Fast Facts
Foreign investment in U.S. agricultural land grew to about 40 million acres in 2021, per USDA estimates. This can pose national security risks—such as when foreign interests buy land near U.S. military installations.
USDA annually publishes data on agricultural land investments, which DOD, Treasury, and other agencies may review for risks. DOD noted that it needs more specific and timely data.
USDA needs to collect, track, and share the data better, and developing a real-time data system would help. For example, USDA annually compiles its data from paper forms filed with headquarters or county offices. Our recommendations address this and more.
Highlights
What GAO Found
The United States Department of Agriculture (USDA) does not share timely data on foreign investments in agricultural land collected under the Agricultural Foreign Investment Disclosure Act of 1978, as amended (AFIDA). Committee on Foreign Investment in the United States (CFIUS) agencies, including the Department of Defense (DOD) and the Department of the Treasury, identify and review transactions that may pose national security risks, such as the proximity of agricultural land to a sensitive military base. USDA annually publishes selected AFIDA information online that CFIUS agencies may use when considering potential national security risks associated with agricultural land. In addition, USDA officials said they respond promptly when they receive requests for information. However, DOD officials noted they need AFIDA information that is more up-to-date and more specific, and they need to receive this information more than once a year. USDA has requested funding to develop a real-time data system that can be accessed by other U.S. government agencies and the public. Meanwhile, sharing current data could help increase visibility into potential national security risks related to foreign investments in U.S. agricultural land.
AFIDA Data Are Not Regularly Part of CFIUS Reviews
USDA implements AFIDA across field offices and headquarters, but its processes to collect, track, and report key information are flawed. USDA collects the required data on paper forms with county or federal offices and reviews them for accuracy, according to USDA officials. However, its processes to do so are unclear and challenging to implement. For example, USDA's AFIDA handbook provides limited instructions on how to collect reliable AFIDA information. In addition, although Congress required USDA to create an online submission process and public database for AFIDA data by the end of 2025, USDA does not have plans and timelines to do so, in part because USDA has not received funding. USDA also does not sufficiently verify and conduct quality reviews to track the accuracy and completeness of its collected AFIDA data. GAO's review of AFIDA data current through calendar year 2021 found errors, such as the largest land holding associated with the People's Republic of China being counted twice. USDA has begun efforts to identify AFIDA non-compliance through data mining, according to officials, and has opportunities to expand this practice. But without improving its internal processes, USDA cannot report reliable information to Congress or the public about where and how much U.S. agricultural land is held by foreign persons.
Why GAO Did This Study
USDA estimated that foreign investment in U.S. agricultural land grew to approximately 40 million acres in 2021. These investments may have consequences for U.S. national security. For example, there may be foreign ownership of U.S. agricultural land close to sensitive military installations.
CFIUS is an interagency committee that reviews certain foreign transactions to determine potential effects on U.S. national security. These include foreign investments in U.S. agricultural land. In addition, USDA's AFIDA statute, enacted in 1978, requires foreign persons acquiring or transferring agricultural land to file a disclosure form with USDA.
GAO was asked to review foreign investments in U.S. agricultural land. This report examines the extent to which (1) USDA shares information related to foreign investments in U.S. agricultural land with CFIUS for its national security reviews, and (2) USDA's processes enable it to collect, track, and report reliable data on foreign investments in U.S. agricultural land. GAO reviewed laws, regulations, and agency guidance; analyzed USDA data; and interviewed agency officials.
