[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 886 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 886
To amend the Agricultural Foreign Investment Disclosure Act of 1978 to
strengthen oversight over foreign investment in the United States
agricultural industry, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 6, 2025
Ms. Ernst (for herself, Ms. Slotkin, Mr. Fetterman, and Mr. Budd)
introduced the following bill; which was read twice and referred to the
Committee on Agriculture, Nutrition, and Forestry
_______________________________________________________________________
A BILL
To amend the Agricultural Foreign Investment Disclosure Act of 1978 to
strengthen oversight over foreign investment in the United States
agricultural industry, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Foreign Agricultural Restrictions to
Maintain Local Agriculture and National Defense Act of 2025'' or the
``FARMLAND Act of 2025''.
SEC. 2. AGRICULTURAL FOREIGN INVESTMENT.
(a) Findings.--Congress finds that--
(1) agriculture is vital for the national security and
economic prosperity of the United States and is a key element
of United States national power;
(2) agriculture of the United States feeds the people of
the United States and the world, and has been a key contributor
to advancements in technology and medicine;
(3) strategic competitors of the United States have
hegemonic goals to dominate the global agriculture industry and
undermine the United States agriculture sector through
intellectual property theft of seeds and other patented
agriculture-related technologies;
(4) China in particular has increased agricultural
investments tenfold over the past decade and continues to make
investments in United States agriculture, agribusiness, and
animal processing industries, including by acquiring ownership
of farmland in the United States;
(5) the United States must prevent agricultural espionage
and theft of intellectual property conducted by China and other
foreign entities of concern (as defined in section 9 of the
Agricultural Foreign Investment Disclosure Act of 1978 (7
U.S.C. 3508));
(6) agricultural intellectual property theft may enable
global competitors to undercut United States producers in
international seed markets;
(7) the Federal Government does not fully exercise its
authorized oversight over investment transactions within the
agricultural industry, causing--
(A) United States farmland to be under foreign
acquisition; and
(B) the influence of foreign adversaries on
agriculture in the United States to be an unknown risk
factor; and
(8) the Federal Government must enforce and modernize
existing laws to monitor and prevent malign actions of foreign
entities of concern (as defined in section 9 of the
Agricultural Foreign Investment Disclosure Act of 1978 (7
U.S.C. 3508)) on the farms and land of the United States.
(b) Civil Penalties.--Section 3 of the Agricultural Foreign
Investment Disclosure Act of 1978 (7 U.S.C. 3502) is amended--
(1) by redesignating subsection (b) as subsection (d);
(2) in subsection (a), in the matter preceding paragraph
(1), by striking ``(a) If the'' and all that follows through
``Any such civil penalty'' in the third sentence and inserting
the following:
``(a) In General.--A person shall be subject to a civil penalty
imposed by the Secretary if the Secretary determines that the person--
``(1) has failed to submit a report in accordance with the
provisions of section 2; or
``(2) has knowingly submitted a report under section 2
that--
``(A) does not contain all the information required
to be in such report; or
``(B) contains information that is misleading or
false.
``(b) Availability of Funds From Civil Penalties.--A civil penalty
collected under subsection (a) shall be available to the Secretary
without appropriation and remain available until expended for the
purpose of enforcing this Act.
``(c) Civil Action.--Any civil penalty imposed by the Secretary
under subsection (a)''; and
(3) in subsection (d) (as so redesignated)--
(A) by striking the subsection designation and all
that follows through ``The amount'' and inserting the
following:
``(d) Amount of Penalty.--The amount'';
(B) by striking ``of this section''; and
(C) by striking ``shall not exceed 25 percent'' and
inserting ``shall be not less than 5 percent, but not
more than 25 percent,''.
(c) Public Disclosure of Noncompliant Persons.--Section 3 of the
Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3502)
(as amended by subsection (b)) is amended by adding at the end the
following:
``(e) Public Disclosure of Noncompliant Persons.--The Secretary
shall publicly disclose the name of each person who paid to the
Secretary a civil penalty imposed under subsection (a), including, if
applicable, after the completion of an appeal of a civil penalty.''.
