CFIUS to Include Agriculture

Senate Agriculture Committee Chair Debbie Stabenow (D-Mich) and ranking Republican John Boozman (Ark) said Wednesday they will work together to craft legislation to more closely scrutinize foreign investment by China and other countries in US agriculture.

There is clearly bipartisan consensus in both the Senate and House on the need to take a closer look at whether foreign purchases of US farmland and agricultural companies pose a national security risk, the two senators agreed at a committee hearing September 27.

Part of that consensus involves the addition of the Agriculture Department to the inter-agency Committee on Foreign Investment in the United States.

A number of senators – both on the Agriculture panel and not – outlined their legislative proposals on agricultural foreign investment.

Committee Chair Stabenow noted she has introduced a bill along with committee member Sen. Joni Ernst (R-Iowa) aimed at improving the reporting process and providing new resources for the Agriculture Department.

In July the Senate adopted an amendment to the National Defense Authorization Act that would add USDA to CFIUS. Some senators attending the hearing suggested the next Farm Bill would be an appropriate vehicle.

Earlier this week, Agriculture Secretary Tom Vilsack said he supports the notion of USDA having a seat on CFIUS. “If folks are looking for a foolproof system so that nothing gets through the cracks, then I think there are ways in which we can be helpful, and we can improve that process. Being part of CFIUS, I think, is part of it.”

Last week, the House Financial Service Committee approved legislation to add the Secretary of Agriculture to CFIUS.