Katie Britt and colleagues pass legislation preventing adversarial nations from buying American farmland
U.S. Senator Katie Britt (R-Alabama) recently joined her colleagues in passing the bipartisan, bicameral Promoting Agriculture Safeguards and Security (PASS) Act. This legislation aims to prevent China, Russia, Iran, and North Korea from investing in, purchasing, leasing, or otherwise acquiring U.S. farmland. The bill was introduced by Senator Mike Rounds (R-South Dakota) and is cosponsored by Senator Britt and nine of her Senate colleagues. Companion legislation was introduced in the U.S. House of Representatives by U.S. Representative Elise Stefanik (R-New York). The PASS Act would add the Secretary of Agriculture as a standing member of the Committee on Foreign Investment in the United States (CFIUS) to consider agricultural needs when making national security determinations. Additionally, it would require a CFIUS review of agricultural land and business transactions by foreign individuals or entities and would also direct the President to prohibit any agricultural land transaction in the U.S. made by a foreign adversary. “I believe that one acre of American farmland owned by our adversaries is one acre too many,” said Senator Britt. “I’m proud to cosponsor this legislation and grateful for Senator Rounds’ leadership on this critical issue. Food security is national security, and we must prevent threats to the U.S. agricultural community that feeds and clothes our state, nation, and world. I’ll always fight to defend hardworking Americans while protecting our homeland.” “China and Russia are our near-peer adversaries, and North Korea and Iran are no friends of the United States,” said Sen. Rounds. “These four adversaries view America as their top competitor and only wish to gain advantage and opportunities to surveil our nation’s capabilities and resources. This commonsense provision will make our homeland more secure. I am pleased this amendment was included in this year’s NDAA, and I look forward to working with my colleagues to move this legislation across the finish line.” Earlier this year, Senator Britt participated in a Senate Committee on Banking, Housing, and Urban Affairs hearing where she questioned Clay Lowery, the former chairman of CFIUS, who affirmed that the Secretary of Agriculture should likely be involved in CFIUS in “a systematic way.” This legislation is similar to the Foreign Adversary Risk Management (FARM) Act, which was introduced by Sen. Tommy Tuberville (R-Alabama). Britt also cosponsored the FARM Act. “Over the past few years, we’ve seen an alarming increase in foreign purchases of farmland and food companies, particularly by China,” said Sen. Tuberville. “These foreign investments are now reaching every piece of the very large puzzle that makes up our agriculture industry, from farming and processing, to packaging and shipping. That’s why America’s agriculture community needs to have a permanent seat at the table when our government vets foreign investment in our country. Adding all parts of the agricultural supply chain to the list of transactions reviewed by CFIUS is the first step toward ensuring America’s agricultural suppliers can keep food on tables across the country.” Additionally, Britt introduced the Not One More Inch or Acre Act with Sen. Tom Cotton (R-Arkansas). That legislation would prevent any Chinese national or entity from owning American land. The PASS Act was passed as part of the Senate’s Fiscal Year 2024 National Defense Authorization Act (NDAA). Katie Britt is the ranking member of the Homeland Security Subcommittee of the Senate Committee on Appropriations. She was elected to the Senate in 2022. To connect with the author of this story or to comment, email brandonmreporter@gmail.com
Katie Britt opposes Chinese purchase of American farmland
During a Senate Committee on Banking, Housing, and Urban Affairs hearing, U.S. Sen. Katie Britt expressed her concerns about the Chinese Communist Party’s growing influence and alleged aggression around the world. “I believe that one acre of American farmland owned by the Chinese Communist Party is one acre too many.” Senator Britt directed her line of questioning to Clay Lowery, the former Assistant Secretary for International Affairs at the U.S. Department of the Treasury and former Director of International Finance at the National Security Council. Lowery also previously chaired the Committee on Foreign Investment in the United States (CFIUS). CFIUS is the government committee that reviews international mergers and acquisitions that may affect national security interests. “Before we start talking about sanctions, I wanted to take a moment to talk about the Committee on Foreign Investment in the United States (CFIUS),” Sen. Britt said. “In 2021, the U.S. Department of Agriculture noted that foreign investors held 40 million acres of our farmland. This has occurred, since 2015, at a tune of about 2.2 million acres a year. I have heard from Alabamians as I travel across our state, and this is a concern for them – specifically, the Chinese Communist Party and their willingness and their efforts and their deliberate and intentional attempts to buy up fertile U.S. farmland. I believe food security