Introduction: A New Legislative Push

Through an expedited process, the House of Representatives has just passed a bill aimed at making the purchase of U.S. farmland by foreign buyers more difficult than under current law. The proposed legislation is intended to address the international threat posed by Beijing, which has made several farmland purchases in the United States over the past decade. Currently, Canada is the largest foreign owner of U.S. farmland, accounting for 32% of land under foreign ownership. In contrast, Chinese ownership accounts for less than 1%—approximately 349,442 acres across the country.

Republican Congressman Frank Lucas, the proponent of the legislation, proposed adding the Secretary of Agriculture to the Committee on Foreign Investment in the United States (CFIUS). This measure would enhance due diligence when it comes to purchasing land in the United States and would require the USDA to report any land purchases by countries designated as foreign adversaries to the CFIUS.

Beijing’s Land Purchases and Military Proximity Concerns

The pressure to specifically target Beijing stems from the 2022 purchase of 370 acres near Grand Forks Air Force Base in North Dakota by the Fufeng Group, a Chinese company. Other parcels of land owned by Chinese companies in the Midwest are also located near U.S. military bases, raising additional security concerns.

One such concern involves allegations that Huawei technology was placed on Chinese-owned land, with claims from Washington that the equipment could potentially disrupt signals coming to nearby air bases. While it has not been proven that this technology was used for surveillance or interference, Grand Forks Air Force Base holds critical information related to U.S. drone capabilities, heightening the sensitivity of the issue.

Although there has been speculation about China’s intentions, since 2021, the total amount of U.S. farmland owned by Chinese entities has actually decreased by just under 9%, undermining claims that China is increasingly acquiring American agricultural land.

China’s campaign to purchase land in the U.S. began in earnest in 2015, when the Chinese real estate firm China Oceanwide acquired a significant amount of land on the island of Oahu, Hawaii—just ten miles from the operational naval base at Pearl Harbor. The justification often provided by Chinese firms is that the land will be used for renewable or nuclear energy projects.

Long-Term Strategic Energy Goals

Beijing’s long-term strategic planning focuses on transitioning away from fossil fuels in favor of renewable energy sources. Part of this strategy may involve establishing renewable energy infrastructure on U.S. soil now, with the goal of selling energy to American consumers in the future. As solar and wind technologies become more efficient and cost-effective, early investments in land for these projects could yield substantial profits down the line. Much of this strategy depends on securing open land for solar panels and wind turbines.

Conclusion: A Strategic Decision for Washington

If China does intend to pursue this long-term strategy, then passing this bill through the Senate and having it signed by the president would serve American interests. It would be prudent for Washington to secure ownership of such land and lease it to private energy companies in the future. This approach would reduce government intervention in the energy sector while promoting fair opportunities for domestic renewable energy firms to thrive without undue foreign influence.