US Government Fails to Properly Track Foreign Ownership of US Farmlands, Government Watchdog Reports
ICARO Media Group
In an investigation by the US Government Accountability Office (GAO), it was found that the Biden administration is falling short in tracking foreign ownership of US farmlands and lacks a plan to rectify the issue. The Department of Agriculture (USDA) has been inconsistent in sharing timely data on foreign investments in US agricultural land, as mandated by the 1978 Agricultural Foreign Investment Disclosure Act (AFIDA). The GAO report highlights flaws in the USDA's processes for collecting, tracking, and reporting important information.
The GAO report, published on Thursday, emphasizes the need for current data to increase visibility into potential national security risks associated with foreign investments in US agricultural land. Pentagon officials corroborated this concern, stating that the USDA must provide more up-to-date and specific AFIDA data. However, the USDA's collection of AFIDA data on paper forms filed with county or federal offices has been described as "unclear and challenging to implement."
Furthermore, the report reveals that the USDA has no plans or timelines in place to create an online AFIDA database, despite Congress requiring the agency to do so by 2025. The lack of a centralized database makes it difficult to accurately analyze and track foreign ownership of US farmlands.
The GAO also discovered errors in the USDA's reporting of AFIDA data. For instance, the USDA has mistakenly reported the largest land holding associated with China twice, highlighting the need for improved data management and reporting processes.
Concerns over the increasing number of land purchases by foreign investors, particularly those from China, have prompted Republican lawmakers and local leaders nationwide to scrutinize the issue. As of 2021, foreign investment in US agricultural land had reached approximately 40 million acres, with Chinese agricultural investment alone increasing tenfold between 2009 and 2016.
House Agriculture Committee Chairman Glenn Thompson and House Oversight Committee Chairman James Comer led nearly 130 House Republicans in requesting a probe into foreign investment in US farmland and its potential impacts on national security, trade, and food security.
Instances such as the rejection of a Chinese company's proposed corn mill project near a US Air Force base in Grand Forks, North Dakota, due to national security concerns, highlight the urgent need for comprehensive oversight. Similarly, the purchase of land by a subsidiary of Chinese green energy firm Gotion High-Tech in Michigan, close to military armories and a National Guard training facility, has raised additional red flags.
The USDA spokesperson acknowledged the complexity of the process to report and track foreign-owned agricultural land, which relies on self-reporting by foreign buyers and sellers. They also mentioned the need for increased funding and modernization of processes, as well as potential challenges to producer privacy and land prices. However, the GAO's recommendations for improvements would require Congressional changes.
The release of the GAO report coincided with a meeting between Agriculture Secretary Tom Vilsack and Chinese Minister of Agriculture and Rural Affairs Tang Renjian, where they discussed expanding market access opportunities for US farmers and ranchers in China.
As Congress and government agencies continue to address the issue of foreign ownership of US farmland, the importance of safeguarding food security and national security remains a top priority.