A relatively under-the-radar proposal from the Trump administration to overhaul a disclosure law providing transparency into foreign ownership of farmland is raising concern for both the renewable energy and fossil fuel sectors.
The proposed rule from late June would expand the definition of “agricultural land” and the types of investments that must disclose to the federal government when foreign ownership exceeds a specific threshold. The new rule would add pipelines and renewable power generation to the mix of traditional farming, ranching, forestry and other land subject to disclosure to the federal government — with potentially costly compliance impacts.
The proposed revamp of the Agricultural Foreign Investment Disclosure Act, or AFIDA, shows the growing concern — and heightened scrutiny — the Trump administration is directing toward foreign ownership of U.S. land over potential national security risks. Trump administration officials have also raised concerns about renewable energy projects on farmland.
The proposed changes to AFIDA are already drawing scrutiny from some Senate Democrats, who say they could have damaging consequences for national and energy security.
