The "Farmland for Farmers Act of 2026" seeks to ban new corporate ownership of agricultural land across the United States. Its core purpose is to preserve the family farm system, which Congress finds essential for the nation's social, economic, and national security. The bill highlights that increased corporate and institutional investment, particularly by pension funds, has driven up farmland prices and threatens the ability of independent family farmers to compete, often prioritizing short-term profits over long-term land stewardship. The legislation specifically prohibits "unauthorized legal entities" from acquiring or holding ownership interests in agricultural land. An authorized legal entity is defined as one with no more than 25 natural person owners, all of whom are actively engaged in farming , and is not part of a multilayered subsidiary structure. "Actively engaged in farming" means regularly making management decisions or performing physical work, explicitly excluding solely providing capital. Several exceptions are provided, including land acquired for security, research, or immediate non-agricultural use. Land acquired through debt collection must be divested within five years and cannot be farmed during that period unless leased to an authorized entity. Other exemptions cover land owned by municipal corporations, nonprofit entities, those acting in a fiduciary capacity, legal entities formed by owners of heirs' property, and authorized farmer or rancher cooperatives. Importantly, agricultural land owned by a legal entity before the bill's enactment date is grandfathered in, provided that entity maintains ownership. To ensure compliance, legal entities must submit affidavits upon acquiring agricultural land and annually with their federal tax returns. Eligibility for USDA programs and the Farm Credit System will require demonstrated compliance with the Act. Violations are referred by the Secretary of Agriculture to the Attorney General, who can initiate actions for divestiture, with courts ordering sale if land is not divested within one year. Penalties include civil fines up to twice the fair market value of the land and criminal penalties for natural persons knowingly violating the Act. State Attorneys General are also empowered to bring civil actions to enjoin violations, compel divestiture, seek damages, or impose civil penalties, which can be up to $3,000 per day, with a maximum total liability of $1 million or the fair market value of the land. States are explicitly authorized to enact their own regulations concerning agricultural land ownership that are at least as restrictive as this federal Act, including more stringent definitions, even if they create additional burdens for out-of-state owners.