House Bill Boosting Agricultural Security Against China Moves Forward

Agricultural ‌Security Bill Passes Committee, ⁣Strengthens National Security

A bill ⁤ aimed at bolstering U.S. national security by assessing the‍ risk of agricultural transactions has cleared the House Financial⁣ Services Committee with bipartisan support. ​This ⁣significant step paves the way for a floor vote ​in the House.

The bill, known as the “Agricultural Security Risk Review Act,” proposes granting the U.S.⁤ secretary of⁣ agriculture a permanent seat on the federal national security review panel, the Committee on Foreign Investment in the ‌United States ​(CFIUS). This inclusion would cover agricultural transactions, ⁣including the acquisition of farmland and agricultural biotechnology.

“Safeguarding‌ America’s agricultural security is crucial for our national well-being,” emphasized‌ Rep. Frank ‌Lucas (R-Okla.)‌ in a ‌statement released⁣ on Sept. 21. “Given the increasing foreign⁤ investment in U.S. agriculture, it is long overdue to⁢ have the ⁣Secretary of Agriculture as a member⁢ of CFIUS.”

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“Having⁢ witnessed ⁢firsthand the⁤ importance of securing our‍ agricultural industry, I commend ‍my colleagues on the House Financial Services Committee for taking this crucial step towards enshrining my long-standing ‍priority into law,” added ​Rep. Lucas.

During a White House press briefing, U.S.⁣ Agriculture Secretary Tom ‍Vilsack echoed ‌the necessity‍ of having his department represented on ‌CFIUS⁢ to ensure a foolproof‌ system​ that leaves no room for ⁢oversight.

“Legitimate concerns exist in​ this domain,” stated Secretary Vilsack when asked ​about potential ‍exaggeration of Chinese farmland purchases’ impact on national security.

Secretary Vilsack cited a ‍case in ⁣North Dakota ​where a Chinese ‍firm acquired farmland near a military installation as one of the reasons his department advocates⁤ for increased‍ involvement in the CFIUS process.

In 2021, a Chinese company, ‍through ⁤its subsidiary Fufeng USA, purchased 370 acres of farmland in⁤ Grand Forks, North Dakota, to establish a corn-milling‍ plant. This land ⁢lies within 15 ⁣miles of Grand ⁢Forks Air Force⁤ Base, which houses sensitive drone, satellite, and ‍surveillance ⁣technology. In December 2022, CFIUS determined that the land sale for the Fufeng project did ⁢not‌ fall under ⁣its jurisdiction.

However, at the end of January, the Department of the Air Force (pdf) expressed an “unambiguous” view that the proposed project poses a​ significant threat to national security, with both immediate and long-term​ risks to operations in the area.

Rep.​ Lucas’s bill complements existing measures aimed at ⁢restricting ‍the Chinese ⁢Communist Party’s access to ‍U.S.⁤ farmland and agricultural enterprises.

On July 25, the U.S. Senate passed ​an amendment proposed by Sen. ⁢Mike ⁤Rounds (R-S.D.) that prohibits‍ China and other foreign ⁢adversaries from acquiring ‌U.S. farmland and agricultural businesses. This amendment is⁤ included in⁤ the Senate ‌version of the National Defense Authorization Act (NDAA) ‍for ‌fiscal 2024, ‌which passed at the end of July.

Sen. Rounds’s amendment, approved by a 91–7 vote, also adds the secretary of agriculture as a nonvoting member of CFIUS. Rep. Lucas’s bill ⁣goes further‌ by offering ⁤the secretary permanent ⁤membership. The 2024 NDAA is currently under review by the conference committee⁤ before it reaches the ⁢president’s desk for signature.

CFIUS, led⁢ by the Department of⁣ Treasury, is an interagency commission comprising ⁤members ‌from ‍various‌ government ​departments. Its current members include the secretaries of Homeland Security,⁤ Commerce, ⁢Defense, State, Energy, ‍and Labor, as ⁢well ⁣as the attorney⁣ general and the director of national intelligence.​ Currently, the agriculture secretary’s involvement⁣ is determined on a case-by-case‌ basis by the U.S. president.

Secretary Vilsack also‍ emphasized the need to enhance information collection regarding⁤ Chinese farmland‍ purchasers.

“We must equip⁢ ourselves with ⁢the necessary tools⁢ to better⁣ track these⁣ transactions,” he ⁣added.

The Agricultural Foreign Investment Disclosure Act (AFIDA) of ⁣1978 mandates that foreign individuals disclose any acquisition or disposal of U.S.‌ agricultural ⁣land. Within 90 days of the transaction, the foreign​ individual must ⁤submit filings to the Farm Service⁣ Agency. Failure to report ⁢incurs⁢ a civil penalty ⁢of 0.1 percent of the land’s fair market value per‌ week, up to 25 percent for late filings.

However,‍ the‍ USDA often significantly​ reduces penalty amounts (source) to avoid ‍discouraging reporting. For instance, in April 2021,⁢ the department reduced the fine for a Chinese ‌billionaire who failed to report the purchase of 140,000 acres of agricultural land in Texas in​ 2016 from $21 ⁣million to $120,000.

As of Dec. ⁤31, 2021, China owned 383,935 acres of⁣ U.S. agricultural land, according to⁢ a USDA report (pdf). Although this acreage ⁢represents⁢ less than 1 percent of all foreign-held agricultural ‍land, it marks a nearly 30-fold increase ‌from 13,720 acres in‍ 2010.

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​ Agricultural Security Bill Passes Committee, Strengthens National Security

A bill aimed at bolstering U.S. national security by assessing the ‌risk‍ of agricultural transactions has cleared the⁤ House Financial Services Committee⁤ with bipartisan support. This‌ significant step paves ⁢the way for⁤ a floor​ vote in the‌ House.

The bill, known as the “Agricultural Security Risk Review Act,” proposes granting the