Sponsors (3)
The bill strengthens protections and transparency around foreign ownership of U.S. agricultural land and funds enforcement and training, but does so by imposing large new penalties, raising administrative burdens and legal uncertainty for some owners, and increasing federal spending.
Farmers and rural communities gain stronger protection against foreign-controlled shell corporations buying U.S. agricultural land through tougher penalties and more audits, reducing the risk of hidden foreign ownership of farmland.
Taxpayers and state governments get greater transparency because federal agencies must produce annual reports to Congress on foreign leasing, shell-corporation purchases, and foreign ownership of production capacity.
State and local governments (and therefore local communities) receive dedicated funding and annual training to improve enforcement, disclosure compliance, and detection of unreported agricultural land.
Buyers and owners (including farmers and foreign purchasers) face much larger financial penalties—up to 100% of land value—if transactions are later found noncompliant, increasing costs, legal risk, and potential loss of property value.
Small business owners and legitimate holding companies may be swept up by a broad definition of 'shell corporation' (entities with 'no or nominal operations'), creating legal uncertainty, disputes, and potential wrongful penalties.
Increased enforcement, audits, and reporting will raise administrative burdens for landowners and local/state governments who must maintain and submit detailed records and respond to audits.
Based on analysis of 2 sections of legislative text.
Strengthens disclosure and enforcement under the Agricultural Foreign Investment Disclosure Act, defines shell corporations, raises penalties to 100% FMV for shell‑company violations, requires audits/training, and authorizes $2M/year (FY2025–2030).
Increases disclosure, enforcement, and oversight of foreign ownership and leasing of U.S. agricultural land by amending the Agricultural Foreign Investment Disclosure Act. It defines “shell corporation,” raises civil penalties for foreign-owned shell corporations to 100% of the land’s fair market value (with a 60‑day cure window), requires audits and annual training to improve compliance detection, mandates research reporting to Congress on foreign leasing and ownership trends, and authorizes $2 million per year for FY2025–FY2030 to carry out the new activities. The changes expand enforcement tools, add routine compliance audits and training for state and county staff, and create recurring federal reporting on foreign participation in U.S. agricultural land and production capacity.
Official title: To amend the Agricultural Foreign Investment Disclosure Act of 1978 to remove the limitation on the amount of a civil penalty, and for other purposes.
Introduced February 26, 2025 by Marie Gluesenkamp Perez · Last progress February 26, 2025