Safeguarding American Farms from Foreign Influence Act
12/28/2024, 9:08 AMSummary of Bill HR 5409
Bill 118 hr 5409, also known as the Safeguarding American Farms from Foreign Influence Act, aims to protect American agricultural interests from foreign ownership and control. The bill seeks to address concerns about foreign entities acquiring farmland in the United States, which could potentially threaten national food security and economic stability.The key provisions of the bill include:
1. Establishing a national database to track foreign ownership of agricultural land in the United States. This database would provide transparency and oversight to ensure that foreign entities are not acquiring an excessive amount of American farmland. 2. Requiring foreign investors to report any acquisitions of agricultural land to the Department of Agriculture. This reporting requirement would help prevent foreign entities from gaining control over large swaths of American farmland without proper oversight. 3. Prohibiting foreign governments and their agents from acquiring agricultural land in the United States. This provision is aimed at preventing foreign governments from using agricultural investments as a means to exert influence over American food production. Overall, the Safeguarding American Farms from Foreign Influence Act seeks to protect American farmers and ensure that the nation's agricultural resources remain in the hands of domestic stakeholders. By increasing transparency and oversight of foreign ownership of agricultural land, the bill aims to safeguard national food security and economic stability.
Congressional Summary of HR 5409
Safeguarding American Farms from Foreign Influence Act
This bill requires the Committee on Foreign Investment in the United States (CFIUS) to determine whether a national security review is necessary for reportable agricultural land transactions that are referred by the Department of Agriculture (USDA). (CFIUS oversees the national security risks of certain foreign investment in the United States. CFIUS has the authority to review covered transactions, which include mergers, acquisitions, and takeovers that could result in foreign control of a U.S. business; certain noncontrolling investments in businesses involved in critical technologies, critical infrastructure, or sensitive personal data; and certain real estate transactions. The President may, at the recommendation of CFIUS, suspend or prohibit transactions that threaten to impair U.S. national security.)
Specifically, the bill directs CFIUS to, within 30 days of receiving notification from USDA, determine (1) whether a reportable agricultural land transaction is a covered transaction, and (2) whether CFIUS should initiate a national security review or take another action with respect to the transaction.
Under this bill, reportable agricultural land transaction means a transaction (1) that USDA has reason to believe is a covered transaction; (2) that involves the acquisition of an interest in agricultural land by a foreign person, other than by a foreign person of an excepted foreign state or an excepted real estate foreign state, as such terms are defined in CFIUS regulations; and (3) with respect to which a foreign person is required to submit a report to USDA regarding their agricultural land transactions.
