Farmland for Farmers Act

Summary#

This bill would generally ban most legal entities that are not owned and controlled by individual farmers from acquiring or holding agricultural land. It defines "authorized legal entity" as an entity with no more than 25 natural-person owners who are each actively engaged in farming. The bill lists many definitions (for example, agricultural land, authorized farmer or rancher cooperative, multilayer subsidiary entity) and several exceptions, including land held by municipalities, certain nonprofits, institutions of higher education for research, fiduciaries, land acquired by law with a required 5-year disposal, and land owned by an entity on the date of enactment.

The bill requires legal entities that acquire agricultural land after enactment to submit affidavits to the Secretary of Agriculture certifying compliance, and requires annual affidavits with federal tax returns. Entities seeking USDA or Farm Credit System programs must document compliance. The Secretary reports suspected violations to the Attorney General. The Attorney General may seek court orders requiring divestiture; courts would file notices with local recorders. Civil penalties up to twice the fair market value are possible, and knowing violations by individuals associated with unauthorized entities can carry criminal penalties (up to 5 years imprisonment). States may adopt rules at least as restrictive as this law.

What it means for you#

  • If you are an individual farmer who is actively engaged in farming, you may own agricultural land directly or through an authorized legal entity limited to 25 natural-person owners who are actively engaged in farming.
  • If you are part of a farmer- or rancher-controlled cooperative that meets the bill's rules, that cooperative may acquire and hold land.
  • If you are a corporate investor, pension or investment fund, or other unauthorized legal entity, you would not be able to acquire or hold an ownership interest in agricultural land after enactment except under narrow exceptions listed in the bill.
  • Entities that buy land for specified research, public seed testing, municipal use, or that held land on the date of enactment are treated as exceptions under defined conditions.
  • Legal entities that acquire agricultural land must file affidavits with the Secretary and with tax returns; documentation is required for USDA and Farm Credit System program eligibility.

Expenses#

No publicly available information on federal cost estimates or budgetary effects is included in the bill text or provided metadata.

Proponents' View#

The bill's findings state supporters are concerned that rising institutional and corporate ownership of farmland harms the family farm system and local communities. The bill frames agricultural land as a critical, limited resource and a source of generational wealth. It notes institutional ownership of farmland has grown substantially and that higher farmland prices can advantage well-capitalized corporate interests over independent family farmers. The bill presents restricting corporate ownership as necessary to protect family farms, local benefits of land use, land conservation, and national interest in regulating ownership.

Opponents' View#

No publicly available information on opponents' views or arguments is included in the bill text or provided metadata.