Table 6--Use of U.S. agricultural landholdings, by country of foreign owner,
February 1
: : : : Other Other non- : No usage
Country : Cropland : Pasture : Forest + agriculture : agriculture : reported Total
Non-U.S. interest: : Acres
Argentina 556 24 5 60 - 213 0 858
Australia Q 3 36% 835 15 50 2,027
Austria 1,371 1742 53 288 15 f) 3,629
Bahamas 160 |'851 90 14256 2,169 0 4,526
Belgium 782 6,125 700 795 730 0 9,132
Belize 153 285 130 53 0 1,221
Bermuda 4,231 410 4,519 132 1,586 0 10,878
Brazil 156 326 oO Oo 48:
Br. Virgin Is. : 274 2,992 185 63 °0 3,514
Canada 2 71,920 78,784 965,074 15,032 55,771 455 15187,036
Cayman Islands: 1,850 130 52 9 1,159 0 3,840
Chile : 0 5 0 0 5
China : 328 110 835 0 172 o 1,445
Colombia : 932 40 37 7,567 15 0 8,59
Costa Rica : 79 0 a 0 ty 79
uba : 5 0 0 5 0 0 10
Czechoslovakia =: 90 0 30 30 15 0 165
Denmark : 1,910 68 1,436 0 8 O° 3,422
Dominican Rep. 160 0 0 0 0 Oo 160
Ecuador : 1 0 ) 49 1 0 5
France : 4,854 909 1,331 612 396 0 11,102
Germany (West) : 115,149 81,396 27,489 11,195 13,516 783 249,528
Greece : 104 13150 0 116 0 1,385
Guatemala 36 28 20 B 0 115
Guyana 0 0 35 a 0 35
Honduras Q 0 0 0 15
Hong Kong 665 3,668 25,028 166 0 30,005
India 70 9 66 oO 339
Indonesia 0 20 0 0 0 20
Iran 274 404 45 589 0 1,609
Ireland 2,658 2 15 4,695 0 13,803
Israel 6 0 114 16 0 336
Italy 279 163 329 28 0 2,054
Ivory Coast 80 39 0 Oo 19
Jamaica 291 O 7 0 31
Japan 939 206 602 700 0 371
Jordan 60 25 0 0 0 229
Korea (South) 0 0 26 0 0 26
Kuwait 0 125 0 206 0 a5
Lebanon 2,354 0 311 Oo 4,019
Liberia 58 890 0 1,344 Q 2,636
Libyan Arab Rep. Q O 0 287 0 287
Liechtenstein 8,629 10,738 797 9,954 0 38,019
Mexico 97,923 2,962 421 5,830 0 113,461
Namibia a 0 Q 4 0 146
Netherlands 7,649 2,524 4,869 54155 0 35,91
Neth. Antilles 1025384 22,962 8,298 6,883 0 2545996
New Zealand fy 5 5 7 0 77
Nicaragua 854 200° 60 127 Q 1,26
Norway 475 0 236 465 0 4,156
Oman 126 126 0 10 0 262
Pakistan 0 0 0 0 0 1,156
Panama 254381 1,299 1,742 5,366 418 54,639
Peru 0 0 3 11 0 4,
Philippines 457 2 "7 495 f) 1,346
Portugal 0 fy o 14 0 411
Saudi Arabia 86 45 0 0 0 291
Spain : 588 547 " 132 168 t) 1,446
Surinam : 116 0 0 44 o 160
Sweden : 192 70 1,090 0 9 0 1,361
Switzerland  -29,532 94002 11,888 7 11,161 0 62,500
Turkey : 159 283 0 116 0 0 558
United Kingdom : 3,682 111254: 2,347 2,849 2,057 5,607 27,796
+S.S.Re : 4a 0 36 f 0 0 80
Uruguay : 160 8 fy 1 0 t) 169
--Continued
14



Table 24--Dispositions of U.S. agricultural land by ‘foreign owners by State,
February 2, 1979-February 1, 1980

State 3 Parcels reported _ Acres
: ‘Number:

Alabama : 2 305
Arizona 3 7 2,047
Arkansas 3 2 5,520
California 3 24 6,370
Colorado : 5 9,709
Florida : 8 “14,414
Georgia 2 18 5,200
Idaho 3 2 5,926
Illinois : 14 “1,479
Indiana 2 2 293
Towa : 1 531
Louisiana 3 3 10,827
Maryland : 2 141
Michigan : 1 10
Mississippi : 3 220
Missouri : 5 2,710
Montana : 1 160
Nebraska : 1 27
Nevada : 1 23,950
New Jersey : 2 - 194
New York 2 1 2
North Carolina 3 7 242
Oklahoma : 1 160
Oregon ¢ 3 1,029
South Carolina : 8 5,014
Tennessee : 2 59
Texas : 17 6,853
Utah 3 1 5
Vermont 3 19 356
Virginia 3 4 615
Washington 3 13 448
Wisconsin : 6 1,090

Total : 186 105,906

There is only one report on the limited number of land-use changes, 25 acres being
taken out of agricultural use, because the forms received by the Department are being
corrected. No changes from nonagricultural to agricultural use were, reported.

35


Table 20--U.S.-forest and other nonagricultural land

acquisitions by country of foreign owner,
February 2, 1979-February 1, 1980

Owners Parcels
Country reporting reported 2 Acres Value 1/
-Number- 1,000 dollars
Non-U.S. interest:
Australia 3 1 1 102 39
Belgium : 1 1 150 58
Br. Virgin Is. : 2 2 12,574 5,575
Canada 3 19 20 496 1,225
Egypt : 2 2 85 87
Finland 2 2 358 228
France : 1 1 98 88
Germany (West) : 17 23 8,623 4,405
Jordan 1 2 40 85
Lebanon . 1 1 25 30
Liechtenstein 2 2 40 11
Mexico 3 6 1,303 1,130
Netherlands 1 2 998 96
Neth. Antilles 9 9 2,233 5,124
Philippines 1 1 84 20
Spain 1 1 306 975
Switzerland 1 1 217 83
Syria 1 1 38 52
United Kingdom : 2 2 87 62
Multiple 3 1 1 80 175
Subtotal 3 69 81 27,937 19,548
U.S. interest: :
U.S./Belgium 3 1 1 682 306
U.S./Bermuda 1 1 485 224
U.S./Canada : 9 60 12,145 11,340
U.S./Germany (West): 6 10 4,287 2,874
U.S./Netherlands 1 1 40 25
U.S./Switzerland 2 3 1,377 608
U.S./United Kingdom: 4 73 17,552 7,752
U.S./Multiple < 5%: 1 1 28 3,145
Subtotal 25 150 36,596 26,274
Total 94 231 64,533 45,822

1/ Value is purchase price or nonpurchase price (estimated value).

31




Some of the concentration suggested by the acreage data also appears in the value data
(table 3). Replies on current value were reported on 5,107 of the 5,944 parcels for
which there was acreage information. Distribution of the 5,107 parcels for which cur-
rent value was reported shows that value also is concentrated in the larger holdings.
Parcels ranging in size from 300 to 1,000 or more acres account for 76 percent of the
value.. For acreage, however, al small number of acres can account for a large share of
the wealth.

As value represents a measure of size, current value in table’ 4 also measures price.
Section 2 of AFIDA requires foreign owners to report the: purchase price. For recent
acquisitions, current value generally will be close to, but not necessarily the same
as, purchase price. As time palsses, purchase price (or value at the time of acquisi-
tion, if not purchased) becomes a poor ‘indicator of current value. Because 478 more
owners reported purchase price [than reported current value, direct comparison of the
two totals cannot be made (table 4). Some indication of aggregate appreciation can be
made by multiplying the average| purchase price times the 478 reports and subtracting’
this result from the total purchase price. The total is an aggregate current value of
$2.5 billion of land acquired alfter 1960, which is 31 percent greater than the price
at which it’ was acquired.4 But the aggregate change is difficult to interpret
without reference to a time period; some of the land had been held for nearly 20
years, some for only 1 year. Appreciation from year of acquisition. to date varied
between 4.5 percent per year (midpoint of 1970-74) to 11 percent per year (1977).
Average appreciation from 1965 to 1979, weighted by value, was'9.1 percent per year.
Compared with appreciation of. value of farm real estate generally, the increase in
value of foreign-held land is low. .

Equity is frequently used as a Leasuce of net foreign investment transfer from foreign
investors. to the United States.|..To approximate equity, responses to question 7C on
the report form, amount remaining to be paid for the land, were subtracted from ques—
tion 7B, the current value, for|.all reports with answers to both: questions 7B and 7C.
The 4,733 reports providing information on debt, $620,229,000, and current value,
$2,456,854,000, resulted in an equity figure of $1,836,625,000. As percentage values,
equity is.75 percent of the current value and 81 percent of the sum of the purchase
prices and estimated nonpurchase prices.

Another measure of net foreign jinvestment transfer is the difference between the
totals of the purchase prices or estimated nonpurchase prices (7A) and the debt
remaining (7C). The 5,392’ reports responding to both questions 7A and 7C reveal a
debt of '$715,996,000, the net foreign investment transfer remaining to be made; and a
difference of $1,363,298,000, the net foreign investment transfer already made over a
period of time.

designed to attribute foreign person status to certain
id indirect interests in U.S. agricultural land. This
sive link in a chain of U.S. entities containing for-

Country of origin.--The act is
U.S. entities holding direct ‘an
is done by defining each succes

eign interests as a “foreign pe
holds the direct interest in thi
reporting entity.

As pointed out, this entity may|
deemed a “foreign person” becau

interest-or substantial-control}

not actually be foreign but may
The indirect “foreign” owner of

47 For 1960 through .1979, 4,
5,214 parcels had a. purchase -pr

son.” However, only the "foreign person" who actually
land, in the first layer or tier, is considered the

not actually be. foreign, but under the act it is
se another "foreign person” holds “a: significant
in it. -In some instances, that second tier may also
be deemed "foreign" under the act for the same reason.
the real estate may be at the end of a string of U.S.

08 parcels had a’current value
ce ‘of $2,156 ;425,000.

of $2,499,688,000 and

t



United States
Department of Agriculture

Washington, D.C.
20250

OFFICIAL BUSINESS
Penalty for Private Use, $300

Postage and Fees Paid
U.S. Department of Agriculture
AGR-101

THIRD CLASS

z



Table 8--U.S. forest and other nonagricultural landholdings,
by country of foreign owner, February 1, 1979
: Parcels
: with
: current
Owners 2° Parcels value Current
Country reporting | : — reported Acres reported value
1,000
emma mene me man anaf ‘Number~---~------~--~-------------- dollars
Non-U.S. interest: :
Australia : 2 3 364 2 37
Austria : 1 1 53 1 14
Br. Virgin Is. : 1 1 185 Q 0
Canada : 241 259 937,880 211 10,159
Chile : 1 1 5 1 5
China : 1 1 808 0 0
Denmark : 2 3 1,436 3 982
France : 1 1 64 0 0
Germany (West) : 26 29 13,365 25 6,153
Hong Kong : 1 4 3,638 4 3,049
Indonesia : 1 1 20 1 50
Iran : 1 1 53 1 116
Japan : 1 1 200 0 0
Liberia : 1 1 890 a Oo
Liechtenstein 5 9 10,363 9 4,690
Mexico 2 2 2,607 4 72
Netherlands 4 4 4 63
Neth. Antilles 5 6 14,736 6 6,730
New Zealand 1 1 5 1 20
Panama : 1 1 71 1 389
Philippines : 1 1 19 1 90
Switzerland : 4 10 7,267 7 746
United Kingdom : 9 4 839 4 383
Venezuela : 4 4 707 4 260
Vietnam : 1 1 152 1 930
Multiple 2 3 3 134 3 579
Subtotal : 324 363 997,191 301 35,527
U.S. interest: :
U.S./Austria : 2 3 360 2 392
U.S./8r. Virgin Is. + 1 5 9,586 5 2,693
U.S./Canada 22 186 288,323 164 108,586
2 3 9,298 2 2,601
1 5 4,290 5 917
4 a 5,487 a 9,037
“Se i 3 3 3,470 Oo Oo
-5./Netherlands 3 5 121,573 5 9,718
-5./Neth. Antilles “4 4 787 4 1,567
-S./Panama 3 3 1,411 2 1,342
+5./Switzerland é 9 4,992 9 25679
+S./United Kingdom 4 629 885,087 618 142,924
S./Venezuela 1 1 1,500 1 400
U.S./Multiple 3 5 4,390 5 5,540
Subtotal 66 879 1,340,554 840 288,396
Total 387 1,242 2,337,745 1,141 323,923
18



Leaseholds

Under the AFIDA regulations, leases of 10 years or longer are the only leases which
need be reported.2/ They are treated separately because they represent a. totally
different type of interest. Because the ASCS-153 form was not devised to deal with
leases, questions on value, tenure, and method of acquiring land do not apply. For-
eign persons who reported leasehold interests usually noted something on the form
about their position. as a lessee. The Department received reports on 200 parcels of
leased land. These parcels contain a total of 579,095 acres of which timberland
accounts for 545,566 acres, or 94 percent of the foreign leaseholds reported.

