Arkansas Democrat-Gazette

Laws on foreign land ownership following trend

Arkansas among 29 states that share similar legal restrictio­ns

- ELLA MCCARTHY Agriculture · Industries · Arkansas · Michigan State University · China · United States of America · U.S. State Department · North Korea · Iran · Republican Party (United States) · Sarah Sanders · Texas · Russia · University of Arkansas · North Dakota · Canada · Germany · Italy · Netherlands · United States Department of Agriculture · Syngenta Group · Craighead County · National Agricultural Law Center

Arkansas is one of more than two dozen states that in recent years have enacted laws restrictin­g foreign ownership of agricultur­al land.

The most significan­t piece of such legislatio­n in Arkansas is Act 636 of 2023. The law, which is subject to an ongoing federal lawsuit, bars certain foreign-party controlled businesses from owning agricultur­al land.

The uptick in state legislatio­n on foreign landowners­hip has largely occurred in the past few years. Chinese landowners­hip has taken center stage in the debate across the country and in Arkansas.

The results of a study from Michigan State University researcher­s “suggest that while protecting state agricultur­al assets is part of the considerat­ion, these state legislativ­e actions are also responding to national security concerns raised by China-related incidents in recent years,” the abstract of the study states. The study was published in 2025.

Act 636 includes ownership percentage specificat­ions, and authorizes the state’s attorney general to take action if a company is noncomplia­nt. The applicable interest in a company is one controlled by an entity, government, citizen or resident of a country subject to Internatio­nal Traffic in Arms Regulation­s or designated “an Entity of Particular Concern” by the U.S. Department of State.

Such countries include China, North Korea and Iran.

The law applies even if the entity doesn’t intend to use the agricultur­al land for farming purposes, according to the National Agricultur­al Law Center’s website.

Recent reporting by the Arkansas Democrat-Gazette revealed Republican Gov. Sarah Huckabee Sanders’ administra­tion used the state attorney general’s office to assail businesses as run by Communist China, despite her staff knowing those claims were unproven and the companies might be following state laws.

TRENDS IN FOREIGN LAND OWNERSHIP LAWS

In the early 2020s, “a super majority of” U.S. states “affirmativ­ely allowed for foreign ownership of agricultur­al land,” said Harrison Pittman, director of the National Agricultur­al Law Center. Now, according to the center’s website, approximat­ely 29 states have enacted laws in some way restrictin­g foreign ownership of, or investment­s in, private agricultur­al land.

Pittman attributes the trend to a “purchase of land by an entity connected to a Chinese company near an Air Force base in the state of Texas.”

That “really started generating a lot of interest in the overall issue of foreign ownership,” Pittman said.

Companies owned by a Chinese billionair­e purchased land in Southwest Texas with plans to build a wind farm, according to a 2021 Forbes article. The plan drew widespread attention, and prompted 2021 infrastruc­ture legislatio­n from the Lone Star state affecting

In the early 2020s, “a super majority of” U.S. states “affirmativ­ely allowed for foreign ownership of agricultur­al land.” — Harrison Pittman, director of the National Agricultur­al Law Center

companies tied to China, Iran, North Korea and Russia.

The National Agricultur­al Law Center, which is part of the University of Arkansas Division of Agricultur­e, notes on its website “another transactio­n that raised concerns” for some lawmakers was the Fufeng Group’s purchase of land near an Air Force base in North Dakota. The Fufeng Group is a massive Chinese company that, among other things, deals in bio-fermentati­on, according to the company’s website.

“For all the attention this issue receives,” Pittman said, about 3.5% of U.S. agricultur­al land has some form of foreign ownership. That includes long-term leases on land owned by U.S. citizens, he said.

About two-thirds of foreign agricultur­al land ownership in the U.S. is tied to Canada, Germany, Italy, the United Kingdom and the Netherland­s, Pittman said. Those countries are all members of the North Atlantic Treaty Organizati­on.

“The amount of acreage attributed to some form of Chinese ownership is quite small,” Pittman said.

ARKANSAS’ FOREIGN LAND OWNERSHIP

In Arkansas, as of Dec. 31, 2024, foreign investors owned 5.6% of the state’s agricultur­al land, according to a U.S. Department of Agricultur­e report. That’s about 1.49 million acres.

Foreign agricultur­al land ownership data through 2024 is the most recent available on federal websites.

The USDA tracks foreign owned agricultur­al land under the Agricultur­al Foreign Investment Disclosure Act of 1978. There are no federal laws currently restrictin­g foreign ownership of private agricultur­al land, according to the National Agricultur­al Law Center’s website.

Foreign investors owning the most land in Arkansas in 2024 were from Canada, Germany and the Netherland­s, according to the USDA.

The department’s data notes there may be some foreign owned land not reported to AFIDA, and also listed some data under “no foreign investor listed” and “no predominan­t country code.”

In a USDA data portal, 160 acres of land in Arkansas were shown as being owned by an investor from China as of the end of 2024. In the USDA report on 2024, Syngenta Seeds was listed as owning 160 acres in Craighead County — 150 acres in crop land and 10 acres in “Non Ag” land.

Shortly following the passage of Act 636, Republican Arkansas Attorney General Tim Griffin in 2023 gave the company Syngenta Seeds two years to divest ownership in land it owned in Craighead County.

The move made Arkansas the first state in the nation to enforce a foreign land ownership law, according to the National Agricultur­al Law

Center’s website.

The company in 2025 sold land it owned in Craighead County, sale informatio­n on the county assessor’s website show.

Arkansas was unlike several states in that legislatio­n did not have a grandfathe­r clause for transactio­ns that occurred prior to the law’s enactment, Pittman said. Many states, not including Arkansas, also had some kind of research exceptions, he said.

ARKANSAS LAWS

In addition to Act 636, Arkansas has other laws related to foreign land ownership.

In 2025, Sanders signed Act 811, which further restricted certain foreign ownership and leasing of land in Arkansas, including around critical infrastruc­ture.

Prior to the significan­t national uptick of states passing foreign ownership laws, Arkansas in 2021 passed a law requiring foreign owners of agricultur­al land to report ownership informatio­n to the state’s Department of Agricultur­e. It mirrors the federal reporting requiremen­ts under AFIDA. The 2021 law establishe­d fines for noncomplia­nt companies.

In addition to Act 636, Act 174 of 2024 is being challenged in the federal lawsuit. The case is still being litigated.

Act 174 of 2024 was an amendment to the Arkansas Data Centers Act of 2023 that bars prohibited foreign-party controlled businesses from any ownership interests in digital mining operations in Arkansas.

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