Government : Iowa Gov. Kim Reynolds signs law on foreign farmland ownership regulations

By Robin Opsahl

Gov. Kim Reynolds on Tuesday signed into law new reporting requirements - and harsher penalties - related to foreign farmland ownership in Iowa.

The governor signed Senate File 2204, a measure she has called for since the beginning of the 2024 legislative session. Reynolds said Iowa plays an important role in America's food chain and when Iowa speaks on threats to American agriculture, the country listens.

"With this bill, our message is unmistakable," Reynolds said. "American soil belongs in American hands."

The law will grant the state attorney general, currently Republican Brenna Bird, more powers on oversight related to foreign land ownership, including the ability to subpoena foreign landowners for financial records and land purchase agreements for investigations into potential violations of foreign farmland owner restrictions.

While Reynolds and Republicans have praised Iowa's strong laws restricting foreign farmland ownership - existing law limits foreign farmland purchases to 320 acres, with those who had farmland before 1980 allowed to retain their land ownership - advocates said the measure was necessary to better identify and address potential violations on foreign farmland restrictions in Iowa.

Foreign landowners would be required to provide details to the state about their land owned in other states greater than 250 acres, in addition to requiring the Iowa Secretary of State to file an annual report on foreign farmland ownership in Iowa for consideration by state officials.

The law also raises fines on violations of reporting requirements - failing to report holdings every two years would be up to $10,000 per violation for foreign landowners, and failure to disclose leases or purchases of farmland by foreign entities would be fined up to 25% of the property's value per violation - a potentially much higher rate than the previous $2,000 fine maximum per violation.

Reynolds said at the bill signing that Iowa's laws on foreign agricultural land ownership are recognized as "some of the strongest in the nation," but that in the decades since these laws were first passed, countries like China have "grown significantly more aggressive" against the U.S. - and that the purchase of American land is one strategy used by these foreign entities to gain an edge on the world stage.

"Our state's fertile soil and unmatched production capacity make us a natural target for this strategy," Reynolds said. "Our farm families produce 10% of the nation's food supply, and Iowa ranks as America's top producer of biofuels. That makes us a natural leader in the race to stave off the evolving threat to American agriculture."

Bird praised the legislation Tuesday, saying it will give her office needed tools to protect Iowa farmland. She urged Iowans to contact her office if they have information about improper foreign ownership of farmland in the state.

"Call our office, we'll investigate it," Bird said. "And we appreciate the tools that we need to make sure that everybody is following the law."

According to 2022 data from the U.S. Department of Agriculture, nearly 514,000 acres of Iowa agricultural land is held by foreign investors. This represents roughly 1.6% of the state's total privately held agricultural land. The largest foreign owner of Iowa land is Canada, with almost 200,000 acres, followed by Italy with more than 104,000 acres. China is a minor landowner in Iowa, with USDA data listing Syngenta Seeds as the only Chinese government-affiliated business owning Iowa land as of 2022, with 265 acres in Boone County.