IMPACTS OF FOREIGN OWNERSHIP ON FAMILY FARMS AND RURAL COMMUNITIES

The previous report to the Congress covering the first 6 months' activities ‘under

the act provides an initial statement on the economic and social effects of foreign
ownership of U.S. agricultural land. In summary, the quantity of foreign-owned U.S.
agricultural land is so small that it is unlikely that any aggregate impact on agri-
culture, either positive or negative, could be detected. In areas of heaviest concen-
tration, some communities could| be locally affected. That report also describes USDA
research to obtain comparable data on the domestic side necessary to assess the ©.
impacts of foreign ownership of|U.S. agricultural land. The third AFIDA report;* due
“to the Congress March 31, 1981,|will contain preliminary results of that research.

5/7 7 C.F-R. §§781.2(c) and .|3 (1980).



SUMMARY

Foreign entities and individuals reported that. they owned.5.6 million acres of U.S.
agricultural land as of February i, 1980, slightly less than 0.5 percent of U.S.
agricultural land. Forest ‘lands account for 2,593,217.acres, or 46 percent of the
acreage that foreigners report they hold; crop, pasture, and-other agricultural. land ~
- for 2,755,625 acres; or 48 percent; and nonagricultural .land_and unreported use for
328,813 acres, or 6 percent. ee .

The Agricultural Foreign Investment Disclosure Act of 1978. requires all foreign owners
of U.S. agricultural land to report those holdings to the.Secretary of Agriculture.
This report analyzes the 7,705 forms received and accepted by,the U.S. Department of
Agriculture from February 1, 1979, through February.1, 1980, the cutoff date for re—
porting on the first year's activities under the act. Of these forms, 5,944 reported
on 5,033,429 acres of holdings (as of February 1, 1979); 1,374 on 644,226 acres of
acquisitions, 186 on 105,906 acres of dispositions, and 1.on a land-use change of 25
acres to nonagricultural land (from February 2,,1979, through February 1, 1980); and
200 on 529,095. acres of leases. : .

Corporations own about 81 percent of the total acreage reported; partnerships, about
10 percent; and individuals, 8 percent. About 1 percent is held by governments,
estates, trusts, associations, institutions, and other types of owners, such as real
estate investment trusts and church associations.

U.S. entities with foreign interests (foreign interests are those owning at least 5
percent of the entity) reported owning 3,086,066 acres, or 54 percent, of all holdings
and acquisitions by foreigners of U.S. agricultural land. The remaining 2,591,589
acres, or 46 percent, were reported as being held or acquired by foreign persons
(individuals, entities, and governments) not affiliated with a U.S. entity.

U.S. entities with foreign interests from the United Kingdom, Luxembourg, Canada, West’
Germany, the Netherlands, and the Netherlands Antilles account for 2,550,169 acres, or
45 percent, of all foreign-held U.S. agricultural land. Holdings and acquisitions of
foreign persons not affiliated with U.S. entities, from Canada, the Netherlands
Antilles, West Germany, the Netherlands, and the United Kingdom, total 2,040,493
acres. These six countries account for 81 percent of the foreign investment in U.S.
agricultural land. :

Foreign holdings and acquisitions in Maine total 953,852 acres, 17 percent of all

' foreign-owned acreage, and more than 5 percent of all privately owned agricultural
land in Maine. Holdings of Partial interests by one large timber company cover
860,000 of these acres. mm .

\

A number of parcels are held only in part by foreign investors. ‘Adjusting the
5,677,655 acres of holdings and acquisitions for these partial interests reduces the
acreage equivalent for foreign-held land to 4,790,484 acres, a 16-percent drop.

Except for Maine, foreign holdings and acquisitions are concentrated in the South.
Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Texas
contain 1,903,215 acres, or 32 percent, of foreign-held agricultural land.

Of the 7,318 parcels, covering 5,677,655 acres of holdings and acquisitions, 87
percent (94 percent of the acreage) reported no change in intended use. No change in


Table 18--Use of U.S. agricultural land acquisitions by foreign owners,

February 2, 1979-February

1, 1980--Continued

by country of owner,

: : : Other Other non- : No usage :

Country : Cropland : Pasture Forest : agriculture : agriculture : reported : Total

U.S. interest--| + ‘Acres

Con. :
U.S./France : 1,826 1,802 2 373 865 0 4,868
U.S./Germany :

(West) : 56,481 42,386 5,177 7,629 20 0 112,583
U.S./Guatemala =: 0 392 o 0 0 Oo 392
U.S./Hong Kong 130 30 0 0 0 Oo 160
U.S./Iran : 0 0 0 106 t) 0 106
U.S./Italy : 145 0 0 f) 0 0 145

+S./Japan : 130 134 Q 0 9 o 363
U.S./Korea (South): 0 63 0 f) 12 0 BS
U.S./Liberia 6 0 0 40 2,706 oO 2,752
U.S./Liechtenstein: . 8,517 242 620 594 80 0 10,053
U.S./Luxembourg 884 380 236 0 21 0 1,521
U.S./Mexico 45 261 0 0 0 306
U.S./Nether lands 578 904 376 237 3,836 0 5,931
U.S./Neth.

Antilles 4,749 2,568 5 0 80 o 7,402
U.S./Nicaragua 0 200 40 Q 0 0 240
U.S./Panana 187 fy fy 0 130 0 317
U.S./Sweden Oo 5 0 Q 32 0 107
U.S./Switzerland 3,565 785 2,085 4,484 707 0 11,626
U.S./Thailand 136 a fy 18 0 0 154
U.S./Turkey 130 129 0 f) 0 oO 159

United

Kingdom 1,922 1,929 18,214 1,576 1,843 0 25,484
U.S./Venezuela 135, 0 0 50 0 o 185
U.S./Mult iple 1,011 1,173 189 216 0 0 2,589
U.S./Multiple <. 5 649 80 4 0 4 0 757
U.S./Third Tier 500 0 0 t) a7 0 527

Subtotal 93,477 59,543 40,437 20,353 14,373 0 228,183

Total 241,160 195,765 92,204 66,796 48,297 4 644,226,

29


Table 6--Use of U.S. agricultural landholdings, by country of foreign owner,

February 1, 1979--Continued

: : : Other —: Other non- No usage
Country Cropland : Pasture :. Forest : agriculture : agriculture : reported : Total
Acres
Non-U.S. interest:
Con.
Venezuela 890 723 1,312 593 757 0 4,275
Vietnam 0 0 152 0 oO 0 152
Yugoslavia 0 0 0 0 1 0 1
Multiple 3,118 3,085 251 235 675 160 7,524
Multiple < 5% 8 0 0 0 0 f) 8
Subtotal 426,426 454,971 1,065,927 86,257 134,492 7,473 2,175,546
U.S. interest:
./Australia 228 0 0 0 125 0 353
-/Austria 675 0 554 0 28 0 1,257
«/Bahamas 18,025 6,790 907 1,960 4,345 0 32,027
/Belgium 5,837 30,747 377 426 1,054 0 38, 44
-/Bermuda 3,453 205 0 397 375 0 4,430
/Brazil 557 0 0 301 0 0 858
+S./8r. Virgin
Is. 662 365 10,275 0 151 0 11,453
U.S./Canada 8,911 20,383 273,233 4,072 38,448 0 345,047
U.S./Cayman Is. 12,403 1,161 969 1,232 586 0 16,35
0 0 0 3 Oo 1,162
6,575 50 0 0 0 6,735
- 0 47 5 6 0 185
1,136 i 0 0 0 1,136
0 8 0 0 0 165
12,177 17,215 13,017 9,752 0 60,922
154,568 13,467 3,436 11,563 390 229,599
3,531 0 0 3,215 0 6,746
S./Guatemala 1,355 0 oO 0 5 0 1,360
-/Guyana 0 0 334 0 Oo 334
«/Hong Kong 593 391 0 0 27. 0 1,014
/Iran 36 0 0 5 0 a
3/Iraq 800 0 0 0 0 0 800
-/Italy 15,159 10,249 29,343 54816 13,660 0 14,227
/Japan 6,242 0 5,461 552 1,452 0 13,707
S./Lebanon 31 40 61 0 2 0 134
S./Liberia 1,069 17,936 3,520 660 202 0 23,387
S./Liechtenstein: 20,847 4,075 657 1,748 1,656 0 28,983
S./Luxembourg 13,556 164,413 1,954 237,665 7,279 0 424,867
S./Mexico 2,041 14,623 132 53927 2,077 0 24,800
-/Nethertands 15,660 45,222 152,389 713 17,481 0 231,465
S./Neth.
Antilles 42,225 75,485 13,429 2,084 6,101 0 139,324
S./Norway 15 12 80 5 8 0 120
S./Pakistan 575 0 0 98 35 0 708
S./Panama 6,515 2,799 3,721 1,050 826 0 14,911
S./Philippines 650 31 0 0 385 0 1,066
S./Poland 2 25 50 0 0 0 147
S./Singapore 0 0 0 0 52 0 52
. 900 300 178 50 50 o 1,478
Se. 20 5 358 10 0 0 393.
Se. 96 0 oO 0 1 Oo 187
S./Switzerland 38,666 18,593 10,848 4,379 6,502 0 78,988
S./United
Kingdom 36,155 57,590 890,020 10,434 6,126 253 1,578,000
U.S./Venezuela 605 303 1,176 158 976 0 3,218
U.S./Multiple 19,307 2,422 4,362 287 1,761 0 28,139
ip. 2,311 693 235 177 804 0 4,220
U.S./Third Tier 1,113, 539 0 29 690 0 2,371
Subtotal 333,844 653,384 1,435,086 297,022 137,904 643 2,857,883
Total 760,270 1,108,355 2,501,013 383,279 272,396 8,116 5,033,429

15


Table 13--U.S.

agricultural land acquisitions of foreign owners by State,
February 2, 1979-February 1, 1980

State Acres Valuel/
Number 1,000 dollars
Alabama 10,452 7,868
Alaska 1,456 on
American Samoa 0 Q
Arizona 13,759 85,731
Arkansas 19,567 19,190
California 128,753 230,949
Colorado 46,886 16,840
Connect icut 0 0
Delaware: 531 1,154
Florida 21,522 64,449
Georgia 28,660 28,001
Hawaii 6,930 1,413
Idaho 53657 720
Illinois 53790 10,127
Indiana 1,667 4,550
lowa 7,830 15,022
Kansas - 23545 23094
Kentucky 13622 23461
Louisiana 255301 173351
Maine 23246 268
Maryland 93297 16,151
Massachusetts 0 0
Michigan 794 886
Minnesota 359 598
Mississippi 12,165 14,726
Missouri 1,320 1,024
Montana 415636 3,467
Nebraska 377 490
Nevada 44,019 8,132
New Hampshire 445 286
New Jersey 490 843
New Mexico 1,933 1,575
New York 6,492 6,867
North Carolina 3969 4,696
North Dakota 1,016 835
_ Ohio 23910 54325
Oklahoma 13608 5,897
Oregon 13917 7,084
Pennsylvania 509 13869
Puerto Rico 603 45022
Rhode Island 0
South Carolina 23,851 16,788
South Dakota 20,918 7,412
Tennessee 11,915 55535
Texas 85,840 276,254
Utah 489 250
Vermont. 6,957 21,028
Virginia 17,027 30,388
Washington 73377 60,479
West Virginia 23223 82
Wisconsin 23996 5,988
Wyoming 13600 a
Total 644,226 1,019,289

4/ Value is purchase price or nonpurchase price (estimated value).

