Proposed Rule2025-23830
Agricultural Foreign Investment Disclosure Act: Revisions to Reporting Requirements
Primary source
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Published
December 29, 2025
Issuing agencies
Agriculture Department
Abstract
The Agricultural Foreign Investment Disclosure Act of 1978 (AFIDA) implementing regulations establish requirements under which foreign persons must report interests in U.S. agricultural lands to the U.S. Department of Agriculture (USDA). AFIDA regulations describe the type of interest in agricultural land a foreign person must have to trigger the reporting requirement, specific information that must be included in the report, and the mechanics of filing the report with USDA. AFIDA also requires some information about foreign persons who hold an interest in the agricultural land even though they may not own it directly, provided those foreign persons have "significant interest or substantial control" in the direct interest holder. USDA uses information from the filings to produce periodic reports to Congress on the effect that foreign ownership of U.S. agricultural land has on family farms and rural communities, and for other purposes. AFIDA regulations were last updated in 2006. Since that time, national security attention to foreign ownership or substantial control of agricultural land has increased. Committee on Foreign Investment in the United States (CFIUS) agencies, including the U.S. Department of Defense, use USDA information from AFIDA filings to identify and review transactions that may pose national security risks, such as the location of agricultural land near sensitive military bases. Recent analyses, including a report by the Government Accountability Office (GAO), have identified flaws in USDA's processes for collecting, tracking, and sharing AFIDA data. These deficiencies, combined with evolving national security concerns and a Consolidated Appropriations Act, 2023 requirement for USDA to develop a streamlined process for electronic submission and retention of AFIDA disclosures, lead USDA to examine AFIDA regulations and invite public input on changes that would improve information collection activities in a manner responsive to national security and the use of agricultural land.
Full Text
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<title>Federal Register, Volume 90 Issue 245 (Monday, December 29, 2025)</title>
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[Federal Register Volume 90, Number 245 (Monday, December 29, 2025)]
[Proposed Rules]
[Pages 60581-60583]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-23830]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 90, No. 245 / Monday, December 29, 2025 /
Proposed Rules
[[Page 60581]]
DEPARTMENT OF AGRICULTURE
Office of the Secretary
7 CFR Part 781
[Docket No. FSA-2024-0005]
RIN 0560-AI70
Agricultural Foreign Investment Disclosure Act: Revisions to
Reporting Requirements
AGENCY: Office of the Secretary, U.S. Department of Agriculture.
ACTION: Advanced notice of proposed rulemaking.
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SUMMARY: The Agricultural Foreign Investment Disclosure Act of 1978
(AFIDA) implementing regulations establish requirements under which
foreign persons must report interests in U.S. agricultural lands to the
U.S. Department of Agriculture (USDA). AFIDA regulations describe the
type of interest in agricultural land a foreign person must have to
trigger the reporting requirement, specific information that must be
included in the report, and the mechanics of filing the report with
USDA. AFIDA also requires some information about foreign persons who
hold an interest in the agricultural land even though they may not own
it directly, provided those foreign persons have ``significant interest
or substantial control'' in the direct interest holder. USDA uses
information from the filings to produce periodic reports to Congress on
the effect that foreign ownership of U.S. agricultural land has on
family farms and rural communities, and for other purposes. AFIDA
regulations were last updated in 2006. Since that time, national
security attention to foreign ownership or substantial control of
agricultural land has increased. Committee on Foreign Investment in the
United States (CFIUS) agencies, including the U.S. Department of
Defense, use USDA information from AFIDA filings to identify and review
transactions that may pose national security risks, such as the
location of agricultural land near sensitive military bases. Recent
analyses, including a report by the Government Accountability Office
(GAO), have identified flaws in USDA's processes for collecting,
tracking, and sharing AFIDA data. These deficiencies, combined with
evolving national security concerns and a Consolidated Appropriations
Act, 2023 requirement for USDA to develop a streamlined process for
electronic submission and retention of AFIDA disclosures, lead USDA to
examine AFIDA regulations and invite public input on changes that would
improve information collection activities in a manner responsive to
national security and the use of agricultural land.
DATES: Comments must be received by January 28, 2026.
ADDRESSES: USDA invites public comments on this Advance Notice of
Proposed Rulemaking (ANPRM) and encourages stakeholders, including
farmers, industry representatives, CFIUS and national security agencies
and experts, and state and local governments, to provide input.
Comments will be considered in the development of any future regulatory
changes to ensure the regulations effectively address national security
interests and the effects of foreign-owned agricultural land on rural
communities.
