Foreign Ownership of Land

Since 2020, ownership of land by foreign persons and entities has been a topic of discussion in many state legislatures and in Congress. State laws on the topic vary widely, with some states restricting only foreign ownership of agricultural land and others allowing any person or entity, regardless of citizenship or national origin, to own land. The 2023 Special Committee on Foreign Adversary Investments and Land Purchases received information on the topic and made recommendations for further study. The Committee’s final report may be found on the Kansas Legislative Research Department’s Committees webpage.

Federal Law and Nationwide Statistics

The federal Agricultural Foreign Investment Disclosure Act (AFIDA) of 1978, 7 C.F.R. Part 781, does not place restrictions on the foreign ownership of agricultural land, but does require annual reporting by foreign citizens and entities who own U.S. forest land and farm land.

The annual AFIDA report produced by the United States Department of Agriculture (USDA) compiles statistics on a national, state, and county basis. The most recently published report provides information on calendar year 2021.

National Statistics

As of December 31, 2021:

• Approximately 40 million acres of U.S. agricultural land was held by a foreign investor;
• The total represents an increase of more than 2.4 million acres since December 31, 2020, and an increase of 14.3 million acres since 2011;
• The total represents 3.1 percent of all privately held agricultural land nationwide;Land uses: forest (47 percent), cropland (29 percent), and pasture or other purposes (22 percent);
• Top countries of origin: Canada (31 percent), Netherlands (12 percent), Italy (7 percent); and
• Top states: Texas (5.2 million acres), Maine (3.6 million acres), and Colorado (1.9 million acres).

Recent State Policies

During 2023 state legislative sessions, 36 states considered bills concerning foreign ownership of land, according to the National Agricultural Law Center. Of those states, 12 enacted laws on the topic, bringing the total to 24 states that restrict foreign ownership of agricultural land in some way. Conversely, according to the Center, 22 states expressly allow for foreign ownership, and the laws of 4 states are silent on the issue.

Kansas Law

Pursuant to the Kansas Constitution, Bill of Rights §17, “…the rights of aliens in reference to the purchase, enjoyment, or descent of property may be regulated by law.” Kansas statutory provisions generally prohibit corporate farm land ownership, but contain several exceptions. Foreign registered corporations doing business in Kansas (including those organized and registered in another state) are required to register with and report to the Secretary of State. Such report is to include information regarding the company’s agricultural land holdings in Kansas.

Kansas Statistics

[Note: The information below was compiled or calculated from 2021 AFIDA data by Robin Reid, Extension Farm Economist, Kansas State University. Additional information, as well as an interactive county-level map, may be accessed on the Kansas State University AgManager.info extension site, under the Ag Policy link.]

• Privately held agricultural land in Kansas totals 49 million acres;
• Reported Kansas agricultural land with a foreign interest totals nearly 1.2 million acres, or 2.4 percent of all agricultural acreage;
• Of the foreign-held acreage, 93.9 percent is related to a wind energy lease, and solar energy makes up another 0.4 percent;
• The remaining foreign-held acreage totals 67,717 acres, or 5.7 percent of all foreign interest agricultural acres;
• Top countries holding an interest: Italy (388,733 acres), Canada (342,435 acres), and France (171,894 acres); and
• Top counties: Ellsworth (123,834 acres), Clark (102,150 acres), and Ford (91,361 acres).