violations of the Agricultural Foreign Investment Disclosure Act of 1978 (AFIDA) and increases Department of Agriculture (USDA) oversight of and research into foreign investment in agricultural land. As background, AFIDA and the regulations that implemented the act require foreign investors who acquire, transfer, or hold an interest in U.S. agricultural land to report such holdings and transactions to USDA.In general, the bill allows USDA to determine an appropriate civil penalty amount for an AFIDA violation by removing the cap that currently prohibits the civil penalty from exceeding 25% of the fair market value of the interest in the agricultural land associated with the violation.Under an exception in the bill, the civil penalty for a foreign-owned shell corporation is 100% of the fair market value of the interest in the agricultural land. The bill defines a shell corporation to include a company, association, firm, partnership, society, joint stock company, trust, or estate that has no or nominal operations. The penalty does not apply if the shell corporation remedies a defective filing or failure to file within 60 days of USDA providing notice.USDA must conduct annual compliance audits of at least 10% of the reports. Further, USDA must provide state and county-level personnel certain annual training.USDA must also annually conduct research and submit a report to Congress on foreign investment in agricultural land, including trends in the purchase of U.S. agricultural land by foreign-owned shell corporations.
Latest Action
Referred to the House Committee on Agriculture.