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August 14, 2024 - WASHINGTON – Senate Agriculture Committee members Chuck Grassley (R-Iowa), John Fetterman (D-Pa.) and Joni Ernst (R-Iowa) are urging the U.S. Department of Agriculture (USDA) to improve its process for the electronic submission and retention of foreign-owned farmland disclosures. The letter follows alleged inaccuracies posted online by the Farm Service Agency, pursuant to the Agricultural Foreign Investment Disclosure Act (AFIDA).
“The current practice of manual data entry, including the re-typing of paper-filed reports into FSA systems, can lead to the publication of problematic and inaccurate information,” the senators wrote to USDA Secretary Tom Vilsack. “We’re told there have been instances where energy developers have been incorrectly identified as having ownership interests from sanctioned nations, when in reality the investment originates from U.S. allies. If true, such errors not only create confusion but also undermine the credibility of the data published by the FSA.
“We believe it is essential for the USDA to ensure that the information published on its website is accurate and reliable,” the senators continued. “Inaccurate information can have significant implications for various stakeholders and erodes public trust in the integrity of the reporting process.”
Additional cosigners of the letter include Senate Agriculture Chairwoman Debbie Stabenow (D-Mich.), as well as Sens. Tammy Baldwin (D-Wis.), John Barrasso (R-Wyo.), Mike Braun (R-Ind.), Sherrod Brown (D-Ohio), Tom Cotton (R-Ark.), Mike Crapo (R-Idaho), Deb Fischer (R-Neb.), Pete Ricketts (R-Neb.), Jim Risch (R-Idaho) and Mike Rounds (R-S.D.).
Read the full letter HERE.
Background:
AFIDA, which Grassley cosponsored as a member of the House of Representatives, requires foreigners who acquire, dispose of or hold interest in U.S. farmland to disclose their transactions and holdings. Since becoming law in 1978, AFIDA disclosures have been completed using paper and pen, increasing the likelihood of human error. As part of Fiscal Year 2024 (FY24) funding, Congress streamlined the process for AFIDA disclosures by creating an internet database for investors to submit their disclosures electronically. However, USDA has yet to fully address prior errors resulting from handwritten disclosures.
Grassley is pushing back against foreign ownership of U.S. farmland. Earlier this Congress, he introduced the bipartisan Farmland Security Act to require all foreign investors, including shell companies, to report their holdings in U.S. farmland, while strengthening penalties for those who evade filing. Grassley also introduced legislation to grant top U.S. agriculture and food officials a permanent seat at the table when reviewing transactions that could result in foreign ownership of U.S. farmland. A similar measure to enhance USDA’s role on the Committee on Foreign Investment in the United States was included in the Grassley-backed FY24 funding package.
Source: Senator Chuck Grassley