Foreign investors now hold interests in nearly 45 million acres of U.S. agricultural land, reflecting a steady rise in foreign ownership. According to the USDA’s Farm Service Agency (FSA) and the latest Foreign Holdings of U.S. Agricultural Land report, the total—comprising forest land, cropland and pasture—represents 3.5% of all privately held agricultural land nationwide as of Dec. 31, 2023.
According to data submitted under the Agricultural Foreign Investment Disclosure Act of 1978, foreign-held U.S. agricultural land increased by over 1.5 million acres from 2022, with forest land comprising 48% of the total, cropland 29% and pasture 21%. From 2012 to 2017, annual gains averaged 0.6 million acres, but acquisitions surged to nearly 2.6 million acres per year since 2017. Between 2013 and 2023, cropland increased 146%, from 5.4 million to 13.2 million acres. Forest land grew 60%, from 13.7 million to 22 million acres, while pastureland expanded 32%, from 5.8 million to nearly 7.7 million acres.
The USDA said shifts in cropland and pastureland can be attributed mainly to foreign-owned wind companies entering and exiting long-term lease agreements on substantial tracts of land. These leasing activities significantly impacted the total reported foreign-held acreage during the decade.
Summary
According to USDA’s report, Canadian investors dominate foreign ownership of U.S. agricultural and non-agricultural land, holding 15.3 million acres or 33% of all reported foreign-held land. Investors from the Netherlands, Italy, the United Kingdom and Germany collectively account for another 13 million acres, representing 28% of foreign-held land. The remaining 38%, or 17.4 million acres, are owned by entities from a diverse array of other countries.
While holdings by Chinese, Iranian, North Korean and Russian investors each constitute less than 1% of foreign-held agricultural land, recently their acquisitions have drawn scrutiny. Chinese investors reported owning 277,336 acres as of Dec. 31, 2023, primarily through large-scale operations such as Murphy Brown LLC (Smithfield Foods) and Brazos Highland Properties LP, which own 89,218 acres and 86,994 acres, respectively. These two companies, along with three others, account for 94% of all reported Chinese-held agricultural land.
The report notes that no U.S. agricultural land filings have been made directly by the government of China. The report also noted that Iranian filers reported owning 3,030 acres, North Korea held zero acres and Russian investors reported 11 acres.
Regarding states with the highest foreign-owned agricultural land, Texas leads the nation in foreign-held U.S. agricultural land, with over 5.6 million acres owned by foreign entities. Maine follows with just under 3.5 million acres, while Colorado ranks third with 2.5 million acres. Forest land comprises the bulk of foreign-held acreage in Texas and Maine, while cropland dominates foreign ownership in Colorado.
The report noted that Maine also has the highest percentage of foreign-held agricultural land relative to its total privately held agricultural acreage, with 21.1% owned by foreign investors, representing 8% of the national total. Hawaii ranks second, with foreign entities holding 17.1% of its privately held agricultural land, though this accounts for less than 1% of the U.S. total. Other states with notable percentages of foreign-held agricultural land include Michigan (8.5%), Louisiana (8.4%) and Florida (8.2%).
New Mexico, Texas and Arkansas saw the largest increases in foreign-held acreage in 2023, with gains of over 358,000, 219,000 and 178,000 acres, respectively. Together, these states accounted for half the total increase in foreign-held land, driven primarily by large forest land purchases. Conversely, eight states, including Alabama, Arizona and Colorado, experienced a combined decline of 265,262 acres due to terminated long-term leases and land sales. USDA said some changes reflect reconciled past transactions and late filings.
Impacts of ownership
Researchers analyzed changes in agricultural land values and rental rates to assess the impact of foreign investment on farms and rural economies.
Using data from the USDA’s Census of Agriculture for 2012 and 2022, the study focused on four indicators: per-acre land values, rental rates for irrigated and non-irrigated cropland, and pastureland. The analysis found no significant differences in land value growth or rental rates for non-irrigated cropland and pastureland between counties with and without foreign-held agricultural land.
However, counties without foreign-held irrigated cropland experienced higher rental rate growth, though USDA said this result was based on a limited sample. Comparisons of states with and without foreign ownership restrictions revealed slower land value growth in states with restrictions. — Charles Wallace, WLJ contributing editor
