Mid City Times

Washington, D.C. – On June 9, Congresswoman Beth Van Duyne (TX-24), a member of the House Committee on Ways and Means, introduced the Protecting American Farmland Act, which will prevent foreign adversaries from purchasing American farm and ranch land through a 60% excise tax paid by the buyer. Foreign ownership of U.S. farmland has risen steadily over the years, threatening the future of small family farms, and testing the strength of our agricultural supply chain.

Statement from Congresswoman Beth Van Duyne:

“China is relentlessly trying to undermine our country – whether it’s poisoning our citizens with fentanyl smuggled in through our southern border, spying on us, or filling the global stage that has been left empty by the Biden Administration. American farmland – especially here in Texas – is the new frontline in our fight against the Chinese Communist Party’s aggressions. I’m glad to join Chairman Jason Smith in introducing this bill to keep our farmland from enemy hands, protecting our nation’s farmers, supply chains, and security.”

Statement from Ways and Means Chairman Jason Smith:

“We must protect America’s agricultural resources from being snatched up by foreign adversaries and companies under their control. To prevent the Chinese Communist Party and other hostile foreign governments from staking claim to U.S. farmland, Representative Van Duyne’s bill expands an existing tax on foreign land sales and ratchets up the applicable tax rate by 400 percent. By protecting our agricultural land, we will increase our food and economic security.”

Background:

• The United States is the world's leading exporter of agricultural products, and some of our adversaries are attempting to secure access by quietly acquiring U.S. farmland.
• While China's reported holdings of farmland are said to be 384,000 acres, reported acreage has grown by more than 50 percent since 2019, and the U.S. Department of Agriculture has acknowledged that reporting may not be comprehensive.
• This provision would prevent undisclosed purchases of American farm and ranch land in connection with a 60 percent excise tax imposed on "Country of Concern" buyers.
• This tax is four times the level of the withholding tax that currently applies to foreign sellers of U.S. real property under the Foreign Investment in Real Property Tax Act (FIRPTA).
• A "Country of Concern" is one that is engaged in a long-term pattern of conduct significantly adverse to the national security of the United States, including the People's Republic of China (not including Taiwan), the Russian Federation, Iran, North Korea, Cuba, and the regime of Nicolas Maduro in Venezuela.

Cosponsors:

Original cosponsors of the Protecting American Farmland Act include Reps. Vern Buchanan (FL-16), Mike Carey (OH-15), David Kustoff (TN-08), Nicole Malliotakis (NY-11), and Jodey Arrington (TX-19).

Click here to read the bill.

Original source can be found here.