Cornhusker State News

During a recent Senate Banking Committee hearing, U.S. Senator Pete Ricketts (R-NE) addressed the use of financial tools to limit the influence of China in acquiring sensitive American farmland and to strengthen sanctions against Chinese leadership.

“Communist China is the threat to America,” said Ricketts. “They want to supplant us as the world superpower, and they’ve made it clear that they are going to use every lever of power to be able to undermine our national security.  Confronting this threat requires a comprehensive strategy that strengthens the safety of our financial system, secures our critical assets, and closes loopholes for Communist China to seek and exploit.”

Ricketts emphasized the role of the Council on Foreign Investment in the United States (CFIUS) and described how his proposed AFIDA Improvements Act would enhance oversight processes. He noted that Chinese ownership of U.S. farmland grew from 13,720 acres in 2010 to 277,000 acres by 2023. He pointed out concerns about foreign-owned land near military installations.

“In 2010 Communist China owned 13,720 acres of American farmland in 2023 Communist China owned 277,000 acres of that farmland, and that is a threat to our national security. A lot of that, sometimes that farmland was located by our sensitive military installations,” said Ricketts.  “Under the Agricultural Foreign investment Disclosure Act (AFIDA), foreign entities are required to disclose the transactions of American agricultural land to the USDA… USDA then shares the data with CFIUS (Committee on Foreign Investment in the United States) agencies so they can identify and review the transactions that pose national security risks.  However, the Government Accountability Office (GAO) published a report on the AFIDA process, which flagged incomplete data reporting process errors and delays.  That’s why I introduced the AFIDA Improvements Act.  My bill will strengthen reporting requirements and improve data sharing coordination between USDA and CFIUS so that national security risks tied to foreign land purposes are flagged immediately.”

The AFIDA Improvements Act aims to update existing legislation from 1978 by increasing legislative oversight over foreign investments in U.S. agricultural land. The bill would require more robust disclosure from foreign entities purchasing such land and seeks better coordination between federal agencies.

Ricketts also responded during the hearing to statements made by Ranking Member Elizabeth Warren (D-MA) regarding inflation and gas prices. He referenced CNN reports indicating gas prices over Labor Day weekend were at their lowest since before COVID-19.

“The ranking member was talking about inflation. I might note that on Labor Day, the average price of gas was $3.15 a gallon,” said Ricketts.“That’s the lowest it’s been since 2020. People in my state tend to drive a lot and that’s a big factor in household income and inflation. And to me, that says that the President’s policies of unleashing American energy are important.”

The committee also reviewed nominations for several key positions within federal departments including housing, treasury, and terrorist financing.

According to figures from USDA, foreign investors currently own more than 40 million acres of agricultural land across America.