The Farmland Security Act of 2025 significantly strengthens the Agricultural Foreign Investment Disclosure Act of 1978 (AFIDA) by removing the previous limitation on civil penalties for non-compliance. A key provision introduces a new, substantial penalty for foreign-owned shell corporations that fail to disclose agricultural land interests. This penalty is set at 100 percent of the fair market value of the agricultural land interest involved in the violation, though it can be avoided if the shell corporation remedies the defective filing within 60 days of notice. To enhance enforcement, the bill mandates the Secretary of Agriculture to conduct an annual compliance audit of at least 10 percent of submitted reports to ensure accuracy. It also requires annual training for state and county-level personnel to help identify agricultural land owned by foreign persons that has not been reported. Furthermore, the Act directs the Secretary to submit annual reports to Congress, detailing research on foreign agricultural leasing activities, trends in purchases by foreign-owned shell corporations, and overall foreign participation in U.S. agricultural economic activity. The bill authorizes $2,000,000 for each fiscal year from 2025 through 2030 to carry out these provisions.
The Farmland Security Act of 2025 significantly strengthens the Agricultural Foreign Investment Disclosure Act of 1978 (AFIDA) by removing the previous limitation on civil penalties for non-compliance. A key provision introduces a new, substantial penalty for foreign-owned shell corporations that fail to disclose agricultural land interests. This penalty is set at 100 percent of the fair market value of the agricultural land interest involved in the violation, though it can be avoided if the shell corporation remedies the defective filing within 60 days of notice. To enhance enforcement, the bill mandates the Secretary of Agriculture to conduct an annual compliance audit of at least 10 percent of submitted reports to ensure accuracy. It also requires annual training for state and county-level personnel to help identify agricultural land owned by foreign persons that has not been reported. Furthermore, the Act directs the Secretary to submit annual reports to Congress, detailing research on foreign agricultural leasing activities, trends in purchases by foreign-owned shell corporations, and overall foreign participation in U.S. agricultural economic activity. The bill authorizes $2,000,000 for each fiscal year from 2025 through 2030 to carry out these provisions.