You may submit comments, identified by Docket ID: FSA-2024-0005, in
the Federal eRulemaking Portal: <a href="http://www.regulations.gov">http://www.regulations.gov</a>. Follow the
online instructions for submitting comments. All comments will be
posted without change and will be publicly available on
<a href="http://www.regulations.gov">www.regulations.gov</a>.
FOR FURTHER INFORMATION CONTACT: Mary Estep; telephone: (202) 720-3217;
email: <a href="/cdn-cgi/l/email-protection#2845495a51064d5b5c4d58685d5b4c49064f475e"><span class="__cf_email__" data-cfemail="b2dfd3c0cb9cd7c1c6d7c2f2c7c1d6d39cd5ddc4">[email protected]</span></a>. Individuals with disabilities who require
alternative means for communication should contact the USDA Target
Center at (202) 720-2600 (voice and text telephone (TTY mode)) or dial
711 for Telecommunications Relay Service (both voice and text telephone
users can initiate this call from any telephone).
SUPPLEMENTARY INFORMATION:
Need for This Notice
AFIDA requires foreign persons who acquire, transfer, or hold
interests in U.S. agricultural land to report such transactions to the
Secretary of Agriculture. The statute was enacted by Congress in 1978
and directed USDA to analyze information contained in the reports and
determine the effects of reported transactions and holdings,
particularly on family farms and rural communities, and for other
purposes. Foreign holdings of U.S. agricultural land increased by an
average of 0.6 million acres per year from 2013 to 2017 and by an
average of 2.6 million acres per year from 2017 to 2023.\1\ In 2023,
Congress passed a Consolidated Appropriations Act that included a
requirement for USDA to streamline its process for electronic
submission and retention of AFIDA disclosures. This requirement
accelerated USDA's transition from paper AFIDA filings to the
development of an online filing portal with document retention
capability. And in 2024, GAO completed a report to Congressional
Requesters, ``Foreign Investments in U.S. Agricultural Land: Enhancing
Efforts to Collect, Track, and Share Key Information Could Better
Identify National Security Risks.'' GAO found that USDA did not timely
share data collected under AFIDA, and that at least one CFIUS member
agency required AFIDA information more current and specific than USDA's
annual report to Congress. GAO provided six recommendations, including
that USDA improve its verification and monitoring of collected AFIDA
data and that USDA ensure its AFIDA reporting is complete, such as by
incorporating country information from additional foreign persons
beyond the primary investor when available. The increased interest in
national security combined with multiple identified opportunities for
improvement in AFIDA processes have led to this notice.
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\1\ USDA, Farm Service Agency, ``Foreign Holdings of U.S.
Agricultural Land Through December 31, 2023,'' (2023), available at
<a href="https://www.fsa.usda.gov/resources/economic-policy-analysis/afida/annual-reports/foreign-holdings-us-agricultural-land-december-31-2023">https://www.fsa.usda.gov/resources/economic-policy-analysis/afida/annual-reports/foreign-holdings-us-agricultural-land-december-31-2023</a>.
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USDA seeks input on regulatory or other changes that may improve
the efficiency and effectiveness of its AFIDA reporting and filing
requirements. USDA is interested in comments on topics including the
interests in agricultural land covered under AFIDA, identification of
required filers, and the information included on
[[Page 60582]]
the filed report. USDA is receptive to suggested changes that could be
made within the current statutory authority as well as changes that may
require new or revised statutory authority. USDA believes that public
comment can inform the development of any rule that may ultimately be
proposed.
References--the Following References May Be Useful To Help Inform Those
Wishing To Provide Comments
(1) 7 U.S.C. 3501-3508.
(2) 7 CFR part 781.
(3) AFIDA summary information at the USDA Farm Service Agency (FSA)
website, including AFIDA annual reports and form FSA-153. Available at:
<a href="https://www.fsa.usda.gov/resources/economic-policy-analysis/afida">https://www.fsa.usda.gov/resources/economic-policy-analysis/afida</a>.
(4) Government Accountability Office Report, ``Foreign Investments
in U.S. Agricultural Land: Enhancing Efforts to Collect, Track, and
Share Key Information Could Better Identify National Security Risks,''
GAO-24-106337, Published: January 18, 2024. Available at: <a href="https://www.gao.gov/products/gao-24-106337">https://www.gao.gov/products/gao-24-106337</a>.
