Millions of acres of farmland across the U.S. are privately owned, but a portion of that land is owned by foreign entities and is often left unused.
Recent data from the USDA highlights this issue, showing a significant profit margin associated with foreign ownership of farmland.
According to the USDA’s online dashboard, over 45 million acres in the U.S. belong to foreign countries, with total acquisitions amounting to more than $38 billion. Canada tops the list, owning 15.35 million acres of agricultural land in the U.S.
John Hewlett, an economic management specialist at the University of Wyoming, points out that many might not be aware of these ownership details.
“It surprises people to learn that Canada is the largest foreign landholder in the U.S., owning about a third of all foreign-owned land,” he mentioned. “The Netherlands and Italy come next, and since they’re longstanding allies, concerns about their land ownership are minimal.”
The Netherlands possesses around 5.2 million acres, while Italy holds over 2.7 million acres of farmland.
Hewlett suggests that the implications of foreign ownership depend on the country in question and what their intentions are.
He categorizes concerns into three areas:
- National security: This relates mainly to land near military sites, which worries some lawmakers due to potential risks of surveillance and espionage.
- Economic impact on local farmers: Foreign investors generally have deeper pockets than local family farmers, leading to increased land prices, which complicates access for new American farmers.
- Food sovereignty concerns: There’s a fear that if major sections of the food supply are controlled by foreign adversaries, it may impair the U.S.’s food independence, especially in crises.
Local Perspectives
In Wyoming, for example, more than 260,000 acres of farmland are owned by foreign investors, a small amount compared to other regions.
The states with the largest foreign farmland holdings are Texas (5.8 million acres), Maine (3.5 million acres), Colorado (2.5 million acres), Alabama (2.2 million acres), Oklahoma (1.8 million acres), and Washington (1.8 million acres).
Maine is often less concerned about losing green areas to development, owning around 3.5 million acres of foreign land.
“However, this might be misleading,” notes real estate broker Michelangelo Floridino, who explains that in Maine, what qualifies as agricultural land frequently consists of working forests, like woodlands.
He provides insights into Maine’s diverse landscape and its proximity to Canada.
“Depending on how far north you go, you might find areas without electricity or paved roads,” he shared, suggesting there’s minimal risk of foreign investors transforming agricultural lands into housing.
Floridino insists, “You can’t really build homes in some of these areas.”
Interestingly, he observes a shift in interest, stating that fewer Canadians are seeking property in Maine, while more people are coming from places like Massachusetts and even as far as Oklahoma.
