S.179 - Foreign Adversary Risk Management Act; FARM Act (119th Congress)
Summary
The Foreign Adversary Risk Management Act (FARM Act) aims to protect the U.S. agriculture industry from foreign influence by amending the Defense Production Act of 1950. It includes the Secretary of Agriculture in the Committee on Foreign Investment in the United States (CFIUS). The bill also mandates reports on foreign investments in U.S. agriculture.
Expected Effects
This act will likely increase scrutiny of foreign investments in U.S. agricultural businesses and supply chains. It could lead to the blocking or modification of certain transactions deemed to pose a risk to national security or agricultural viability. The required reports will provide Congress with more information to inform future policy decisions.
Potential Benefits
- Enhanced protection of U.S. agricultural assets from foreign control.
- Increased oversight of foreign investments in the agriculture sector.
- Improved food security by mitigating risks to agricultural supply chains.
- Greater awareness of foreign espionage and theft targeting U.S. agricultural intellectual property.
- Support for domestic farmers and agricultural businesses by reducing unfair foreign competition.
Potential Disadvantages
- Potential for increased bureaucracy and delays in foreign investment transactions.
- Possible chilling effect on legitimate foreign investment in the U.S. agriculture sector.
- Risk of retaliatory measures from foreign countries.
- Increased compliance costs for businesses involved in agricultural transactions.
- Potential for the act to be used for protectionist purposes.
Constitutional Alignment
The FARM Act appears to align with the Constitution's broad goals of providing for the common defense and promoting the general welfare, as stated in the Preamble. Congress's power to regulate commerce with foreign nations (Article I, Section 8, Clause 3) provides a constitutional basis for this legislation. The act does not appear to infringe on any specific constitutional rights or limitations.
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).