The Republican-controlled House swept aside Democratic objections to pass a bill to restrict the purchase of agricultural land by citizens of China, Russia, North Korea, or Iran.
“It is the beginning of the effort to keep our greatest adversaries from being able to purchase any American farmland, because the way I see it, a group like the CCP (Chinese Communist Party), that has made it their goal to cripple the United States, has no business having a hand in our supply chains and critical lands,” said sponsor Representative Dan Newhouse.
Passed on a 269-149 vote, the bill now goes to the Senate with only a few weeks left on the legislative calendar for this session. It was part of a “China week” parade of legislation arranged by House Republicans. The vote fell largely along party lines, with 55 Democrats joining 214 Republicans for the bill and 148 Democrats and one Republican, Tom McClintock of California, against it.
Congressional concern about China has grown as Sino-U.S. tensions have intensified over the past several years.
“Investments from China pose a unique risk to the U.S. economy,” said Representative Frank Lucas, an Oklahoma Republican.
Other Republicans said restrictions were necessary to prevent China from acquiring land near military bases or other sensitive facilities, using as an example the quashed proposal by a Chinese firm to build a corn mill near a U.S. air base in Grand Forks, North Dakota. The Air Force said the project’s proximity to the base “presents a significant threat to national security.”
The Biden administration opposed the Newhouse bill, HR 9456, saying it duplicated safeguards already in place while interfering with the work of the Committee on Foreign Investment in the United States (CFIUS), led by the Treasury Department. The interdepartmental panel has the power to block transactions that pose a national security risk. The Newhouse bill would require CFIUS to review every agricultural land transaction involving citizens of China, Russia, North Korea, or Iran.
A 1978 law requires foreign investors to report purchases of agricultural land to the USDA. About 40 million acres, or 3%, of the 1.3 billion acres of private agricultural land in the country is owned by foreigners. One-third of that land is owned by Canadians, followed by Europeans. Chinese entities own roughly 384,000 acres, most of it in the hands of Smithfield Foods and billionaire Sun Guangxin.
“This is a real problem, and it is growing,” said Representative Mike Flood, a Nebraska Republican, referring to Chinese ownership of farmland.
Newhouse’s bill also would make the Agriculture Department a member of CFIUS when it considers transactions involving agricultural land, agricultural biotechnology, and the agricultural industry.
EDITOR’S TAKE:
Agree or disagree that such legislation is well-crafted or even necessary, won’t make the issue disappear. Not only is congress concerned, but several states have already passed legislation banning such purchases. Our military has expressed strong concerns over these acquisitions and how they might impact national security. It is one of those issues that has broad public attention and will not be swept under the rug. I have not read the legislation, so therefore, I am unable to comment on the efficacy of the bill. That said, something should be done, and perhaps this is a good start. Only time will tell. Speaking of time – it’s high time that you put all of your truck and SUV inventory on AgTruckTrader.com®. It will be difficult, if not impossible, for foreign influence to overtake that site – after all, it’s meant only for U.S. farmers and ranchers!
