Earlier this week at the North American Agricultural Journalists annual meeting, U.S. Agriculture Secretary Tom Vilsack spoke with reporters about foreign ownership of U.S. agricultural land, and expressed his opposition to any Chinese ownership of land near military bases. He noted, however, that Chinese companies own only about 1/10th of 1% of the nation's farmland, approximately 350,000 acres.
In the first quarter of the federal fiscal year, U.S. agricultural exports have dropped by $6 billion, with exports to China alone decreasing by the same amount.
Vilsack mentioned that during recent conversations with China's agriculture minister, the minister questioned why Syngenta Seeds was required to sell land in Arkansas. Last year, state officials ordered this sale because Syngenta failed to disclose China's ownership of the land through a company called ChemChina, which is on the Department of Defense's list of Chinese military companies that pose a threat to U.S. national security.
Vilsack suggested that China might be reducing its purchases of U.S. agricultural products to signal its displeasure over the various state and federal laws targeting Chinese land ownership in U.S. agriculture.
"You criticize your No. 1 customer, and it’s going to have consequences," Vilsack remarked.
He emphasized the "nuanced and complex relationship" between the U.S. and China, noting that progress in areas such as climate change, terrorism, and global stability requires China's cooperation.
Vilsack concluded, "It's a complicated world that doesn't accommodate simplistic solutions, yet that's what we're dealing with."
This situation necessitates that U.S. agricultural exporters diversify their markets in other regions of Asia and Africa instead of relying so heavily on China.
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