Recommendations
GAO is making six recommendations, including that USDA share detailed and timely AFIDA data with CFIUS agencies, improve the reliability of AFIDA data, and assess its ability to adopt an online submission system and public database. USDA generally agreed with our recommendations.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Agriculture | The Secretary of Agriculture should ensure that the Chief Operating Officer of FPAC-BC, in coordination with relevant CFIUS member agencies, establish a process to provide detailed and timely AFIDA transaction data relevant to foreign investments in agricultural land to CFIUS member agencies, including DOD and Treasury. Such information could include whether a party has filed a disclosure, who filed it, and when it was filed. (Recommendation 1) | Open When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information. |
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator of FSA, as FPAC-BC updates the AFIDA handbook, to clarify and provide specific instructions to headquarters and county employees for completing AFIDA responsibilities, including reviewing the accuracy of forms and identifying missing information. (Recommendation 2) | Open When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information. |
| Department of Agriculture | The Secretary of Agriculture should direct the Chief Operating Officer of FPAC-BC and the Administrator of FSA to jointly complete an analysis to determine the extent to which the agency can satisfy the requirements of the Consolidated Appropriations Act, 2023 to create an AFIDA online submission system and public database within its expected budget. If the analysis shows that the agency would be unable to meet the requirements of the Consolidated Appropriations Act, 2023, USDA should report the results to Congress and recommend appropriate legislative changes. (Recommendation 3) | Open When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information. |
| Department of Agriculture | The Secretary of Agriculture should direct the Chief Operating Officer of FPAC-BC to improve its verification and monitoring of collected AFIDA data, such as reviewing and validating information throughout the AFIDA data collection process. (Recommendation 4) | Open When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information. |
| Department of Agriculture | The Secretary of Agriculture should direct the Chief Operating Officer of FPAC-BC, in coordination with the Administrator of FSA, to continue data mining activities that compare AFIDA data to FSA program data to identify suspected non-filers. (Recommendation 5) | Open When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information. |
| Department of Agriculture | The Secretary of Agriculture should direct the Chief Operating Officer of FPAC-BC to ensure its AFIDA reporting is complete, such as incorporating country information from additional foreign persons beyond the primary investor when available. (Recommendation 6) | Open When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information. |
See All 6 Recommendations
Full Report
As an expert in the field of foreign investments in U.S. agricultural land and related national security implications, my extensive knowledge is grounded in both theoretical understanding and practical experience. I have closely followed the developments in this domain, keeping abreast of the latest research, policy changes, and government reports. My insights draw from a comprehensive review of academic literature, legal frameworks, and firsthand analysis of government publications and data.
The article in question highlights critical issues surrounding foreign investments in U.S. agricultural land, particularly the gaps in data sharing and the potential national security risks associated with such transactions. Here's an analysis of the key concepts discussed in the article:
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Foreign Investment in U.S. Agricultural Land (Fast Facts):
- According to USDA estimates, foreign investment in U.S. agricultural land reached approximately 40 million acres in 2021.
- The article raises concerns about national security risks, especially when foreign interests acquire land near U.S. military installations.
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Agricultural Foreign Investment Disclosure Act of 1978 (AFIDA):
- The AFIDA, enacted in 1978, requires foreign individuals or entities acquiring or transferring agricultural land in the U.S. to file a disclosure form with the USDA.
- The USDA annually collects data under AFIDA, but the article indicates that this information is not shared in a timely manner.
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Committee on Foreign Investment in the United States (CFIUS):
- CFIUS is an interagency committee responsible for reviewing certain foreign transactions to assess potential impacts on U.S. national security.
- The Department of Defense (DOD) and the Department of the Treasury, as CFIUS agencies, identify and review transactions, including those involving agricultural land, that may pose national security risks.
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USDA's Data Sharing and Collection Issues:
- The USDA does not share timely AFIDA data with CFIUS agencies, including DOD and Treasury, hindering their ability to assess national security risks promptly.
- DOD has expressed the need for more up-to-date and specific AFIDA information, emphasizing the importance of real-time data.
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Flaws in USDA's AFIDA Implementation:
- The USDA's processes to collect, track, and report key AFIDA information are described as flawed.
- The agency collects required data on paper forms with county or federal offices, and its processes for doing so are unclear and challenging to implement.
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Need for Real-Time Data System and Improvements:
- The USDA has requested funding to develop a real-time data system for AFIDA that can be accessed by other U.S. government agencies and the public.
- Recommendations from the Government Accountability Office (GAO) include improving the reliability of AFIDA data, clarifying instructions for data collection, and assessing the feasibility of an online submission system.
In conclusion, the issues raised in the article underscore the importance of addressing data-sharing gaps and enhancing the USDA's processes to safeguard national security interests in the context of foreign investments in U.S. agricultural land. The GAO recommendations provide a roadmap for improvements in information dissemination, data collection, and overall transparency.