21


States also account for 68 percent of the current value of such land for parcels
reporting current value.

Foreign persons from Canada and U.S./U.K., U.S-/Canadian, and-U.S./Netherlands enti-
ties are the largest foreign holders of U.S. forest or forest and other nonagricul-
tural lands (table 8). The holdings from these three countries of origin account for
96 percent of the acreage in these lands.

Individuals comprise the largest number of owners reporting on forest only or forest
plus other nonagricultural land--253 owners with 276 parcels. These represent 22
percent of the parcels reported, but only 26,652 acres, or 1 percent of the acreage
(table 9). Of corporations, 89 reported on 908 parcels, or 73 percent of the parcels
reported. These represented 2,203,971 acres, or 94 percent of the acreage. The
remaining 5 percent of the parcels and acres are held by governments (only one, with 5
acres), partnerships, trusts, and others. Note that when partial interests are.taken
into account, the acreage equivalent is 642,008 acres less than the number of acres
for which reports were filed.

Table 9 shows how size of holding varies by type of holder. For owners with less than
300 acres, 78 percent hold 0.6 percent of the forest land or forest and other nonagri-
cultural land, and 22. percent of the owners, with 300 acres or more, hold 99.4 percent
of these lands (table 10). Part of this concentration may’ be attributable to the many
small Canadian recreation holdings which apparently were erroneously reported in the
other nonagricultural category. A similar concentration exists for current value:

the 868 parcels containing 300 or more acres for which current value was reported
account for 95 percent of the value.

Intended Use

People have expressed interest in what. amounts of farmland are being purchased and
taken out of agricultural production. Foreigners do not..appear to be proceeding in
this direction to any significant degree. No change in intended use was reported for
88 percent of the acres (table 11). Intended use changes to other agricultural usage
were reported for holders of 2 percent of the acres. Reports for 8 percent of the
acres indicate that some change to nonagricultural use is intended. Such reports do
not necessarily mean, however, that all of these acres will be changed. What the
reports do mean is that the holders of these acres intended to change the use of some
of the acreage. However, the report form does not ask how many acres will be in-
volved. Reports for 2 percent of the acres did not indicate intended use.

Tenure Change

No tenure changes were reported for 37 percent of the parcels, or 40 percent of the
acres (table 12). Reports for 32 percent of the parcels containing 35 percent of ‘the
acres indicate a new tenure arrangement on at least part of the land. However, the
number of acres actually affected by the new tenure arrangements are not reported on
the reporting form. Thus, the acreage may be overstated; that is, new tenure arrange-
ments do not necessarily affect all of the acres in these parcels. No responses on
tenure changes were received for 30 percent of the parcels containing 25 percent of
the acres.

Acquisitions

Data in this section are derived from the 1,374 reports filed by "foreign persons" who
acquired U.S. agricultural land between February 2, 1979, through February 1, 1980,
and which were received and accepted by the Department as of February 29, 1980. These
report forms account for 644,226 acres of U.S. agricultural land. Also included in

17


Table

19—U.S. forest and other nonagricultural land

acquisitions of foreign owners by State,
February 2, 1979-February 1, 1980

Parcels

State : reported : Acres Value 1/
ba | ‘Number- <= 1,000 dollars

Alabama 3 42 9,782 7,312
Alaska : 6 1,072 633
Arkansas 3 2 100 34
Florida : 3 1,657 4,606
Georgia : 34 11, 356 7,139
Illinois : 1 980 410
Kansas : 1 1,701 575
Kentucky : 1 326 419
Louisiana 2 5 573 417
Michigan : 2 60 7

Minnesota 3 1 120 126.
Mississippi 3 5 594 397
Missouri 2 2 30 12
Montana : 1 144 200
New York : 3 287 51
North Carolina : 11 522 491
Oregon 3 1 375 1,400
Pennsylvania 3 1 98 88
South Carolina : 59 17,157 7,637
Tennessee 5 11,090 5,129
Texas 10 ‘ 1,908 2,617
Vermont 8 1,643 277
Virginia 5 290 181
Washington. 14 483 4,901
West Virginia 8 2,185 753
Total 3 231 64,533 45,822

1/ Value is purchase price or

30

nonpurchase price (estimated value).


Table 5--U.S. agricultural landholdings by country of foreign owner,

February 1, 1979--Continued

: : : : Parcels :

: : to 2 with :

: : : : current
: Owners : Parcels : : value : Current
Country : reporting | : reported : Acres: reported value
1,000
dollars

Non-U.S. interest--Con.
United Kingdom 27,796 9,714
U.S.S.R. : 1 1 80 1 50
Uruguay : 2 2 169 2 577
Venezuela : 39 45 4,275 37 9,619
Vietnam : 1 1 152 1 930
Yugoslavia : 1 1 1 1 10
Multiple : 20 24 7,524 _B 8,924
Multiple < 5% : 1 1 8 4 88,000
Subtotal 3,346 3,893 2,175,546 3,286 1,226,818
. interest: :

-/Australia 3 4 353 4 2,369
-/Austria 4 5 1,257 4 1,369
-/8ahanas 10 3 32,027 B 18,476
-/Belgium 11 7 38,441 6 7,911
-/Bermuda 7 9 4,430 8 14,610
./Brazil 1 1 - "858 1 25122
U.S./Br. Virgin Is. 3 9 11,453 9 4,348
U.S./Canada 131 415 345,047 375 287,874
U.S./Cayman Is. 12 7 16,351 4 15,619
i 8 8 1,162 4 1,959
4 4 6,735 4 7,290
u 1 1 185 1 200
U 1 1 1,136 1 1,000
u 1 1 165 1 138
u 12 26 60,992 25 115,914
u 88 122 229,599 5 122,653
u 4 4 6,746 1 1,500
u 1 1 1,360 1 1,000
u 1 2 334 2 284
u 4 4 1,011 3 1,373
U.S. 1 1 44 1 450
U.S. 4 1 800 0 0
U.S. 7 9 74,227 8 65,034
U.S. 7 23 13,707 20 30,552
U.S./Lebanon 1 4 134 1 160
U.S./Liberia 8 8 23,387 2 2,050
US. 39 49 28,983 35 49,369
U.S./Luxembourg 19 22 424,867 2 18,692
U.S. /Mexico 10 12 24,800 2 15,068
U.S./Netherlands 35 228 231,465 216 138,027
U.S./Neth. Antilles 30 46 139,324 “1 75,779
U.S. /Norway 1 1 120 1 50
U.S./Pakistan 3 3 708 3 1,446
U.S./Panama 19 26 14,911 B 18,686
U.S./Philippines 2 2. 1,066 1 175
u. 1 4 147 1 88
U.S./Singapore 1 1 52 1 S77
U.S./South Africa 1 1 1,478 1 1,500
U.S./Spain 1 1 393 0 oO
U.S./Sweden 1 1 187 0 0
U.S. /Switzerland 61 130 78,988 104 66,835
U.S./United Kingdom 36 752 1,000,578 701 230,383
U.S./Venezuela 12 4 3,218 B 3,390
U.S./Multiple 20 24 28,139 22 24,915
U.S./Multiple < 5% 1 21 4,220 B 28,175
U.S./Third Tier : 9 9 2,371 8 8,897
Subtotal : 660 2,051 2,857,883 1,821 1,388,307
Total : 4,006 5,964 5,033,429 5,107 2,615,125

12


Foreigners have reported acreage holdings in 49 States, Puerto Rico, and American
Samoa (fig. 1). Only Rhode Island has no reported foreign-owned agricultural land. A
high concentration of foreign investment appears ‘in ‘the South.2: .

Figure 2

State Concentration of Foreign Ownership of Agricultural Land,
February 1, 1979 :

50,000 - 99,999

fae sae
BME 200,000 & over

There are approximately 1.26 billion acres of privately held agricultural land in the
United States. In each State |(except Rhode Island, with no foreign holdings, and

Maine, noted later), only a small proportion of the. privately held agricultural land
is foreign owned (fig. 2).

Florida, Georgia, South Carolina, Tennessee, and Texas contain 1,401,412 acres (table
1), or.28 percent,’ of all reported foreign-owned agricultural. land.

3/ The Northeast region includes Maine, New Hampshire, Vermont, Massachusetts,
Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, and
the District of Columbia. The North-Central region includes Michigan, Wisconsin,
Minnesota, Ohio, Indiana, Illinois, Iowa, Missouri, North Dakota, South Dakota,
Nebraska, and Kansas. The Southern region includes Virginia, West Virginia, North
Carolina, Kentucky, Tennessee} South Carolina, Georgia, Florida, Alabama, Mississippi,
Arkansas, Louisiana, Oklahoma! Texas, and Puerto Rico. The Western region includes
Montana, Idaho, Wyoming, Colorado, New Mexico, Arizona, Utah, Nevada, Washington,
Oregon, California, Alaska, Hawaii, and American Samoa.


Land Use

Of the acres acquired for the reporting period, 37 percent (241,160 acres) are crop-
land and 14 percent (95,204 acres) are forest land:

: Parcels
Usage : reported Acres
Crops 3 526 241,160
Pasture : 325 195,765
Forest : 423 92,204
Other agriculture : 247 66,796
Other nonagriculture 513 48,297
Not reported 1 4
Total 2,035 644,226

This reverses the land-use holdings reports in which holdings for forest land far
exceed those for cropland. The cropland acquisitions averaged 458 acres per parcel,
more than twice the forest land acquisitions of 217 acres per parcel. Only 7 percent
(48,297 acres) of the acreage acquired was reported in the "Other nonagriculture”
category.

The largest acquisitions of cropland were reported by U.S./West German entities
(56,481 acres), and foreign persons from the Netherlands Antilles (48,660 acres),
Germany (32,857 acres), and Canada (25,803 acres), accounting for 68 percent of the
cropland and 25 percent of the reported acquisitions (table 18). The largest acquisi-
tions for pastureland were reported for foreign persons from Germany, Greece, and the
Netherlands Antilles and U.S./German entities, totaling 133,281 acres, or 68, percent
of the pastureland and 21 percent of the total acquisitions. The largest acquisitions
for forest land were reported for foreign persons from the British Virgin Islands and
Germany and U.S./Canada and U.S./U.K. entities, totaling 63,248 acres, or 69 percent
of the forest land and 10 percent of total acquisitions. Foreign persons from the
Netherlands Antilles reported the largest other agricultural acquisitions, - 17,539
acres.

Separating out data on reports for only forest land or forest land and other nonagri-
cultural land (table 19) shows that the average parcel size of 279 acres is almost
one-seventh of the comparable average for holdings (table 8). However, the concen-
tration of acquisitions of these lands continues in the South, as with the holdings
reports, except for North Carolina. Alabama, Georgia, South Carolina, and Tennessee
account for 61 percent of the parcels, 77 percent of the acres, and 60 percent of the
reported value.

Foreign persons from the British Virgin Islands and Germany and U.S./Canada, U.S./
Germany, and U.S./U.K. entities are the largest purchasers of U.S. forest or forest
and other nonagricultural lands (table 20). These four countries of origin account
for 86 percent of the acres acquired.

Individuals comprise the largest number of owners reporting on forest and other
nonagricultural acquisitions--43 owners reporting on’ 47 parcels, or 20 percent of the
parcels reported, covering only 7,088 acres, or 11 percent of the acres (table 21).
Thirty-seven corporations reported on‘165 parcels, or 71 percent of the acquisitions,
covering 52,398 acres, or 81 percent of the acreage.

