Concerns about foreign ownership of Colorado farmland

DENVER — It’s become a growing trend in recent years: Foreign investors are buying up more Colorado farmland.

Critics say it creates unfair competition and some worry it could endanger national security. But what measures are in place to address these concerns, and what does the data say?

Much of the concern centers around China.

Tensions between the United States and China have increased in recent years. As distrust deepens between the two nations, fears have multiplied. And foreign ownership of farmland is one area that has raised concerns among lawmakers in Washington, D.C. and Denver.

Last year, state Rep. Brandi Bradley, R-Littleton, introduced a bill banning foreign ownership of farmland in Colorado.

“There is simply no reason for us to depend on a communist country like China for our food supply,” Bradley said.

The bill never made it out of committee.

According to the United States Department of Agriculture (USDA), foreign investors have interests in 43 million acres of agricultural land in the United States.

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Colorado has the third largest amount of foreign-owned farmland in the country – more than 2.5 million acres. This represents an increase of more than half a million acres from the previous year.

“We see this as a growing problem,” said Tyler Garrett of the Rocky Mountain Farmers Union (RMFU), which represents agricultural producers in Colorado, Wyoming and New Mexico. “We have approximately 15,000 members spread across the three states. »

The group supports banning foreign land ownership, in part because it says allowing foreign ownership makes it harder for Colorado farmers and ranchers to buy land and compete.

“It’s hard to compete with a multinational organization that has much deeper pockets,” Garrett said.

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He cites Smithfield Foods, the nation’s largest pork producer.

The Virginia-based company was acquired by a Chinese company, the WH Group, in 2013.

Much of the concern about this has to do with the arrival of multinational corporations that buy up large tracts of land and agricultural production and then consolidate them further, Garrett said.

In a statement to Denver7, Smithfield Foods said the company owns a very small amount of land in Colorado.

“Smithfield Foods owns approximately 4,100 acres in Colorado, or 0.01% (one hundredth of one percent),” the release said. “Since our founding in Smithfield, Virginia, in 1936, we have been committed to doing business the right way, and sustainability has been an important part of our business for more than two decades. »

Despite concerns, the percentage of foreign-owned farmland in the United States is low, accounting for only 3.4% of all private land.

While many worry about China, USDA data shows that Chinese investors own less than 1% of farmland in the United States. Most foreign farmland in the United States, about a third, is owned by Canadian investors.

In Colorado, the countries that account for two-thirds of foreign-owned farmland are Canada, the United Kingdom, Italy, the Netherlands and Germany, according to USDA data.

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Zach Riley, CEO of the Colorado Livestock Association, said many people are mistaken about ownership of foreign farmland.

“They think it’s the government of Canada or the government of China because that’s what everyone brings up,” Riley said. “But it’s not necessarily the government. They are individuals.

Riley has addressed foreign ownership of land in Colorado and testified on the issue before state lawmakers.

“I would say that in 80% of cases, they do nothing. It’s just land holdings and investments,” he said.

The federal government also closely monitors foreign ownership of agricultural land through the Committee on Foreign Investment in the United States (CFIUS).

“It’s an intraagency committee, and it’s chaired by the Secretary of the Treasury,” said Ashley House of the Colorado Farm Bureau. “And there are eight other members, including the Secretaries of State, Homeland Security, Commerce, Energy, the Attorney General of the United States, the U.S. Trade Representatives, and the Directors of Science and Technology Policy .”

House said the origins of CFIUS date back to the Cold War under President Gerald Ford, who convened the committee.

“And then the new iterations of CFIUS were bolstered by the security concerns after 9/11,” House said.

The committee reviews transactions involving foreign investors and looks for potential risks to national security.

“This committee has the authority to review and even block transactions involving foreign investment,” House said.

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The committee also shares an annual report with Congress.

The president has the power to block a transaction involving a foreign investor, although this is rare. Presidents have only exercised this power seven times.

But as tensions with China rise, so do the number of investigations into foreign investment deals in the Trump and Biden administrations.

House said the state of Colorado also monitors foreign investment.

“Foreign transactions must be registered with the Secretary of State here in Colorado,” House said. “This is already an additional mechanism and review, a guardrail, that we have in place here at the state level.”

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But fear often spreads faster than reality, and some worry that banning foreign ownership of farmland could potentially send the wrong message.

“I’ve heard some pretty hateful things said about this idea, but it sends a very negative message,” Riley said. “It says that we are not welcome, that if you are a foreign person or entity, you are not welcome.”

Those calling for a ban on foreign ownership of agricultural land have said that is not their intention.

“We certainly don’t want that to mean we’re not open to anyone coming in from outside,” Garrett said.

Instead, they say they want to protect American farmers, ranchers and land.