USDA Proposes Major Revisions to Foreign Agricultural Land Ownership Reporting Amid National Security Concerns

The U.S. Department of Agriculture (USDA) is moving to significantly strengthen its oversight of foreign ownership in American agricultural land, announcing a comprehensive revision to the reporting requirements under the Agricultural Foreign Investment Disclosure Act of 1978 (AFIDA). This initiative, detailed in a recent Federal Register notice (Volume 91, Number 208, October 29, 2026), comes in direct response to heightened national security concerns, deficiencies identified by the Government Accountability Office (GAO), and a congressional mandate for improved electronic data collection. The proposed changes to the AFIDA Report (Form FSA-153) aim to provide federal agencies with a far more detailed and accurate picture of foreign investments, particularly those that could pose national security risks.

Background and Rationale for Reform

The Agricultural Foreign Investment Disclosure Act of 1978 was enacted to establish a system for collecting data on foreign investment in U.S. agricultural land. For decades, foreign persons acquiring, transferring, or holding interests in such land have been required to report these transactions to the Secretary of Agriculture. This information is then used to prepare annual reports to Congress and is made available to states and the public. However, in recent years, the landscape of national security considerations has shifted, bringing foreign ownership of land, especially near sensitive military installations, into sharper focus. Agencies such as the Committee on Foreign Investment in the United States (CFIUS) increasingly rely on AFIDA data to identify and evaluate potential national security risks. A Government Accountability Office report highlighted critical flaws in USDA's existing processes for collecting, tracking, and sharing this vital data. Furthermore, the Consolidated Appropriations Act, 2023, specifically directed the USDA to develop a streamlined electronic submission and retention process for AFIDA disclosures. These factors collectively spurred the USDA's Office of Homeland Security, now responsible for AFIDA oversight, to modernize the regulations and the reporting form.

Expanded Scope of Reporting

One of the most significant changes proposed by the USDA involves a substantial expansion of who must report and what constitutes reportable activity. The revised FSA-153 form will require filings from all beneficial owners, irrespective of their nominal share or interest. U.S. businesses with as little as 10 percent foreign interest will now be required to report, even if the foreign persons do not act in concert. Crucially, the definition of reportable interest now includes foreign persons holding a lease or easement of one year or more, and, alarmingly, any foreign adversary or entity controlled by a foreign adversary holding a lease or easement of any duration. The definition of 'agricultural land' itself is broadening to encompass various agricultural industries, as defined by NAICS codes, and land in conservation that retains potential for farming, ranching, forestry, or timber production. The form's 'Reportable Activity' section (Item 1) is being updated to reflect these new categories, streamlining the reporting process by tailoring subsequent questions based on the selected activity.

Enhanced Transparency in Ownership and Identity

To address opacity in ownership structures, the USDA is mandating significantly more detailed information about the reporting entities and individuals. Under the revised 'Person Information' (Item 2), all owners will be required to provide a Tax ID Type and Number, which can include Employee Identification Numbers, Social Security Numbers, Individual Taxpayer Identification Numbers, Foreign Tax Identification Numbers, or Foreign Passport Numbers. Phone numbers and email addresses will also be compulsory. Perhaps the most impactful new requirement is the submission of a full ownership diagram. This diagram must illustrate the connections between all interest holders in a standardized manner, moving beyond the previous, often insufficient, requirement to only detail ownership up to the third tier. This change is designed to eliminate ambiguity about ultimate foreign ownership and identify all associated foreign countries, critical for accurate congressional reports and national security assessments.

Precise Geographic and Land Use Data

A major upgrade to the reporting process involves the collection of precise geographic and land use data. Item 3, 'Land Location and Description,' will now require filers to use an integrated Geographic Information System (GIS) platform within the electronic form. Filers will draw a polygon on a map to depict their holding's exact geographic position and delineate current land uses by area within that polygon. This move aims to overcome the limitations of incomplete or outdated legal descriptions, which have historically hindered the USDA's ability to accurately locate land and assess national security risks. Additionally, the form will capture more granular details on current and intended land use (Items 4 and 5), allowing filers to search for specific agricultural industries using NAICS codes, declare 'Mixed Use' land, and categorize acreage as residential, idle, unknown, or other. This will provide a clearer picture of how foreign-held land is being utilized and what future plans entail.

Administrative and Regulatory Context

These revisions are part of a broader administrative restructuring within the USDA. Oversight of AFIDA authorities was recently delegated from the Farm Service Agency (FSA) to the Assistant Secretary for Administration, with further subdelegation to the Office of Homeland Security. This organizational shift underscores the heightened importance placed on foreign investment scrutiny. The last substantial update to AFIDA regulations occurred in 2006, highlighting the considerable period of time that has passed before these critical modernizations were initiated. The USDA invites public comments on these proposed changes until December 28, 2026, seeking input on how these modernized activities can best improve information collection in response to national security needs.