Buying land in the United States is an attractive investment option for foreign investors due to our strong economy and stable political system. Purchasing land also offers personal benefits, such as lowered visa requirements, the ability to establish residency, and even citizenship opportunities for those who qualify through the EB-5 Immigrant Investor Program. It is important to understand the laws, regulations, taxes, and fees associated with purchasing land in the US before investing to ensure you are fully prepared to purchase your farmland of choice.

According to the USDA, foreign entities currently own over 40 million acres of U.S. agricultural land, accounting for 1.8% of all U.S. land and 3.1% of all privately held agricultural land. While this seems like a significant figure, it is a drop in the bucket when compared to America’s 1.4 billion privately owned acres of land.

Some lawmakers have raised concerns over the ownership of agricultural land by foreign entities, especially China. This is because a number of Chinese businesses have purchased or leased land near military bases and facilities in recent years. A 2022 purchase of 370 acres for corn milling by a company called Fufeng Group near an Air Force base in Grand Forks, North Dakota, led to calls from some politicians to require that any foreign entity wanting to buy or lease farmland within 100 miles of certain military bases must go through government approval first.

While these concerns are valid, the overall impact of foreign buyers on land prices and value is relatively small. The reason is because the majority of land purchases are not made by foreign governments or their agencies, but rather by individual investors, corporations, associations, estates and trusts, and other private entities. For example, an analysis of farmland sales in Midwest and Plains states found that infrequent transactions by foreign purchasers had a negligible effect on average price per acre.

For this reason, it is more reasonable to see foreign investors Buyers for US Land as a driver of increasing demand for American farmland, rather than a major source of price inflation. Many American farmers have been facing difficult economic conditions and high debt levels, which is driving them to sell their land and move on to other ventures. This, in turn, is causing the demand for land to increase.

As a result, the trend for foreigners to invest in American farmland is not going away any time soon. The best way to get started is to contact a reputable real estate agent that offers owner financing and has experience with working with foreign investors. This can help you navigate the process from start to finish and ensure that all your paperwork is properly filed and approved by local and state agencies. Typically, the whole process can take about four to eight weeks. With the right information and guidance, navigating the legal and regulatory aspects of purchasing land in the US is not as complex as it may seem at first glance.