When foreign investors acquire U.S. forest and farm land, they frequently are interested in the possibility of solar, wind, or renewable energy generation on their new property, said an Agriculture Department report. Companies with the words “wind,” “solar,” or “renewable” in their names hold 28 percent of the 43.4 million acres of foreign-owned or -leased agricultural land in the country.
The large increases of the past decade in foreign control of crop and pasture land “are mostly due to foreign-owned wind companies signing, as well as terminating, long-term leases on a large number of acres,” said the annual USDA report. “The actual amount of land used by a wind farm is relatively low due to the small footprint of the wind turbines and limited use of access roads. This leaves much of the parcel available for agricultural use.”
Foreign ownership of U.S. farm land has gained attention with the rise in tensions with nations such as China and Russia. During the first six months of this year, at least 15 states, some already with restrictions, enacted new laws to regulate foreign ownership of real estate, according to the Congressional Research Service. Legislation was filed in Congress to ban “adversary” nations, most commonly China, Russia, Iraq, and North Korea, from owning agricultural land or agricultural companies. Other bills would give the government more power to scrutinize purchases and block them for national security purposes.
Texas, Maine, and Colorado account for 26 percent of foreign holdings, a combined 11.4 million acres, although foreign ownership of agricultural land is found in every state plus Puerto Rico.
In its latest report on foreign holdings, the USDA said foreign ownership increased by 3.4 million acres during 2022, to 43.4 million acres. The largest growth, a combined 1.5 million acres, was in Colorado, Alabama, and Michigan. Holdings decreased by nearly 303,000 acres in Arkansas, Illinois, Maine, North Carolina, Ohio, Oregon, and Virginia due to termination of long-term leaseholds and sales of land.
Of the 43.4 million acres of foreign-held land, roughly 30 million acres were owned by foreign citizens or entities, and the rest was largely under leases running 10 years or longer. Two thirds of the foreign-owned land was reported as owner-operated.
“Foreign leases of agricultural land typically result in the dual use of such lands (such as a wind turbine located on a farm) and provide domestic owner-operators with an additional stream of income without significantly impacting the existing agricultural situation (or doing so minimally),” said the Farm Service Agency report.
Based on company names, the USDA said 10.6 million acres of land were associated with “wind” companies, 1.3 million acres with “solar” companies, and less than 330,000 acres with “renewable” projects. All told, 12 million acres, or 28 percent, of foreign-controlled land was listed under one or more of those terms.
Under a 1978 law, foreign investors are required to report to USDA when they gain control of agricultural land. There is no federal restriction on foreign ownership. Forests are half of foreign-controlled agricultural land. Canadians own 32 percent of the 43.4 million acres.
“Chinese primary-investor filers reported owning 349,442 acres of agricultural land as of Dec. 31, 2022,” said the USDA. Two Chinese-owned companies, Brazos Highland Properties and Smithfield Foods, accounted for two thirds of the land. “There were not filings directly by the government of China.”
In October, Arkansas ordered Syngenta, one of the world’s largest seed and ag chemical companies, to sell 160 acres of farmland in northeastern Arkansas. Gov. Sarah Sanders said Arkansas was the first state to order a sale. Syngenta is owned by ChemChina, a state-owned enterprise.
To read the USDA report, “Foreign holdings of U.S. agricultural land,” click here.