Ag Commissioner urges Mississippi Legislature to address problem
Concern has been increasing in recent years about foreign ownership of one of the most precious assets in America, agricultural lands. The State of Arkansas recently took action to require a Chinese firm to divest of agricultural land. While foreign ownership has also been an issue in Mississippi, there are concerns that recent state legislation has failed to address the problem.
“During the 2024 legislative session, our Mississippi Legislature missed a great opportunity to follow Arkansas’ lead,” said Department of Agriculture and Commerce Commissioner, Andy Gipson. “Rather than banning foreign countries including our enemies from buying up Mississippi farms, the Legislature opened the door even wider to foreign control by passing the Mississippi Foreign Land Ownership Act.”
Gipson said prior to the passage of the 2024 Act, Mississippi law generally prohibited the ownership of Mississippi land by any “nonresident alien,” a phrase that had never been precisely defined by the legislature in law. The old law, coupled with the lack of a clear enforcement mechanism, left a gaping loophole for decades, allowing numerous foreign countries such as the Netherlands, Canada, and many other foreign interests to purchase vast tracts of Mississippi farmland.
“Even our enemy China was able to grab a small chunk of Mississippi,” Gipson wrote in a column. “In fact, according to the most recent USDA report issued this past December, foreign countries and/or foreign-controlled entities currently control nearly one million acres of Mississippi agricultural and forest lands.”
In 2023, the Mississippi Foreign Purchase of Farmland Study Committee called on the legislature to create a clear enforcement mechanism within the law to stop foreign interests including our adversaries from continuing to buy up Mississippi’s most valuable asset, farmland.
“Unfortunately, effective July 1, the new law passed by the Mississippi Legislature will open the door even wider for foreign interests including our enemies to acquire interests in Mississippi farmland,” said Gipson. “Perhaps unintentionally, Senate Bill 2519 actually eliminated the broad prohibition of nonresident ownership. The new law’s limitations only apply to foreign adversaries such as China and Russia, and it even allows these enemies to hold up to 50% ownership in Mississippi farmland. The new law also allows any country, including our enemies, to lease up to 500 acres for ‘research’ or ‘experimental’ purposes.”
Gipson said conservative Mississippians understand this issue: China, Russia, and foreign enemies should not be allowed to hold even a 10% interest in our farmland; they should have 0%. Yet, rather than banning foreign ownership of land, the new Mississippi law makes it easier for foreign interests such as foreign-controlled investment companies to buy up Mississippi. Even Russia, China, Iran, Cuba, North Korea, or others can get in on the activity in partnership with other foreigners, which is exactly how they get around trade restrictions and sanctions internationally.
“The Revolutionary War, by which our founders gained independence, was fought and won on the issue of who would have the right to control the soil of these United States,” said Gipson. “The fact that any foreign country will be now able to do by monetary transaction what would normally be done by military conquest should give every citizen in Mississippi a wake-up call.”
Gipson said food security is vital to national security, and contends land is Mississippi’s most valuable asset.
“Arkansas was the first state to kick China out,” said Gipson. “Mississippi should be next. While I am disappointed this year the Mississippi Legislature did not put a full ban on foreign enemies’ ownership in Mississippi farmland, I strongly encourage the legislature to fix this law and slam the door shut on China in 2025. Let us put the America First agenda in action. Let’s put Mississippi first.”
Gipson chaired a committee created by the Mississippi Legislature to study the purchasing, acquiring, leasing or holding an interest in agricultural land by foreign companies or governments that wrapped up its work in November 2023, concluding with a 363-page report documenting the issue, and a page of recommendations for the legislature. Gipson said the issue has become more of a concern because recent decades have seen increased purchases of U.S. ag land by foreigners.
“There are some reports that the Chinese have bought land next to military bases,” said Gipson. “This has raised issues of national security. It is a very hot button topic now. More than 20 states have already passed laws to address this.”
The Mississippi Constitution and state laws are already designed to prevent non-resident aliens from purchasing land in Mississippi. But Gipson said that has not been enforced.
“The Delta has the most productive soil in the world as far as agriculture is concerned,” said Gipson. “That goes to the heart of why the foreign interests are targeting our farmland. The biggest foreign interest is the Netherlands, which owns 381,820 acres–most of that timberland. Canada has 109,048 acres. Germany owns 59,466. The UK is at 58,951. All others, including China, add up to 352,125 acres. What we know is a lot of land has been sold over the decades to foreign interests without our law even being mentioned, much less being enforced. We have had a loophole in enforcement which has allowed this to happen all these many years.”
A top recommendation of the study committee is for the legislature to pass a workable enforcement mechanism. Arkansas is considered a potential model. The Arkansas Legislature passed a law designating the Arkansas Department of Agriculture to collect information.
“That is how Arkansas found out that Syngenta is Chinese controlled,” said Gipson. “The state gave them two years to divest that. Arkansas is the only state we know in modern times to do enforcement. I personally like that approach. If we are going to have enforcement, the agriculture department should be the one to make the determination of facts. The ag department has a relationship with the USDA, which requires reporting of foreign ownership of farmland. Our department could send people to investigate, and then turn the information over to the Attorney General for enforcement. That could be a workable enforcement mechanism that could be done going forward.”
In addition to national security, another concern is foreign investors inflating the costs of farmland making it more difficult for Americans to be able to afford to farm. Gipson recalls meeting with a farmer in the Delta who was planning on buying a neighbor’s farm when the neighbor retired. Almost overnight, an LLC investment company swooped in and paid more than market value for that farm.
“Yes, it is increasing the prices,” said Gipson. “It is having the effect of making the land sell for more and be worth more. There is a monetary aspect that could be to the farmer’s benefit but, in the long term, we have to be concerned about selling our most precious assets to people who might not have the same interest in agriculture that we have as a state and country. Everybody likes to make more money, but we are talking about the long-term security of our agriculture production and the long-term national security of the country. Some purchasing ag land are from countries that are adversarial nations including China, Cuba, Iran, North Korea, Russia and Venezuela. The Chinese have bought 88 acres in Mississippi so far that we know of.”