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Prohibits people tied to specified foreign adversary governments from buying or leasing U.S. agricultural land and blocks those owners from participating in many USDA programs. It authorizes the President to use emergency economic powers to enforce the land‑ownership ban, sets penalties, and creates exceptions and documentation requirements for limited program participation. Strengthens and modernizes the Agricultural Foreign Investment Disclosure Act by expanding what counts as an ownership interest, widening the definition of foreign persons to include certain companies whose equity trades primarily on specified foreign exchanges, requiring public, machine‑readable disclosure of AFIDA reports, and mandating three reports (USDA, DNI, GAO) on risks, motives, enforcement, and resource needs related to foreign ownership of U.S. agricultural land.
Defines "agricultural land" by referring to the meaning given in section 9 of the Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3508).
Specifically includes land described in section 9(1) of the Agricultural Foreign Investment Disclosure Act of 1978 when that land is used for ranching purposes.
Defines "covered person" by adopting the meaning given in section 7.2 of title 15, Code of Federal Regulations (as in effect on the date of enactment), but treats each reference in that definition as referring to a person who is owned by, controlled by, or subject to the jurisdiction or direction of a "foreign adversary."
Specifies the entities considered "foreign adversaries" for the purpose of the "covered person" definition by listing: (i) Iran; (ii) North Korea; (iii) the People's Republic of China; and (iv) the Russian Federation.
States that the term "covered person" does not include a United States citizen or an alien lawfully admitted for permanent residence in the United States.
Who is affected and how
Farmers and private agricultural landowners: Owners of farmland must expect expanded reporting obligations and public disclosure of foreign ownership interests; transactions involving foreign investors may face new vetting, delays, or prohibitions. Owners with existing foreign investors or complicated ownership chains will need to review and possibly reconfigure ownership structures to comply.
Foreign persons and investors (especially those linked to the listed foreign adversary countries): Individuals and entities associated with the specified foreign governments face a near‑total bar on acquiring or leasing agricultural land and restrictions on participation in many USDA programs if they own or lease land. Companies whose equity trades primarily on exchanges in those countries may now be treated as "foreign persons" and captured by AFIDA reporting and prohibitions.
USDA and Farm Service Agency (FSA): USDA gains expanded data, disclosure responsibilities, and new enforcement duties; the agency must publish machine‑readable AFIDA datasets and verify citizenship documentation for exception participants. FSA and other program offices will need procedures to screen applicants, process proof of citizenship, and deny or approve participation consistent with the new law.
Federal enforcement and national‑security agencies: The President, Treasury (for IEEPA enforcement), intelligence community (DNI), and GAO are tasked with assessments, enforcement support, and audits; intelligence reporting and interagency cooperation may increase. IEEPA enforcement could require coordination between Treasury, Justice, and USDA.
State and local governments and communities (especially rural areas): Local communities that host agricultural operations may experience impacts to investment, farm finance, or property transfers; the USDA report requirement includes assessing state/local roles and monitoring capacity, which may increase interactions between local authorities and federal agencies.
Brokers, title companies, and lenders: Must adjust due diligence, title searches, and underwriting to account for expanded definitions of reportable ownership and heightened enforcement risk; lenders may face new lien rules tied to AFIDA penalties.
Agricultural service programs and beneficiaries: Certain program beneficiaries may face delays or new eligibility verification steps; programs explicitly excepted (e.g., some inspection or health/safety programs) still may require citizenship documentation for participants or recipients.
Overall impact
Redesignates existing paragraphs (4)–(6) as (5)–(7); inserts a new paragraph (4) defining that the term 'interest' includes security interests and leases (regardless of lease duration); and amends the definition of 'foreign person' in paragraph (3) by editing subparagraph punctuation and adding a new subparagraph (E) covering entities that issue equity securities primarily traded on foreign securities exchanges within specified countries.
Conforming amendment that strikes each place the identified text appears in section 2 (i.e., removes the exclusion language referencing security interests).
Expand sections to see detailed analysis
Referred to the Committee on Agriculture, and in addition to the Committees on Foreign Affairs, and Intelligence (Permanent Select), for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced February 18, 2025 by Dale Strong · Last progress February 18, 2025
Referred to the Committee on Agriculture, and in addition to the Committees on Foreign Affairs, and Intelligence (Permanent Select), for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced in House