S 1969119th CongressIn Committee

AFIDA Improvements Act of 2025

Introduced: Jun 5, 2025

Agriculture & FoodDefense & National Security

Standard Summary

Comprehensive overview in 1-2 paragraphs

The AFIDA Improvements Act of 2025 would strengthen and expand the Agricultural Foreign Investment Disclosure Act of 1978 (AFIDA). The core changes are: (1) a broader reporting requirement that requires disclosure for every foreign person with at least a 1% interest in agricultural land, including indirect ownership through multiple entities and tiers (excluding security interests); (2) enhanced enforcement by the Farm Production and Conservation Business Center (FPAC-BC) to validate data, ensure compliance with the new 1% threshold, and help identify violators subject to penalties; (3) increased information sharing with the Committee on Foreign Investment in the United States (CFIUS) via memoranda of understanding; (4) updates to the AFIDA handbook to align with GAO recommendations and a regular update cadence every 10 years; and (5) a study and potential establishment of a streamlined, electronic submission and retention process for AFIDA disclosures, with a one-year deadline to analyze and plan, and a formal implementation timeline if feasible, plus a report to Congress. The bill was introduced in the Senate on June 5, 2025, with multiple sponsors. If enacted, it would meaningfully broaden the scope of AFIDA reporting, strengthen federal oversight and cross-agency coordination on foreign ownership of U.S. agricultural land, and push modernization of disclosure processes.

Key Points

1Minimum ownership threshold expanded: If more than one foreign person owns an interest in a piece of U.S. agricultural land, each foreign person with at least a 1% stake must be reported. This applies to direct ownership and aggregate indirect ownership through other entities at various tiers, and applies to interests other than a security interest.
2Stronger enforcement: The FPAC-BC would have clarified authority to validate AFIDA data, revise and validate information during data collection, enforce compliance with the new 1% reporting rule, and help identify individuals or entities that may incur civil penalties under AFIDA.
3Greater information sharing with CFIUS: The Secretary would enter into MOUs with CFIUS within one year of enactment to share relevant AFIDA reports, including who submitted the report and the submission date, as part of national security-relevant foreign ownership information.
4AFIDA handbook and GAO-aligned updates: The Secretary must update the Farm Service Agency’s AFIDA handbook within one year, incorporating GAO’s 2024 recommendations on foreign investments in U.S. agricultural land and national security risk identification. There would be a mandatory update every 10 years thereafter, incorporating GAO recommendations.
5Streamlined electronic submission analysis (and potential implementation): The bill requires an analysis of establishing a streamlined, electronic submission and retention process for AFIDA disclosures (the “covered process”) and, if not established within one year, a structured plan with implementation benchmarks. A report detailing the analysis and timeline would be submitted to the Senate and House Agriculture Committees.

Impact Areas

Primary group/area affected: Foreign investors and entities with at least 1% ownership in U.S. agricultural land, including indirect ownership across multiple tiers. The change increases the number of holdings and individuals subject to AFIDA reporting and could heighten compliance activity and scrutiny.Secondary group/area affected: U.S. government agencies involved in agriculture, enforcement (FPAC-BC, Farm Service Agency), and national security (CFIUS). The measure enhances interagency coordination, data validation, and potential penalties for noncompliance.Additional impacts:- National security risk assessment: Tighter reporting and enhanced data sharing with CFIUS are aimed at better identifying and mitigating national security risks related to foreign ownership of agricultural land.- Administrative and compliance burden: Foreign owners and reporting entities may face increased reporting requirements and potential penalties for noncompliance; U.S. agencies would incur additional data validation and coordination tasks.- Data modernization: Pursuing a streamlined electronic submission process could modernize how AFIDA disclosures are filed, stored, and accessed, with potential long-term efficiency gains.AFIDA: Agricultural Foreign Investment Disclosure Act of 1978, which requires disclosure of foreign ownership of U.S. agricultural land.FPAC-BC: Farm Production and Conservation Business Center, a USDA unit handling data and enforcement activities related to AFIDA.CFIUS: Committee on Foreign Investment in the United States, the interagency group that reviews foreign investments for national security concerns.GAO: Government Accountability Office, the congressional watchdog whose recommendations inform the handbook updates.Section 773 (Division A, Consolidated Appropriations Act, 2023): Pertains to a streamlined electronic submission process referenced for AFIDA disclosures.

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