More states restrict foreign farmland ownership as federal oversight grows
Foreign ownership of agricultural land is receiving increased attention across the United States as more states adopt restrictions and federal agencies strengthen oversight measures.
Recent data shows that about 46 million acres of privately owned U.S. agricultural land are held by foreign entities, representing approximately 3.6% of all privately owned farmland. While some states continue to allow foreign ownership, the number of states with laws favorable to foreign ownership has declined significantly in recent years.
Agricultural law experts note that concerns surrounding national security, critical infrastructure, and ownership near military facilities have played a major role in shaping new regulations. Many states have introduced restrictions targeting foreign adversaries or foreign-controlled businesses involved in agricultural land transactions.
Arkansas recorded one of the largest reductions in foreign-owned farmland, highlighting a broader trend of increased scrutiny and enforcement across the country. Several states have expanded regulations beyond farmland to include natural resources, water rights, minerals, and land located near sensitive facilities.
At the federal level, the Agricultural Foreign Investment Disclosure Act (AFIDA) continues to serve as the primary reporting system for foreign ownership of agricultural land. Significant reforms are underway, including a new electronic filing system and expanded efforts to improve data collection, transparency, and coordination among federal agencies.
Government officials have also emphasized the importance of agriculture as a critical component of national security. New policy initiatives aim to improve monitoring of foreign investments while ensuring that agricultural land ownership remains transparent and accountable.
“There were states that didn’t address enforcement and came back to clear up that up, often with the attorney general having authority to report to the appropriate state or federal law enforcement, to CFIUS, which can result in divestiture — selling a property,” said Harrison Pittman, director of the National Agricultural Law Center.
Experts expect additional regulatory changes in the coming years as policymakers continue to balance investment opportunities, food security concerns, and national security priorities. As federal and state governments increase oversight, agricultural land ownership is expected to remain an important policy issue for farmers, landowners, and investors across the country.
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