(5) The Committee on Foreign Investment in the United States
(CFIUS) informational page on the U.S. Department of the Treasury
website. Available at: <a href="https://home.treasury.gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius">https://home.treasury.gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius</a>.
Overview of Key AFIDA Requirements
Three requirement categories define the content and scope of an
AFIDA filing: (1) Identification of foreign persons required to file;
(2) The totality of information the filer is required to provide about
the agricultural land; and (3) Information the filer is required to
provide about other foreign persons with indirect interest in the
agricultural land. Current AFIDA requirements and limitations are
summarized below.
Identification of Foreign Persons Required To File
According to AFIDA regulations in 7 CFR 781.3(b), ``Any foreign
person who held, holds, acquires, or transfers any interest in United
States agricultural land is subject to the requirement of filing a
report on form FSA-153'' within 90 days of acquiring the interest or
becoming a foreign person. Section 781.2 defines key terms.
Broadly, a foreign person is a foreign government, a person
(usually a legal entity) created or organized under the laws of a
foreign government or that has its principal place of business outside
the United States, or an individual who is not a citizen or national of
the United States or its territories. The term also includes a person
(usually a legal entity) created or organized under the laws of any
state in which one of the previously listed categories of ``foreign
person'' holds a significant interest or substantial control. ``Any
interest'' generally means all interests acquired, transferred, or held
in agricultural lands by a foreign person. However, the definition of
``any interest'' specifically excludes security interests, leases of
less than ten years, contingent future interests, noncontingent future
interests that do not become possessory upon the termination of the
present possessory estate, surface or subsurface easements and rights-
of-way used for a purpose unrelated to agricultural production, and an
interest solely in mineral rights.
Agricultural land is defined in section 781.2(b) as ``land in the
United States used for forestry production and land in the United
States currently used for, or, if currently idle, land last used within
the past five years, for farming, ranching, or timber production,
except land not exceeding ten acres in the aggregate, if the annual
gross receipts from the sale of the farm, ranch, or timber products
produced thereon do not exceed $1,000. Farming, ranching, or timber
production includes, but is not limited to, activities set forth in the
Standard Industrial Classification Manual (1987), Division A, exclusive
of industry numbers 0711-0783, 0851, and 0912-0919 which cover animal
trapping, game management, hunting carried on as a business enterprise,
trapping carried on as a business enterprise, and wildlife management.
Land used for forestry production means, land exceeding 10 acres in
which 10 percent is stocked by trees of any size, including land that
formerly had such tree cover and that will be naturally or artificially
regenerated.''
Information the Filer Is Required To Provide About the Agricultural
Land
Section 781.3 describes the required content of an AFIDA report
using the form FSA-153. While the current regulations require filings
in the FSA county office local to the agricultural land, USDA is in the
process of implementing an electronic filing process (``on-line filing
portal'') as required by the Consolidated Appropriations Act of 2023. A
foreign person required to submit a report must file a FSA-153 form
report containing a list of items in section 781.3(e), including but
not limited to legal name and address; citizenship, if an individual;
type of interest in the land; the nature of the interest, name of the
interest holder, country of creation or organization, and principal
place of business if the foreign person is not a government or
individual; a legal description of the agricultural land; the intended
agricultural purpose of the land; the name, address, and relationship
of any representative completing the FSA-153 form for the filer; how
the tract of land was acquired or transferred and the relationship of
the foreign person to the previous owner; and the date the interest in
the land was acquired or transferred.
Information the Filer Is Required To Provide About Other Foreign
Persons With Indirect Interest in the Agricultural Land
Section 781.3(f)(1) requires reporting by the filer on foreign
persons who have a ``significant interest or substantial control'' in
the filer. Any required filer, other than an individual or government,
must also submit a report containing the legal name and the address of
each foreign individual or government holding significant interest or
substantial control in the filer. If the person holding significant
interest or substantial control is an individual, the filer must also
provide that individual's citizenship. And, if the person holding
significant interest or substantial control is a foreign person who is
not also an individual or government, the filer must provide that
foreign person's name and nature of the interest held, the country in
which the holder is created or organized, and the holder's principal
place of business.
``Significant interest or substantial control'' is defined in
section 781.2(k) as (1) an interest of 10 percent or more held by
foreign person, by a single foreign individual, by a single foreign
business, or by a single foreign government; (2) an interest of 10
percent or more held by a domestic entity in which a foreign person
holds significant interest or substantial control, by foreign
individuals, foreign entities, or by foreign governments, whenever such
persons, individuals, or governments are acting in concert with respect
to such interest even though no single individual, person, or
government holds an interest of 10 percent or more; or (3) an interest
of 50 percent or more, in the aggregate, held by a domestic entity in
which a foreign person holds significant interest or substantial
control, by foreign individuals, foreign entities, or by foreign
governments, even though such individuals, persons, or governments may
not be acting in concert.