27


Table 16--Value of

U.S. agricultural land acquisitions. by type

of foreign owner, February 2, 1979-February 1, 1980

oe Parcels
: : | Parcels with :
: : | with, non- :
3 : | purchase purchase
Type of 3 Owners 3 price Purchase price : Nonpurchase
owner : reporting : | reported price reported price
: 1,000 1,000
3 ‘Number- dollars Number dollars
Individual 2 441 477 145, 309 7 3,298
Government 2 2 2 2,087 te) 0
Corporation : 410 647 686,212 27 29,752
Partnership 2 146 179 142, 393 2 1,632
Trust 3 19 18 6,656 1 1,166
Institution : 1 1 390 0 O
Other 3 3 3 394 0 0
Total 2 1,022 1,327 983,441 47 35,848
: | Parcels with Parcels with
: current value} Current equity
3 reported value reported Equity
: Number 1,000 dollars Number 1,000 dollars
Individual 2 385 127,087 355 88,610
Government 3 2 2,087 2 1,145
Corporation : 559 477,003 513 272,573
Partnership 3 150 132,243 141 66,036
Trust 3 15 7,359 13 ~ 4,575
Institution. : 1 390 1 390
Other 3 3 394 3 107
Total : 1,115 746,563 1,028 433,436

24



Foreign Ownership of U.S. Agricultural Land,
February 1,1979, Through February: 1, 1980

J. Peter DeBraal*

ANALYSIS OF DATA REPORTED UNDER THE
AGRICULTURAL FOREIGN INVESTMENT DISCLOSURE ACT

Foreign entities and individuals reported owning 5.6 million acres of U.S. agricul-
tural land, as of February 1, 1980, an amount which represents slightly less than 0.5
percent of all U.S. agricultural land. This key finding and others are presented here
as part of the requirements of the Agricultural Foreign Investment Disclosure Act of
1978. This report's objectives are, as directed by section 5 of the act, to analyze
information sent to the Secretary of Agriculture by foreign entities and individuals
and to determine the impact of foreign ownership of agricultural land, particularly
the effects on family farms and rural communities.

Summary of the Act

The Agricultural Foreign Investment Disclosure Act (AFIDA) was signed by the President
on October 14, 1978,1/ and the regulations thereunder became effective February 2,
1979.2/ Briefly, the law, as implemented by the regulations, requires all foreign
persons holding agricultural land as of February 1, 1979, to file a report of such
holdings with the Secretary of Agriculture by August 1, 1979. All foreign persons who
acquire or dispose of agricultural land on or after February 2, 1979, are required to
report such transactions within 90 days of the transfer. In addition, any foreign
person who holds land which subsequently becomes agricultural land or any person who
holds agricultural land who subsequently becomes a foreign person must also file a
report within 90 days of such change.

AFIDA specifies in detail the information to be supplied by the foreign persons and
provides that necessary additional information may be obtained by the Secretary. The
information reported consists of the legal names and addresses of the foreign persons;
citizenship; nature of the legal entity, including the entity's country of creation
and principal place of business; type of interest; legal description; acreage; for a

47 This report, prepared by J. Peter DeBraal, general attorney in the Natural
Resource Economics Division, ESS, draws on the first report to the Congress prepared
by Marilyn Eichler, general attorney, formerly with ESS, J. Peter DeBraal, and Gene
Wunderlich, senior agricultural economist. In the preparation.of the current report,
the author received valuable assistance from ESS personnel, most notably Gene Wunder-
lich and T. Alexander Majchrowicz, economic assistant, and Judith Green, systems
analyst. .

1/ Pub. L. No. 95-460, 7 U.S.C. §§3501-3508 (Supp. IZ 1978).

2/ 7 C.F.R. §§781.1-.4 (1980). See 7 C.F.R. §§2.21(b)(34), -27(b)(15), -65(a) (34),
and .85(a)(15) (1980) for the delegation of authority; and 45 Fed. Reg. 7,775 (1980)
(to be codified in 7 C.F.R. §§781.4-.5) for the penalty rules.


tenure was reported for 38 percent of the parcels, or 42 percent of the acres, while
some change was reported for 31 percent of the parcels, or 35 percent of the acres.

Section 5 of the act requires a determination of the effects of foreign holdings arid
transfers, particularly how they will affect family farms and rural communities. The
previous report to the Congress covering the first .6.months' activities under the act
contains an initial assessment] on the economic and social effects of foreign ownership
of U.S. agricultural land. In| summary, the quantity of foreign-owned U.S. agricul-
tural land is so small that it| is unlikely that any aggregate impact on agriculture,
either positive or negative, can be detected. In areas of heaviest concentration,
some communities could be affected.

iv



Land Use

Much of the land reported, 2,501,013 acres, is timber or forest land:

: Parcels z
Usage : reported : Acres
Crops 3 1,915 760,270
Pasture : 1,286 1,108, 355
Forest : 1,909 2,501,013
Other ,agriculture 3 866 383,279
Other nonagriculture : 2,560 272,396
Not reported 3 19 8,116
Total 2 8,555 5,033,429

Several: large U.S. timber companies are partially or solely owned by foreigners. Thus
deemed to be "foreign persons," they are required to report their holdings. These
forest holdings represent 50 percent of all reported foreign-owned holdings of agri-
cultural. land. Each parcel averages about 1,310 acres, approximately 3.3 times
greater than the holdings of cropland which average 397 acres per parcel.

Cropland accounts for only 15 percent of the acres reported. Cropland, pasture, and
other agricultural land together total 2,251,904 acres, or 45 percent of all foreign-
owned holdings, but less than 0.2 percent of all privately held farmland in the United
States. The "Other agriculture" category includes such types of land. as orchards and
vineyards.

Land is to be reported by parcel in the quantity in which it was purchased in one
county. The nonagricultural category was intended to contain either the acreage pur-
chased along with land that falls in agricultural use categories or land that is idle
now but was used within the last 5 years for agriculture. Many Canadians apparently
purchased parcels of small acreage on which they built or intend to build recreation
homes. Because the parcels contain timber, these purchases had to be reported. How-
ever, when many of these people filled out the forms, they put all of the acreage in
the nonagricultural category. This accounts for the large number of other nonagricul-
tural parcels with a relatively small acreage total. |

As table 6 indicates, foreign persons from Canada not affiliated with a U.S. entity
own 965,074 acres of forest land, or 39 percent of forest landholdings reported. As
previously noted, the:size of these holdings occurs because one Canadian corporation
has partial interests in five parcels containing 860,000 acres. The next largest
foreign owners of forest land are U.S./U.K., U.S./Canadian, and U.S./Netherlands
entities. The three largest groups of holders of cropland are foreign persons from
West Germany, the Netherlands Antilles, and Canada, accounting for 301,538 acres, or
40 percent, of the cropland. The largest “Other nonagriculture" holders are foreign
persons from Canada with 55,771 acres, or 1 percent of all reported acreage.

Based on reports of only forest land or forest land and other nonagricultural land,
the average parcel contains 1,882 acres (table 7).. Except for Maine (the uniqueness
of which has been noted previously), New York, and Pennsylvania, forest and other
nonagricultural acres are concentrated in Alabama, Georgia, North Carolina, South
Carolina, and Tennessee, accounting for 39 percent of the acres reported. These five

13


were received and accepted by the Department -as of February 29, 1980.° These’ report
forms account for slightly over 5 million acres of all U.S. agricultural land.

Holdings data should be viewed in light of caveats accompanying the tables. Report-
ers' errors must also be considered in reviewing this study. Resulting data deficien-
cies are noted and highlighted as appropriate. The "No Report" category in the tables
means that a response to the particular question was not made. ‘Note too that the
acreage figures reported do not necessarily mean that they are wholly owned by foreign
investors; that is, numerous parcels are held by U.S. corporations with foreign inter-
ests and a number of parcels are owned only in part by foreign investors. See, for
example, table 2, which gives the acreage equivalent for foreign owners reporting par-
tial interests. This reduces the roughly 5 million acres of foreign. holdings of U.S.
agricultural land to an acreage equivalent of 4.2 million. ‘

Concentration of Foreign Ownership of U.S. Agricultural Land

Figure 1

Proportion of Foreign-Owned Agricultural Land to All Privately Owned .
Agricultural Land in the United States, February 1, 1979 :

Legend: Percentage
["_] Less than .1%
104%

5 to,.9%

More than 1.0%



Table 9--Acreage of U.S. forest and other nonagricultural landholdings,
by type of foreign owner, February 1, 1979

Types of Owners : ” Parcels : Percentages Acreage
owner reporting : reported ©: Acres : reported 1/ equivalent 2/
Nunber
Individual 253 276 26,652 29 25,588
Government : 1 1 5 0 5
Corporation : 89 908 2,203,971 2 1,563,643
Partnership : 34 47 105,286 8 104,670
Trust : 7 7 1,553 0 1,553,
Other : 3 3 278 0 278
Total : 387 1,242 2,337,745 49 1,695,737

41/ Parcels for which percentage of partial interest was reported.
2/ Total acreage reported multiplied by percentage held by foreign owner.

Table 10--Size of foreign-owned.U.S. forest and other nonagricultural landholdings,
February 1, 1979

: : : Parcels
: : : with
Size of : Fy . Hy current
holdin : Owners : ~—~Parcels : value Current
(acres : reporting +: reported : Acres reported value
: : i
: 1,000
Mollars,
Less than 20 2 142 147 955 125 2,555
20-59 2 75 77 2,472 67 3,576
60-99 3 25 27 1,942 24 2,670
100-299 Hy 58 68 8,908 57 7,391
300-999 : 43 . 60 22,273 45 9,832
1,000 or more 2 44 863 2,301,195 823 297,899
Total : 387 1,242 2,337,745 1,141 323,923
Table 11--Intended use of U.S. agricultural landholdings
of foreign owners, February 1, 1979
2 : Parcels :
z : with :
Parcels : : cropland : Cropland
Intended use reported : Acres : reported : acres
. Number
No change 55232 4,789,468 1,760 711,293
Other agriculture 120 66,570 43 12,441
Other
nonagriculture 485 114,024 88 15,133
Not reported 107 63,367 24 21,403
Total

5,944 5,033,429 1,915 760,270

19


(=>) United States

@ eam Foreign Ownership of
= U.S. Agricultural Land

Agriculture
Information

Bulletin No.440 0 February 1, 1979, through February 1, 1980

J. Peter DeBraal





Maine has the highest amount of foreign-owned U.S. agricultural land, 951,576 acres,
approximately 5 percent of the total acreage of the State (table 1) and approximately
19 percent of all reported foreign-owned U.S. agricultural land. .Nevada, South Caro-
lina, and Tennessee have the ‘next largest proportions; however, the acreages are rela-
tively small. The sizable holdings in Maine are accounted for mainly by one large
timber-firm which. owns warious percentages of. interests in 860,000 acres of timber-
land.

Characteristics of Foreign Owners

Type of foreign owner.--For enid study, individuals are defined to include one person
or a husband and wife. The partnerships category. includes all legally defined part-
nerships, joint ventures, and any tenancy in common which includes’ two or more persons
who are not married. The term partnership does not differentiate between joint: ten-
ancy and tenancy in common. For simplicity and brevity, fine legal distinctions, how-
ever important in an individual |case, are ignored in this report. -
As was explained previously, each entity holding land is required to file a report.
Therefore, if two individuals own land as a partnership, the. partnership is to file
one report as a partnership, with the partners" names and citizenship listed on the
back of the form. Occasionally | however, two people will file as individuals. Each
files a separate report on the game land and lists a:partial interest of, for example,
50 percent on each form. Because there is no way to accurately identify land: by loca-—
tion, these two individuals cannot be distinguished from one'partnership. This lack
of differentiation can also occur when there is no legal partnership but individuals

‘own the land as tenants in common. If they file together on one form, they are auto-
matically considered a partnership. If they file separately, they are usually con-
sidered individuals. Therefore, users should handle data on individuals and partner-
ships and the number of reported parcels with caution.

Individuals are the most commonly reported type of owner, 2,427 of whom reported. own-
ing 384,212 acres (table 2). However, the 998 corporate holders, less than half the

number of individuals, reported jowning 4,124,969 acres--more than 10 times the acreage
held by individuals.

Both types of owners own approximately the same number of parcels--individuals, 2,731,
or 1.1 parcels per holder; and corporations, 2,513, or 2.5 parcels per holder. How-
ever, corporate owners hold parcels averaging 1,641 acres, or 4,133 acres per holder,

Table 2--Acreage of U.S.| agricultural landholdings by type’ of foreign: owner,
February 1, 1979

Owners : | Parcels : : <Percentages : Acreage
Type of owner reporting : reported : — Acres. : reported 1/ + equivalent’ 2/
Number

Individual 2,427 2,731 . 384,212 294 308,893
Government 3 3 670 0 "670
Corporation 998 2,513 4,124,969 174: 34,426,088
Partnership ris 553 456,214 112 388,883
Estate 9 12 "94136 1 1,122
Trust 112 112 57,132 3 56,974
Association 1 1 314 a 314
Other 12 19 8,782 0 8,782

Total 4,006 5,944 5,033,429 584 44191,,726

1/ Parcels for which percentage of pebtial interest was reported.
2 Total acreage reported multiplied by percentage held by foreign. owner.



