National security, food security or knee-jerk reaction? WRAL Investigates push to protect NC farmland from foreign buyers
Federal and state lawmakers are debating legislation that would keep some foreign countries from buying farmland in the United States. The laws also aim to protect land near U.S. military bases.
The idea really took flight earlier this year when a Chinese spy balloon floated across the country before being shot down off the North Carolina coast.
“I can assure this was not for civilian purposes. We are 100% clear about that," Pentagon Press Secretary Brigadier General Pat Ryder said about the balloon’s mission.
The balloon’s journey prompted lawmakers in North Carolina’s state house to file House Bill 463 titled the NC Farmland and Military Protection Act. The measure soared through the House with bi-partisan support and is awaiting action in the state Senate.
"As our state’s top economic impacts, it’s critical that we ensure the protection of our agriculture and military," Rep. Jennifer Balkcom (R) said when introducing the bill on the House floor.
The bill targets land ownership by America’s adversaries, as determined by the US Department of Commerce. Right now, that list of countries includes the primary target China, along with Russia, North Korea, Iran, Cuba and Venezuela.
WRAL Investigates went through U.S. Department of Agriculture records and found 790,000 acres of farmland in North Carolina are foreign-owned. Just 49,050 acres, about 6%, are linked to China. Almost all of that land is owned or leased by the Chinese pork producer who bought Smithfield Foods a decade ago.
"This is the most recent political flash point where this has popped up," explained Micah Brown about the balloon incident’s impact on the foreign-owned farmland debate. Brown’s an attorney with the National Agricultural Law Center, which consults state lawmakers who have considered bans.
While the balloon grabbed national headlines, Brown says the debate in other states actually started a couple of years ago.
"Two separate Chinese entities that had purchased lots of land in Texas that was near an Air Force Base and North Dakota, that was near an Air Force base," Brown explained. After local outcry, both of the land deals collapsed.
Brown said about two dozen states have enacted laws on foreign ownership. While his group does not pick a side in the debate, Brown just hopes lawmakers look at the whole picture, especially the unintended consequences that could hit our local communities that depend on Smithfield Foods.
"If a company has to relocate to a different state that doesn’t have a restriction, you’re taking that economic stability that the processor that was in that community out of the state completely," Brown said. Essentially, restrictions could force foreign-owned companies like Smithfield to move or scale back. He argued it could also impact farmers who want to sell their land. The restrictions could take a foreign-owned high bidder off the table.
While most bills across the country target the protection of farmland and land near military installations, some states are prohibiting the ownership of real property, like homes. The Chinese account for 13% of foreign home buyers in the U.S., according to the National Association of Realtors. North Carolina ranks 7th in the country for the number of homes sold to Chinese buyers.
