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New bill limiting foreign land ownership moves on to Senate

By Clayton Baumgarth

Posted January 29, 2024

White County, Indiana has the highest concentration of foreign ownership in the state. (Pixabay)

A bill aimed at limiting foreign land ownership in Indiana passed through committee unanimously Monday afternoon.

Authored by Rep. Kendell Culp (R-Rensselaer) and co-authored by Reps. Mike Aylesworth (R-Hebron) , R-Chris Jeter (R-Fishers), and Cherrish Pryor (D-Indianapolis), HB 1183 states that beginning July 1, 2024, any real estate closing including agricultural land must include an affidavit affirming that the purchaser is not from an adversarial country as listed by the United States government, such as China, Russia or North Korea.

“Nationally, 40 million acres (about twice the area of South Carolina) of our 1.3 billion acres of farmland are owned by foreign countries,” Culp said. “Chinese interests, for example, they have 400,000 acres nationwide. But that number is growing at an alarming rate. Foreign ownership has grown by 2.2 million acres a year in the U.S. since 2015. Now in Indiana, 2.2 percent of Indiana's farmland is owned by a foreign entity owned or leased by a foreign entity.”

Many groups, including the Indiana Farm Bureau, Indiana Soybean Alliance, Indiana Corn Growers Association and the Attorney General’s office support the bill. The ACLU of Indiana, represented by Executive Director Chris Daley, said it does not support the bill over concerns of national origin discrimination.

“Citizens from all of these countries live lawfully in Indiana, they contribute to our economy and community well-being,” he said. “Yet if this bill becomes law, they will be unable to participate as owners in farming in our state. Whereas an individual from a foreign country who is not on this list and does not reside in Indiana can participate as an owner.”

Culp clarified that the bill says individuals must be citizens of foreign adversarial entities to fall under these rules.

The bill also requires the attorney general to investigate an acquisition or lease of agricultural land if the acquisition is believed to violate the law. Any land found to be illegally acquired would be forfeited to the state.

Laws aimed at stemming the acquisition of farmland from foreign adversaries started popping up across the nation in 2021, when a U.S. subsidiary of the Chinese Guanghui Energy Company began purchasing 140,000 acres of land in Texas, 70 miles from Laughlin Air Force Base. The fact that Guanghui’s owner reportedly had ties to the Chinese Communist Party alarmed officials. In North Dakota, another Chinese company, Fufeng Group, purchased 300 acres of land about 20 minutes from Grand Forks Air Force Base.

Indiana was the first state to limit foreign land ownership at that time. Since then, 35 states have proposed similar legislation.

Last year, Sens. Jean Leising (R-Terre Haute), Mark Messmer (R-Elkhart), and James Tomes (R-Middlebury) authored Senate Bill 388, titled “Foreign gifts and ownership of agricultural land,” which passed the Senate by a 49-1 vote and the House unanimously.

This bill comes just after U.S. Sens Mike Braun (R-Ind.) and Todd Young (R-Ind.) introduced foreign land ownership legislation on Friday at the federal level. HB 1138 now moves on to the senate.