The Trump Administration’s Ban on Chinese Nationals and Companies Purchasing U.S. Farmland

On July 8, 2025, the Trump administration unveiled the National Farm Security Action Plan, a sweeping initiative aimed at banning Chinese nationals and companies, along with other foreign adversaries, from purchasing U.S. farmland. Spearheaded by U.S. Department of Agriculture (USDA) Secretary Brooke Rollins, this policy responds to growing national security concerns about foreign ownership of American agricultural land, particularly by entities tied to China.

The plan also seeks to review past land deals, potentially forcing divestitures, and enhance scrutiny of land ownership near military bases.

Background: How We Got Here

The issue of foreign ownership of U.S. farmland has been simmering for decades, but it gained significant traction in recent years due to escalating tensions with China and high-profile land deals near sensitive military installations. According to USDA data, foreign entities held approximately 45 million acres of U.S. agricultural land as of December 31, 2023, representing about 3.5% of privately held farmland. Chinese investors, however, own a small fraction—approximately 277,336 acres, or less than 0.03% of total U.S. farmland. Despite this modest share, concerns about Chinese ownership have intensified due to several factors.

Historical Context

Foreign ownership of U.S. farmland is not a new phenomenon. The Agricultural Foreign Investment Disclosure Act (AFIDA) of 1978 requires foreign investors to report their holdings, but enforcement has historically been lax, and data collection has been criticized as slow and error-prone. Countries like Canada, the Netherlands, and the United Kingdom have long held significant portions of foreign-owned U.S. farmland, with Canada alone accounting for nearly a third of the 45 million acres. Chinese ownership, while minimal, began drawing attention in the 2010s with high-profile acquisitions, such as the 2013 purchase of Smithfield Foods by China’s WH Group, which included substantial farmland holdings.

Recent Incidents and Escalating Tensions

Several incidents have fueled the current push for restrictions:

1. Fufeng Group Purchase in North Dakota (2021): The Chinese-owned Fufeng Group purchased 370 acres near Grand Forks Air Force Base to build a corn milling facility, raising alarms about potential espionage. Local and federal officials blocked the project, citing national security risks, and the case exposed loopholes in the Committee on Foreign Investment in the United States (CFIUS) regulations, which did not cover land near certain military sites.

2. Syngenta Case in Arkansas (2023): Arkansas ordered Chinese-owned Syngenta to sell 160 acres of farmland, fining the company $280,000 for failing to disclose its ownership. This marked a state-level precedent for reclaiming land from Chinese entities.

3. Chinese Spy Balloon Incident (2023): The sighting of a Chinese surveillance balloon over Montana heightened fears about China’s intentions, particularly regarding land purchases near military bases.

4. Agroterrorism Concerns: In 2025, two Chinese nationals were arrested in Michigan for allegedly smuggling a crop pathogen, described by FBI Director Kash Patel as an “agroterrorism agent.” Such incidents have amplified fears of malicious intent.

These events, combined with broader U.S.-China tensions over trade, technology, and geopolitical influence, have created a political climate ripe for action. The Trump administration’s ban builds on state-level efforts, with 26 states already enacting laws to limit or prohibit foreign land purchases, and federal proposals like the bipartisan PASS Act and the Not One More Inch or Acre Act gaining traction.