H.R.1920 - Foreign Agricultural Restrictions to Maintain Local Agriculture and National Defense Act of 2025; FARMLAND Act of 2025 (119th Congress)
Summary
H.R.1920, the FARMLAND Act of 2025, aims to strengthen oversight of foreign investment in the U.S. agricultural industry. It amends the Agricultural Foreign Investment Disclosure Act of 1978 to enhance monitoring, increase penalties for non-compliance, and require due diligence from entities involved in agricultural land transactions. The bill also mandates reports on agricultural land purchasing activities by countries designated as state sponsors of terrorism and other covered foreign countries.
Expected Effects
The bill will likely increase scrutiny of foreign investment in U.S. agricultural land and potentially deter certain foreign entities from acquiring such land. It could also lead to increased compliance costs for businesses involved in agricultural land transactions and may affect international relations.
Potential Benefits
- Enhanced national security by preventing foreign adversaries from controlling U.S. agricultural resources.
- Protection of U.S. agricultural intellectual property and technology.
- Increased transparency in foreign ownership of agricultural land.
- Improved food security by reducing foreign influence over U.S. food production.
- Stronger enforcement of existing laws related to foreign investment in agriculture.
Potential Disadvantages
- Potential for increased bureaucracy and compliance costs for agricultural businesses.
- Risk of retaliatory measures from foreign countries, impacting U.S. agricultural exports.
- Possible chilling effect on foreign investment in U.S. agriculture, which could limit access to capital.
- Increased scrutiny may disproportionately affect certain foreign investors, leading to claims of discrimination.
- The broad definitions of "foreign entity of concern" could lead to unintended consequences and overreach.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the Constitution's broad goals of providing for the common defense and promoting the general welfare (Preamble). Congress has the power to regulate commerce with foreign nations (Article I, Section 8, Clause 3). The increased reporting requirements and oversight mechanisms appear to fall within the scope of congressional authority to enact laws necessary and proper for carrying out its enumerated powers (Article I, Section 8, Clause 18). However, the due diligence requirements and potential restrictions on foreign investment could raise concerns related to equal protection if applied in a discriminatory manner.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).