The Trump administration announced Tuesday it will ban Chinese entities from purchasing US farmland and force existing owners to sell their holdings, citing national security threats to America’s food supply.
Agriculture Secretary Brooke Rollins said the administration will use executive action and work with Congress to implement the ban on sales to China and other foreign adversaries.
“American agriculture is under threat from criminals, from political adversaries and from hostile regimes,” Rollins said at a news conference with Defense Secretary Pete Hegseth and Homeland Security Secretary Kristi Noem.
Chinese-linked investors currently own about 265,000 acres of US farmland, according to Agriculture Department data. That represents roughly 0.5% of the 46 million acres of American agricultural land held by foreign entities.
Read: USDA Seeks to Ban Chinese Purchase of US Farmland
Under the plan, current Chinese owners must divest their holdings within one year and sign letters of intent to sell within 180 days. Violations would trigger fines of $100 per acre per day, potential criminal penalties up to five years in prison, and asset forfeiture.
Senator Josh Hawley, R-Mo., separately introduced legislation Tuesday that would permanently prohibit Chinese entities from acquiring US agricultural land and temporarily ban them from purchasing residential real estate.
The federal action builds on restrictions already enacted by 26 states. The Senate voted 91-7 in 2023 to block Chinese businesses from purchasing American farmland after concerns over potential surveillance and threats to military operations.
Federal authorities have documented Chinese intelligence efforts targeting American agriculture, including recent charges against two Chinese scientists for smuggling a dangerous fungus that can damage grain crops.
Read: Chinese Nationals Charged With Smuggling Agricultural Bioweapon
Much of the Chinese-owned farmland stems from a single 2013 acquisition when WH Group, a Chinese conglomerate, purchased Smithfield Foods.
The Agriculture Department will establish a new office to monitor compliance and impose fines. The restrictions would extend to food processing facilities and include provisions to nullify existing noncompete agreements between Chinese companies and American agricultural workers.
Critics argue that Chinese investment in US farmland could give Beijing leverage over critical segments of America’s food supply during crises.
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