KRS § 247.018 — KY Code / Title XXI / Chapter 247 / Section 247.018
247.018 Definitions -- Purchase, lease, or acquisition of agricultural land by nonresident alien, foreign business, foreign agent, trustee, or fiduciary for government of proscribed country -- Prohibitions and conditions -- Review of report -- Violations
Status: in_force

247.018 Definitions -- Purchase, lease, or acquisition of agricultural land by

nonresident alien, foreign business, foreign agent, trustee, or fiduciary for

government of proscribed country -- Prohibitions and conditions -- Review of

report -- Violations.

(1) As used in this section:

(a) "Agricultural land" has the same meaning as in 7 U.S.C. sec. 3508;

(b) "Fiduciary" has the same meaning as in KRS 131.010;

(c) "Foreign agent" has the same meaning as in 18 U.S.C. sec. 1839;

(d) "Foreign business" has the same meaning as in 26 C.F.R. sec. 301.7701-5;

(e) "Nonresident alien" has the same meaning as in 26 C.F.R. sec. 1.871-2; and

(f) "Trustee" has the same meaning as in KRS 218A.405.

(2) Notwithstanding any other provision of law to the contrary, except as provided in

subsections (3) to (5) of this section, on or after June 27, 2025, a nonresident alien,

foreign business, foreign agent, trustee, or fiduciary who has a legal relationship

with or is legally bound to take instruction from or execute decisions for the

government of any proscribed country referenced in 22 C.F.R. sec. 126.1, as

amended, shall be prohibited from:

(a) The purchase, lease, or acquisition of any interest in public or private

agricultural land located in the Commonwealth of Kentucky; and

(b) Participation in programs administered by the Department of Agriculture,

Agricultural Development Board, and Kentucky Agricultural Finance

Corporation.

(3) Any agricultural land purchased, leased, or acquired by a nonresident alien, foreign

business, foreign agent, trustee, or fiduciary who has a legal relationship with or is

legally bound to take instruction from or execute decisions for the government of

any proscribed country referenced in 22 C.F.R. sec. 126.1, as amended, prior to

June 27, 2025, may continue to own or hold the agricultural land, but shall not

purchase, lease, or acquire any additional agricultural land or interest in agricultural

land in this Commonwealth.

(4) Any entity that has a national security agreement with the Committee on Foreign

Investment in the United States and continues to maintain that national security

agreement may purchase, lease, or acquire a maximum of three hundred fifty (350)

acres of agricultural land for the purposes of:

(a) Agricultural research and development; or

(b) Experimental purposes, including testing, development, or production of any

crop production inputs for sale or resale to farmers, including but not limited

to:

1. Seeds;

2. Plants;

3. Pesticides;

4. Soil amendments;

5. Biologicals; or

6. Fertilizers.

(5) A nonresident alien, foreign business, foreign agent, trustee, or fiduciary may own,

purchase, hold, or develop agricultural land for immediate or potential

nonagricultural use in an amount necessary for the conduct of its nonagricultural

business operation, including the filing of any permit or application to any state or

federal agency having jurisdiction over the project for permitting purposes,

provided that:

(a) Development of the nonagricultural business operation has been completed

within five (5) years from acquiring the land. Failure to develop the land

within that time shall be deemed a violation of this section; and

(b) The agricultural land shall not be used for farming, except under lease to a

family farm unit, family farm corporation, or an authorized farm corporation,

pending the development of the agricultural land for a nonagricultural use.

(6) Nothing in this section shall prohibit an existing foreign business located in the

Commonwealth who has a legal relationship with or is legally bound to take

instruction from or execute decisions for the government of any proscribed country

referenced in 22 C.F.R. sec. 126.1, as amended, from purchasing, leasing, or

acquiring agricultural land adjacent to the land that the foreign business owns and

operates in order to expand the operation of its business.

(7) Nothing in this section shall exempt a nonresident alien, foreign business, foreign

agent, trustee, or fiduciary who has a legal relationship with or is legally bound to

take instruction from or execute decisions for the government of any proscribed

country referenced in 22 C.F.R. sec. 126.1, as amended, from:

(a) The provisions of the Agricultural Foreign Investment Disclosure Act, 7

U.S.C. sec. 3501 et seq., and its accompanying regulations at 7 C.F.R. pt. 781

et seq., or any amendments thereto; and

(b) Filing a copy of the report required by 7 U.S.C. sec. 3501 et seq., and its

accompanying regulations at 7 C.F.R. pt. 781 et seq., or amendments thereto,

with the Department of Agriculture within the time period specified therein.

(8) The Department of Agriculture shall review any report:

(a) Received in accordance with subsection (7) of this section; or

(b) Voluntarily submitted by a county register of deeds alleging a violation of this

section.

(9) If the Department of Agriculture has reason to believe that a violation of this

section may have occurred, the department shall refer evidence of noncompliance to

the Office of the Attorney General, which shall investigate the evidence for

violations of this section. The Office of the Attorney General may bring an action

pursuant to KRS Chapter 15 to enforce the provisions of this section.

(10) (a) If the court finds that agricultural land has been purchased or acquired in

violation of this section, then the court shall declare the agricultural land

escheated to the state and order the sale of the agricultural land in the manner

provided by law for the judicial foreclosure of a mortgage on real estate for

default of payment. The proceeds of the sale of the agricultural land pursuant

to this paragraph through judicial foreclosure shall be disbursed in the

following order:

1. Recovery of reasonable costs of litigation by the Office of the Attorney

General, as determined by the court and approved by the secretary of the

Finance and Administration Cabinet;

2. Payment of delinquent ad valorem taxes;

3. Payment to mortgage and other lien holders, in the priority determined

by the court; and

4. Deposit in the budget reserve trust fund.

(b) If the court finds that agricultural land has been leased in violation of this

section, then the court shall rescind the lease and it shall be rendered null and

void.