"That is a very glaring oversight," Senator Chuck Grassley said, KMA Land reported. "Iowa farmers often tell me they're concerned about foreign entities with deep pockets that could squeeze them out of business. We've also seen cases where China has bought large plots of land near strategic military installations."
In 2021, for example, a Chinese company purchased land near an Air Force base in Grand Forks, N.D.
CFIUS reviews national security implications of foreign investments in the U.S. economy.
The committee, for example, recently told Nippon Steel that a merger between it and U.S. Steel could create national security risks.
In terms of the ag bill, it directs the CFIUS, after receiving notification from the USDA, to determine if a transaction is a “covered transaction,” or if a national security review is required.
A covered transaction is one that could result in control over domestic business by a foreign entity.
The U.S. has identified China, North Korea, Russia and Iran as countries defined as having covered transactions.
Foreign investment of U.S. farmland has increased in recent years.
Foreign investors held an interest in more than 43.4 million acres of U.S. agricultural land, which includes forest land, as of Dec. 31, 2022, a USDA report says. That’s up more than 3.4 million acres from the 2021 report.
Canadian investors had the most, with about 14.2 million acres.
China held fewer than 350,000 acres.