NALC’s Brown: State, federal lawmakers zero in on foreign ownership of U.S. farmland

By Drew Viguet
National Agricultural Law Center
U of A System Division of Agriculture

FAYETTEVILLE, Ark. — When it comes to foreign ownership of agricultural land in the United States, legislatures at both the state and federal levels are asking “how much is too much?”

AG LAW — Micah Brown is a staff attorney with the National Agricultural Law Center. (U of A System Division of Ag photo by Fred Miller)

According to the U.S. Department of Agriculture Farm Service Agency, foreign ownership and investments in U.S. agricultural land have increased to more than 40 million acres, an increase of almost 36 percent in foreign-owned farmland since 2011.

“Foreign ownership of agricultural land has emerged as arguably the single most active issue at the state and federal government levels, with more than half the states in the country proposing some kind of restriction on foreign ownership since Jan. 1,” Micah Brown, staff attorney at the National Agricultural Law Center, said. “This emerging interest in restricting foreign investments in U.S. land, especially agricultural land, is partly due to a Chinese-owned company purchasing more than 130,000 acres near a U.S. Air Force base in Texas. Another transaction that raised concerns among some lawmakers is the purchase of 300 acres near an Air Force base in North Dakota by the Chinese company Fefang Group."

Brown, who specializes in agricultural finance and credit issues at the NALC, including foreign ownership of agricultural land, recently spoke at the U.S. Department of Agriculture’s 99th Annual Agricultural Outlook Forum. He presented the session “State Restrictions on Foreign Ownership of Agricultural Land and Recent State Proposals.” Information on the event, as well as presentation slides and recordings of the sessions, can be found online.

“Some state foreign ownership proposals seek to restrict certain countries, such as China, Iran, North Korea, and Russia,” Brown noted in his presentation. He also said that there are fourteen states that currently restrict foreign ownership of farmland within their state to some degree.

In 2023, the Arkansas legislature has considered four proposals — HB 1255; HB 1479; SB 340; SB 383 — that seek to restrict certain foreign investments in agricultural land. Specifically, HB 1478 would restrict acquisitions of agricultural land by governmental entities of China and companies headquartered in China, while SB 340 and SB 383 seek to restrict foreign investments of governments and entities from several different countries, such as China, Cuba, Iran, North Korea, and Syria.

There is no federal law restricting foreign individuals, business entities, or foreign governments from acquiring or holding U.S. agricultural land, but Congress is considering proposals that seek to restrict certain foreign investments in farmland, such as the Promoting Agriculture Safeguards and Security Act — the PASS Act of 2023. If enacted, the PASS Act would require the president to prohibit certain foreign investments in U.S. agriculture, including acquisitions of businesses engaged in agriculture and land used in agriculture.

“The NALC covers, on a daily basis, many issues important to the agricultural industry, but foreign ownership of agricultural land has definitely risen to the top in 2023,” NALC Director Harrison Pittman said. “Micah has emerged as a leading national expert on the topic, providing invaluable information to legislators, states’ farm bureaus, attorneys, and many others around the country.” 

In January, Brown presented a National Agricultural Law Center webinar on foreign ownership. The recording of the webinar, “Foreign Ownership of Agricultural Land: Federal & State Legislative Update,” is available online on the NALC website. He has also developed the NALC’s Foreign Ownership of Agricultural Land: FAQs and Resource Library, highlighting state laws, AFIDA, federal proposals, and more.

For updates on foreign ownership of agricultural land and other agricultural law developments, subscribe free of charge to The Feed, the NALC’s newsletter highlighting recent legal developments facing agriculture, which publishes twice a month.

For information about the National Agricultural Law Center, visit nationalaglawcenter.org or follow @Nataglaw on Twitter. The National Agricultural Law Center is also on Facebook and LinkedIn.

About the National Agricultural Law Center

The National Agricultural Law Center serves as the nation’s leading source of agricultural and food law research and information. The NALC works with producers, state and federal policymakers, Congressional staffers, attorneys, land grant universities, and many others to provide objective, nonpartisan agricultural and food law research and information to the nation’s agricultural community.

The NALC is a unit of the University of Arkansas System Division of Agriculture and works in close partnership with the USDA Agricultural Research Service, National Agricultural Library.

AUDIO: Governor Hutchinson’s Weekly Address | Successes in the Session

LITTLE ROCK – This week the 93rd General Assembly concluded its business, and today I’d like to talk about a few of the success stories from the legislative session.

First, I appreciate the leadership of Senate Pro Tem Jimmy Hickey of Texarkana and Speaker Matthew Shepherd of El Dorado. Their steady hand and leadership helped us to navigate through some of the more contentious debates.

One bill that created some last-minute controversy was Senate Bill 298, which was known as the Arkansas Sovereignty Act. This bill was designed to push back against the federal government for what many Arkansans believe will be a new round of gun-control measures. I support that message, and I am a defender of the 2nd Amendment. But the bill would have penalized state and local law enforcement officers for cooperating with federal agencies; it also would have jeopardized hundreds of cases pending in federal court. In other words, public safety would be compromised, and the bill was clearly unconstitutional.

