Foreign Over-Investment in the U.S.?

Foreign Over-Investment in U.S. Farmland and Infrastructure Sparks Concern: What Should the U.S. Do?

March 5, 2025 – Washington, D.C.
A growing wave of foreign investment in U.S. farmland, livestock operations, real estate, and critical infrastructure like toll roads is raising alarm bells across the nation. From sprawling cattle ranches to fruit orchards, commercial properties, and even transportation networks, foreign entities—both private and state-backed—are increasingly securing stakes in America’s foundational assets. Experts warn that this trend, including roundabout investment strategies designed to obscure ownership, could pose significant risks to national security, food sovereignty, and economic stability if left unchecked.

A Surge in Foreign Ownership

Recent data from the U.S. Department of Agriculture (USDA) reveals that foreign ownership of American agricultural land has ballooned to approximately 46 million acres as of 2023—an area larger than the state of South Carolina. This marks a staggering 85% increase since 2010, driven largely by Canadian, European, and, to a lesser extent, Chinese investors. While Canada leads the pack with 14.2 million acres (32% of foreign-held farmland), nations like the Netherlands, Italy, and the United Kingdom collectively hold another 13 million acres. China, though owning less than 1% (349,442 acres), has drawn outsized attention due to its strategic purchases near military installations.

Beyond farmland, foreign entities are snapping up cattle and hog operations, fruit farms, commercial real estate, and infrastructure assets. For instance, toll roads in states like Indiana and Texas have seen investments from Spanish and Australian firms, while Saudi subsidiaries have acquired vast tracts in Arizona for hay production, straining local water resources. Real estate, too, is a target—corporate investors, including foreign-backed funds, purchased 15% of U.S. homes for sale in early 2021 alone, signaling a broader consolidation trend.

Roundabout Investing: A Hidden Threat

Complicating the picture is the rise of roundabout investment tactics, where foreign entities use shell companies, long-term leases, or partnerships with domestic firms to mask their ownership. Under the Agricultural Foreign Investment Disclosure Act (AFIDA) of 1978, foreign investors must report holdings, but loopholes—such as leases under 10 years or indirect ownership through U.S.-based subsidiaries—allow significant activity to fly under the radar. The 2013 acquisition of Smithfield Foods by China’s WH Group, which included 146,000 acres of farmland, exemplifies how foreign control can be obscured within corporate structures.

Renewable energy projects add another layer. Foreign-owned wind and solar companies, particularly from Europe, have leased millions of acres for turbines and panels, with over 11 million acres tied to entities with “wind” in their names. While these dual-use arrangements often leave land available for farming, they lock up vast swaths under foreign influence for decades.

Risks on the Horizon

The implications are profound. Food security, a cornerstone of national stability, could be jeopardized if foreign owners prioritize exports over domestic supply—a concern heightened by China’s global agricultural dominance and the U.S.’s shift to a net beef importer. National security is also at stake: the 2023 rejection of a Chinese firm’s corn milling plant near a North Dakota airbase underscored fears of espionage or sabotage enabled by proximity to sensitive sites.

Infrastructure investments raise similar red flags. Foreign control of toll roads or commercial real estate could influence transportation costs or urban development, subtly eroding American autonomy. Meanwhile, local farmers face mounting barriers as land prices soar—up 50% since 2017 in some regions—driven partly by foreign cash and institutional buyers like pension funds and hedge funds.

A Call to Action

As foreign over-investment accelerates, experts and policymakers urge swift U.S. action to avert an “inevitable” reckoning—be it a food crisis, economic dependency, or security breach. Here’s what’s being proposed:

1. Tighten Reporting and Oversight: Amend AFIDA to close loopholes, mandating disclosure of leases as short as five years and requiring transparency on ultimate ownership. The USDA’s push for a real-time data system, accessible to agencies like the Department of Defense, could enhance monitoring.
2. Restrict Strategic Purchases: Enact federal laws banning foreign ownership of farmland or infrastructure near military bases and critical supply chains. States like Arkansas, which forced a Chinese-owned firm to divest 160 acres in 2023, offer a blueprint—though broader coordination is needed.
3. Cap Foreign Holdings: Impose acreage limits or outright bans on foreign ownership, as seen in Iowa’s strict laws, which restrict foreign entities to 320 acres unless used for research or non-farming purposes. A national cap could curb over-concentration.
4. Boost Domestic Ownership: Support young and beginning farmers through grants, low-interest loans, and tax incentives to compete with foreign buyers. The USDA’s Beginning Farmers and Ranchers Loans are a start, but scaling them is critical as the average farmer age climbs past 57.
5. Scrutinize Infrastructure Deals: Expand the Committee on Foreign Investment in the United States (CFIUS) to include the Secretary of Agriculture and review all foreign acquisitions of agricultural and infrastructure assets, not just those near military sites.

The Clock Is Ticking

Critics argue that fears are overblown—foreigners own just 3.6% of U.S. farmland, and global trade relies on open markets. Yet, as Senator Corey Booker (D-NJ) noted during a 2023 hearing, “Who controls our farmland is who controls our food system.” With foreign investment showing no signs of slowing—and roundabout strategies masking its true scope—the U.S. risks ceding sovereignty over its bedrock resources.

The question isn’t whether foreign over-investment is happening—it’s whether America acts before the consequences become irreversible. As one farmer in Missouri put it, “We’re selling the ground beneath our feet. What’s left when it’s gone?”