Governor Kim Reynolds has signed a bill into law that gives Iowa’s attorney general subpoena power to investigate agland purchases and ensure foreigners and foreign governments are not investing in Iowa farmland.
“Important legislation to secure Iowa farmland from adversaries of the United States,” Reynolds said this morning.
For decades it has been illegal for a foreign citizen for own more than 320 acres of Iowa farm ground, but Reynolds says foreigners could be using a loophole by investing in limited liability companies that buy agland. The new law requires agland purchase reports filed with the state to include more information about ownership structures.
“When Iowa speaks, the country listens and with this bill our message is unmistakable: American soil belongs in American hands,” Reynolds said.
Under current law, foreign entities caught owning more than 320 acres of Iowa farmland can be fined $2000. The new law raises that fine to 2$% of the assessed value of the land.
“Together, these policies ensure that Iowa can continue to deter hostile nations from attempting to undermine or co-opt the agricultural dominance that Iowa farm families have worked so
hard to build,” Reynolds said.
A huge crowd of legislators and ag group leaders gathered in the Iowa Capitol rotunda for today’s bill signing ceremony. Iowa Attorney General Brenna Bird said Iowa has had a good law since 1979 to ban foreign ownership of large tracts of Iowa farmland and this update makes it better.
“We know how important it is to protect our farm ground here in Iowa and I really appreciate the governor and the legislature for giving our office the tools that we need to get to the bottom of a situation if we think a foreign government might own some farm ground,” Bird said. “Call our office. We’ll investigate it and we appreciate the tools that we need to make sure that everybody is following the law.”
Iowa Agriculture Secretary Mike Naig said it’s landmark legislation to keep farm ground in the hands of Iowans. “With strengthened enforcement, deterrence and disclosure tools being implemented with this legislation, Iowa’s prohibition on foreign ownership of farm ground will continue to be the gold standard for this type of legislation in other states,” Naig said.
National estimates indicate foreigners own millions of acres of farmland, roughly equal to the size of Ohio.