U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Agriculture Committee, recently cosponsored bicameral, bipartisan legislation to protect America’s agricultural industry from improper foreign investment.
The Foreign Adversary Risk Management (FARM) Act would bolster the U.S. agriculture industry’s role on the Committee on Foreign Investment in the United States (CFIUS), the governmental body that oversees the vetting process for foreign investment and acquisition of American companies. U.S. Senator Tommy Tuberville (R-Ala.) led the introduction of the bill in the Senate. U.S. Representative Ronny Jackson (R-Texas) introduced companion legislation in the House.
“Nebraskans are rightfully concerned about the growing effort by foreign countries – including China – to buy up more and more U.S. farmland. The FARM Act would protect America’s national security and food security by ensuring that any foreign investments in the agricultural sector are thoroughly vetted,” said Senator Fischer.
In addition to Sens. Fischer and Tuberville, the legislation was cosponsored by U.S. Senators Mike Braun (R-Ind.), Kevin Cramer (R-N.D.), Roger Marshall (R-Kan.), Cynthia Lummis (R-Wyo.), Rick Scott (R-Fla.), John Hoeven (R-N.D.), Marsha Blackburn (R-Tenn.), Katie Boyd Britt (R-Ala.), and Steve Daines (R-Mont.).
BACKGROUND:
Over the past few years, the United States has experienced a rapid increase in foreign investment in the agricultural sector, particularly from China. Growing foreign investment in agriculture and other essential industries, like health care and energy, threaten our country’s national security. Our agricultural sector needs increased oversight and transparency to secure our country’s food supply.
The Foreign Adversary Risk Management (FARM) Act is a bipartisan, bicameral bill that would ensure the Committee on Foreign Investment in the United States (CFIUS) acknowledges the importance of our agricultural industry and agricultural supply chains for our nation’s safe and secure food supply.
CFIUS is authorized to oversee and review foreign investment and ownership in domestic businesses as it relates to national security. Currently, the Committee does not directly consider the needs of the agriculture industry when reviewing foreign investment and ownership in domestic businesses.
Specifically, the FARM Act would:
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Add the Secretary of Agriculture as a member to CFIUS;
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Add language to protect the U.S. agriculture industry from foreign control through transactions, mergers, acquisitions, or agreements; designate agricultural supply chains as critical infrastructure and critical technologies;
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Require a report to Congress on current and potential foreign investments in the U.S. agricultural industry from the United States Department of Agriculture (USDA) and Government Accountability Office (GAO).
The American agricultural industry has changed significantly over time due to rising foreign investment and consolidation in the industry. The federal government must shed light on global corporations becoming more involved with our domestic food supply and agricultural businesses.