Chinese ownership of U.S. farmland has become a topic of national security discussions. According to the U.S. Department of Agriculture (USDA), Chinese investors own approximately 350,000 acres of U.S. Agricultural land, representing less than 1% of all foreign-owned U.S. farmland. In contrast, Canadian investors hold about 30% of foreign-owned U.S. land.
Despite the small percentage of Chinese-owned farmland, concerns have arisen due to the proximity of some properties to U.S. military installations. For example, a proposed corn mill by the Fufeng Group in Grand Forks, North Dakota, was halted after the U.S. Air Force labeled it a “significant threat to national security.”
Regulatory Measures of Chinese ownership of U.S. farmland
In response to these concerns, the U.S. Treasury Department expanded the authority of the Committee on Foreign Investment in the United States (CFIUS) to review real estate transactions near military bases. This measure aims to prevent potential intelligence gathering or threats to military operations by foreign adversaries. Reuters
Lawmakers are also addressing the issue through legislation. The 2024 Farm Bill includes provisions requiring the U.S. Secretary of Agriculture to assess the dependency of the United States on critical agricultural products that could be exploited by foreign entities, particularly focusing on China.
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While fears about Chinese-owned farmland are prevalent, some analyses suggest these concerns may be exaggerated. Research indicates that China’s share of U.S. agricultural land is minimal, and in certain regions, such as Wisconsin, Chinese investors hold no significant acreage.
Recent Developments
In December 2024, reports emerged of mysterious drone sightings near at least 17 U.S. military bases adjacent to Chinese-owned farmland. These incidents have raised espionage concerns, with some officials suggesting the drones likely originate from China. However, agencies have downplayed the threat, attributing most sightings to lawful or mistaken sources.
Although Chinese ownership of U.S. farmland constitutes a small fraction of foreign-held agricultural land. The strategic location of certain acquisitions near military installations has prompted increased scrutiny and legislative action to safeguard national interests.
