Pointing to “China and other adversarial nations,” Gov. Mike Parson announced on Tuesday a ban on the purchase of agricultural land in Missouri by citizens and businesses from six nations if the property lays within 10 miles of critical military facilities, such as Fort Leonard Wood and Whiteman Air Force Base. Missouri state law already limited foreign ownership to a maximum of 1 percent of its agricultural land.
“While we have no issues yet, we want to be proactive against any potential threats,” said Parson during a news conference. The governor signed an executive order that puts the state Agriculture Department in charge of reviewing all proposed purchases of farmland by foreigners, with orders to deny purchases within 10 miles of military facilities by entities from China, Russia, Iran, North Korea, Cuba, and Venezuela, the nations designated as foreign adversaries.
“First off, this is as far as our executive power goes under the current law of our state,” said Parson. “Believe me, if I had the authority, we wouldn’t just be talking about banning farmland but all commercial properties by foreign adversaries, regardless of rural or urban. Because a commercial building in our urban areas in the hands of China poses just as much, if not more, of a threat over our security interests than a rural farm.”
Missouri was the latest state to restrict foreign ownership of U.S. farmland amid rising international tensions. Lawmakers on the state and federal level filed dozens of bills last year on the subject. In October, Arkansas ordered Syngenta, one of the world’s largest seed and ag chemical companies, to sell a 160-acre research farm. Syngenta is owned by ChemChina, a state-owned enterprise.
Foreign investors own 43.4 million acres, or 3.4 percent, of privately held U.S. agricultural land, including 474,000 acres in Missouri, according to the latest USDA report on foreign ownership. Half of the foreign-owned land is forest, and 28 percent is cropland. Texas, Maine, and Colorado are the leading states. Canadians account for 31 percent of foreign-owned land, said the Congressional Research Service.
The executive order does not affect existing ownership of farmland, said Parson, who emphasized the state’s openness to investors from friendly nations, such as Germany, Britain, Japan, and Sweden. In the past five years, Missouri saw foreign investment of nearly $19 billion that supported 150,000 jobs. “There are numerous Missouri employers from friendly nations that we have strong economic relationships with, and we must ensure we are not disrupting Missouri’s economy or Missourians’ lives and livelihoods,” he said.
Foreign ownership of farmland was an issue among Republicans running for their party’s nomination for governor in Missouri. Secretary of State Jay Ashcroft said Lt. Gov. Mike Kehoe, also running for the GOP nomination, “has done nothing” to prevent Chinese purchase of farmland. Kehoe was among state officials present at Parson’s announcement of the new restrictions on ownership.
Fourteen states, mostly in the Midwest and Plains states, restrict or prohibit foreign ownership of farmland. Analysts say foreign investors generally pay a premium for U.S. farmland, but they are such a small part of the land market that they do not affect land prices overall. The latest USDA report on foreign ownership said companies with the words “wind,” “solar,” or “renewable” in their names held 28 percent of foreign-owned or -leased agricultural land.
To read Parson’s executive order, click here.
To read the governor’s remarks prepared for the news conference, click here.