FARM Act
- Bill Number
- S. 179
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Foreign Trade and International Finance
- Status
- Introduced
- Latest Action
- 2025-01-22: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-04-09T15:17:36Z
AI-Generated Summary
Summary of the Foreign Adversary Risk Management Act (FARM Act)
Purpose
The FARM Act aims to safeguard the United States agriculture industry from potential harm and disruptions caused by foreign influence. It does this by expanding oversight of foreign investments in agriculture to protect production and supply chains, ensuring national security in food and agricultural systems.
Key Provisions
- Addition of Agriculture to CFIUS: Adds the Secretary of Agriculture as a member of the Committee on Foreign Investment in the United States (CFIUS), a government body that reviews foreign investments for national security risks.
- Expanded Review of Foreign Transactions in Agriculture: Requires CFIUS to review any proposed, pending, or completed transactions (such as mergers, acquisitions, or takeovers) that could lead to foreign control of U.S. businesses involved in agriculture. This includes businesses that use or produce agricultural products, defined as items like seeds, plants, or livestock under existing federal law (7 U.S.C. 451).
- Inclusion of Agricultural Systems in Critical Infrastructure and Technologies: Classifies agricultural systems and supply chains as "critical infrastructure" and "critical technologies" under CFIUS rules, allowing for broader scrutiny of investments that might affect these areas. Regulations will specify how this applies.
- Required Reports on Foreign Influence: Within one year of enactment, the Secretary of Agriculture and the Comptroller General (an independent auditor for the government) must each analyze foreign influence in U.S. agriculture and report to Congress. The reports will cover:
- Foreign investments in the sector.
- Risks of these investments undermining U.S. production and supply chains.
- Major international threats to increased foreign control.
- Foreign espionage and theft methods targeting U.S. agricultural intellectual property, research, pricing data, or strategy documents.
Significant Changes to Existing Law
This bill amends the Defense Production Act of 1950, which governs CFIUS operations:
- Inserts the Secretary of Agriculture into CFIUS membership (previously limited to other department heads like Defense and Treasury).
- Broadens CFIUS's mandatory review scope to explicitly include agriculture-related transactions, which were not previously highlighted.
- Updates definitions of "critical infrastructure" and "critical technologies" to incorporate agricultural supply chains, expanding protections beyond sectors like energy or defense.
These changes integrate agriculture more fully into national security investment reviews, without altering the core CFIUS process.
Potential Impacts
- On Government Agencies: Increases workload for CFIUS, the Department of Agriculture (USDA), and congressional oversight committees, requiring new analyses and coordination. The Comptroller General's involvement adds independent auditing.
- On Citizens and the Agriculture Sector: Enhances security for U.S. farmers, agribusinesses, and food supply chains by potentially blocking risky foreign takeovers, which could stabilize prices and protect jobs. However, it might limit foreign capital inflows, affecting investment opportunities.
- On International Relations: Could strain ties with countries (e.g., those seen as adversaries) seeking to invest in U.S. agriculture, signaling stricter U.S. controls on foreign ownership in sensitive sectors. It may deter investments from nations involved in agricultural espionage.
Main Stakeholders Affected
- U.S. Agriculture Industry: Farmers, ranchers, seed companies, and food processors who may face reviewed or blocked foreign deals.
- Foreign Investors and Governments: Entities from other countries looking to acquire or partner in U.S. agribusiness, particularly from nations perceived as threats.
- Government Entities: USDA, CFIUS member agencies (e.g., Treasury, Defense), and Congress, which will receive reports and influence policy.
- Consumers and Broader Economy: Indirectly affected through potential impacts on food supply reliability and agricultural innovation.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens the executive branch's authority under the Defense Production Act to regulate foreign investments without needing new laws for each sector. It relies on existing CFIUS mechanisms, which have been upheld in courts as constitutional for national security purposes.
- Constitutional: Aligns with Congress's powers over commerce and national defense (Article I, Section 8), but could raise due process concerns if reviews delay legitimate business deals—though CFIUS processes include appeals.
- Political: Bipartisan sponsorship (from senators across parties) highlights agriculture as a national security priority, potentially influencing future trade policies or sanctions. It addresses concerns over foreign ownership (e.g., from China) in U.S. farmland, amid growing debates on food sovereignty, without directly restricting land buys.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (13)
Sen. Fetterman, John [D-PA], Sen. Marshall, Roger [R-KS], Sen. Britt, Katie Boyd [R-AL], Sen. Scott, Rick [R-FL], Sen. Schmitt, Eric [R-MO], Sen. Sheehy, Tim [R-MT], Sen. Cramer, Kevin [R-ND], Sen. Hoeven, John [R-ND], Sen. Blackburn, Marsha [R-TN], Sen. Daines, Steve [R-MT], Sen. Fischer, Deb [R-NE], Sen. Lummis, Cynthia M. [R-WY], Sen. Ricketts, Pete [R-NE]
Recent Actions
- 2025-01-22: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2025-01-22: Introduced in Senate
Bill Versions
- Foreign Adversary Risk Management Act — issued 2025-01-22 — PDF (5 pages)