In order to protect U.S. farmland, House Republicans Jason Smith and Beth Van Duyne, have proposed a bill that would prevent foreign adversaries, such as China, Russia, Iran, North Korea, Cuba, and Venezuela, from acquiring U.S. agricultural land by imposing a 60% excise tax on their purchases.
Currently, foreign entities own 40.8 million acres of U.S. agricultural land, or 3.1% of the privately owned land in the nation, according to the USDA. China alone owns 0.9% or 384,000 acres of U.S. agricultural land.
“This provision would prevent undisclosed purchases of American farm and ranch land in connection with a 60% excise tax imposed on the ‘country of concern’ buyers,” said Beth Van Duyne, Texas House Representative. “This tax is four times the level of the withholding tax that currently applies (to such sales). By protecting our agricultural land, we will increase our food and economic security.”
The bill, approved on a party-line vote of 24-18, now goes to the House floor. The Smith/Van Duyne bill also proposes a 10% to 50% excise tax on purchases by publicly traded companies with up to 50% ownership by disqualified persons.
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