S. 2574: Prohibition of Agricultural Land for Foreign Adversaries Act

This bill, known as the Prohibition of Agricultural Land for Foreign Adversaries Act, aims to restrict certain foreign entities from purchasing agricultural land in the United States. It specifically targets individuals or entities connected with the governments of North Korea, Iran, China, and Russia, referred to in the bill as "covered persons."

Key Provisions

• Definition of Agricultural Land: Agricultural land is defined according to existing U.S. law, referring to land used for farming or ranching purposes.
• Prohibition on Purchases: The bill mandates that the President must take necessary actions to prevent covered persons from buying any public or private agricultural land in the U.S.
• Implementation Authority: The President is granted the authority to execute this prohibition using existing powers under the International Emergency Economic Powers Act, which allows for the regulation of transactions and economic activities that could pose a threat to national security.
• Penalties: There are specified penalties for anyone who tries to violate the purchase prohibition. The penalties align with existing consequences for unlawful acts under the International Emergency Economic Powers Act.

Participation in Agricultural Programs

• Prohibition on Participation: The bill also prohibits covered persons from participating in Department of Agriculture programs, which includes most financial and support programs provided by the agency.
• Exceptions: There is a specific exception for participation related to food inspection and food safety regulations, meaning that covered persons can still be involved in activities directly related to these safety measures.

Overall Impact

The bill is designed to enhance U.S. national security by preventing potential adversaries from acquiring agricultural assets, which could have significant implications for the food supply chain and agricultural sector in the country.

Relevant Companies

• Bayer AG (BAYRY) - As a major agricultural company with interests in seed and crop protection, any restrictions on land ownership could impact their operations in the U.S.
• Montsanto (MONS) - A subsidiary of Bayer, its ability to access agricultural land for cultivation might be affected under this bill.
• Dollar General (DG) - While primarily a retail company, its supply chain, reliant on agricultural products, could face disruptions if farmers are adversely affected by land ownership restrictions.