What Are Foreign Investors Doing With U.S. Farmland?
Capital Press (Salem, OR)
For decades there have been concerns that foreign investors are buying up farmland in the United States.
That this is a hot-button issue for American producers and a strategic policy concern for politicians is understandable. Wealthy foreign buyers make it harder for domestic producers to compete for available farmland. Well-heeled investors of all types always push out smaller potential buyers. The thought of some foreign actor taking control of the domestic food supply is frightening.
There's no doubt that foreign investors are interested in snapping up American farmland. We are more concerned with what foreign investors are doing with the farmland they buy than we are that they are buying it in the first place.
Our reporting of USDA data shows that in the 40 years or so that records have been kept, foreign investors have bought more than 35 million acres of U.S. farmland worth $62 billion. In all, that's an area larger than the state of New York.
According to USDA staff, outside investments are on the rise. Filings show foreign holdings of American farmland increased by 141% between 2004 and 2019.
In 1978, Congress passed the Agricultural Foreign Investment Disclosure Act, which required foreign buyers to report their transactions.
Foreign buyers have purchased 1.2 million acres of Oregon farmland - roughly 7.5% of the state's farm acreage, according to the 2017 U.S. Census of Agriculture. The total is 1.5 million acres in Washington, and just 122,598 acres in Idaho.
The takeover of American farm production by foreigners is far from imminent. Their purchases in the last 40 years are equal to 3.9% of the farmland now in production.
Critics are convinced that the reported numbers are low, and contend without proof that much more land is being bought than is being reported. They concede that it would impossible to quantify without combing through land records in 3,000 county courthouses across the country.
It is certain that the USDA's numbers are misleading. Some of the land in question has been sold by one foreign buyer to another, while others have divested altogether. Tracking those transactions through USDA data is difficult. Also, not all foreign investors who have reported a purchase have a controlling interest in the land.
We agree that foreign purchases should be monitored. It would be a dangerous problem if foreign interests gain control of U.S. agriculture.
To be clear, we would prefer that U.S. farmland stay in the hands, or at least the control, of U.S. entities. But, the more pressing concern is keeping farmland productive.
Foreign investors are joining domestic companies that are interested in building alternative energy facilities or other real estate developments on farmland.
Turning cropland into windfarms, shopping malls and subdivisions is a greater danger to agriculture, and in turn the country, than a French company buying vineyards here to make wine.
Once farmland is built over, it's gone for good. No farmer, foreign or domestic, will ever farm it again.