USDA Draws a Line on Farmland Ownership

For years, foreign ownership of U.S. farmland has been one of those issues everyone knew was happening, but no one really wanted to address. The paperwork existed. The rules existed. The enforcement? Not so much.

That’s starting to change.

At the end of December, the U.S. Department of Agriculture (USDA) announced new steps under its Farm Security Action Plan aimed at tightening oversight of who owns U.S. agricultural land and who benefits from federal agriculture programs.

In short, USDA is saying farmland is no longer just real estate. It’s a national security issue.

What USDA Is Actually Doing

The focus right now is on law called the Agricultural Foreign Investment Disclosure Act (AFIDA). On paper, AFIDA already requires foreign buyers to report when they purchase or hold U.S. farmland. In practice, USDA admits the system hasn’t always worked the way it should.

So, USDA is reopening the rulebook.

The department is seeking public input on how to modernize AFIDA reporting, improve verification and tighten tracking of foreign-owned agricultural land. That includes closer coordination with other federal agencies when land ownership raises national security concerns.

USDA estimates that foreign adversary–linked entities already control roughly 277,000 acres of U.S. agricultural land. USDA officials say that poses risks not just to food production, but to supply chains, infrastructure and even military installations.

Why This Matters to Farmers

For most farmers, nothing changes tomorrow morning. No one is showing up at the farm gate with new forms.

But long-term, this signals a shift.

Expect more scrutiny around land transactions, fewer loopholes for foreign-backed ownership and clearer visibility into who controls agricultural ground in the U.S. This also sends a message that farmland is being treated less as an investment vehicle and more as a strategic asset.

If you’ve ever wondered how foreign money ended up competing with local buyers for land, the USDA is saying those days should be numbered.

The Money Side of the Equation

Alongside land ownership, the USDA is also tightening eligibility for certain federal programs. Companies or products tied to foreign adversaries are no longer eligible for programs such as BioPreferred or USDA-backed guaranteed lending.

That matters because federal purchasing preferences and lending programs can shape markets. Cutting foreign-controlled entities out of those programs is meant to tilt the playing field back toward American producers and domestic supply chains.

In plain terms, federal dollars are being told to stay closer to home.

The Bigger Picture

This isn’t just about who owns a quarter section.

USDA is framing farmland, food production and agricultural infrastructure as part of national security. The goal is to protect long-term food supply, reduce reliance on foreign-controlled systems and keep American farmland in American hands.

Whether USDA follows through with strong enforcement will matter more than any press release. But for the first time in a while, Washington is clearly saying the quiet part out loud: who owns the land matters.

Bottom Line

USDA is drawing a clearer line around farmland ownership and federal agriculture programs. Farmers aren’t being asked to do anything new right now, but the direction is clear: tighter oversight, fewer foreign-backed advantages and more emphasis on keeping U.S. farmland working for U.S. farmers.

That’s a conversation most folks in ag have been ready to have for a long time.