H.R. 4362: AFIDA Improvements Act of 2025

This bill, known as the AFIDA Improvements Act of 2025, aims to amend the Agricultural Foreign Investment Disclosure Act of 1978 (AFIDA) to enhance the reporting requirements for foreign ownership of U.S. agricultural land and improve enforcement mechanisms. Below are the key provisions of the bill:

New Reporting Requirements

The bill establishes a new reporting requirement that affects foreign persons who acquire or transfer interests in agricultural land. Specifically:

• Any foreign individual or entity that holds at least a 1 percent interest in agricultural land will need to comply with disclosure requirements.
• This applies to each foreign person involved, regardless of whether they hold the interest directly or through multiple layers of ownership.

Enhanced Enforcement

To improve compliance and enforcement of these reporting obligations, the bill introduces the following measures:

• The Secretary of Agriculture will take necessary actions to validate the reports collected, ensuring accuracy and accountability in the data related to foreign investments.
• Coordination with the Farm Service Agency is emphasized to help identify individuals or entities that may violate reporting requirements.

Collaboration with CFIUS

The Secretary of Agriculture is required to establish a memorandum of understanding (MOU) with the Committee on Foreign Investment in the United States (CFIUS). This will facilitate:

• The sharing of relevant information on foreign ownership reports concerning agricultural land.
• Detailed identification of report submitters and the dates of submission.

Updates to Guidance Documents

The bill mandates the Secretary to update the existing Farm Service Agency handbook on foreign investment disclosure within a year of the law's enactment. This includes:

• Incorporating recommendations from a recent Government Accountability Office report regarding the identification of national security risks associated with foreign agricultural investments.
• Future updates to the handbook are required every ten years thereafter to ensure it remains relevant and effective.

Streamlined Processes for Electronic Reporting

The bill calls for an analysis of a streamlined electronic process for the submission and retention of reports. Key points include:

• If this electronic process is not established within one year of enactment, the Farm Production and Conservation Business Center (FPAC-BC) must analyze the steps required to create such a process.
• A timeline for implementing this process should be developed and reported to congressional agriculture committees.

Definitions

The bill specifies key terms to clarify its provisions:

• AFIDA: Refers to the Agricultural Foreign Investment Disclosure Act of 1978.
• FPAC-BC: Stands for the Farm Production and Conservation Business Center.
• Secretary: The Secretary of Agriculture is the primary official responsible for enforcement and implementation of the Act.

Relevant Companies