(d) Publication of Reporting Requirements.--Section 3 of the
Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3502)
(as amended by subsection (c)) is amended by adding at the end the
following:
``(f) Outreach.--Using existing resources and efforts to the
maximum extent practicable, the Secretary shall carry out a nationwide
outreach program directed primarily towards landlords, owners,
operators, persons, producers, and tenants (as those terms are defined
in section 718.2 of title 7, Code of Federal Regulations (as in effect
on the date of enactment of the Foreign Agricultural Restrictions to
Maintain Local Agriculture and National Defense Act of 2025)) of
agricultural land and county property appraiser offices, land appraisal
companies, and real estate auction companies to increase public
awareness and provide education regarding the reporting requirements
under this section.''.
(e) Due Diligence Requirements.--The Agricultural Foreign
Investment Disclosure Act of 1978 is amended by inserting after section
4 (7 U.S.C. 3503) the following:
``SEC. 5. DUE DILIGENCE REQUIREMENTS.
``Any entity (including a buyer, seller, real estate agent, broker,
and title company) involved in the purchase or transfer of agricultural
land in the United States shall--
``(1) conduct due diligence relating to the agriculture
land being purchased or transferred; and
``(2) certify to the Secretary that, to the best of the
knowledge and belief of the entity, the entity is in compliance
with all applicable provisions of this Act.''.
SEC. 3. REPORT ON AGRICULTURAL LAND PURCHASING ACTIVITIES IN THE UNITED
STATES BY COUNTRIES DESIGNATED AS STATE SPONSORS OF
TERRORISM AND CERTAIN OTHER COUNTRIES.
(a) Definitions.--In this section:
(1) Agricultural land.--The term ``agricultural land'' has
the meaning given the term in section 9 of the Agricultural
Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3508).
(2) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Agriculture, Nutrition, and
Forestry of the Senate;
(B) the Committee on Homeland Security and
Governmental Affairs of the Senate;
(C) the Committee on Intelligence of the Senate;
(D) the Committee on Homeland Security of the House
of Representatives;
(E) the Committee on Agriculture of the House of
Representatives; and
(F) the Permanent Select Committee on Intelligence
of the House of Representatives.
(3) Covered foreign country.--The term ``covered foreign
country'' means--
(A) the People's Republic of China;
(B) the Russian Federation;
(C) a state sponsor of terrorism; and
(D) any other country identified by the Secretary
of Homeland Security or the Secretary of Agriculture.
(4) Covered foreign person.--The term ``covered foreign
person'' means a foreign person (as defined in section 9 of the
Agricultural Foreign Investment Disclosure Act of 1978 (7
U.S.C. 3508)) that is a citizen of, or headquartered in, as
applicable, a covered foreign country.
(5) State.--The term ``State'' has the meaning given the
term in section 9 of the Agricultural Foreign Investment
Disclosure Act of 1978 (7 U.S.C. 3508).
(6) State sponsor of terrorism.--The term ``state sponsor
of terrorism'' means a country the government of which the
Secretary of State has determined has repeatedly provided
support for acts of international terrorism, for purposes of--
(A) section 1754(c)(1)(A)(i) of the Export Control
Reform Act of 2018 (50 U.S.C. 4813(c)(1)(A)(i));
(B) section 620A of the Foreign Assistance Act of
1961 (22 U.S.C. 2371);
(C) section 40(d) of the Arms Export Control Act
(22 U.S.C. 2780(d)); or
(D) any other provision of law.
(b) Report.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, and annually thereafter, the Secretary
of Agriculture, with support from the Secretary of Homeland
Security and the head of any other appropriate Federal agency,
shall submit to the appropriate committees of Congress a report
describing the national security risks of the purchase and
management of agricultural land by covered foreign persons.
(2) Contents.--A report submitted under paragraph (1) shall
include the following with respect to the year covered by the
report:
(A) A description of--
(i) the number of acres of agricultural
land owned or managed by covered foreign
persons, organized by State; and
(ii) for each State, the percentage of land
owned or managed by covered foreign persons
compared to the total acreage of the State.