is national security. Food security is economic security. I believe that one acre of American farmland owned by the Chinese Communist Party is one acre too many. Additionally, I think there is another layer of national security concern that we’re allowing China to buy up farmland near our military installations. It is completely and totally unacceptable.” “So, my question, Mr. Lowery, for you as a former chairman of CFIUS, when it comes to ensuring we have a strong agriculture voice at the table when these decisions are being made, do you agree that it’s reasonable the Secretary of Agriculture should be involved as a member of CFIUS?” Britt said. Lowery responded, “I think it is totally reasonable.” Lowery affirmed that the Secretary of Agriculture should likely be involved in CFIUS in “a systematic way.” Britt is a cosponsor of the Foreign Adversary Risk Management (FARM) Act, which Senator Tommy Tuberville introduced. “Over the past few years, we’ve seen an alarming increase in foreign purchases of farmland and food companies, particularly by China,” said Sen. Tuberville. “These foreign investments are now reaching every piece of the very large puzzle that makes up our agriculture industry, from farming and processing, to packaging and shipping. That’s why America’s agriculture community needs to have a permanent seat at the table when our government vets foreign investment in our country. Adding all parts of the agricultural supply chain to the list of transactions reviewed by CFIUS is the first step toward ensuring America’s agricultural suppliers can keep food on tables across the country.” This bill would crack down on the CCP’s growing ownership of U.S. farmland and agricultural companies by placing the Secretary of Agriculture on CFIUS; requiring the committee to review any investment that could result in foreign control of any U.S. agricultural business; including farming systems and supply chains in the definitions of critical infrastructure and critical technologies to review such investments; and mandating that the Department of Agriculture and the Government Accountability Office must each analyze and report on foreign influence in the U.S. agricultural industry. “The spy balloon was only the latest, most visible instance in an ongoing trend of aggressive behavior by the Chinese Communist Party,” Britt stated last week. “There is no doubt that the CCP is our greatest geopolitical and national security threat, and everything they do is as our adversary. The FBI has said that they open a new counterintelligence case against China about twice per day. From stealing our intellectual property and spying on our children through TikTok to buying up American farmland and engaging in unfair trade practices that undercut Alabama steelmakers and shrimpers, we must hold the CCP accountable. We accomplish this through strength, not continued weakness, which is why I’m committed to modernizing our defense and intelligence capabilities. I’ll continue to fight to put hardworking Alabamians first while protecting our homeland.” It is estimated that Chinese investors own 192,000 acres of American farmland worth about $1.9 billion. It is not just an American phenomenon, as Chinese investors have been buying farmland in many nations over the last decade. A Chinese firm, Shuanghui International Holdings Ltd, also was allowed to buy Virginia-based Smithfield Foods – the largest pork producer in the world and one of America’s largest meatpackers for $4.7 billion – more than the company’s book value – in 2013. Some American consumers have complained that the price they pay for sausage and bacon has climbed as more and more of the company’s U.S. pork is exported to China. While young American farmers struggle to raise money to buy land to get into the farming business or grow an inherited farm, foreign investors own 40 million acres of American farmland, and foreign investments in American farmland is a growing trend. Katie Britt is the ranking member of the Homeland Security subcommittee of the Senate Committee on Appropriations and a member of the National Security and International Trade and Finance Subcommittee of the Senate Committee on Banking, Housing, and Urban Affairs. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
West unleashes SWIFT bans, more crushing penalties on Russia
The United States and European nations agreed Saturday to impose the most potentially crippling financial penalties yet on Russia over its unrelenting invasion of Ukraine, going after the central bank reserves that underpin the Russian economy, and severing some Russian banks from a vital global financial network. The decision, announced as Ukrainian forces battled Saturday to hold Russian forces back from Ukraine’s capital and residents sheltered in subway tunnels, basements, and underground garages, has potential to spread the pain of Western retaliation for President Vladimir Putin’s invasion to ordinary Russians far more than previous rounds of penalties. “Putin embarked on a path aiming to destroy Ukraine, but what he is also doing, in fact, is destroying the future of his own country,” EU Commission President Ursula von der Leyen said. The European Union, United States, United Kingdom and other allies have