States Rush to Restrict Foreign Farmland Ownership, Targeting China Despite Legal Concerns

Foreign ownership of U.S. farmland is increasing, with China owning just 1% of foreign-held acres. Many new state laws aim to restrict foreign land purchases.

Two dozen states now limit foreign farmland ownership, with 10 new laws in 2022. Federal legislation has also been proposed but not passed.

Tax laws like FIRPTA already restrict foreign real estate investors. New security reviews also apply, like CFIUS for purchases near military sites.

Motivations include national security concerns and political grandstanding, especially against China. Laws in Florida and Texas directly target Chinese investors.

Legal challenges argue the laws are discriminatory and unconstitutional. A lawsuit in Florida seeks to overturn the restrictions. More lawsuits are likely with new laws.