can foreigners buy agricultural land in usa

Contents

image

Legally, foreigners are allowed to buy land anywhere in the United States. In the United States, almost anyone can buy a farm anywhere, except for the six states that have laws banning foreign ownership of farms. Those six states are Mississippi, Hawaii, Oklahoma, North Dakota, Iowa, and Minnesota.Nov 27, 2021

Can a foreigner buy land in the US?

 · Are Foreigners Allowed to Buy US Land? The United States is unlike other countries in the fact that a person does not have to be a citizen to buy land. There are no limitations in terms of who can buy land in the United States, but there may be limitations if you were to buy a home. For example, federal law may not prevent you from buying land, but you …

Can I buy farming land in the US without restrictions?

 · Legally, foreigners are allowed to buy land anywhere in the United States. In the United States, almost anyone can buy a farm anywhere, except for the six states that have laws banning foreign ownership of farms. Those six states are Mississippi, Hawaii, Oklahoma, North Dakota, Iowa, and Minnesota. Agricultural land types in the USA

Can a foreign corporation own agricultural land in the US?

 · Foreign entities buy agricultural land for a variety of reasons, such as food production, wind farming, carbon offsets, or speculative investments. In 2019, 49 percent of reported foreign-held acreage in the United States was forest land, while 25 percent was crop land, 24 percent was for pasture and other agricultural uses, and 2 percent was for non …

Can non-resident aliens buy farmland in the US?

 · April 12, 2022. World News. The United States allows foreigners to purchase land no matter where they are. Most people are able to own a …

image

Can foreigners own farmland in USA?

Current law imposes no restrictions on the amount of private U.S. agricultural land that can be foreign owned. Federal law, however, requires foreign persons and entities to disclose to USDA information related to foreign investment and ownership of U.S. agricultural land.

Can a foreign country buy land in USA?

It is very easy for any foreigner to buy land in America and it is the same process as for any US citizens buying land in USA. The USA does not require that a person be a US citizen to buy land. In most states there are no restrictions at all.

What foreign country owns the most farmland in the United States?

CanadaCanada is the biggest foreign owner of U.S. agricultural and timber land, and owns 4.7 million acres in the United States. The Netherlands is the second largest foreign owner with 4.6 million acres.

Which country allows foreigners to buy agricultural land?

Serbia Will Allow Foreigners To Purchase Agricultural Land – Land Law & Agriculture – Serbia.

Can I get a US visa if I buy a property?

“Will I qualify to receive a green card because I bought a house in the United States?” No. You can’t get a green card simply by buying a house in the U.S. In fact, owning real estate doesn’t ordinarily give you any visa or other immigration benefits.

How much land in the US is owned by foreigners?

The report says 37.6 million acres, or about 2.9% of the nation’s total farm, ranch and forest land, were under foreign ownership in 2020, the latest year for which data was available.

How can I buy farmland in USA?

The most obvious way to invest in farmland is to directly purchase usable cropland or pastureland and rent it out to a farmer or rancher. This method of investing in farming has a sizable upfront cost since an investor would likely need to purchase a large plot of land.

How much land does China own in the USA?

Foreign-owned land accounts for about 2.7% of all U.S. farmland and forest land, which, according to the Department of Agriculture, is about 897 million acres. That data also shows that the approximately 190,000 acres of farmland owned by Chinese interests has remained virtually unchanged since 2013.

How much of America does China own?

China has steadily accumulated U.S. Treasury securities over the last few decades. As of October 2021, the Asian nation owns $1.065 trillion, or about 3.68%, of the $28.9 trillion U.S. national debt, which is more than any other foreign country except Japan.

Where is the cheapest farmland in the world?

1. Bolivia. Bolivia is the country where one can find the cheapest land per acre in the world as there is very little development. Compared to all other Southern American countries the residential property prices in Bolivia are much less.

Where is the best agricultural land in the world?

China is the top country by agricultural land area in the world. As of 2018, agricultural land area in China was 5.29 million sq. km that accounts for 11.03% of the world’s agricultural land area.

Can a foreigner buy farmland in Germany?

Can foreigners buy agricultural land in Germany? Foreigners have all the legal rights to buy land in Germany, as do German citizens. There are no restrictions or rules in Germany that discriminate against foreigners when buying land. Citizens of the EU and non-EU can buy land in Germany and use it for many purposes.

image

Benefits for buying agricultural land

Buying agricultural land can be a great business venture for both farmers and investors. Owning agricultural land can open the door to many great tax benefits, business growth strategies, and investment returns.

