US resorts to protectionism, restricts foreign ownership of ag. land
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Amid rising international tensions, the US Senate has taken a decisive step by voting to impose restrictions on foreign ownership of agricultural land.
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The US Capitol building is seen on the evening of August 6, 2022, in Washington, DC. (Getty Images via AFP)
In a significant display of fueling international tensions, the US Senate voted overwhelmingly to prohibit China, Russia, DPRK, and Iran from acquiring US agricultural land and agricultural businesses. The measure was added as an amendment to a military spending bill, which is expected to pass the Senate and then undergo reconciliation with a House version.
Introduced by Sen. Mark Rounds, a Republican from South Dakota, the amendment calls for the Committee on Foreign Investment in the United States, a powerful interdepartmental panel led by the Treasury Department, to take action and prohibit such purchases.
The ongoing war in Ukraine and the escalating rivalry between China and the US have raised concerns about foreign ownership of American assets, most notably in the agricultural sector.
Sen. Rounds emphasized the provision's importance in enhancing national security, and he received bipartisan support, including cosponsorship from Sen. Jon Tester, a Democrat from Montana.
According to data from the US Department of Agriculture (USDA), foreign entities currently own approximately 40.8 million acres of US agricultural land, accounting for 3.1% of privately owned land in the country.
Half of the foreign-owned land is comprised of forests, with Canada being the largest foreign owner, holding one-third of the total foreign-owned land. Concerns have often been raised about land acquisitions by China, which currently owns around 347,000 acres.
In a similar context, a suggested Florida ban on Chinese citizens from owning property that is being backed by bipartisan politicians, including controversial far-right Republican Governor Ron DeSantis, has caused turmoil in the state over racial discrimination and even law violation last May.
The legislation, backed by Republican and some Democratic lawmakers, makes an exception for Chinese who also hold US citizenship or have permanent residency.
Advocates of the law argue that it serves national security, while opponents are calling it a discriminatory measure and could potentially violate the 1968 Fair Housing Act.
While the law would also prohibit Citizens of Russia, Iran, Syria, Cuba, Venezuela, and DRRK from acquiring land within 1.6 kilometers of any critical infrastructure, only Chinese nationals are subjected to a full ban statewide.
Congress has earlier expressed concern over increasing farmland ownership by Chinese citizens nationwide. A bill was introduced at both national and state levels, which would restrict selling agricultural land to countries considered "hostile" to the US.
The Senate's current action comes as the US increases protectionist measures as opposed to liberal markets that Washington claims to uphold. With the passage of the amendment, countries including China, Russia, DPRK, and Iran will be prohibited from purchasing US agricultural land and agricultural businesses.
The move reflects the growing unease surrounding foreign ownership of American assets, especially in the agricultural sector, and is seen as a necessary measure to "safeguard the nation's agricultural resources and bolster domestic control" over critical assets in a time of escalating geopolitical tensions.
