HR4362-119

What This Bill Does

The AFIDA Improvements Act tightens reporting and enforcement under the Agricultural Foreign Investment Disclosure Act of 1978. When more than one foreign person acquires or transfers an interest in agricultural land, each foreign person with at least a 1 percent interest, directly at the first ownership tier or in the aggregate through tiered entities, must report. USDA must enter memoranda of understanding with the Committee on Foreign Investment in the United States within one year to provide relevant AFIDA report information, including submitter identity and submission dates. The Secretary of Agriculture must update the Farm Service Agency Foreign Investment Disclosure handbook within one year, incorporate GAO recommendations from the January 18, 2024 report on foreign investments in U.S. agricultural land, and update the handbook every 10 years. If the required electronic disclosure and retention process is not established within one year, the Farm Production and Conservation Business Center and Farm Service Agency must take corrective action. FPAC-BC must validate AFIDA data throughout collection, ensure compliance with the 1 percent reporting rule, and coordinate with FSA to identify people subject to civil penalties.

Who Benefits and How

USDA foreign-land analysts benefit from more complete reporting by foreign investors with at least 1 percent direct or tiered interests. CFIUS national-security reviewers benefit from memoranda of understanding giving them relevant AFIDA report information. Farm Service Agency staff benefit from an updated handbook incorporating GAO recommendations and electronic disclosure process requirements. Rural communities concerned about foreign agricultural land ownership benefit from stronger data validation and enforcement.

Who Bears the Burden and How

Foreign persons holding at least a 1 percent agricultural land interest must report even through tiered ownership structures. The Secretary of Agriculture must negotiate CFIUS information-sharing agreements and update AFIDA implementation guidance. The Farm Production and Conservation Business Center must validate data, enforce the 1 percent rule, and help identify civil-penalty cases. Foreign investment advisors must track direct, first-tier, and aggregate tiered interests for AFIDA disclosure.

Key Provisions

• Requires AFIDA reporting by each foreign person with at least a 1 percent direct or tiered agricultural land interest.
• Directs USDA to share relevant AFIDA report information with CFIUS through memoranda of understanding within one year.
• Requires Farm Service Agency handbook updates using GAO recommendations and recurring 10-year updates.
• Requires FPAC-BC data validation, compliance checks, electronic disclosure follow-up, and civil-penalty identification with FSA.