For those reasons I vetoed the bill. As a result, everyone worked together to draft a new bill that Representative Jeff Wardlaw and Senator Missy Irvin sponsored. The new bill sends the same message to Washington that we will not accept unconstitutional burdens on our 2nd Amendment rights. But the bill protects our public safety needs and will not put law enforcement at risk. This was House Bill 1957, and I have now signed the bill into law.

Now, let me talk about some additional successes in the session. 

One of our biggest wins was passage of the Revenue Stabilization Act. The act, known as the RSA, was implemented in the 1940s and requires the state to maintain a balanced budget. Passage of the RSA is an annual exercise in which legislators prioritize spending for the next fiscal year.

As part of the RSA this year, our reserve funds continue to build. We have consistently increased our surplus funds from zero when I took office to the current $210 million. And with the new budget adopted  in this session of the General Assembly, I expect those reserve funds to grow to more than $700 million. As Senator Jonathan Dismang said, the state has never been in better financial condition. Our reserve funds are like a long-term savings account that allows us to weather unexpected economic setbacks.

Other bills we passed include a $2,000 increase in the median salary for school teachers; a reduction in the number of years of service for state police officers to retire from thirty years to twenty-eight years; a requirement that Arkansas students take at least one computer science course to graduate; and that every high school employ at least one certified computer science teacher.    

As you can see, we had a very busy and successful legislative session.

Daily Legislative Update From State Representative Deann Vaught

The House is now in an extended recess. We will return in the fall to address redistricting.

House members returned to the chamber shortly after midnight to concur in an amendment to HB1957.

HB1957 states all acts, laws, orders, rules, and regulations of the United States Government that were enacted on or after January 1, 2021, that infringe on the people's right to keep and bear arms as guaranteed by the Second Amendment to the United States Constitution and Arkansas Constitution, Article 2, § 5, are invalid in this state, shall not be recognized by this state, are specifically rejected by this state, and shall be considered null and void and of no effect in this state. The amendment helped to clarify exceptions.

On Tuesday, the House passed the following:

SJR14- This is a proposed constitutional amendment titled the “Arkansas Religious Freedom Amendment”. It state government may burden a person's freedom of religion only if the government demonstrates that application of the burden to the person is in furtherance of a compelling government interest and is the least restrictive means of furthering that compelling government interest.

SB691-This bill states that any advertisement using the image of an elected official appearing in any newspaper, television, radio, or electronic medium which is paid by taxpayer funds shall clearly contain the words “Paid advertisement” or “paid ad” and the name of the state entity, county, or constitutional officer that paid for the ad.

SB336-This bill creates an exemption from the sales and use tax for coins, currency, and bullion.

SB484-This bill states that a nonresident individual who is paid a salary, lump sum payment, or any other form of payment that encompasses work performed both inside and outside of Arkansas shall pay Arkansas income tax only on the portion of the individual's income that reasonably can be allocated to work performed in Arkansas.

SB693-This bill would abolish the state and public school life and health insurance board and transfer the duties to the state board of finance.

We will continue to update you during the interim.

Daily Legislative Update From State Representative Deann Vaught

With a vote of 82-9, the House voted in favor of SJR10. This is a proposed constitutional amendment which, if approved by voters, would allow the General Assembly to call a special session upon the submission of a written proclamation with signatures from at least 2/3 of both the House and Senate membership. Currently, only the Governor can call for a special session.

The House also voted in favor of HR1048. This resolution would allow the House to consider a third proposed constitutional amendment, SJR14, the Arkansas Religious Freedom Amendment.

The House also passed the following bills on Thursday:

HB1926-This bill defines virtual currency under Arkansas Code. It also defines rights of ownership and the process for adverse claims against the currency.

HB1944-This bill provides definitions of advanced plastic recycling technologies in an effort to help facilitate the growth and investment of these facilities.

SB181-This bill amends the Sales Tax Holiday to exempt certain electronic devices from sales tax during the first weekend in August.

SB513-This bill amends the law concerning the suspension or revocation of a person’s driver’s license for failure to pay a fine or failure to appear. This would allow judges to restrict a license rather than suspend to allow the defendant to drive for essential purposes.

The House will convene on Monday at 1 pm.

Daily Legislative Report From State Rep Deann Vaught:

On Thursday, the House advanced a proposed constitutional amendment. HJR1005 would require statewide ballot initiatives to receive 60% of the vote before becoming law. If approved by the Senate, HJR1005 would be placed on the ballot in November of 2022.

The House also passed the following:

HB1391-This bill amends the law concerning consumer protection of seniors from predatory practices. It states that if a financial services provider has reasonable cause to suspect that financial exploitation may have occurred or is being attempted, the financial services provider may refuse or delay the execution of a financial transaction.

HB1012-This bill would require a buyer of a used catalytic converter other than a scrap metal recycler to file an electronic record of the used catalytic converter purchase.

SB298-This bill is titled the Arkansas Sovereignty Act of 2021. It states that all acts, laws, orders, rules, and regulations of the United States Government that infringe on the people's right to keep and bear arms as guaranteed by the Second Amendment to the United States Constitution and Arkansas Constitution are invalid in this state and shall not be recognized.

