Foreign ownership of land in Iowa is a frequent question I receive while traveling the district and by email. Over the last couple of years, we have seen Chinese listening posts pop up on land purchased near American military bases in states such as North Dakota and Texas. Aside from military intelligence gathering, others are worried that China may be working to gain control over United States food production. The purchase of Smithfield Foods by a Chinese company set off many alarms in people’s minds.
In regard to farmland in Iowa, we have among the tightest controls in the country. I reached out to the Iowa Secretary of Agriculture’s office to find out where we stand. It was reassuring to hear that Secretary of Ag Mike Naig was fully on top of the issue. His office had already done a deep dive into the issue and was ready with the following information.
At least 22 states regulate foreign ownership of ag land, and Iowa is one of eight states that prohibit foreign ownership. Our state does not restrict foreign ownership of land other than agricultural land. The other seven states that prohibit ownership are the farm states surrounding Iowa. Our prohibition was adopted in 1979. The law covers foreign businesses, foreign governments, and non-resident aliens (not to be confused with illegal aliens such as those flooding through our southern border due to President Biden’s invitation, non-resident aliens are legally in the country but are not citizens and have not been given permanent residency status).
There are some exceptions to the law to make the law work in the real world. If ag land is inherited, it must be sold within two years. Ag land can be held by foreigners as a security interest. If the land is gained by foreclosure or enforcement of a lien it again must be sold within two years. Ag land up to 320 acres can be purchased by a foreign interest if it is developed for something other than farming. If it is not developed, it must be sold.
The exemption that concerns me is the last. Ag land may under Iowa law be acquired for research or experimental purposes up to one square mile, that is 640 acres. We all know communists are devious people. They are why the world can’t have nice things. This loophole may be attractive for the Chinese Communist Party and they control through force or intimidation or blackmail. Governor Reynolds has shown interest in this area and your legislature is hearing from citizens about their concerns. I’ll be working to move any legislation we can devise to tighten up our Ag Land statute.
While we are on the subject, let’s put the size of the issue in perspective. A quick search looks like there is about 1.3 billion acres of privately owned agricultural land. It looks like foreign actors of any kind own about 3% of that land, and Chinese interests own just under 400,000 acres. That comes to 1% of the 3% slice of foreign ownership. Of course, the number of acres doesn’t mean much if the purpose is military intelligence gathering or a base for operatives, which is certainly happening across the country.
In summary, Iowa has among the best protections in place regarding foreign ag land ownership, but that doesn’t mean we can’t update and strengthen our laws to keep them relevant to today’s world and challenges. Corporate farming and ownership of land is another important issue monitored by our Secretary of State. I have that information as well and hope to get a newsletter out to you on that subject soon.
Author: Jason Schultz
State Sen. Jason Schultz served three terms in the House prior to being elected to the Iowa Senate. Schultz served seven years in the National Guard and served as volunteer fire fighter for the Schleswig Volunteer FD for 13 years, two years as the department's chief.