(B) An analysis of the possible threat to food
security, food safety, biosecurity, or environmental
protection due to the ownership of agricultural land by
each covered foreign country through covered foreign
persons.
(C) An analysis of the annual and total cost of
support for agricultural land owned by covered foreign
persons through farm programs administered by the Farm
Service Agency.
(D) An analysis of the use of agricultural land for
industrial espionage or intellectual property transfer
by covered foreign persons.
(E) An analysis of the potential use by covered
foreign persons of agricultural land in close proximity
to manufacturing facilities, water sources, and other
critical infrastructure to monitor, interrupt, or
disrupt activities critical to the national and
economic security of the United States.
(F) An analysis of other threats to the
agricultural industry or national security of the
United States due to the ownership of agricultural land
by covered foreign persons.
(3) Unclassified form.--A report submitted under this
subsection shall--
(A) be submitted in unclassified form, but may
include a classified annex; and
(B) be consistent with the protection of
intelligence sources and methods.
SEC. 4. INVESTIGATIVE ACTIONS.
(a) Investigative Actions.--Section 4 of the Agricultural Foreign
Investment Disclosure Act of 1978 (7 U.S.C. 3503) is amended to read as
follows:
``SEC. 4. INVESTIGATIVE ACTIONS.
``(a) In General.--The Secretary shall appoint an employee in the
Senior Executive Service (as described in section 3131 of title 5,
United States Code) of the Department of Agriculture to serve as Chief
of Operations of Investigative Actions (referred to in this section as
the `Chief of Operations'), who shall hire, appoint, and maintain
additional employees to monitor compliance with the provisions of this
Act.
``(b) Chief of Operations.--The Chief of Operations may serve in
such position simultaneously with a concurrent position within the
Department of Agriculture.
``(c) Security.--The Secretary shall--
``(1) provide classified storage, meeting, and other
spaces, as necessary, for personnel; and
``(2) assist personnel in obtaining security clearances.
``(d) Duties.--The Chief of Operations shall--
``(1) monitor compliance with this Act;
``(2) refer noncompliance with this Act to the Secretary,
the Farm Service Agency, and any other appropriate authority;
``(3) conduct investigations, in coordination with the
Department of Justice, the Federal Bureau of Investigation, the
Department of Homeland Security, the Department of the
Treasury, the National Security Council, and State and local
law enforcement agencies, on malign efforts--
``(A) to steal agricultural knowledge and
technology; and
``(B) to disrupt the United States agricultural
base;
``(4) conduct an annual audit of the database developed
under section 6(b) of the Foreign Agricultural Restrictions to
Maintain Local Agriculture and National Defense Act of 2025;
``(5) seek to enter into memoranda of agreement and
memoranda of understanding with the Federal agencies described
in paragraph (3)--
``(A) to ensure compliance with this Act; and
``(B) to prevent the malign efforts described in
that paragraph;
``(6) refer to the Committee on Foreign Investment in the
United States transactions that--
``(A) raise potential national security concerns;
and
``(B) result in agricultural land acquisition by a
foreign person that is a citizen of, or headquartered
in, as applicable, a foreign entity of concern; and
``(7) publish annual reports that summarize the information
contained in every report received by the Secretary under
section 2 during the period covered by the report.
``(e) Administration.--The Chief of Operations shall report to--
``(1) the Secretary; or
``(2) if delegated by the Secretary, to--
``(A) the Administrator of the Farm Service Agency;
or
``(B) the Director of the Department of Agriculture
Office of Homeland Security.''.
