H.R. 5760: Promoting Agriculture Safeguards and Security Act of 2025

This bill, titled the "Promoting Agriculture Safeguards and Security Act of 2025" (or "PASS Act of 2025"), proposes several amendments to the Defense Production Act of 1950, specifically concerning oversight of agricultural transactions involving foreign investments.

Key Provisions

• Inclusion of the Secretary of Agriculture: The bill adds the Secretary of Agriculture to the Committee on Foreign Investment in the United States (CFIUS). This committee is responsible for reviewing foreign investments that may impact national security.
• Review of Agricultural Transactions: It establishes a requirement for CFIUS to review certain agricultural transactions involving foreign entities or investments in U.S. agricultural businesses. Specifically, this includes:
  • Investments in U.S. businesses engaged in agriculture or biotechnology related to agriculture.
  • Acquisitions of private real estate used in agriculture by foreign individuals or entities.
• Prohibitions on Foreign Control: The bill requires that if CFIUS determines that a foreign transaction would lead to foreign control over a U.S. agricultural business or agricultural real estate, the President must prohibit the transaction unless a waiver is granted. The waiver can only be issued if the President decides it is essential for national security and notifies Congress at least 30 days in advance.
• Definition of Key Terms: The bill defines important terms such as "covered foreign person" and "prohibited country." A "covered foreign person" is defined as individuals or entities from countries considered security threats, namely China, Russia, Iran, and North Korea. This impacts investment scrutiny from these nations.
• Reporting Requirements: The Secretary of Agriculture is mandated to submit bi-annual reports to Congress regarding foreign purchases of U.S. agricultural businesses. These reports will outline potential risks such investments pose to the U.S. agricultural sector.

Implications

The bill aims to enhance national security by ensuring that foreign investments in agriculture do not compromise the safety and security of U.S. food supply and agricultural integrity. By increasing oversight on transactions involving foreign entities, the bill intends to prevent adverse impacts on domestic agriculture from external influences.

Relevant Companies

• BA (Boeing Company) - If Boeing engages in any agricultural technology-related partnerships or investments, these may be subject to increased scrutiny under the provisions of this bill.
• DOW (Dow Inc.) - As a major player in agricultural chemicals and biotechnology, Dow's foreign investments or acquisitions may face review under the new regulations.
• GIS (General Mills Inc.) - This company's interests in U.S. agriculture and potential foreign partnerships could be influenced by the bill's provisions on agricultural transactions.