Foreign investment in U.S. farmland is increasingly centred on renewable energy projects, according to a recent U.S. Government Accountability Office (GAO) report. The report reveals that foreign ownership of U.S. agricultural land, including farmland, pastures, and forests, surged by 50% between 2017 and 2022, driven largely by wind and solar energy initiatives.
While foreign-held land still represents just 3.4% of private U.S. agricultural land, the growing trend of leasing land for renewable energy has raised questions about the broader impact on rural communities and national security. The U.S. Department of Agriculture (USDA) estimates that up to half of the agricultural land earmarked for non-agricultural uses is likely intended for renewable energy projects by foreign entities.
Despite the increasing foreign presence, the exact scope of land used for renewable energy remains unclear due to incomplete data. The USDA report notes that about 25% of this land is controlled by wind companies, with smaller portions held by solar and other renewable energy firms.
The rise in foreign investment has sparked concerns among U.S. farmers and lawmakers. Some farmers benefit from lucrative leases for solar and wind projects, while others worry about losing prime agricultural land. Security concerns are also mounting, with nearly half of U.S. states enacting laws to restrict foreign ownership of private land.
Efforts to improve data tracking on foreign ownership are ongoing, with the USDA mandated to establish an online database as per a 2023 federal law. However, challenges in data collection and accuracy remain, leaving questions about the future of U.S. farmland ownership unanswered.