(b) Definition of Foreign Entity of Concern.--Section 9 of the
Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3508)
is amended--
(1) in the matter preceding paragraph (1), by striking
``For purposes of this Act--'' and inserting ``In this Act:'';
(2) in each of paragraphs (1) through (6)--
(A) by striking ``the term'' and inserting ``The
term''; and
(B) by inserting a paragraph heading, the text of
which comprises the term defined in that paragraph;
(3) by redesignating paragraphs (2) through (6) as
paragraphs (3), (4), (6), (7), and (8), respectively;
(4) by inserting after paragraph (1) the following:
``(2) Foreign entity of concern.--The term `foreign entity
of concern' has the meaning given the term in section 9901 of
the William M. (Mac) Thornberry National Defense Authorization
Act for Fiscal Year 2021 (15 U.S.C. 4651).''; and
(5) by inserting after paragraph (4) (as so redesignated)
the following:
``(5) Malign effort.--The term `malign effort' means any
hostile effort undertaken by, at the direction of, on behalf
of, or with the substantial support of the government of a
foreign entity of concern.''.
(c) Reports.--The Agricultural Foreign Investment Disclosure Act of
1978 (7 U.S.C. 3501 et seq.) is amended by adding at the end the
following:
``SEC. 11. REPORTS.
``(a) Initial Report.--Not later than 180 days after the date of
enactment of this section, the Secretary shall submit to Congress a
report that describes the progress of the Secretary in implementing the
amendments made by the Foreign Agricultural Restrictions to Maintain
Local Agriculture and National Defense Act of 2025.
``(b) Report on Tracking Covered Transactions.--Not later than 180
days after the date of enactment of this section, the Secretary shall
submit to Congress a report on the feasibility of--
``(1) establishing a mechanism for quantifying the threats
posed by foreign entities of concern to United States food
security, biosecurity, food safety, environmental protection,
and national defense; and
``(2) building, and submitting to the Committee on Foreign
Investment in the United States for further review, a rigorous
discovery and review process to review transactions described
in section 721(a)(4)(B)(vi) of the Defense Production Act of
1950 (50 U.S.C. 4565(a)(4)(B)(vi)).
``(c) Yearly Report.--Not later than 1 year after the date of
enactment of this section, and annually thereafter for the following 10
years, the Secretary shall submit to Congress a report on the
activities of the Secretary pursuant to this Act during the year
covered by the report.''.
SEC. 5. AUTHORITY OF COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED
STATES TO REVIEW CERTAIN REAL ESTATE PURCHASES BY FOREIGN
ENTITIES OF CONCERN.
(a) In General.--Section 721(a)(4) of the Defense Production Act of
1950 (50 U.S.C. 4565(a)(4)) is amended--
(1) in subparagraph (A)--
(A) in clause (i), by striking ``; and'' and
inserting a semicolon;
(B) in clause (ii), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(iii) any transaction described in
subparagraph (B)(vi) proposed or pending on or
after the date of enactment of this clause.'';
and
(2) in subparagraph (B), by adding at the end the
following:
``(vi) Subject to subparagraph (C), the
purchase or lease by, or a concession to, a
foreign entity of concern of private or public
real estate in the United States if--
``(I)(aa) the value of the
purchase, lease, or concession--
``(AA) exceeds $5,000,000;
or
``(BB) in combination with
the value of other such
purchases or leases by, or
concessions to, the same entity
during the preceding 3 years,
exceeds $5,000,000; or
``(bb) the real estate--
``(AA) exceeds 320 acres;
or
``(BB) in combination with
other private or public real
estate in the United States
purchased or leased by, or for
which a concession is provided
to, the same entity during the
preceding 3 years, exceeds 320
acres; and
``(II) the real estate is primarily
used for--
``(aa) agriculture,
including raising of livestock
and forestry;
``(bb) extraction of fossil
fuels, natural gas, purchases
or leases of renewable energy
sources; or
``(cc) extraction of
critical precursor materials
for biological technology
industries, information
technology components, or
national defense
technologies.''.
(b) Foreign Entities of Concern.--Section 721(a) of the Defense
Production Act of 1950 (50 U.S.C. 4565(a)) is amended--
(1) by redesignating paragraphs (7) through (13) as
paragraphs (8) through (14), respectively; and
(2) by inserting after paragraph (6) the following:
``(7) Foreign entity of concern.--The term `foreign entity
of concern' has the meaning given that term in section 9901 of
the William M. (Mac) Thornberry National Defense Authorization
Act for Fiscal Year 2021 (15 U.S.C. 4651).''.
