 STATEHOUSE (March 21, 2022) – A new law sponsored by State Rep. Shane Lindauer (R-Jasper) will protect Hoosier farmland and prohibit land grabbing from foreign entities.
Lindauer said the legislation recently signed into law by the governor also prohibits Russian-controlled businesses from acquiring any land or real estate in Indiana for a year.
“Hoosiers want to send a message to Russia that we won’t stand for the aggression in Ukraine,” Lindauer said. “We want this hostile nation to feel the economic impact of their actions.”
According to the Center for Strategic and International Studies, foreign ownership of U.S. agricultural land has doubled from 2009 to 2019, with foreign investors purchasing at least 35.2 million acres nationwide. This represents 2.7 percent of all U.S. farmland, an area the size of Iowa. Indiana had more than 345,000 acres under foreign ownership in 2019, according to a U.S. Department of Agriculture report.
“Foreign investors are buying large amounts of farmland across the country and we want to protect our Hoosier farmers,” Lindauer said. “Indiana is one of the top states when it comes to agricultural production and we want to keep it that way.”
Effective July 1, the law will prohibit foreign business entities from acquiring agricultural land in Indiana for farming or timber production. Land could still be used for research or experimental purposes.
According to Lindauer, existing foreign landowners and properties of less than 320 acres will not be affected and several exemptions were added, including the poultry industry. Existing foreign landowners will not be able to transfer the land to another foreign entity.
Lindauer said foreign entities purchase agricultural land for a variety of reasons, including food production, wind farming, carbon offsets or speculative investments. He said large land purchases can present several challenges, such as water availability for Hoosier-owned farms and supply chain issues.
“We’ve seen instances in other states where wells have gone dry due to an influx of incoming operations, affecting local farmers who have been around for decades,” Lindauer said. “There are also concerns about countries like China controlling a significant portion of our food production, owning several aspects of the supply chain. This legislation helps us protect our longtime Hoosier farmers and our state.”
The law also requires disclosure of foreign gifts of at least $50,000 to colleges and universities in Indiana. Lindauer said this promotes transparency when it comes to foreign influence in higher education.
“The federal reporting system is deeply flawed and many universities don’t disclose gifts or foreign government involvement,” Lindauer said. “The goal is to gain better insight on the impact foreign actors have on our colleges and universities.”