Table 1--U.S. agricultural landholdings of foreign owners,
by State, February 1, 1979

: : : Proportion
: Privately : of foreign-
: owned :  Foreign-owned =: owned
: Total area agricultural :  agricuitural : agricultural
State : of State 1/ land 2/ : land : land
000 acre: Acres Percent
Alabama 29,467 163,498
Alaska 400 337
American Samoa NA 20
Arizona 10,985 82,780
Arkansas 28,834 40,046
California 47,353 221,506
Colorado 37,527 180,625
Connecticut 2,267 303
Delaware 1,064 837
Florida 26,529 202,101
Georgia 33,253 257,309
Hawaii 1,992 2,940
Idaho 15,166 9,905
Illinois 32,326 37,891
Indiana 20,909 12,906
Iowa ! 33,912 24,077
Kansas 49,911 31,475
Kentucky 22,915 14,327
Louisiana 26,463 69,950
Maine 18,829 951,576
Maryland 55146 47,727
Massachusetts 3,322 438
Michigan 26,117 42,032
Minnesota - 36,204 18,241
Mississippi 26,629 84,846
Missouri 40,025 44,178
Montana 54,189 180,561
Nebraska 45,397 65,559
Nevada 7,586 155,577
New Hampshire 4,682 30,943
New Jersey 2,894 18,879
New Mexico 34,451 193,606
New York 24,257 205,130
North Carolina 27,321 152,096
North Dakota 39,617 45,053
Ohio 22,979 7,638
Oklahoma 38,875 15,544
Oregon 25,685 169,532
Pennsylvania 22,380 153,655
Puerto Rico NA 780
Rhode Island 439 oO
South: Carolina 15,932 240,437
South Dakota 38,241 15,242
Tennessee 22,901 287,855
Texas 156,768 413,710
Utah : 52,541 10,779 34,441
Vermont 53931 543251 39,932
Virginia 25,459 21,499 55,209
Washington 42,605 23,028 40,618
West Virginia 15,405 13,744 3,580
Wisconsin 34,857 27,637 12,710
Wyoming 62,210 26,142 - 13,271
Total 2,263,587 1,290,217 5,033,429 4

IA = Not available.
Neg. = Negligible.

4/1970 Census of Population.

2/ Privately held land based on unpublished data; T. Frey; Econ., Statis., and Coop. Service; U.S.

Dept. Agr.; 1979. Estimate of total land less public, Indian, transportation, and urban. lands.
* Includes forest land, pastureland, cropland, range, and miscellaneous.


NOTED.

P.L. 95-460 authorizes collection of the data on this form. The data will be used to determine the effects of foreign persons ac-
quiring, transferring and holding agricultural land, and the effects of such activity on family farms and rural communities. Furn-
ishing the data is mandatory. Failure to comply or falsification of reporting is subject to civil penalty, not to exceed 25 percent
of the fair market value of the interest held in the tract on the date of the assessment of such penalty. The data may be furn-
ished to any Agency responsible for enforcing the provision of the Act and to the public.

| IMPORTANT

DEFINITION: “Person” means any individual, corporation, company, association, firm, partnership, society, joint stock company, trust, estate, or any other
legal entity.

You are a “foreign person” under the provisions of|P.L. 98-460 and must complete the front side of this form (ASCS.153) if your answer to each of these
three questions is “No”. ves | NO

T._TAMa citizen of the United States

2._1 AMa citizen of the Northern Mariana Islands or the Trust Territories of the Pacific Islands.

3. 1AM lawfully admitted to the United States for permanent residence, or paroled into the United States, under the Immigration
dN

jonality Act.

OR if your answer to any of these three questions is “Yes”.

4, 1AM “person” other than an individual or government, which is created or organized under the laws of:
a._A foreign government or which has its principal place of business located outside the United States.

b, Any State of the United States, and in which 5% or more interest is held directly or indirectly by any foreign individual, government,
or legal entity.

5. 1 AMa foreign government.

I INSTRUCTIONS:

‘Complete this form in an original and three copies for each tract of land, Report asa tract all acreages under the same ownership in each county or parish,
Land in different counties or parishes must be repofted as separate tracts. Insertion of carbons is necessary.

Retum the original and two copies to the Agricultural Stabilization and Conservation Service (ASCS) county office where the tract of land is located or admin-
istered, Retain the last copy (Foreign Person Copy) for your records. D0 NOT SEND THIS FORM DIRECT TO WASHINGTON, D.C.

After the original disclosure on ASCS-153 on the tract(s) of land owned by the same person within a county or parish, each subsequent change of ownership

or use must be reported by filing another ASCS-153.

tem 1. ONLY ONE BOX MAY|BE CHECKED. If the tract o
1. Owned on February {1 1979, check REN BineTM

to be listed under item 2 was:
and return the completed form by August 1, 1979,

If the tract of land to be listed under item 2 was, on or after February 2, 1979:
2. Acquired, check 8) :83Girmot [X] sor
3. Disposed of, check

4, Changed from non-agricultural to agricultural use, check” To"sesieuc TURE”

5. Changed from agricultural to non-agricultural use, check” KONSACHICUL TURE | .

and return the completed form within ninety (90) days after the transaction,

Item 3E3c. If incorporated or formed in the United States as an independent, affiliate, or subsidiary company, show the State of
incorporation or formation,
If the answers to 3E3 b ind c are “United States” or any “state”, list the name of all foreign persons who hold any interest
in your organization and their address, citizenship of individual, country of government, and country of incorporation or
Principal place of businéss of organizations.

Item 8. This date would be as follows for activity checked in Item 1:
Box A and B - When ature of.
Box D and € = When fend’ use changed,

ADDITIONAL INFORMATION (Use additional shbets if more space is needed)

U.S. GOVERNMENT PRINTING OFFICE:  1980-0-340-932/85S-282 38


Table 17--U.S. agricultu

ral land acquisitions by country of foreign owner,
February 2, 1979-February 1, 1980--Continued

Onners

: Parcels 3 . :
Country reporting 3 reported : Acres : Value 1/
1,000

dollars

U.S. interest-Con
U.S./China 19 9 25353 4,883
U.S./Denmark 2 2 633 88
U.S./France 10 19 4,868 12,892
U.S./Germany (West) 43 58 112,583 48,848
U.S./Guatemala 4 1 392 353
U.S./Hong Kong H 1 160 191
</Tran 4 1 106 525
U.S./Italy 4 2 145 149
U.S./Japan : i4 4 363 1,296
U.S./Korea (South) : ui 1 iD 456
-/Liberia : 3 3 2,752 1,170
+S./Liechtenstein : 10 3 10,053 12,008
U.S./Luxembourg t 4 4 1,521 2,544
i : 4 1 306 191
3 15 38 5,931 106,738
+/Neth. Antilles : 9 10 7,402 11,905
U.S./Nicaragua : 4 1 240 300
U.S./Panama : 2 3 317 1,318
U.S./Sweden : 4 1 107 305
U.S./Switzerland : 19 27 11,626 16,792
-/Thailand : 1 1 154 760
+/Turkey : 4 1 159 165
United Kingdom : 7 97 25,484, 35,920
./Venezuela : 4 1 185 63
./Multiple : 5 5 2,589 1,181
./Multiple < 5% : 3 3 7157 5,020
./Third Tier : 4 4 527 1,785
Subtotal : 2 483 228,183 404,930
Total : 1,0 1,374 644,226 1,019,289

4/ Value is purchase price or nonpurct

t—|—R—O.
BS

26

jase price (estimated value).




Table 17--U.S. agricultural land acquisitions by country of foreign owner,

February 2, 1979-February 1, 1980

Owners : Parcels
Country reporting : reported Acres : Value 1/
1,000
dollars
Non-U.S. interest:
Argent ina’ 7 8 964 6,878
Australia 1 1 102 39
Austria 4 5 558 743
Bahamas 3 3 1,706 3,930
Belgium 7 8 646 1,652
Bermuda : 2 2 2,009 1,436
Br. Virgin-Is. : 6 7 13,460 10,616
Canada : 279 313 56,477 176,372
Cayman Islands : 1 1 132 "850
China : 6 6 1,260 2,674
Ecuador : 2 3 31 “4
Egypt : 3 3 93 95
Finland : 2 2 358 228
France : 7 9 2,571 5,810
Germany (West) : 163 210 84,691 103,459
Greece : 1 2 19,168 1,725
Hong ‘Kong : 3 4 1,214 1,837
India : 1 1 10 245
Iran : 8. 8 1,453 3,897
Ireland : 1 2 320 745
Italy : 4 4 1,346 1,634
Japan 7 7 220 2,822
Jordan 1 2 40 85
Korea (South) 1 1 15 7
Kuwait 1 1 93 48
Lebanon 6 6 1,903 2,925
Libyan Arab Rep. 1 1 15 95
Liechtenstein 10 10 22,512 , 99,766
Mexico 2 30 8,978 6,628
Morocco 1 1 160 178
Netherlands 35 38 10,286 9,386
Neth. Antilles n a5 127,862 86,246
Norway. ~ 1 1 829 108
Oman 1 1 5 60
Pakistan 1 1 287 600
Panama u 12 16,779 31,849
Peru 4 4 205 923
Philippines 7 7 509 639
Saudi Arabia 2 2 6,377 4,585
Spain 2 2 329 1,010
Sweden 2 2 333 504
Switzerland 20 20 20,064 16,253
Syria 1 1 38 52
Theiland 1 1 4 5
Turk Is. 1 1 1 58
United Kingdom 28 38 5,910 16,229
Uruguay 2 2 287 564
Venezuela 6 6 1,681 1,689
Multiple 5 5 1,242 3,259
Multiple < 5% 1 1 510 2,500
Subtotal 765 891 416,043 614,359
U.S. interest:
U.S. /Austria 1 1 235 350
U.S./Bahamas 3 3 1,582 2,292
U.S./Belgium : 5 5 6,673 10,496
U.S./Bermuda : 3 3 982 2,528
U.S./8r. Virgin Is. : 2 2 307 1,099
U.S./Canada : 6 150 26,368 118,674
-S./Cayman Is. : 1 1 248 269
~-Cont inued

25


foreign seller, the name.,and|address of the purchaser; current..and intended'use-of the
agricultural land by the foreign person;:and purchase price.or other consideration
which was given. Failure to |comply with AFIDA subjects the foreign owner to a possi-
ble. civil.penalty of .up.to.25 Percent of the fair magket value of the interest held in
the-land in question. : he

In accordance with the act, completed report: .forms are made available :for public
inspection in Washington, .D. Ce, within 10 days: of..receipt bythe: Secretary. Copies of
gach State's completed report forms are sent: periodically to.-each ‘State's Secretary of
Agriculture or. comparable official. ‘ 3

A "foreign person,” as defined in the act, includes anyone who-is‘not.a U.S. citizen
or who is not lawfully admitted into the United States for permanent residence. ' Any
person who holds an Immigration and Naturalization Service Form I~151 or a Form I-551
(green card) is considered lawfully admitted. for permanent residence and is exempt
from the requirements of the/act. Foreign governments and entities, which are created
under the laws of or have their principal.place of business in a foreign country, are
also considered “foreign persons” under the act.

To identify foreigners who hold an interest in land indirectly through a U.S. entity,
the act requires all entities, which are created under the laws of one of the States
of or have their principal- place of business in the United States, to file a report if
a “significant interest or substantial “contrél" is teld directly or indirectly in any
such entity by any of the above-mentioned foreign persons. ‘The regulations define
“significant interest or substantial control” as at least a 5-percent interest in the
entity.

“Agricultural land" is defined in the:act as all land-used for agricultural, forestry,
or timber. production purposes. The regulations refine this definition further by

including idle land if its last use within the past 5 years was for agricultural, for-
estry, or timber. production purposes. The act exempts all land, however, which is

held in parcels of less than|1 acre;.does not produce agricultural, forestry, or tim-
ber products generating more than $1,000 in annual gross sales; and produces products
for personal use. . | ‘

AFIDA requires reporting “any interest" other than a security interest (a mortgage or
other debt-securing instrument). The regulations exempt leaseholds of less than 10
years' duration, contingent future interests, and noncontingent future interests if
the holders of such interests do not take possession upon termination of the present
estate. Nonagricultural easements and rights-of-way are also exempt.- In an interpre-
tation issued by the U.S. Department of Agriculture (USDA), mineral interests were
determined to be exempt.

