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Including the USDA in foreign farmland transactions

Including the USDA in foreign farmland transactions
Sep 13, 2024
By Diego Flammini
Assistant Editor, North American Content, Farms.com

A new bill would add the Secretary of Agriculture to the CFIUS

A Senate bill aims to add the ag secretary to a federal committee that looks at foreign investments in the U.S.

The Protecting American Agriculture from Foreign Adversaries Act, which received bipartisan support, calls for the ag secretary’s inclusion on the Committee on Foreign Investment in the United States (CFIUS).

A similar bill has already passed in the House.

Having the ag secretary on CFIUS should’ve already happened, one senator said.

"That is a very glaring oversight," Senator Chuck Grassley said, KMA Land reported. "Iowa farmers often tell me they're concerned about foreign entities with deep pockets that could squeeze them out of business. We've also seen cases where China has bought large plots of land near strategic military installations."

In 2021, for example, a Chinese company purchased land near an Air Force base in Grand Forks, N.D.

CFIUS reviews national security implications of foreign investments in the U.S. economy.

The committee, for example, recently told Nippon Steel that a merger between it and U.S. Steel could create national security risks.

In terms of the ag bill, it directs the CFIUS, after receiving notification from the USDA, to determine if a transaction is a “covered transaction,” or if a national security review is required.

A covered transaction is one that could result in control over domestic business by a foreign entity.

The U.S. has identified China, North Korea, Russia and Iran as countries defined as having covered transactions.

Foreign investment of U.S. farmland has increased in recent years.

Foreign investors held an interest in more than 43.4 million acres of U.S. agricultural land, which includes forest land, as of Dec. 31, 2022, a USDA report says. That’s up more than 3.4 million acres from the 2021 report.

Canadian investors had the most, with about 14.2 million acres.

China held fewer than 350,000 acres.


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AgTech Innovation at Canada's Outdoor Farm Show

Video: AgTech Innovation at Canada's Outdoor Farm Show


Welcome to Canada’s Outdoor Farm Show AgTech Breakfast. This annual Ontario outdoor farm show has always been a place where innovation thrives.

The AgTech Breakfast takes place every September to create a space where farmers and representatives from startup companies can meet and discuss innovations that bring new options to the agriculture industry. This is a great opportunity for attendees of this event to see what’s new.

At the AgTech Breakfast, attendees hear from a panel of companies, followed by a casual discussion session where farmers and representatives from startup companies can discuss new technology related to farming and share opportunities and challenges that impact Canadian agriculture.

One company featured at the 2024 AgTech Breakfast at Canada’s Outdoor Farm Show was VETSon. This company connects producers and veterinarians for one-on-one consultations through online and app technology to improve options for livestock management.