SB59-This bill states that a personal firearm, a firearms accessory, or ammunition that is manufactured commercially or privately in Arkansas and that remains within the borders of Arkansas is not subject to federal law or federal regulation.

SB536-This bill establishes the Buffalo River Conservation Committee.

The House will convene on Monday at 1 pm.

Daily Legislative Report From State Rep Deann Vaught:

On Tuesday, the House passed bills outlining several tax credits and exemptions.

HB1157 would double the income tax deduction for a teacher's qualified classroom expense from $250 to $500.

HB1513 creates an income tax credit for up to $3,500 for retired law enforcement officers who work cold cases for Arkansas State Police.

HB1196 would provide a sales and use tax exemption for water used by a poultry farm.

HB1054 allows for sales tax exemptions of isolated sales at special events.

The House also passed the following:

HB1879-This bill allows tuition waivers for dependents of disabled veterans, prisoners of war or a person declared missing in action or killed in action to be used at private and non-profit institutions of higher education. The amount of the waiver would be capped at the maximum amount of those at state-supported institutions.

HB1849-This bill states a vehicle shall not be driven upon the left lane of a multilane highway, except as follows:

(1) When overtaking and passing another vehicle proceeding in the same direction under the rules governing that movement

(2) When all other lanes for traveling in the same direction are closed to traffic while under construction or repair

(3) When all other lanes for traveling in the same direction are in disrepair or are in an otherwise undrivable or unsafe condition

(4) When a vehicle is preparing to exit the multilane highway on the left

HB1767-This bill allows the operation of a personal delivery device in pedestrian areas and certain streets.

HB1547-This bill states that a state agency or a state or local official shall not mandate an individual to receive a vaccine for COVID-19. It also states that if a state-controlled facility desires to mandate an individual to receive a vaccine, then the agency can make the request to the Arkansas Legislative Council. If a variant of COVID-19 occurs and mutates to be a more virulent strain that impacts children within two years from the date that the United States Food and Drug Administration approved the vaccine, then the Department of Health can request a meeting with the Public Health, Welfare, and Labor Committee.

SB139-This bill allows a student applying for the Arkansas Governor’s Scholars Program or the Minority Teacher Scholarship Program to use his or her ACT super score.

The House will convene on Thursday at 1 pm.

Legislative Update From State Representative Deann Vaught

On Tuesday, the House passed the following:

HB1388-This bill states that in an adoption proceeding concerning a minor who is not in the custody of the Department of Human Services, a prospective adoptive parent may voluntarily enter into a written agreement with a birth parent concerning post-adoption exchange of information, communication, or other contact between the birth parent and the minor.

HB1728-This bill states the use of campaign funds to pay a candidate's childcare expenses shall not be considered a taking of campaign funds as personal income if the campaign funds are used to pay for childcare for time the candidate is engaging in campaign activity and the childcare expenses would not exist in the absence of the campaign.

SB160-This bill states that in the 2022-2023 school year, Holocaust education shall be taught in all public schools in a manner that generates an understanding of the causes, course, and effects of the Holocaust. The bill states the lesson must also develops dialogue with students on the ramifications of bullying, bigotry, stereotyping, and discrimination.

SB394-This bill states that a public school district or open-enrollment charter school shall conduct a comprehensive school safety audit every 3 years to assess the safety, security, accessibility, and emergency preparedness of district buildings and grounds in collaboration with local law enforcement, fire, and emergency management officials.

SB27-This bill requires the Arkansas Department of Health to ensure that the Suicide Prevention Hotline employs individuals who have experience working with veterans or are veterans.

SB524-This bill states that by August 1, 2022, each public school district and open-enrollment public charter school in the state shall prepare a three-year teacher and administrator recruitment and retention plan. The plan should include goals for recruitment and retention of teachers and administrators of minority races and ethnicities who increase diversity among the district staff and, at a minimum, reflect the racial and ethnic diversity of the district's students.

HB1743-This bill amends the Digital Product and Motion Picture Industry Development Act of 2009 to allow production companies a choice of applying for either a rebate or tax credit with the Arkansas Economic Development Commission.

SB474-This bill creates the offenses of fertility treatment abuse and fertility treatment fraud.

The House will convene on Wednesday at 1 pm.

Arkansas Senate Committee Advances Several Bills Concerning Elections

By SARAH KELLOGG

An Arkansas Senate committee advanced a series of election-related bills Tuesday ranging from ballot eligibility to campaign finance.

The Senate State Agencies and Governmental Affairs passed House Bill 1338, which raises the signature requirement for those running for president from 1,000 to 5,000 signatures in Arkansas.

Rep. Robin Lundstrum, R-Springdale, the bill’s sponsor on the House side, presented the bill to the committee.

https://www.ualrpublicradio.org/post/arkansas-senate-committee-advances-several-bills-concerning-elections

Rep. Robin Lundstrum, R-Springdale, (right) presents her bill alongside Sen. Cecile Bledsoe, R-Rogers.

CREDIT ARKANSAS SENATE