Yesterday, state officials ordered Syngenta Seeds, located in Craighead County Arkansas, to divest its land following a new state law banning prohibited foreign parties from owning agricultural land in Arkansas.
Syngenta, an agricultural seed and chemical company, is owned by Chinese state-owned enterprise ChemChina and has about 160 acres in the state through its subsidiary Northrup King Seed Co valued at $1.12 million. ChemChina is on the Department of Defense's list of Chinese military companies that pose a threat to U.S. national security.
Arkansas Attorney General Tim Griffin and Governor Sarah Huckabee Sanders held a press conference yesterday announcing the order to give up its land within the next 2 years.
“Seeds are technology,” Sanders said. “Chinese-owned state corps filter that technology back to their homeland, stealing American research and telling our enemies how to target American farms.”
Griffin sent ChemChina an enforcement letter stating that he is imposing the maximum $280,000 fine under Arkansas law after the company failed to meet its deadline to disclose ownership of the land. Griffin announced he is not only imposing the maximum fine, but prepared to take legal action if the company does not pay it by the 30-day deadline. He said the state can, if needed, force the company out of Arkansas.
“The idea that the Chinese government would care about non-military assets is exactly what they’ve demonstrated over the last few decades,” the attorney general said.
Statement from Syngenta in response to the order:
“Syngenta is disappointed by today’s announcement by the State of Arkansas about a bill that was passed in April. Nothing new was announced today. The order for Syngenta to divest itself of 160 acres of agricultural land in Craighead County, which the company has owned since 1988, is a shortsighted action that fails to account for the effects of such an action, intended or not, on the U.S. agricultural market.
“Our people in Arkansas are Americans led by Americans who care deeply about serving Arkansas farmers. This action hurts Arkansas farmers more than anyone else.
“No one from China has ever directed any Syngenta executive to buy, lease, or otherwise engage in land acquisition in the United States.
“Syngenta owns approximately 1,500 acres of agricultural land in the U.S., about the size of four average Iowa farms. Syngenta’s agricultural land, including the 160 acres in Craighead County, is used for research, development, regulatory trials, and production to meet the needs of American farmers and to drive competition and innovation within the U.S. agricultural market. In fact, in many instances, Syngenta is required by law to develop and test products it sells in the U.S. domestically on U.S. soil.
“All Syngenta land holdings have been examined by the U.S. government, through two administrations, as Syngenta was transitioning to ChemChina ownership. Since Syngenta has had Chinese ownership, the company has purchased only an additional 200 agricultural acres.
“Syngenta continues to adhere to all government laws, regulations, and reviews for any land additions to the Syngenta portfolio.
“Syngenta has a longstanding and close working relationship with the U.S. government and has always emphasized transparency with all relevant agencies to ensure timely compliance with all laws and regulations.
“Following an internal review, Syngenta updated its AFIDA filing, reflecting the change in its ultimate ownership, and filed a copy with the State of Arkansas.
“Our site has been in existence for 35 years and our people there have faithfully served American farmers all that time. We intend to do all we can to help enable these Americans to continue serving American farmers.
“Syngenta’s work in the U.S. – including in Arkansas – continues to benefit American farmers, strengthens American agriculture, and makes the U.S. a more innovative and competitive participant in the global agricultural marketplace.”
As of Dec. 31, 2021, approximately 40 million acres of U.S. agricultural land were owned by foreign entities, with China making up less than 1% of that total, according to USDA’s latest report. Around 3.1% of all privately held farmland is foreign-owned.
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