Rather Quoted Discussing Proposed AFIDA 2.0 Expansion

The article, which highlights Christina’s conversation with Dave Price on the American Farmland Owner podcast, examines the US Department of Agriculture’s (USDA) proposed “AFIDA 2.0” rule, which would substantially expand reporting requirements for foreign ownership interests in US agricultural land. The proposal would apply not only to future transactions but also to existing landholdings, while broadening the definition of agricultural land and increasing filing obligations for a much wider range of property owners and businesses.

Discussing the proposal’s impact on current landowners, Christina explained, “It would also apply to current holdings of land. So, it’s not like if you have a foreign interest now and you don’t sell it, and you just keep holding it, you wouldn’t have to file. You will have to file now.” She added, “It would be, I think, very, very massively difficult if you have big holdings of land to go through and figure out each form, what is the market value? How are we breaking down the acres? There’s all sorts of information you have to figure out.” She also added that if a foreign-owned company leases your land, “It’s their requirement to file. So, it wouldn’t be your requirement.” Landowners could receive confusing notices, “you might get a letter in the mail…that says, you haven’t filed, you now owe a penalty of $100,000. And it’s not your penalty, but that’s a real shock to the conscience.” 

The article also highlights the proposal’s expanded definition of agricultural land, which could encompass renewable energy facilities, agricultural research sites, conservation lands, processing facilities, and other properties not traditionally covered by AFIDA.

Christina said, “It’s really going to broaden what is covered. It’s also going to mean people that never thought that they would need to file now need to file.” Smaller properties who were previously exempt, may be subject to reporting. “For a small holding of land to figure out all this information and make a filing on it, it would be… extraordinarily difficult,” she said.

Addressing changes to lease reporting requirements and increased penalties for noncompliance, Christina said, “When you think of all the new people this could be covering, it really is a lot.” 

Christina noted the current late penalty accrues at one-tenth of one percent per week. She added, “That’s going to really start ticking very quickly.”

“If this is something you’re really concerned about, express it. Make a comment. Make a suggestion.” Christina emphasized that, “I know that knowing who owns our agricultural land is a really important thing,” she said. “But I just think this is going to be hard for people to do.”

Read the full article here.