Why the US is banning Chinese purchases of farmland — and what it means for existing owners

Why the US is banning Chinese purchases of farmland

The US government will soon bar the sale of farmland to buyers from China and other adversarial nations, Agriculture Secretary Brooke Rollins announced Tuesday, citing growing threats to national and food security. The new plan marks the Biden administration’s sharpest move yet to curb foreign control over American agricultural land, and will likely be followed by a sweeping executive order from the White House, the Washington Post reported.

At a joint press conference with Defense Secretary Pete Hegseth and Homeland Security Secretary Kristi Noem, Rollins said the USDA would also support state-level legislation to ban new purchases near US military bases. The effort, she said, is part of a broader strategy to reclaim control of America’s farmland from foreign governments and firms accused of exploiting it for espionage or strategic leverage.

Existing land holdings under review

Asked whether existing farmland owned by Chinese investors would be confiscated, Rollins confirmed that a clawback plan is under serious consideration. “We are looking at every available option,” she said, while signalling that further action by the White House is imminent. Such a move could directly affect land held by Chinese-linked companies such as Smithfield Foods, whose parent company WH Group, a private Chinese conglomerate, bought it in 2013.

WH Group is not state-owned, and Smithfield stated on Tuesday that its land ownership in the US has already been reduced to about 85,000 acres, down from 125,000 acres the year before. The company emphasized that its operations are US-based and employ 34,000 Americans, adding that it passed a national security review in 2013.

State-level precedents and national enforcement

The federal effort builds on state-level actions like those in Arkansas, where Governor Sarah Huckabee Sanders led a successful push to force Chinese-owned Syngenta to sell 160 acres of farmland. The firm paid a $280,000 fine for failing to disclose its foreign ownership. Rollins said such fines will now rise dramatically — up to 25% of the land’s value.

“Arkansas showed what leadership looks like,” Sanders said, calling for other states to follow suit.

Florida and Montana have already passed laws restricting foreign ownership of land near military installations and infrastructure, especially after a 2022 land deal by Chinese-owned Fufeng Group near Grand Forks Air Force Base sparked national outrage.

Defense and intelligence concerns loom large

Although there is no public evidence that US farmland has been used for Chinese military surveillance, Defense Secretary Hegseth said the risk is real. He cited last month’s case where two Chinese scientists were charged with smuggling a fungus dangerous to US crops, as part of a broader pattern of espionage targeting American agriculture.

“Foreign adversaries can no longer assume we’re not watching,” Hegseth said, adding that the Pentagon would bar land sales near sensitive sites.
Rollins also announced that 70 individuals and 550 entities linked to countries of concern have been removed from USDA contracts and research partnerships. Details were not disclosed.

Congress advances bipartisan legislation

Lawmakers are working in parallel with the administration’s push. The House recently passed the Agricultural Risk Review Act, requiring USDA reporting of farmland purchases by adversarial foreign entities. A separate bill, the Farmland Act, would trigger federal review of large land deals and create a public database of foreign-owned agricultural holdings.

Sen. Roger Marshall (R-Kan.), a key sponsor of the effort, summed up the sentiment: “China, here’s your ticket. Do not pass go. Get the hell off American agriculture.”
Foreign ownership still small — but symbolic

Despite the strong rhetoric, Chinese investors own just 265,000 acres — 0.0003% of total US farmland — and their holdings have declined by 31% since 2021. By contrast, Canadian firms control nearly a third of foreign-held farmland in the United States.
Still, lawmakers and officials argue that even small amounts of strategically located land pose unacceptable risks — especially near military facilities or food supply chains.

Rollins concluded that she would now have a permanent seat on the Committee on Foreign Investment in the United States (CFIUS), giving the USDA direct influence over whether foreign buyers are allowed to invest in American land.