Can Indians buy agricultural land in the USA?

Legally, foreigners are allowed to buy land anywhere in the United States. In the United States, almost anyone can buy a farm anywhere, except for the six states that have laws banning foreign ownership of farms. Those six states are Mississippi, Hawaii, Oklahoma, North Dakota, Iowa, and Minnesota.

Agricultural land types in the USA

Cropland – The USDA defines cropland as an area that is used to produce crops suitable for a crop. It recognizes two subdivisions of cropland;

Tips for buying agricultural land in the USA

Buying and selling farms are easier than ever. When more agricultural land is needed for higher income and to help reduce costs, it seems impossible to stick to the budget. With the increase in production year after year, fertile agriculture soon pays off itself with a positive return on investment.

Terms and definitions from agricultural lands in the USA

Farm – The USDA defines a form as any establishment that sells agricultural products.

The best way to buy agricultural land in the Midwestern United States

Twelve Midwest States are mostly farming in the United States and these farming states are Minnesota, Missouri, Nebraska, North Dakota, Ohio, Iowa, Indiana, Illinois, Kansas, Michigan, South Dakota, and Wisconsin. Farmland auctions are reportedly the best way to buy land in the Midwest.

Why do foreigners buy agricultural land in the USA?

The United States is currently making progress. People all over the world can see the fast-growing stock market and the growing real estate market and want to take advantage. The US has a stable real estate market with clear property laws. Many countries around the world do not have this.

Why do foreigners buy land?

Foreign entities buy agricultural land for a variety of reasons, such as food production, wind farming, carbon offsets, or speculative investments. In 2019, 49 percent of reported foreign-held acreage in the United States was forest land, while 25 percent was crop land, 24 percent was for pasture and other agricultural uses, and 2 percent was for non-agricultural uses (such as homesteads and roads). The USDA reports that the changes in pasture and crop land holdings since 2009 were mostly due to foreign-owned wind companies signing or terminating long-term leases.

How much land does a foreign investor own?

According to USDA data, foreign investors owned at least 35.2 million acres of U.S. agricultural land in 2019—2.7 percent of U.S. farmland, an area almost the size of Iowa. While foreign land ownership has been reported in all 50 states and Puerto Rico, the holdings are concentrated in particular states. The greatest share is in Texas, with over 4.4 million acres, followed by Maine (3.3 million acres) and Alabama (1.8 million acres). Over 40 percent of the additional 3.4 million acres acquired by foreign investors in 2019 was located in Texas, Oklahoma, and Colorado.

Which states have no restrictions on foreign ownership of land?

On the state level, regulations vary. Most states, like Texas and Maine, have no restrictions on foreign ownership of land, contributing to the large amount of farmland that is under foreign control in these states. Six states forbid any foreign landholdings, and some, like Missouri, put caps on how much land can be held by foreign entities.

How does land grabbing affect food security?

Land grabbing—when a government, company, or other entity purchases large swathes of land in another country—can affect local land rights and agricultural production, sometimes putting local food security at risk. While such purchases in low- and middle-income countries have been covered extensively, they also happen here in the United States. Foreign ownership of U.S. agricultural land doubled from 2009 to 2019, according to U.S. Department of Agriculture (USDA) records, and policymakers have become increasingly concerned about foreign control of the U.S. food supply.

Why are farmers unable to buy land?

For long-term U.S. food security , perhaps the larger concern is why up-and-coming U.S. farmers are unable to buy the land they need. According to the NYFC, young and aspiring farmers say access to land is their largest barrier to starting a successful farm business. With an aging U.S. farmer population and not enough new farmers able to enter the industry, more land will inevitably be converted to other uses or sold to foreign and domestic investors unless policies are put in place to support the next generation of farmers. Focusing narrowly on land purchases by Chinese companies or other foreign entities will not address the full scope of this problem. Policymakers should, instead, consider the many threats facing the future of the U.S. food system and ensure that current and aspiring farmers have the resources they need to secure long-term U.S. food production, starting with access to affordable farmland. In addition to federal action, some states, like Arizona, could do more to protect their local resources and communities from exploitation by domestic and foreign entities.