steadily stepped up the intensity of their sanctions since Russia launched the invasion late last week. While U.S. and European officials made clear they still were working out the mechanics of how to implement the latest measures, and intend to spare Russia’s oil and natural gas exports, the sanctions in total potentially could amount to some of the toughest levied on a nation in modern times. If fully carried out as planned, the measures will severely damage the Russian economy and markedly constrain its ability to import and export goods. The U.S. and European allies announced the moves in a joint statement as part of a new round of financial sanctions meant to “hold Russia to account and collectively ensure that this war is a strategic failure for Putin.” The central bank restrictions target access to the more than $600 billion in reserves that the Kremlin has at its disposal, and are meant to block Russia’s ability to support the ruble as it plunges in value amid tightening Western sanctions. The ruble and Russia’s stock market both declined sharply immediately after Russia launched military action in Ukraine on Thursday. The ruble recovered slightly but is still down more than 6 percent from before Putin’s announcement, trading at nearly 84 rubles to the dollar. U.S. officials said Saturday’s steps were framed to send the ruble into “free fall” and promote soaring inflation in the Russian economy. The decline of the ruble would likely send inflation soaring, which would hurt everyday Russians and not just the Russian elites who were the targets of the original sanctions. The resulting economic disruption, if Saturday’s measures are as harsh as described, could leave Putin facing political unrest at home. Analysts predicted intensifying runs on banks by Russians, and falling government reserves as Russians scrambled to sell their targeted currency for safer assets. The U.S. officials noted that previously announced sanctions have already had an impact on Russia, bringing its currency to its lowest level against the dollar in history and giving its stock market the worst week on record. Saturday’s move also includes cutting key Russian banks out of the SWIFT financial messaging system, which daily moves countless billions of dollars around more than 11,000 banks and other financial institutions around the world. The fine print of the sanctions was still being ironed out over the weekend, officials said, as they work to limit the impact of the restrictions on other economies and European purchases of Russian energy. Allies on both sides of the Atlantic also considered the SWIFT option in 2014, when Russia invaded and annexed Ukraine’s Crimea and backed separatist forces in eastern Ukraine. Russia declared then that kicking it out of SWIFT would be equivalent to a declaration of war. The allies — criticized ever after for responding too weakly to Russia’s 2014 aggression — shelved the idea back then. Russia since then has tried to develop its own financial transfer system, with limited success. The U.S. has succeeded before in persuading the Belgium-based SWIFT system to kick out a country — Iran, over its nuclear program. But kicking Russia out of SWIFT could also hurt other economies, including those of the U.S. and key ally Germany. Only rarely has the West and its allies fired a full salvo of its available financial weapons on a country. Iran and North Korea, two previous targets, had far smaller roles in the world economy, while Russia, with its enormous petroleum reserves, plays a much bigger role in global trade, and parts of Europe depend on its natural gas. The disconnection from SWIFT announced by the West on Saturday is partial, leaving Europe and the United States room to escalate penalties later. Officials said they had not fully settled on which banks would be cut off. Announcing the measures in Brussels, the EU Commission president, von der Leyen, said she would push the bloc to “paralyze the assets of Russia’s Central bank” so that its transactions would be frozen. Cutting several commercial banks from SWIFT “will ensure that these banks are disconnected from the international financial system and harm their ability to operate globally,” she added. “Cutting banks off will stop them from conducting most of their financial transactions worldwide and effectively block Russian exports and imports,” she added. Getting the EU on board for sanctioning Russia through SWIFT had been a tough process since EU trade with Russia amounted to 80 billion euros, about 10 times as much as the United States, which had been an early proponent of such measures. Germany specifically had balked at the measure since it could hit them hard. But Foreign Minister Annalena Baerbock said in a statement that “after Russia’s shameless attack … we are working hard on limiting the collateral damage of decoupling (Russia) from SWIFT so that it hits the right people. What we need is a targeted, functional restrictions of SWIFT.” As another measure, the allies announced a commitment “to taking measures to limit the sale of citizenship — so-called golden passports — that let wealthy Russians connected to the Russian government become citizens of our countries and gain access to our financial systems.” The
