China was given a clear message by the Trump administration on Tuesday: Avoid American farmland.
The administration will work with state legislators to prohibit the sale of U.S. farmland to purchasers from China and other countries it considers security threats, Agriculture Secretary Brooke Rollins said. Rollins stated that the effort was primarily motivated by national security concerns.
Rollins stated that the government will review farmland already owned by Chinese people. The government will more thoroughly and look into ways to possibly reverse those purchases. “We’ll never let foreign adversaries control our land,” Rollins said.
Trump Administration to block Chinese ownership of US farmland
For years, lawmakers from both parties have expressed concern that China and other foreign governments might use farmland for espionage or to control the food supply in the United States. Approximately 300,000 acres, or 0.02% of all U.S. farmland, or an area the size of Los Angeles, are currently under the control of Chinese-owned entities, according to data from the Agriculture Department.
According to Rollins, attempts by foreign governments to steal agricultural technology and research pose a threat to American farms in addition to land purchases. Hegseth went on, “No longer can adversaries assume we aren’t watching.”
Chinese investment in agriculture has been blocked by state and local officials in recent years. Also, construction of a $700 million Chinese-owned corn mill in North Dakota, was halted in 2023 after the U.S. Air Force raised concerns about the site’s proximity to a military base.
Smithfield tensions
Purchases of significant American agricultural firms result in some foreign land ownership. Both Syngenta, a major supplier of seeds and pesticides, and Smithfield Foods, a major producer of pork, are criticized because of their Chinese parent companies. China’s WH Group owns the majority of Smithfield, and China National Chemical is the parent company of Syngenta.
Ownership structures have been defended by company executives. Earlier this year, Shane Smith, the CEO of Smithfield, declared, “We’re an American company, American management team, and made in America.”
Large tracts of U.S. farmland have long been owned by Smithfield, which WH Group purchased in 2013 to increase its knowledge and technology. The business sold more than 40,000 acres in 2023, bringing its holdings down to about 85,000 acres. On Tuesday, Smithfield’s stock dropped 1%.
Concerns have also been raised about Syngenta’s land holdings. About 160 acres where the company operated a research facility were ordered to be sold by Arkansas two years ago. Syngenta referred to the choice as “shortsighted.” Additionally, the company now owns less than 1,000 acres nationwide. They now are actively selling its remaining farmland in the United States, a spokesman said on Tuesday.
Featured Image Credit: Tim Mossholder: Pexels: Thank You!