U.S. agricultural land owned|by a U.S. corporation deemed a “foreign person” under the
act (the party legally responsible for providing the information required by the act)
is reported by. the U.S. corporation rather than by the. foreign shareholder.

AFIDA procedures provide for|land' to’ be reported by parcels. All land held in the

same manner (type of interest), located in one county, and acquired at the same time
is considered a parcel and is to be reported on a single form. Land does not ‘have to
be adjacent to be considered|part of one parcel. This parcel concept is intended to
ease the reporting burden.

Holdings

Data in this section are derived.from the 5,944 reports filed by "foreign persons” who
held land as of February 1, 1979, as required under section 2(b) of the act, and which



Table 7—U.S. forest and other nonagricultural landholdings
of foreign owners by State, February 1, 1979
3 3 Parcels
3 H with
: 2 current
Parcels : 2 value Current
State reported : Acres : reported 2 value °
1,000
‘Number: dollars
Alabama 168 157,658 168 . 78, 301°°
Alaska 1 337 “1 ~ 90
Arizona 1 82 1 695
Arkansas 4 2,629 4 2,862
California 5 1,506 1 400
Colorado 2 . 90 2 170.
Florida 16) 18,479 15 11, 340
Georgia 148 187,075 137 40,200
Hawaii 1 84 1 400
Idaho 4 186 4 130
Illinois 2 923 2 683
Kansas 6 9,597 5 2,693
Kentucky 3 1,683 3 1,250
Louisiana 10) 6,382 0 0
Maine : 27 934,817 16 4,260
Massachusetts 2 2 192 1 1
Michigan : 9 32, 396 5 4,853
Minnesota 2 8 463 7 81
Mississippi 21 20,780 ar 6,399
Missouri 6 2,763 5 494
Montana : 6 1,294 5 324
New Hampshire 2 4 28,278 4 3,110
New Jersey 3 2 6 2 45
New York 3 55 172,797 46, 18,516
North Carolina 103 72,876 100 8,817
North Dakota 3 429 3 55
Ohio 3 2 81 2 67
Oklahoma : 1 12 1 10
Oregon 3 10 6,223 10 9,626
Pennsylvania 3 15 119,170 15 12,494
South Carolina : 225 216,619 224 61,944
Tennessee : 118 282,403 118 31,632
Texas : 16 12,611 6 2,220
Vermont : 86 8,615 73 2,512
Virginia 2 29 29,754 27 6,794
Washington : 114 4,551 98 9,484
West Virginia 3 5 2,644 5 436
Wisconsin : 4 1,260 3 535
Total : 1,242 2,337,745 1,141 323,923
16



Intended Use

The reports of acquisitions indicate no change in land use for 88 percent of the acres
(table 23). Intended changes to other agricultural use were reported for holders of 5
percent of the acquired acres. Reports by holders of ;6 percent of.the acres indicate
an intended change to nonagricultural use. Recall from the holdings discussion of
intended use that, because the form asked for changes by parcels and not acres, all of
these acres may not be affected by the indicated changes. The figure for change to
nonagricultural use is approximately the same for the holdings reports, whereas the
holdings figure for no change is slightly higher, and the -figure for change to other
agricultural use is slightly lower. Reports for 19 parcels accounting for 3,782 acres
did not respond to the intended. use question. °

Table 23--Intended use of U.S. agricultural land acquisitions by foreign owners,
February 2, 1979-February 1, 1980

~ 3 : Parcels :
Intended use : Parcels 2 with 3 Cropland
3 reported Acres 3 cropland 2 -acres
: : reported 2
: Number
No change 3 1,103 568,860 . +> 464 231,164
Other z , . : .
agriculture : 69 31,642 24 2,864
Other 3
nonagriculture : 183 39,942 33 6, 306
Not reported : 19 3,782... 5 826
Total : 1,374 644,226 .° . 526 241,160

Tenure Change

Reports for 40 percent of the ‘parcels acquired dufing the period indicate no tenure
change for 57 percent of the acreage: |... .-, seb cites

33


Tenure Parcels fy 3
change reported 3 Acres Hy Valuel/
1,000
---Number dollars
Same 2 554 365,155 509,218
New 2 406 207,275 191,082
Both 3 4 1,171 5,787
Not reported : 410 70,625 313,202
Total : 1,374 _ 644,226 1,019,289
1/ Value is purchase price or nonpurchase price (esti-
mated value).
This is a higher percentage than was reported as having no change in the holdings

reports. Reports for 30 percent of the acquisitions parcels containing 32 percent of
the acres indicated a.tenure change. Recall from the tenure change discussion of the
holdings reports that all of these acres are not necessarily affected by tenure
arrangements. No responses oh tenure change were made for 30 percent of the parcels -
accounting for 11 percent of the acres.

Dispositions and Land-Use Changes

Data in this section are derived from the 186 reports filed by “foreign persons" who
disposed of U.S. agricultural] land between February 2, 1979, and February 1, 1980, and
which were received and accepted by the Department as of February 29, 1980. These
forms account for 105,906 acres.

The largest dispositions occurred in Nevada, Florida, and Louisiana, covering 49,191
acres, or 46 percent of the dispositions (table 24). Eighteen States reported no
dispositions during the period. '

Transfers by foreign investors to other known foreign persons account for 29 percent
of the parcels. and 29 percent| of the acres:

. Parcels :
Purchaser reported Hy Acres
‘USA 100 : 43,850
Foreign 54 31,047
Unknown 32 31,009
Total : 186 105,906

Reports for 53 percent of the| parcels and 41 percent of the acres indicate that they
were sold to U.S. purchasers.|° The remaining parcels and acres were disposed of to
persons of unknown citizenship.

34



Table 14--Acreage of U.S. agricultural land acquisitions by type of foreign owner,
: February 2, 1979~ February 1, 1980 oo

Type of : Owners : | Parcels : : Percentages : Acreage

owner : reporting : reported : Acres : . reported 1/ : equivalent 2/
: : Number

Individual : 441 494 81,934 50 74,747

Government : 2 2 33358 0 3,358

Corporat ion : 410 674 465,468 56 451,50

Partnership : 146 181 88,561 46 645774

Trust : 19 19 43456 1 3,995

Institution : 1 1 100 1 40

Other : 3 3 309 1 343

Total : 1,022 1,374 644,226 155 598,758

1/ Parcels for which percentage of

partial interest was reported.

2/ Total acreage, reported multiplied by percentage held by foreign owner

Individuals, corporations, and!
parcels per corporation, and 1|

Size of holding.--The largest
the 100 to 299 acres category.
acquired. approximately 73 perc
reported acquiring approximate:
acres acquired approximately 2

purchased approximately 391 ac!
purchased approximately 144 ac;

partnerships reported 1.1 parcels per individual, 1.6

.2 parcels per partnership.

mumber of owners reporting acquired their holdings in
(table 15). However, owners with 1,000 acres or more
Owners with less than 1,000 acres

y 1.2 parcels each, whereas owners with more than 1,000
Owners acquiring 1,000 acres or more
purchased approximately 1,654 acres per parcel versus owners with 300 to 999 acres who
ires per parcel, and owners with 100 to 299 acres who

ent of the acres.

8 parcels each.

ires per parcel.

Table 15--Size of foreign-owned U.S. agricultural land acquisitions,
Rebauary 2, 1979-February 1, 1980

Size of t : 2
acquisition : Owners Parcels $ Acres : Value 1/
(acres) : reporting reported 3 3
3 | Number— 1,000 dollars
Less than 20 3 217 225 1,600 54,557
20-59 : 174 200 , 6,070 56,451
60-99 2 77 82 6,113 26,721
100-299 3 242 © 282 40,482 144,432
300-999 3 208 299 116,871 263,015
1,000 or more : 104 286 473,090 474,113
Total 3 1,374 644,226 1,019,289

1,022

1/ Value is purchase price

ior nonpurchase price (estimated value).

22


This report résponds to section
Act of.1978 which, among’ other
(1) analyze information on fore:
reported ‘under ‘the ‘act; and (2)
the effects on family farms and

rural communities.

PREFACE

5 of the Agricultural Foreign Investment Disclosure
equirements, directs the Secretary of Agriculture to
gn ownership of U.S. agricultural land, required to be
determine the impact of such ownership, particularly
The act requires a report on the

information received in the first 6 months of the act's implementation (published as
447), a report covering information received during
the first year of implementation (this report), and a report thereafter by calendar

Agricultural Economic Report ‘No

year.

This teport. covers: information received during the first year of implementa—

tion, February 1, '1979,;'through|February 1, 1980. It incorporates the data-contdined

in the first report tothe Congress for February 1, through August 24, 1979 (AER-447).

As of February 29, 1980, the U.S. Department of Agriculture had, received and accepted

7,705 forms. .This cutoff date
legislatively ‘mandated cutoff d

Department, and check them for completeness.

analyzed in the next report, du

SUMMARY © ee ee ee eee al

ANALYSIS OF DATA REPORTED UNDER
DISCLOSURE ACT . . . « « «ie
Summary of the Act... «|
‘Holdings... 2...
Acquisitions ..... .

to the Congress on March 31, 1981.

CONTENTS

Dispositions and Land-Use-Changes + ++ + + + + e+ eee ee

Leaseholds . . -. +s 4
IMPACTS OF FOREIGN OWNERSHIP 0!

APPENDIX: REPORT. FORM ASCS-153

FAMILY FARMS AND RURAL COMMUNITIES

di

as used to allow time from February 1, 1980, the
ate, to fill out the report forms, deliver them to the
Data received after that date will be

fl






Table 4--Value of U.S. agricultural landholdings by type
of foreign owner, February 1, 1979

2 2 : . Parcels :
Type of : Owners : Parcels : Purchase : with : Nonpurchase
owner reporting : with : price : non- 3 price
: purchase $ 3: purchase 3
8 price 2 3 price :
3: reported 3 : reported 3
1,000 1,000
‘Number: dollars Number dollars
Individual 2,427... 2,526 339,010 205 14, 369
Government 3 3 1,729 0 0
Corporation : 998 2,439 1,504,610 14 39,610
Partnership 444 493 263,798 60 16,206
Estate 9 7 1,105 5 51
Trust 112 : 99 71,203 13 4,479
Association 1 1 303 0 “0
Other : 12 17 8,526 2 173
Total 4,006 5,585 2,190,284 359 74,888
Parcels with 3 Current 3 Parcels with -: Equity
current value : value : equity 2
reported : : reported z
3 Number 1,000 dollars Number 1,000 dollars
Individual 2,314 394,023 2,137 199,460
Government 3 1,763 3 979
Corporation : 2,210 1,736,919 2,080 1,301,248
Partnership 461 391,625 406 272,036
Estate 11 982 9 952
Trust 94 82,919 87 59,582
Association 1 303 te) 0
Other 13 6,591 11 2,368
Total 5,107 2,615,125 4,733 1,836,625

entities, each of which is owned at least 5. percent by the preceding U.S. entity
defined to be a “foreign person." Under the regulations, the reporting
required to disclose, in addition to information about the land held, acquired, or

transferred, certain information about the second tier interest.

entity is

However, the regula-

tions provide that the second tier entity also may be asked to disclose information
about the third tier.

Some respondents, without being requested to do so, have given information on tiers

beyond those required to be reported.
listed is used for processing.

