Sponsors (3)
The bill strengthens transparency and enforcement around foreign land ownership to protect U.S. farms and improve data, but does so by creating steep penalties and increased compliance/legal risks for owners and local authorities.
USDA and state/local governments receive dedicated funding ($2M/year through 2030) plus stronger enforcement and audit authority, increasing capacity to detect and reduce unreported foreign land holdings and improve the accuracy of land-ownership data.
Farmers and rural communities gain better, more accurate data on foreign leasing and purchases, enabling more informed policy and local responses to protect family farms and the local food supply.
Foreign-owned entities face a large financial risk — penalties up to 100% of land value — if found to be using shell corporations to evade reporting, which could force sales or wipe out investment value.
Owners of small or passive investments risk being swept up by a broadly defined 'shell corporation' standard, creating legal uncertainty and potential for severe penalties absent clearer criteria or safe harbors.
Farmers, landowners, and local/state officials will face higher compliance burdens, additional paperwork, and more frequent audits or enforcement interactions, increasing administrative costs and time demands.
Based on analysis of 2 sections of legislative text.
Introduced February 26, 2025 by Marie Gluesenkamp Perez · Last progress February 26, 2025
Amends the federal agricultural foreign investment disclosure law to strengthen reporting and enforcement around foreign ownership of U.S. agricultural land. It defines “shell corporation,” imposes a penalty equal to 100% of the fair market value for foreign‑owned shell corporations that fail required filings (with a 60‑day cure window), expands investigative and audit authorities, requires annual training for state and county personnel, mandates research and congressional reporting on foreign leasing and ownership trends, and authorizes $2 million per year for implementation through FY2025–2030. Also includes a one‑line provision designating the Act’s short title.