Federal government has ‘flawed’ process for tracking foreign land purchases: Watchdog report

According to a recent Government Accountability Office report, the federal government has a “flawed” process for tracking land purchases made by foreign entities.

The federal watchdog published a January report titled “Foreign Investments in U.S. Agricultural Land: Enhancing Efforts to Collect, Track, and Share Key Information Could Better Identify National Security Risks." It found that the U.S. Department of Agriculture “does not share timely data on foreign investments in agricultural land.”

A mysterious investment group purchased approximately 52,000 acres of land near Travis Air Force Base in Solano County, California, which renewed national security concerns regarding foreign entities investing in land, particularly near military bases, Blaze News reported. It was later revealed by the New York Times that many of the group’s investors were Silicon Valley technology moguls. However, the U.S. Treasury Department is still investigating possible foreign ties related to the purchase.

The GAO conducted its latest study after the USDA reported that foreign investments in agricultural land increase to roughly 40 million acres in 2021, according to the report.

“These investments may have consequences for U.S. national security. For example, there may be foreign ownership of U.S. agricultural land close to sensitive military installations,” the report explained.

According to the USDA’s Agricultural Foreign Investment Disclosure Act of 1978, foreign entities acquiring agricultural land must file a disclosure form. Currently, the USDA shares an annual report of AFIDA data, including the number of acres owned and the country of the foreign investors. Federal and state government agencies use this data to track and enforce restrictions on foreign investments.

During a March 2023 congressional hearing, the secretary of agriculture stated that the USDA relies on foreign entities to report their purchases, the report stated.

“The Secretary noted self-reporting is challenging to enforce because deeds are filed in over 3,000 county recorder offices. In September 2023, another USDA official noted that USDA cannot locate AFIDA filings beyond the county level, such as specific localities, and there is currently no system which tracks deeds or leases of agricultural land,” the GAO explained.

The USDA report is also used by the Committee on Foreign Investment in the United States “when considering potential national security risks associated with” the purchase of agricultural land.

“USDA officials said they respond promptly when they receive requests for information. However, DOD officials noted they need AFIDA information that is more up-to-date and more specific, and they need to receive this information more than once a year,” the report continued.

“USDA implements AFIDA across field offices and headquarters, but its processes to collect, track, and report key information are flawed. USDA collects the required data on paper forms with county or federal offices and reviews them for accuracy, according to USDA officials. However, its processes to do so are unclear and challenging to implement,” it stated.

According to the GAO, the USDA is seeking funding to create a “real-time data system” that could be used by federal government agencies and the public to access investment information.

“GAO is making six recommendations, including that USDA share detailed and timely AFIDA data with CFIUS agencies, improve the reliability of AFIDA data, and assess its ability to adopt an online submission system and public database,” the report added. The USDA agreed with five of the GAO’s recommendations and “partially agreed” with one.

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