Why did Smithfield pork stop exporting to China?

food supply chains. When the pandemic hit, Smithfield increased pork exports to China even as the United States experienced widespread meat shortages due to supply chain disruptions and Smithfield closed some of its plants due to poor working conditions. This series of events prompted Congress to look at how to prevent Chinese ownership in U.S. agriculture, even though other foreign entities, like Brazilian-owned JBS, control similarly large portions of U.S. food supply chains.

How long does it take to report a foreign purchase of land?

Any foreign person (this includes corporations) who acquires or purchases agricultural land must report the purchase/acquisition to the Director of Agriculture within 90 days

How long does it take to register a foreign land?

Any foreign party (person, foreign-owned business, foreign agent/fiduciary/trustee) that acquires interest in agricultural land must register with the county clerk in the county where the land is within 60 days. Acquiring land in repayment of a debt/mortgage is permitted for foreign entities.

Can foreign businesses operate in Vermont?

Foreign businesses have to apply for the authority to operate in Vermont; this is also for domestic out-of-state businesses (these sorts of requirements exist in almost every state)

Can a foreign corporation purchase land for non-farming purposes?

If agricultural land is purchased by a foreign corporation for non-farming purposes, the law does not apply. The land may not be used for farming pending development for non-farming purposes unless it is leased to a family farm unit, a family farm corporation or an authorized farm corporation.

How many acres can an alien own?

Alien Ownership of Agricultural Land: S.D. Comp. Laws Ann. § 43-2A-2-7. Aliens are not allowed to acquire more than 160 acres of agricultural land, unless it’s inherited or “as a security held for indebtedness” or as secured by a treaty. If land is inherited, they have three years to sell it/give it away.

How many acres can a nonresident alien own?

Nonresident aliens or foreign gov’ts cannot acquire more than 100 acres of ag. land (unless acquired by devise or descent or as a security for indebtedness/collection of a debt)

Can aliens own land?

only aliens eligible for citizenship could own land; also prohibited foreign corporations with majority of stock owned by aliens from owning land

Tips for buying farmland in the U.S

The best and most obvious method is a direct buy. You can purchase usable pastureland or cropland, which can then be rented out to a rancher or farmer. However, this method calls for massive investments, as the buyer would have to buy large swathes of land to get a sizable return on investment.

Auction, the best way to buy land in the Midwest

The twelve states of the Midwest account for most of the farmland in the United States. These states are Iowa, Indiana, Illinois, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin. Reportedly, farmland auctions are the best way to buy land in the Midwest.

Cropland

The USDA defines cropland as areas used for the production of adapted crops for harvest. It recognizes two subcategories of cropland:

Pastureland

Pastures have the vegetation cover of native forage species used for livestock grazing.

Urban Farms

Urban agriculture/farming is a concept that is catching up in the United States. Many of these urban farms are growing fresh, healthy produce and providing jobs as well as beautifying their neighborhoods. These farms offer access to fresh, healthy food in areas where grocery stores are sparse.

Trivia

In a study, Bloomberg found that a total amount of land area roughly the size of India is used for feeding cows and livestock in the U.S.

Clamour on U.S. Land Lost To Foreign Investors

As per an NPR report, foreigners own more than 30 million acres of land in the U.S. The revelation led to a lot of discussion in the political as well as media spheres. At the time of this writing (November 2020), there has not been any change to policies surrounding buying farmland.

What percentage of farmland is owned by foreigners?

Foreign ownership makes up about 2.2% of farmland in the U.S. and 1% of all land. Critics often cite food security as a reason to ban foreign ownership of agriculture land, but the Center’s analysis found that timber companies and renewable energy companies remain the biggest group of foreign investors.

Which states have laws banning foreign ownership of farmland?

Already, six states have laws banning foreign ownership of farmland. Those states are Hawaii, Iowa, Minnesota, Mississippi, North Dakota and Oklahoma. Meanwhile, the foreign interest in farmland also has become an issue in the presidential election.

How many acres of farmland did foreigners control in 2014?

farmland doubled between 2004 and 2014 — from 13.7 million acres to 27.3 million acres.

When did WH Group buy grain elevators?

And in Ohio, one of the states where a ban on foreign-owned farmland is being considered, WH Group bought two grain elevators in 2016, allowing the company to skip the middleman in feeding Smithfield’s livestock.

Who sponsored the ban on foreign land in Missouri?