(c) Factors To Be Considered.--Section 721(f) of the Defense
Production Act of 1950 (50 U.S.C. 4565(f)) is amended--
(1) by redesignating paragraphs (8) through (11) as
paragraphs (9) through (12), respectively; and
(2) by inserting after paragraph (7) the following:
``(8) the potential follow-on national security effects of
the risks posed by the proposed or pending transaction to
United States food security, food safety, biosecurity,
environmental protection, or national defense;''.
(d) Inclusion of Secretary of Agriculture and the Commissioner of
Food and Drugs on Committee on Foreign Investment in the United
States.--Section 721(k)(2) of the Defense Production Act of 1950 (50
U.S.C. 4565(k)(2)) is amended--
(1) by redesignating subparagraphs (H), (I), and (J) as
subparagraphs (J), (K), and (L), respectively; and
(2) by inserting after subparagraph (G) the following:
``(H) The Secretary of Agriculture.
``(I) The Commissioner of Food and Drugs.''.
(e) Annual Report.--Section 721(m) of the Defense Production Act of
1950 (50 U.S.C. 4565(m)) is amended--
(1) by redesignating paragraph (4) as paragraph (5); and
(2) by inserting after paragraph (3) the following:
``(4) List of real estate owned by foreign entities of
concern.--The President and such agencies as the President
shall designate shall include in the annual report submitted
under paragraph (1) a list of all real estate in the United
States owned by a foreign entity of concern or a person closely
associated with such an entity.''.
(f) Report Required.--Not later than 180 days after the date of
enactment of this Act, the Secretary of the Treasury, in coordination
with the Secretary of State and the Secretary of Homeland Security,
shall submit to Congress a report that includes--
(1) an assessment of the feasibility of requiring
retroactive divestment of real estate owned by foreign entities
of concern (as defined in section 721(a) of the Defense
Production Act of 1950, as amended by this section); and
(2) a description of the process used by the Committee on
Foreign Investment in the United States to review the national
security implications of any connections between--
(A) foreign investment in the United States made by
the Government of the People's Republic of China or
entities controlled by or acting on behalf of that
Government; and
(B) the Chinese Communist Party.
(g) Effective Date.--The amendments made by this section take
effect on the date of the enactment of this Act and apply with respect
to any covered transaction the review or investigation of which is
initiated under section 721 of the Defense Production Act of 1950 on or
after such date of enactment.
SEC. 6. DIGITIZATION AND CONSOLIDATION OF FOREIGN LAND OWNERSHIP DATA.
(a) Definitions.--In this section:
(1) Agricultural land.--The term ``agricultural land'' has
the meaning given the term in section 781.2 of title 7, Code of
Federal Regulations (as in effect on the date of enactment of
this Act).
(2) Appropriate committees of congress.--In this section,
the term ``appropriate committees of Congress'' has the meaning
given the term in section 3(a).
(3) Database.--The term ``database'' means the database
developed under subsection (b).
(4) Foreign person.--The term ``foreign person'' has the
meaning given the term in section 9 of the Agricultural Foreign
Investment Disclosure Act of 1978 (7 U.S.C. 3508).
(5) Secretaries.--The term ``Secretaries'' means--
(A) the Secretary of Agriculture; and
(B) the Secretary of Homeland Security.
(b) Database.--Subject to the availability of appropriations, not
later than 3 years after the date of enactment of this Act, the
Secretaries, acting jointly, shall develop a database of agricultural
land owned by foreign persons, using data that are--
(1) collected--
(A) pursuant to the Agricultural Foreign Investment
Disclosure Act of 1978 (7 U.S.C. 3501 et seq.); and
(B) from FSA-153 forms submitted to the Farm
Service Agency; and
(2) publicly available.
(c) Contents.--Each entry in the database for each registration or
updated registration of agricultural land owned by a foreign person
shall include information in the applicable FSA-153 form.
