Indiana Advances Bill to Restrict Foreign Ownership of Agricultural Land

By Andi Anderson

Indiana advances House Bill 1183, spearheaded by Rep. Kendell Culp, aiming to curtail foreign ownership of agricultural land. The legislation prohibits purchasers from 'adversarial countries,' a list currently including Russia, China, North Korea, Iran, Cuba, and Venezuela, as defined by the U.S. Department of Commerce.

The bill builds upon a 2022 measure, limiting foreign entities from acquiring more than 320 acres in Indiana for crop farming or timber production. Culp emphasizes the broader significance, framing it not just as an agricultural but a food security issue. The proposed restrictions stem from concerns that losing control of even a fraction of the food supply could pose national security risks.

The new bill, endorsed 11-0 by the House agriculture committee, mandates an affidavit at real estate closings confirming the buyer's non-adversarial status. Adversarial beneficiaries can hold no more than 5% ownership in an Indiana farmland parcel and are restricted from acquiring water rights, mineral rights, or riparian rights.

While 24 states, including Indiana, have restrictions on foreign land ownership, critics, including the ACLU of Indiana, express concerns about potential national origin discrimination. The bill faces scrutiny for potentially excluding lawful citizens from adversarial countries who contribute to the local economy.

The legislation also establishes a mechanism for the Indiana Attorney General to investigate suspected violations, potentially leading to the forfeiture of unlawfully acquired land. Exceptions are made for land without agricultural activity in the last five years and parcels not recognized by the USDA's Farm Service Agency as farmland.

With 2.2% of Indiana's farmland currently owned or leased by foreign entities, Culp's bill aims to strike a balance between safeguarding national interests and avoiding unjust preclusion of immigrants. The legislation, set to take effect on July 1 if passed, ensures current and past transactions are grandfathered in, offering a delicate approach to navigate the complex landscape of agricultural land ownership.

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