In 2018, the Missouri Legislature revisited the issue after two lawmakers, Rep. Martha Stevens, D-Columbia, and Rep. Tom Hurst, R-Meta, sponsored bills that would ban foreign individuals or entities from buying farmland.

How much farmland does WH own in Missouri?

That move allowed the company, now known as WH Group, to acquire more than 40,000 acres of Missouri farmland, according to federal data.

Does Nuveen own farmland?

Stewart Lewack, a spokesman for Nuveen, which manages billions of dollars of farmland investments for TIAA, said the company intentionally doesn’t acquire farmland in states with foreign ownership restrictions.

Which states have laws limiting foreign ownership of farmland?

Both Iowa and Minnesota have already passed state laws, imposing restrictions on foreign ownership of farmland in their states. In 2019, ahead of the Democrat presidential primaries, then-candidate Warren said she would support a national version of Iowa’s law and further safeguards against foreign investors buying farmland through “fake American buyers” to circumvent land purchase rules.

How much land does China own in 2020?

As of the start of 2020, Chinese investors owned about 192,000 acres of U.S. agricultural land valued at about $1.9 billion, according to Politico. While Chinese land ownership in the U.S. is less than that of other foreign nations, the growth in Chinese land ownership is part of an overall trend in China rapidly buying up other country’s farmland over more than a decade.

Can foreign investors set up LLCs?

Joe Maxwell, president of the progressive advocacy group Family Farm Action, told Politico that foreign investors could likely still set up limited liability companies (LLCs) in the U.S. and designate an American owner to circumvent reporting requirements while still owning the U.S. agricultural land through their corporate structure. Sifting through layered corporate structures could prove time-consuming and labor-intensive for regulatory agencies.

Who said America cannot allow China to control our food supply?

In a speech last week for the conservative Heritage Foundation, Republican former Vice President Mike Pence said, “America cannot allow China to control our food supply.” During his speech, Pence called on President Joe Biden to “end all farm subsidies for land owned by foreign nationals.”

Did Maxwell warn foreign investors to bid higher for farmland?

Maxwell also warned foreign investors could start bidding much higher prices for U.S. farmland up for auction, pricing out prospective new U.S. farmers.

Alabama

Alaska

Arizona

Arkansas

  • Ark. Stat. Ann. §§ 77-2209, -2210, 77-2203, -2204, -2211: 1. The revised code incorporated these statutes into the Arkansas Agricultural Foreign Investment Act, listed below Arkansas Agricultural Foreign Investment Act: Ark. Stat. Ann. §§ 2-1-3-101 et seq: 1. Any foreign party (person, foreign-owned business, foreign agent/fiduciary/trustee) that acquires interest in agricultural land must …

See more on investigatemidwest.org

California

  • California had an alien land law, restricting noncitizen land ownership that was repealed in 1952. Cal. Pub. Res. Code § 6801: 1. Only citizens, or people with intent to become citizens or people whose country grants reciprocal rights for U.S. citizens, can lease public land or obtain a prospecting permit. This also applies to corporations in which less than 90% of its ownership fal…

See more on investigatemidwest.org

Georgia

  • GA Code Ann. §16-14-15: 1. Repealed in 2015; required alien corporations to have a registered office and agent in the state Ga. Code Ann. § 1-2-11: 1. As long as their country of origin is at peace with the U.S., aliens have the same land ownership/purchasing rights as citizens

See more on investigatemidwest.org

Hawaii

  • Haw.Rev.Stat. §171-65, -68: 1. A person can’t purchase public land for farming unless they’ve been a resident of the state for 3 years.

See more on investigatemidwest.org

Idaho

  • Idaho Code § 58-313: 1. Public lands can only be purchased by people who are U.S. citizens or have declared their intention to become U.S. citizens

See more on investigatemidwest.org

Illinois

  • Agricultural Foreign Investment Disclosure Act: 765 ILCS 50/1 to 50/8: 1. Any foreign person (this includes corporations) who acquires or purchases agricultural land must report the purchase/acquisition to the Director of Agriculture within 90 days Enforcement/punishment: 1. The Director of Agriculture can charge up to 25% the market value of the l…

See more on investigatemidwest.org

Indiana

  • Ind. Code Ann. §§ 32-1: 1. Repealed in 2002; used to cap the number of acres that noncitizens could own at 320

See more on investigatemidwest.org

Leave a Comment