In such cases, the ultimate or final country
If three or more tiers of U.S. corporations are listed

with no foreign interest indicated, the report is processed as "U.S./Third Tier." As


Table 5--U.S. agricultural landholdings by country of
February 1, 1979

foreign owner,

: : : Parcels :
: : : with :
: : : : current
Owners : Parcels : : value : Current
Country : reporting : reported Acres : reported = value
1,000
dollars
Non-U.S. interest:
Argentina 2 10 10 858 9 1,379
Australia 2 7 4 2,027 13 2,540
Austria : 28 3 3,629 19 3,056
Bahamas : 2 13 4,526 3 14,243
Belgium : 64 67 9,132 63 102,728
Belize : 4 4 4,221 2 6
Bermuda : 8 10 10,878 10 18,191
Brazil : 2 3 482 3 1,055
Br. Virgin Is. : 4 5 3,514 4 2,285
Canada : 1,917 2,126 1,187,036 1,795 221,526
Cayman Islands : 8 8 840 5 7,094
Chile : 1 1 5 1 15
China : 7 8 1,445 7 1,950
Colombia : 15 15 8,591 9 10,468
Costa Rica : 1 1 79 1 593
Cuba : 1 1 10 1 250
Czechslovakia A 3 4 165 4 63
Denmark : 9 10 3,422 9 2,211
Dominican Rep. : 1 1 160 1 208
Ecuador : 6 7 51 1 40
France : 19 20 11,102 14 13,344
Germany (West) : 380 499 249,528 431 218,715
Greece : 4 4 1,385 3 618
Guatemala : 5 6 175 6 1,646
Guyana : 1 1 35 0 0
Honduras 2 1 1 15 1 19
Hong Kong : 15 22 30,005 19 24,681
India : 4 5 339 5 794
Indonesia : 1 1 20 1 50
Iran : 12 12 1,609 10 7,636
Ireland 2 1 4 13,803 2 15,414
Israel : 3 3 33 2 235
Italy : 14 7 2,054 14 2,330
Ivory Coast 3 1 1 119 1 100
Jamaica 2 2 2 311 2 289
Japan 3 12 4 3,711 12 12,612
Jordan : 2 2 229 1 429
Korea (South) 5 1 1 26 1 180
Kuwait : 2 2 415 1 120
Lebanon 6 7 4,019 7 2,073
Liberia : 5 8 2,636 6 1,910
Libyan ‘Arab Rep. : 1 2 287 0
Liechtenstein : 31 39 38,019 37 25,637
Mexico : 96 120 113,441 94 28,693
Namibia : 1 146 2 1,356
Netherlands : n 92 35,911 80 41,405
Neth. Antilles : 152 184 + 256,996 161 191,628
New Zealand : 5 5 177 5 25
Nicaragua : 2 3 1,241 2 3,450
Norway : 19 19 4,156 16 1,365,
Oman : 1 1 262 1 350
Pakistan : 3 4 1,156 4 1,995
Panama : 48 62 54,639 52 67,47
Peru : 3 3 94 2 36
Philippines : 18 26 1,346 14 1,46
Portugal : 2 3 411 3 625
Saudi Arabia : 2 2 291 2 107
Spain : 8 8 1,446 5 2,363
Surinam : 1 1 160 1 15
Sweden : 7 7 1,361 6 658
Switzerland : 131 160 62,500 141 46,619
Turkey : 2 2 558 2 305
--Continued

11


FOREIGN OWNERSHIP OF U.S. AGRICULTURAL LAND, FEBRUARY 1, 1979, THROUGH FEBRUARY 1,
1980, by J. Peter DeBraal. Natural Resource Economics Division; Economics and Statis-
tics Service; U.S. Department of Agriculture. Agriculture Information Bulletin No. 440,

ABSTRACT

Foreigners owned 5.6 million acres of U.S. agricultural land as of February 1, 1980.
This is slightly less than 0.5 percent of all privately held agricultural land, and
less than 0.25 percent of all land in the United States. This share is unlikely to
have any aggregate impact on agriculture, either positive or negative. However, some
communities could be locally affected in areas of heaviest concentration. These con-
clusions are based on an analysis of reports submitted in compliance with the Agri-
‘cultural Foreign Investment Disclosure Act of 1978.

Keywords: Agricultural land, Foreign landownership, Landholdings, Land acquisitions,
Land dispositions.

Washington, D.C. 20250 November 1980


Table 21 shows the unequal size of holdings among various types of holders. Table 22
shows 69 percent of the owners with less than 300 acres acquired only 6 percent of the
forest or forest and other nonagricultural land, compared with 31 percent of the own-
ers of 300 or more*acres who acquired 94 percent. As with the holdings reports, ‘part
of this concentration may be due|to the many small Canadian recreation holdings which
apparently were erroneously reported in the other nonagriculture category. There is a
siniilar concentration in the value ‘data. The 162 parcels containing 300 or more acres
account for 81 percent of the value.

Table 21--Acreage of U.S. forest and other nonagricultural
: ‘land acquisitions by type of foreign owner,
February 2, 1979-February 1, 1980

Type of : Owners : Parcels : Percentages : Acreage
owner : reporting +: reported 3 Acres reported iV : equivalent 2/
2 Number:

Individual : 43 47 7,088 7 5,727
Corporation ©: 37 165 52,398 2 52, 302
Partnership =: 10 15 4,481 2 4, 394
Trust 2 4 4 566 te) 566
Total 3 94 231 64,533 ll 62,989

1/ Parcels for which percentage of partial interest was reported.
2/ Total acreage reported multiplied by the percentage held by foreign owner.

Table 22--Size of foreign acquisitions of U.S. forest
and other nonagricultural land,
February 2, 1979-February 1, 1980

Size of 3 $ 3
acquisition : Owners : Parcels 3
(acres) : reporting : reported : Acres Value'l/
: <= ‘Number- a--- == 1,000 dollars °
Less than 20 : 21 22 ° 221 1,230
20-59 : 19 20 684 3,770
60-99 : 13 13 1,038 1,192
100-299 : 12 14 1,989 2,290
300-999 : 7 43 10, 376 10,950
1,000 or more: 12 119 50,235 26, 390
Total : 94 231 64,533 45,822

1/ Value is purchase price or nonpurchase price (estimated value).



Table 12--Tenure change

in foreign-owned U.S. agricultural landholdings,
February 1, 1979

Parcels

3 Parcels : 2 2 Current
Tenure charge : reported : Acres 3 with : value
? t z current :
: : : value :
: om ot : reported 2
2 ‘Number: 1,000 dollars
Same 3 2,225 1,992,945 1,923 1,179,666 ©
New : 1,890 1,776,148 1,702 864, 325
Both 3 26 26,181 21 32,619
Not reported 3 1,803 1,238,155 1,461 538,515
Total : 5,944 5,033,429 5,107 2,615,125
these acquisitions tables are|reports filed by U.S. entities which became foreign

after February 2, 1979. This

ration was subsequently acquired by a "foreign person.”
therefore, that all of the acres do not represent recent purchases.

tions could include land held
came within the definition of
at the outset of the holdings

change could occur if 5 percent or more of a U.S. corpo-
It is important to realize,
These acquisi-
for any length of time by a U.S. entity which recently
“foreign person” under the act. The caveats discussed
discussion and in conjunction with the holdings tables

should be considered when reviewing the acquisitions materials.

Concentration of Foreign Acquisitions of U.S. Agricultural Land

Foreign persons reported acquiring 644,226 acres with a value of $1,019,289,000 from

February 2, 1979, through Feb:
rado are reported to have the
total of 261,479 acres valued

51 percent of the value of the acquisitions. during this period.

ary 1, 1980 (table 13). California, Texas, and Colo-
largest acreages acquired during this period. Their

at $524,043,000 represents 41 percent of the acres and
Three States, Con-

necticut, Massachusetts, and Rhode Island, reported no acquisitions during this

period.

Characteristics of Foreign Own

ers

Type of foreign owner.--Reports for 441 individual owners indicate 494 parcels were

acquired during this period (table 14).

Reports for 410 corporations reported acquir-

ing 674 parcels containing approximately 5.6 times as many acres as individuals.
Individual reports account for 13 percent of the acres acquired during this period,

whereas corporations account for 72 percent.

When partial interests of foreign owners

are taken into account, the acreage equivalent drops by 45,468 acres but the distri-

bution changes only slightly-—
partnerships, 11 percent; and

individuals, 12.4 percent; corporations, 75.4 percent;
all others, 1.2 percent.

Corporations acquired an average of 169 acres per parcel, or 1,135 acres per holder,

compared with individuals who
acres per owner.

lacquired an average of 166 acres per parcel, or 186

Thesé corporate acquisitions are less than the comparable data for

holdings, whereas individual acquisitions are larger than the average holdings data.
Partnerships acquired 14 percent of the acres, averaging 489 acres per parcel, or 607

acres per owner.
holdings.

These figures are less than the comparable data for partnership

20







Table 18--Use of U.S. agricultural land acquisitions by foreign owners, by

February 2, 1979-February 1, 1980

country of owner,

Other non-

: . : : Other st : No usage
Country: Cropland": Pasture : Forest : agriculture : agriculture : reported Total
Non-U.S. interest::- - | . Acres
Argentina : 866 20 40 65 3 0 964
Australia : 0 lo 2 0 30 0 102
Austria : 120 370 0 3 55 0 558
Bahamas : 1,500 200 0 a 6 0 1,706
Belgium : 265 93 244 44 0 646
Bermuda : 3 0 356 1,640 fy 0 2,009
Br. Virgin Is. + 539 235 12,574 uz 0 13,460
Canada : 25,803 11,504 23035 7,724 9,411 0 56,477
Cayman Islands: 0 32 0 0 0 0 43;
China : 595 423 25 0 217 0 1,260
Ecuador : a1 0 fy 0 t) 0 x1
Egypt : 0 0 85 8 0 0 33
Finiend : 0 i] 358 0 0 0 358
France : 994 110 154 4,112 201 0 2,57
Germany (West) © 32,857 21,925 20,496 7641 1,768 4 84,69
Greece : 0 19,168 0 0 0 0 19,168
Hong Kong : 0 0 0 960 254 Q 4,214
India : 10 0 0 0 0 10
Iran : 610 253 10 63 517 0 1,453
Irelend : 300 [0 0 20 Q 0 320
Italy : 328 794 200 24 0 0 1,346
Japan : 30 167 fy to 3 0 220
Jordan : 0 0 40 0 a 0 40
Korea (South) 2 0 oO o 15 0 0 15
Kuwait : 0 3 0 0 0 8
Lebanon : 173 1,140 30 0 560 0 1,903
Libyan Arab Rep. : a 4 0 0 5
Liechtenstein: 6,648 6,807 163 174 8,720 0 22,512
Nexico : 307 4,560 1,701 68 23302 0 8,978
Morocco 130 0 0 0 30 0 160
Netherlands 3,120 4,824 1,698 153 41 0 10,286
Neth. Antilles 48,660 49,802 63243 17,539 5,618 0 127,862
Norway 787 20 0 22 0 829
Oman 5 0 0 0 0 0 5
Pakistan 287 0 0 0 0 0 287
Panama 9,032 5,7 10 253 1,773 0 16,779
Peru 46 4b 2 2 4 0 205
Philippines 191 17 161 40 0 509
Saudi Arabia 700 0 0 5,340 337 0 6,377
Spain 23 0 306 0 0 0 329
Sweden 83 we 20 34 1 0 333
Switzerland 8,139 5,699 3,155 2,448 623 0 20,064
Syria 0 0 38 0 a 0 38
Thailand 0 0 0 0 4 0 4
Turk. Is. 0 0 0 1 0 1
United Kingdom 3,070 780 620 972 468 0 5,910
Uruguay 160 [0 0 127 0 287
Venezuela 470 6 out 85 139 0 1,681
Multiple 241 868 20 40 B 0 13,262
Multiple < 5% 510 0 0 0 a 0 510
Subtotal 147,683 136,222 51,767 46,443 33,924 4 416,043
U.S. interest:
U.S./Austria 0 459 30 1 45 0 235
U:S./Bahanas 0 1,509 0 30 3 0 1,582
U.S./Belgiun 5,276 |0 682 in 544 0 6,673
U.S. /Bermuda 30 196 375 an 110 0 982
u.s./Br. Virgin
Is. 290 4 0 B 0 0 307
U.S./Canada 3,825 3,761 11,964 44539 2,279 0 26,368
ULS./Cayman Is. 153 1 0 65 f) 30 0 248
U:S./China 2,012 26 15 0 0 0 2,353
U:S./Denmark 165 115 348 5 0 0 633
\
--Continued
28