Any person named in a report filed under section 781.3(f) may then
be required, upon request, to submit additional reporting on additional
[[Page 60583]]
interest holders. In short, the AFIDA regulation requires reporting by
the foreign person who is the direct owner or lessee of the land and
any foreign person who may be one or two tiers or levels above the
direct owner or lessee in a chain of ownership or corporate
relationship.
Discussion and Identification of Topics for Comment
USDA is aware of requirement gaps in the current AFIDA regulations
and is considering how it may address those gaps in a manner that
balances national security interests with other interests in U.S.
agricultural land. Specifically, USDA notes multiple exclusions in the
definitions of ``agricultural land'' and ``any interest'' that may
remove particular interests (for example, leases less than 10 years)
from reporting requirements. Filers are only required to identify their
land interest through a legal description and identification of
acreage. In some instances, legal descriptions may be narratives
referencing landmarks or natural features of the land with limited
utility to those not actually present on the land. USDA does not
receive or have sufficiently detailed information to create a
geospatial map with property boundaries.
While AFIDA does require a report on foreign persons who hold
``significant interest or substantial interest'' over direct interest
holders, the definition of ``significant interest or substantial
interest'' is challenging to understand and apply, sets a high
threshold (10 and 50 percent), and treats countries with longstanding
ties to the United States the same as countries designated as foreign
adversaries by the Secretary of Commerce in 15 CFR 791.4(a).
Furthermore, existing regulations only require filing by the foreign
person who is the direct owner or lessee of the land and any foreign
person who may be one or two tiers or levels above the direct owner or
lessee in a chain of ownership or corporate relationship. USDA may
affirmatively seek additional information from other interest holders
named in reports, but it does not have the authority to request any
additional detailed corporate structures or ownership information.
Specifically, USDA lacks a mechanism to require additional detailed
information about foreign interests throughout an ownership chain or in
a complex corporate structure with multiple holding companies. USDA's
information deficit extends to the identity, country, and ownership
interest of the ultimate foreign owner if that person is more than two
or possibly three steps removed from the direct interest holder.
USDA's policy goal is to obtain valuable, comprehensive, and
verifiable information about interests in U.S. agricultural land held
by foreign persons. USDA is further interested in streamlining and
strengthening AFIDA regulations to improve process efficiency, address
national security interests, and provide timely, accurate, and detailed
data for CFIUS agencies' use.
The following topics represent particular areas in which USDA is
interested in receiving comments. However, USDA also invites commenters
to address additional issues involving AFIDA, particularly as they
relate to national security interests. Commenters are encouraged to be
as specific as possible. Please include the rationale underlying any
suggested changes.
<bullet> Topic 1: Identification of foreign persons who are
required to file reports using the FSA-153 form. Questions to consider
when responding to this topic include the following:
[cir] The definitions of ``agricultural land,'' ``any interest,''
and ``foreign person'' determine the universe of required filers. Are
the definitions currently sufficient or are changes recommended?
[cir] Should USDA continue to treat foreign persons from countries
designated as foreign adversaries the same as all other foreign persons
with respect to the interest in agricultural land that triggers the
filing requirement, or should different standards apply to foreign
persons from countries designated as foreign adversaries?
<bullet> Topic 2: Information the filer is required to provide
about the agricultural land. Questions to consider when responding to
this topic include the following:
[cir] Should filers be required to provide any additional
information or documentation than the list of items in section
781.3(e)? If so, what additional information should USDA require and
why?
[cir] How can USDA best obtain a correct, verifiable description or
geospatial map of the agricultural land that is broadly usable by a
range of audiences?
<bullet> Topic 3: Information the filer is required to provide
about other foreign persons with indirect interest in the agricultural
land. Questions to consider when responding to this topic include the
following:
[cir] What information should USDA require about interest holders
who are multiple steps removed from the direct interest holder or part
of complex organizational structures?
[cir] How can USDA best ensure that the information it receives is
complete and verifiable?
Brooke Rollins,
Secretary of Agriculture.
[FR Doc. 2025-23830 Filed 12-23-25; 8:45 am]
BILLING CODE 3411-E2-P
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