Conversations about foreign ownership of U.S. land have become a political flashpoint in recent years. Headlines about Chinese investors, controversial renewable energy projects, and billionaires “buying up America” are common, yet they often fail to answer a simple question: what do the numbers actually show?

To help separate fact from fear, Daniel Munch, an economist with the American Farm Bureau Federation, appeared on the National Land Podcast to discuss foreign landownership based on research and data from the USDA’s Agricultural Foreign Investment Disclosure Act (AFIDA) database.

Here’s what to know about foreign investors in US land!

Reasons Other Nations Purchase US Land

When people hear “foreign ownership,” many immediately imagine foreign governments quietly buying farmland to control America’s food supply. According to Munch, the full picture is more complex and diverse than headlines would have you believe. He explains that foreign investors typically fall into three major categories: renewable energy projects, timber and forest products, and financial or investment interests, with an additional share tied to individuals and long-term leases.

Renewable Energy

A substantial portion of the recent increase in foreign-held land is connected to wind and solar developments, rather than traditional agricultural operations. Many European countries have ambitious climate goals but limited open land or higher development costs at home, so their companies invest in U.S. land for wind and solar projects. Munch notes that when he filtered the AFIDA data for terms like “solar,” “wind,” or “renewable,” those projects accounted for roughly half of the increase in foreign-owned acreage since 2010 and now represent around a third of all foreign-held U.S. land.

Wind projects, in particular, often coexist with agriculture; as Munch points out, you can drive from Omaha to Des Moines and see turbines standing over active corn and soybean fields, or over pasture in places like Wyoming. Solar projects, by contrast, typically take land out of production, which raises more concern among farmers and ranchers.

Timber Production

Another large share of foreign-held land is forest, not farmland, and is tied to timber and paper-related companies. Munch explains that about half of all foreign-held agricultural land in the AFIDA data is actually forest land. Large timber and paper companies, many with Canadian or European ties, own or lease millions of acres for wood, pulp, and corrugated cardboard production. In states such as Maine, Alabama, Louisiana, and Michigan, the bulk of foreign-held land is in forests managed for timber rather than crops or livestock grazing.

Financial Investment

Munch also highlights the role of financial and investment interests. Life insurance companies, asset managers, and other financial firms, some with foreign ownership or investors, view U.S. agricultural land as a long-term, relatively stable asset. They are more focused on land as an investment than on running farms themselves. 

Beyond these corporate categories, AFIDA captures foreign-born individuals who have immigrated to the United States and started farming, as well as long-term leases, often for renewable energy projects, that extend 10 years or more. Even though the underlying land remains owned by U.S. citizens or companies, those leases are counted as a foreign interest under the law.

While there are certainly foreign agricultural landowners in the United States, row-crop farmland is only part of the picture. A large share of foreign-held U.S. agricultural land is tied up in forests, pasture, and long-term leases for projects like wind and solar.

If you’ve been approached about a lease or sale or just have questions about who’s buying land in your area, reach out to your local Land Professional to talk through what it means for your property.