AFBF: Updates in foreign-owned land trends

DAILY Bites

• Foreign-held U.S. agricultural land increased by 1.58 million acres in 2022-2023, with renewable energy projects driving much of the growth.

• Canada remains the largest foreign investor, owning 33.5 percent of all foreign-held U.S. agricultural land, while Chinese ownership has declined to just 0.02 percent.

• The USDA imposed $1.2 million in penalties for AFIDA violations in 2024, signaling heightened scrutiny of foreign land acquisitions.

DAILY Discussion

Foreign ownership of U.S. agricultural land, including timberland, remains a topic of debate and concern due to its implications for national security and economic stability.

New data for 2022 and 2023 reveals a 1.58-million-acre increase in foreign-held agricultural land, driven mainly by renewable energy investments. However, Chinese ownership of U.S. agricultural land has declined, reflecting evolving trends in foreign investments.

American Farm Bureau Federation economist Daniel Munch recently provided insights into these developments following up a report in 2023.

In early 2024, the U.S. Government Accountability Office recommended how the U.S. Department of Agriculture could improve reporting on foreign-owned land across the country. 

The Agricultural Foreign Investment Disclosure Act of 1978 requires foreign entities to report purchases and interests in U.S. agricultural land to the USDA. Non-compliance with this requirement can result in penalties of up to 25 percent of the land’s market value.

In 2024, USDA imposed a record $1.2 million in penalties for violations, highlighting increased enforcement under AFIDA. Furthermore, 2023 saw a 5 percent rise in AFIDA reports, with many filings linked to prior transactions, indicating growing scrutiny of foreign ownership.

According to USDA data, 45.85 million acres of U.S. agricultural land — 3.61 percent of the total privately held — were owned by foreign investors in 2023, marking a 3.6 percent increase from 2022. Canadian investors held the largest share, owning 33.5 percent (15.35 million acres) of foreign-held land. Investors from the Netherlands, Italy, the United Kingdom, and Germany also ranked high, collectively owning millions of acres.

Notably, nearly half of the foreign-held land is forestland, with cropland seeing a significant increase in foreign investment.

Texas leads in foreign-owned agricultural land with 5.7 million acres, while Maine has the highest proportion, with 21 percent of its agricultural land owned by foreign entities.

Investments in Texas and Maine are primarily driven by forest products and timber industries, while renewable energy projects account for notable increases in states like New Mexico and Hawai’i. Over the past five years, foreign investments in cropland have surged by 101 percent, indicating heightened interest in U.S. agriculture.

Renewable energy projects have played a significant role in the growth of foreign-held agricultural land. Many foreign renewable energy companies secure long-term leases for wind and solar projects, driving a 353 percent increase in such investments since 2010. Canadian, Italian, and Portuguese investors are major contributors to this trend, reflecting global commitments to carbon reduction.

Despite concerns, land owned by investors from adversarial nations, including China, Russia, and Iran, remains minimal. In 2023, Chinese ownership accounted for just 0.02 percent of all privately held U.S. agricultural land, a decline from previous years. Daniel Munch highlights that most foreign-owned land is tied to investors from allied nations, reducing potential risks.