Yesterday, Governor Kim Reynolds signed SF 2204 into law, a bill for an act relating to interests in agricultural land acquired or held by foreign businesses, foreign governments, or nonresident aliens, or by agents, trustees, or fiduciaries thereof, by providing for registration and reporting requirements, providing for enforcement, and providing penalties.
“Iowa’s laws on foreign ownership of land have long been recognized as some of the strongest in the nation, with other states looking to us when crafting their own policies. Yet, in the decades since we first addressed this issue, adversaries like China have grown significantly more aggressive on the world stage, constantly looking for any opening to assert themselves at the expense of our country. One all-too-common weapon in this battle is the purchase of American farmland.
The bill will grant the state attorney general, Brenna Bird, more power to oversee foreign land ownership. Bird may subpoena foreign landowners’ financial records and land purchase agreements to investigate violations of the foreign land ownership restrictions.
The new law also raises fines for reporting violations by up to $10,000 per violation for foreign landowners. Failure to disclose leases or purchases of land by foreign entities will also result in a 25 percent fine based on total property value per violation.
Iowa’s existing law limits foreign land purchases to 320 acres, with those purchased before 1980 to retain ownership.
“Our state’s fertile soil and unmatched production capacity make us a natural target for this strategy. Our farm families produce 10 percent of the nation’s food supply and Iowa ranks as America’s top producer of biofuels. That makes us a natural leader in the race to stave off the evolving threat to American agriculture. When Iowa speaks, the country listens. And with this bill our message is unmistakable: American soil belongs in American hands.”
According to the U.S. Department of Agriculture, 514,000 acres of Iowa farmland are held by foreign investors. This land accounts for 1.6 percent of the state’s privately held agricultural lands. Currently, the largest owners of foreign land in Iowa are Canada (200,000 acres) and Italy (104,000 acres). Syngenta Seeds is the only Chinese government-affiliated business that owned Iowa land as of 2022, with 265 acres in Boone County.
