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Monday, April 29th, 2024

Agricultural Risk Review Act becomes law, guaranteeing place for agriculture secretary in Committee on Foreign Investment

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The U.S. Secretary of Agriculture will be a permanent member of the Committee on Foreign Investment (CFIUS) in the United States, thanks to passage of the Agricultural Risk Review Act (H.R. 3378) as part of the Consolidated Appropriations Act.

As a part of the committee, the secretary would be able to oversee any transactions related to the purchase of agricultural land, agricultural technology or any other transaction related to the U.S. agriculture industry. Until now, the chair of CFIUS – the Secretary of the Treasury – could designate the Secretary of Agriculture as a lead agency for transactions on a case-by-case basis, but there was no permanent guarantee.

During a House Agriculture Committee hearing earlier this year, USDA Secretary Tom Vilsack noted that being a permanent member would allow his agency to educate other members of CFIUS on what to look for in cases involving agriculture and agricultural production.

“With an increasing amount of potentially hostile foreign investment in U.S. farmland, protecting America’s agriculture industry becomes more and more paramount to our national security. That’s why including the Secretary of Agriculture as a member of CFIUS is long overdue.” U.S. Rep. Frank Lucas (R-OK), sponsor of H.R. 3378, said. “As a fifth-generation farmer and rancher, who’s seen this issue grow in concern, I’ve spent years to have this legislation see the light of day. So I applaud my colleagues in the House and Senate for bringing this longstanding priority of mine to President Biden’s desk.”

Other members of CFIUS include the heads of the Departments of Justice, Homeland Security, Commerce, Defense, State, Energy, the Office of the U.S. Trade Representative, and the Office of Science & Technology Policy.