FARM Act
- Sponsor
- Rep. Jackson, Ronny [R-TX-13]
- Committees
- Agriculture Committee (primary)
- Last action
- Feb 28, 2025
Bottom line
This bill aims to bolster national security by integrating the U.S. agriculture sector into the foreign investment review process, seeking to protect it from foreign influence and potential disruption.
What it actually does
This bill amends the Defense Production Act of 1950 to include the Secretary of Agriculture as a member of the Committee on Foreign Investment in the United States (CFIUS). It expands CFIUS's jurisdiction to review foreign transactions involving U.S. agriculture businesses and explicitly includes agricultural systems, supply chains, and critical technologies within CFIUS's purview. Additionally, it mandates annual reports from the Secretary of Agriculture and the Comptroller General on foreign influence in the U.S. agriculture industry.
Proponents argue
Supporters argue that the U.S. agriculture industry is a critical component of national security and economic stability, making it vulnerable to foreign adversaries. They contend that including the Secretary of Agriculture on CFIUS and expanding its review authority to agricultural transactions will safeguard the nation's food supply, protect intellectual property, and prevent foreign entities from gaining control over vital agricultural production and supply chains, thereby enhancing overall national security.
Opponents contend
Critics might argue that expanding CFIUS's jurisdiction to include a broad definition of agriculture could create unnecessary bureaucratic hurdles, deter legitimate foreign investment crucial for innovation and growth in the agricultural sector, and potentially slow down transactions without clear national security benefits. They may also contend that existing mechanisms are sufficient or that the bill's scope is too broad, potentially impacting a wide range of businesses not directly related to sensitive national security concerns.
The bill is concise and can be read quickly, allowing ample time for stakeholders to understand its core provisions.
Section 2(a)
Adds Secretary of Agriculture to CFIUS
This provision amends the Defense Production Act of 1950 to include the Secretary of Agriculture as a statutory member of the Committee on Foreign Investment in the United States (CFIUS). This change ensures that agricultural expertise and concerns are directly represented in the committee's deliberations regarding foreign investments that could impact national security.
Supporters argue
Supporters argue that the Secretary of Agriculture's presence on CFIUS is essential to ensure that the unique national security implications of foreign investment in the U.S. agriculture sector are fully considered, given the critical role of food security.
Critics contend
No specific opposition is typically raised against adding relevant agency heads to interagency committees, as it generally enhances expertise and coordination.
Tradeoffs
Balances the need for comprehensive national security review with the potential for increased bureaucratic complexity in CFIUS operations.
Section 2(b)
Expands CFIUS Jurisdiction to Agriculture Transactions
This provision expands the scope of transactions subject to CFIUS review to include any transaction, merger, acquisition, transfer, agreement, takeover, or other arrangement that could result in foreign control of any U.S. business engaged in agriculture and using agricultural products. This ensures that foreign investments in the agricultural sector are scrutinized for potential national security risks.
Section 2(c)
Designates Agricultural Supply Chains as Critical Infrastructure
This provision amends the Defense Production Act of 1950 to explicitly include "agricultural systems and supply chains" within the definition of "critical infrastructure," subject to regulations prescribed by CFIUS. This designation means that foreign transactions impacting these systems will automatically trigger heightened national security scrutiny by CFIUS.
Section 2(d)
Designates Agricultural Supply Chains as Critical Technologies
This provision further amends the Defense Production Act of 1950 to include "agricultural supply chains used for agricultural products" within the definition of "critical technologies." This classification subjects foreign investments involving these supply chains to enhanced scrutiny by CFIUS, similar to other sensitive technologies.
Section 3
Mandates Annual Reports on Foreign Influence in Agriculture
This section requires the Secretary of Agriculture and the Comptroller General of the United States to conduct annual analyses of foreign influence in the U.S. agriculture industry and submit reports to Congress. These reports must summarize foreign investments, potential threats to production and supply chains, major international threats, and agriculture-related espionage and theft techniques, including targeting intellectual property.
The definition of "agricultural products" relies on a cross-reference to "the first section of the Act of July 2, 1926 (44 Stat. 802, chapter 725; 7 U.S.C. 451)".
Section 2(b)(2)(vi) and 2(d)(vii)
Why it matters:This is standard legislative practice to avoid reprinting existing statutory definitions and to maintain consistency across federal law.
Case for: Using existing definitions promotes consistency across federal law and avoids creating conflicting interpretations, streamlining the legislative process.
Case against: Requires external research for a full understanding of the bill's precise scope, potentially obscuring the breadth of its application to the average reader or non-specialist.
Estimated impact: The scope of CFIUS's new jurisdiction over agriculture, specifically what constitutes an 'agricultural product,' is directly tied to this external definition, which broadly includes 'farm produce, farm products, and food products.'