APPENDIX
: Form poproved « OMB No. #0 R4065
- U, 5. DEPARTMENT OF AGRICULTURE i Fe TVeE AeTIviTy Gee roveree) Chock ene)
ASCEISS__—_agawhcid San en Gu Coron ewe TREC] Pxligeree lesan]
AGRICULTURAL FOREIGN INVESTMENT DISCLOSURE ACT REPORT D LAND use CHANGE ELanous " n
MOTE ch bee pe ceere Filling In Any Data Below. If TO'AGRICUL TURE RONOAESUONGES®
Trew Tere Trew cnecr
2_Tract Location and Description 5. Type of Interest Held by Foreign Person (Check one)
BP CEGAL DESCRIPTION OR ASCS TRACT NUMBER A. Fee Interest (ownership) Whole
B. Fee Interest (ownership) Partial TWHAT
C, Life Estate
D, Trust Beneficiary
E, Option
F, Purchase Contract
3, COUNTY OR PARISH pea G. Other (explain)
STATE
E. F.p, TRACT 1D (Office Vee Only) Las 6. How was this Tract Acquired or Transferred?
'3._ Foreign Person - Owner of Traet (in item 2A) (See Revere) A. Cash Transaction
7. NAME a B, Credit or Installment Transaction
C. Trade
B10 NO-(ivine atta} CHECK IF NO: D. Gift or Inheritance
‘C, ADDRESS (Street, City, State/Province, Country) E. Foreclosure
F. Other (explain)
D, Person Receiving This Tract. Complete ONLY if item 1C - Land [Land Value, Including Improvements ]
Disposition - is checked. A. Purchase Price of Land $ |
1. NAME a Non-Purchase, Estimated Value at the ] |
S_RDDRESS Gireet, Clip, State/Province, County Time of Acquisition |
'B. What is the estimated current value or ita 7
- land disposition, the selling price of the |
‘3. CITIZENSHIP ‘zac fla
. oa ©. How rch of purchase pice in Itam 7A ] i
usa) Froreren(] unknown C]. remains to be paid |
E. Type of Owner (Check one) SnecK ONTH 1
1. Individual (including husband/wife) 8. Dato of Acquisition or ] rer i
T ‘Transfer (soe 1
& Citizenship of Individual 8. Current Land Use (usual use; for Idle, check nonce
2. Government (name of country) | I “Other”.) Report in Whole Numbers, \
3, Organization (list on the reverse the Nome, Address and County K. Grop (epetify by acreage on reverse) 1
of all other foreign persons holding an Interest in this tract), B. Pasture i
* Re, ‘i C. Forest or Timber
corporation = ;
3} Partnership D. Other Agriculture i
3) Extate E, Other Non-Agriculture t
4) Trust F,_ Total (should equal 2C) t
3) Institution 10, Intended Uso as of This Date (Check one) | Pees
6) Association A. No Change L
7) Other B, Other Agriculture
B. Gov't, or country under whose C. Other Non-Agriculture i
Jaw the organization is created. 11. Relationship of Foreign Owner to Produder
© Principal place of business (for A, Producer is (cheek one):
ions only) (see reverse) 7
4, Representative of Foreign Investor (completing form, if applicable) 1. Foreign owner |
TRAE
2, Manager
By ADDRESS (Geet, Slate and County) ae B Tenant ov hareeropper
B. Rental agreement is (check one):
£ S 1. A crop share
€. TELEPHONE NO. (Area Code) 2. Cash or fixed rent
. f ive to Foreign P CHECK
D. Relat of Reprint o Frag oon TE a Potunr onthe
2. Manager ‘A. Same person as when the tract was acquired
3._Agent -
‘4. Other (explain on reverse) B.A new person
75, CERTIFICATION =I certify that the Information entered TGNATURE (Owner or Tegelly authorized representative) DATE
above fs complete and correct. Tunderstand that falsification of
reporting ts aubject to a clull penalty not to exceed 25% of the -. [FITCE
{air market value of the interest held in the tract of land.

. ~ESCS COPY

37


As with the holdings data, parcels ranging in size from 300 to 1,000 or more acres
account for 72 percent of the value. The value per acre, however, is concentrated in
the reports of holders of less than 20 acres--$34,098 per acre, compared with $1,002
per acre for holdings of 1,000 or more acres. This concentration of value in the 20
acre or less category is probably attributable to nonagricultural land used for such
purposes as recreation home sites and potential development parcels.

To approximate equity, responses to question 7C on the report form, amount remaining
to be paid for the land, were subtracted from question 7B, the current value, for all
reports with answers to questions 7B and 7C. The 1,028 reports providing information
on debt, $273,686,000, and current value, $707,122,000, resulted in an equity figure
of $433,436,000 (table 16) for acquisitions during the period. As .percentage values,
equity is 61 percent of the current value and 43 percent of the sum of the purchase
prices and estimated nonpurchase prices.

Another measure of net foreign investment transfer is the difference between the
totals of the purchase prices or estimated nonpurchase prices (7A) and the debt

(7C). The 1,206 reports responding to both questions 7A and 7C reveal a debt of
$367,134,000, the net foreign investment remaining to be made. The difference between
7A and 7C is $581,542,000, the net foreign investment already made from February 2,
1979, to February 1, 1980.

Table 16 reveals a difference between (1) the.sum.of the purchase prices and the
estimated nonpurchase prices, $1,019,289,000, and (2) current value, $746,563,000, of
$272,726,000 below the purchase price. This is probably mainly attributable to the
fact that, of the 1,374 forms reporting either purchase price or estimated nonpurchase
price, 259 did not respond to the current value question. Had the 259 nonrespondents
reported an average current value of $670,000, as did those who responded,.the current
value would have been $920,000,000. Even under such an assumption, the reported cur-
rent value would be below the total of the purchase prices and estimated nonpurchase
prices. Some of the difference is also due to reports of current value based on tax
assessments which frequently are below actual or market value.

Country of origin.—-Foreign persons not affiliated with a U.S. corporation acquired
65 percent of the acreage, whereas U.S. corporations containing foreign interests
acquired the remaining 35 percent during the period (table 17). Foreign persons from
Canada and West Germany not affiliated with a U.S. corporation accounted for the
largest number of owners and parcels reported, representing, 22 percent of the reported
acreage during the period. Foreign persons from the Netherlands Antilles:not affili-
ated with a U.S. corporation and U.S./West German corporations reported acquiring the
most acreage, representing 37 percent of all the reported acreage.

The largest reports of value for the period are from U.S./Canada and U.S./Netherlands
entities and for foreign persons from Canada and Germany. These reported values
totaled $505,240,000, or 50 percent of the total reported value but represented only
27 percent of the acreage.

23


compared with individuals, who hold parcels averaging 141 acres, or 158 acres per
holder. The 444 partnerships reported holding 553 parcels, for a total of 456,214
acres, averaging 825.acres, or 1,027 acres per holder.

Corporations own about 82 percent of the total acreage reported; partnerships, about 9
percent; and individuals, 7.6 percent. The remaining 1.4 percent is held by govern-
ments, estates, trusts, and other types of owners such as real estate investment
trusts and church associations. When partial interests of foreign owners are taken
into account, the total acreage figure drops from 5 million to an acreage equivalent
of 4.2 million, but the distribution remains virtually the same.

Size of holding.--All the land, regardless of the number of parcels reported, has been
combined under each owner. The number of owners is.therefore less than the number of
parcels. -Of course, owners do not. always report their names in exactly the same way
on each form. Therefore, it is difficult to attribute these forms with great preci-
sion to one person or legal entity. Some foreign persons hold interests in entities
which in turn own the land. These entities are treated as separate owners.

Smaller acreages are held by individuals and larger acreages are held by corporations
(table 2). Owners with:less than 300 acres hold 3 percent of the land; owners with
300 acres or. more hold 97 percent (25 percent of all owners) (table 3). Part of this
concentration-can be explained by the definition of agricultural land, which includes
extensive-uses. of land such as ranching and forestry and intensive uses of land such
as orchards. and vegetable farms. The different unit sizes due to differences in use
may also.explain part of the acreage differences among the States.

In States where foreigners own few parcels, the possibility of one or two unusual
situations prevents any. generalization about concentration. For example, one large
timber holding by a foreigner in a State with a large number of field-crop farms could
be misinterpreted to suggest that a single foreigner was taking over the farming of
the State.

Table 3--Size of foreign-owned U.S. agricultural landholdings,
February 1, 1979

: : 3 : Parcels 2
Size of : Owners : Parcels : Acres : with 2 Current
holding : reporting : reported : current 3 value
(acres) 3 3 2 : value :
. 2 : 3 : reported :
: 1,000
2 ‘Number- dollars
Less than 20 : 1,488 1,542 10,218 1,293 151,859
20-59 : 608 690 20,799 600 161,084
60-99 : 280 327 21,548 271 62,224
100-299 : 614 745 106,061 624 244, 378
300-999 ' 2 593 884 329,161 755 591,652
1,000 or more : 423 1,756 4,545,642 1,564 1,403,928
Total “: 4,006 5,944 5,033,429 5,107 2,615,125



Economics and Statistics Service

The Economics and Statistics Service (ESS) collects data and carries out research on food and
nutrition, international agricultural trade, natural resources, and rural development. The Econo-
mics unit researches and analyzes production and marketing of major commodities; foreign agricul-
ture and trade; economic use, conservation, and development of natural resources; trends in rural
population, employment, and housing and rural economic. adjustment problems; and performance
of agricultural industry. The Statistics unit collects data on crops, livestock, prices, and labor, and
publishes official USDA State and national estimates through ‘the Crop Reporting Board. Through
its information program, ESS provides objective and timely economic and statistical information
for farmers, government policymakers, consumers, agribusiness firms, cooperatiyes, rural residents,
and other interested citizens.


can be determined from data in table 5, U.S./Third Tier accounts for only 0.05 percent
of the total foreign-owned acres and 0.2 percent of the parcels.

Whether U.S. or foreign, the|reporting entity must, if such entity is a person other
than an individual or government, under the regulations, provide information (names,
addresses, citizenship, and the nature of the entity) on all foreign persons who
individually hold a.5-percent or more interest in the entity. This 5-percent standard
differs from the standard for determining whether or not an entity is required to file
at all. In the latter instance, if several foreign persons cumulatively own 5 percent
or more of the entity, and no single individual owns a 5-percent interest, the entity
is defined as a “foreign person” and must file a report. However, the entity may not
be required to list the names (and so forth) of the foreign holders individually hold-
ing less than 5 percent of the entity. These forms are processed under the heading of
"U.S./Multiple < 5%" in table 5.

Where persons from many countries hold direct and indirect interests in one piece of
land, an attempt is made to identify the country of origin as that country with the
largest interests in the land. If the foreign person is an individual from the
government of, or entity created under the laws of, for example, West Germany, the
report is processed as "Germany (West)." When there is no predominant country--for
example, a partnership between a Canadian and a West German--the report is processed
under "Multiple." Reports filed by U.S. corporations with foreign shareholders are
classified "U.S./(foreign country)." For example, a U.S. corporation owned by another
U.S. corporation which supplies the name of a Canadian corporate shareholder is
processed as "U.S./Canada." |The same treatment is given to a U.S. corporation which
has a Canadian shareholder who owns 10 percent of its stock.

Of the 5,033,429 acres of foreign-held agricultural land reported by foreign persons,
2,857,883 acres, or 57 percent, were reported as held by U.S. entities with foreign
interests. Foreign persons not connected with a U.S. entity hold the remainder,
2,175,546 acres, or 43 percent (table 5).

Foreign persons from Canada not connected with a U.S. entity own the largest amount of
reported foreign-held acres of U.S. agricultural land, 1,187,036 acres, or 24 percent.
Adding to this the 345,047 acres held by U.S. entities with Canadian interests raises
Canadian interests to 30 percent of all of the reported foreign-held acreage. U.S.
entities with United Kingdom |(U.K.) interests own 1,000,578 acres, or 20 percent.
Foreign persons from the United Kingdom own an additional 27,796 acres. These two
countries, then, account for |50 percent of the total foreign-held acres.

Foreign persons from West Germany and U.S./West German entities own 479,127 acres.
U.S. entities with Luxembourg interests own 424,867 acres. Foreign persons from the
Netherlands Antilles and U.S.|/Netherlands Antilles entities own an additional. 394, 320.
acres. And foreign persons from the Netherlands and U.S./Netherlands entities own
276,176 acres. These six countries of origin own 82 percent of all reported foreign-
owned holdings of U.S. agricultural land.

Foreign persons from Canada and U.S./U.K. entities own the greatest number of parcels.
Canadians and West Germans account for the largest number of owners reporting. The
largest reports of current value, for those reporting it, are from U.S./Canada and
U.S./U.K. entities and by foreign persons from Canada and West Germany. These re-
ported values totaled $958,498,000, or 37 percent of the current value reported.

While foreign persons from Canada had the most reports on current value, they had the

lowest per parcel value, $123,000. U.S./Canadian entities reported the highest per
parcel value, $768,000.

10