GAO: Farmland Ownership Data Needs Work

While foreign ownership of U.S.agricultutal land has grown nearly 50% in the past six years,  USDA and national defense agencies may not have all the information they need to know about which countries are investing and where, according to a report from the Government Accountability Office (GAO).

The increase is mostly due to foreign-owned wind companies obtaining long-term leases to build wind turbines on farmland and pastures.  Some foreign investments in U.S. agricultural land may raise national security concerns—especially when they are located near sensitive military locations. 

Foreign investors in U.S. agricultural land are required to submit forms describing their transactions to USDA, as required by the Agricultural Foreign Investment Disclosure Act of 1978 (AFIDA). But the GAO notes AFIDA was not designed as a national security program, and "AFIDA forms are focused on data collection rather than identifying potential national security concerns." Congress required USDA to create an online submission process and public database for AFIDA  data by the end of 2025, but the department has not received funding. 

USDA receives thousands of paper forms detailing foreign transactions every year. USDA employees then manually compile data from these forms in a slow and error-prone process. This process includes information about the filer. But it does not include additional investors, such as parent companies and significant shareholders. As a result, the total interest held by certain countries, such as China representing 1% of foreign investments, may be understated.

GAO's review of AFIDA data current through calendar year 2021 found errors, such as the largest land holding associated with the People's Republic of China being counted twice. USDA has begun efforts to identify AFIDA non-compliance through data mining, according to officials, and has opportunities to expand this practice. “But without improving its internal processes, USDA cannot report reliable information to Congress or the public about where and how much. US agricultural land is held by foreign persons.” according to the report.

GAO was asked to review foreign investments in U.S. agricultural land. This report examines the extent to which (1) USDA shares information related to foreign investments in U.S. agricultural land with CFIUS for its national security reviews, and (2) USDA's processes enable it to collect, track, and report reliable data on foreign investments in U.S. agricultural land. GAO reviewed laws, regulations, and agency guidance; analyzed USDA data; and interviewed agency officials.

GAO is making six recommendations, including that USDA share detailed and timely AFIDA data with CFIUS agencies, improve the reliability of AFIDA data, and assess its ability to adopt an online submission system and public database.

[Full Report]