FARM Act
- Sponsor
- Sen. Tuberville, Tommy [R-AL]
- Committees
- Banking, Housing, and Urban Affairs Committee (primary)
- Last action
- Jan 22, 2025
Bottom line
The FARM Act aims to bolster national security by integrating the agricultural sector into the foreign investment review process, seeking to protect against foreign influence over U.S. food production and supply chains.
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 transactions involving foreign control of U.S. agriculture businesses and explicitly defines agricultural systems and supply chains as critical infrastructure and critical technologies. Additionally, it mandates reports from the Secretary of Agriculture and the Comptroller General on foreign influence in the U.S. agriculture industry.
Proponents argue
Proponents argue that the bill is essential for national security, as foreign control over critical agricultural assets poses a significant risk to the nation's food supply and economic stability. They contend that including agriculture under CFIUS review and recognizing it as critical infrastructure will safeguard against espionage, intellectual property theft, and potential disruption by adversarial nations, ensuring the resilience of the U.S. food system.
Opponents contend
Opponents might argue that expanding CFIUS's scope to include all agriculture businesses could create unnecessary bureaucratic hurdles, deter beneficial foreign investment, and potentially harm the competitiveness of the U.S. agricultural sector. They might also contend that existing regulations are sufficient or that the bill's definitions are too broad, leading to overreach without clear evidence of widespread threats that necessitate such a significant expansion of federal oversight.
The bill is concise and can be read and understood quickly, allowing ample time for informed evaluation.
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 is directly integrated into the committee's decision-making process when reviewing foreign investments for national security implications, providing a dedicated voice for the agricultural sector.
Supporters argue
Supporters argue that the Secretary of Agriculture's presence on CFIUS is crucial to ensure that the unique national security risks associated with foreign investment in agriculture are adequately considered and addressed, bringing vital sector-specific knowledge to the committee.
Critics contend
No specific opposition is typically raised against adding relevant agency heads to inter-agency committees, as it generally enhances expertise. However, some might argue it could lead to an unwieldy committee if too many members are added, potentially slowing down review processes.
Tradeoffs
This provision balances the need for specialized agricultural expertise in national security reviews against potential administrative overhead of a larger committee, aiming for more informed decisions without undue bureaucracy.
Section 2(b)
Expands CFIUS Jurisdiction to Agriculture Businesses
This provision expands the types of transactions subject to CFIUS review to include any transaction, merger, acquisition, or other arrangement that could result in foreign control of a U.S. business engaged in agriculture and using agricultural products. This ensures that foreign investments in the agricultural sector are scrutinized for national security risks, covering a broad range of activities from production to processing.
Section 2(c)
Includes Agricultural Supply Chains in Critical Infrastructure Definition
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 formal recognition elevates the importance of the agricultural sector in national security considerations, aligning it with other vital national assets.
Section 2(d)
Includes Agricultural Supply Chains as Critical Technologies
This provision amends the Defense Production Act of 1950 to include "Agricultural supply chains used for agricultural products" within the definition of "critical technologies." This designation further emphasizes the strategic importance of the agricultural sector in national security and foreign investment reviews, particularly concerning technological advancements and intellectual property.
Section 3
Mandates Reports on Foreign Influence in U.S. Agriculture
This section requires the Secretary of Agriculture and the Comptroller General of the United States to each conduct an analysis and submit a report to Congress within one year of the act's enactment. These reports must summarize foreign investments, potential undermining of U.S. agriculture, international threats, and agriculture-related espionage and theft techniques, providing a comprehensive overview of the landscape.