(d) Audit.--Not later than 180 days after the database is made
publicly available, and annually thereafter, the Chief of Operations
for Investigative Actions appointed under section 4 of the Agricultural
Foreign Investment Disclosure Act of 1978 shall--
(1) conduct an audit of the database; and
(2) submit to the appropriate committees of Congress a
report--
(A) evaluating the accuracy of the database; and
(B) describing recommendations for improving
compliance with the reporting required under the
Agricultural Foreign Investment Disclosure Act of 1978
(7 U.S.C. 3501 et seq.).
SEC. 7. PROHIBITION OF PARTICIPATION IN FARM SERVICE AGENCY PROGRAMS BY
FOREIGN PERSONS.
(a) Definitions.--In this section:
(1) Appropriate committees of congress.--The term
``appropriate committees of Congress'' has the meaning given
the term in section 3(a).
(2) Foreign person.--The term ``foreign person'' has the
meaning given the term in section 9 of the Agricultural Foreign
Investment Disclosure Act of 1978 (7 U.S.C. 3508).
(3) Operator.--The term ``operator'' has the meaning given
the term in section 718.2 of title 7, Code of Federal
Regulations (as in effect on the date of enactment of this
Act).
(4) Owner.--The term ``owner'' has the meaning given the
term in section 718.2 of title 7, Code of Federal Regulations
(as in effect on the date of enactment of this Act).
(5) Participant.--The term ``participant'' has the meaning
given the term in section 718.2 of title 7, Code of Federal
Regulations (as in effect on the date of enactment of this
Act).
(6) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(b) Limitation for Foreign-Owned or Operated Land.--No operator or
owner who is a foreign person may be a participant.
(c) Compliance.--
(1) In general.--The Secretary may take such actions as the
Secretary considers necessary to monitor compliance with
subsection (b).
(2) Ownership certification.--The Secretary shall require
any owner or operator applying to be a participant to certify
in the application that the owner or operator is not a foreign
person.
(3) Civil penalty.--
(A) In general.--A foreign person shall be subject
to a civil penalty imposed by the Secretary if the
Secretary determines that the foreign person--
(i) has received benefits prohibited under
subsection (b); or
(ii) has knowingly submitted a request for
those benefits that contains information that
is misleading or false.
(B) Civil action.--A civil penalty imposed by the
Secretary under subparagraph (A) shall be recoverable
in a civil action brought by the Attorney General in an
appropriate district court of the United States.
(C) Amount.--The amount of a civil penalty imposed
by the Secretary under subparagraph (A)--
(i) shall be such amount as the Secretary
determines to be appropriate to carry out the
purposes of this section; but
(ii) shall not exceed 125 percent of the
monetary benefits provided to the foreign
person in participating in the 1 or more
programs of the Farm Service Agency in which
participation is prohibited under subsection
(b).
(D) Use of civil penalties.--Penalties collected
under this paragraph shall be available to the
Secretary, without further appropriation and until
expended, for the purpose of enforcing this section.
(4) Use of information.--For the purpose of monitoring
compliance under this subsection, the Secretary shall use
information--
(A) collected by the Secretary under the
Agricultural Foreign Investment Disclosure Act of 1978
(7 U.S.C. 3501 et seq.); and
(B) from the FSA-153 form submitted to the Farm
Service Agency.
(d) Report.--The Secretary shall submit to the appropriate
committees of Congress, on an annual basis, a report containing the
following information:
(1) A description of violations of subsection (b) during
the year covered by the report.
(2) An itemized list of savings for each program
administered by the Farm Service Agency during the year covered
by the report as a result of subsection (b).
(3) A description of compliance actions taken by the
Secretary under subsection (c) during the year covered by the
report.
(4) An itemized list of civil penalties imposed on foreign
persons under subsection (c)(3) during the year covered by the
report.
(5) Such other information on enforcement under this
section, compliance with this section, and the benefits of this
section as the Secretary determines to be necessary.
SEC. 8. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this Act and
the amendments made by this Act--
(1) $35,000,000 for fiscal year 2025, to remain available
until expended, for secure workspace buildout under the
amendments made by section 4 and database system development
under section 6; and
(2) $9,000,000 for each of fiscal years 2025 through 2029
for all other activities.
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