Is this China’s plan to subjugate America? The truth behind Beijing buying vast tracts of land in the USA

Chinese investors own a tiny fraction of American agricultural land. This ownership represents only about 0.02 percent of total U.S. acreage. Canada and European allies hold significantly more farmland than China. Much foreign-owned land is use...

Reuters
Chinese-linked investors hold about 248,000 acres of U.S. farmland. (FILE PHOTO: US President Donald Trump shakes hands with Chinese President Xi Jinping)
Political debates in Washington frequently warn of a systematic Chinese takeover of American agricultural land threatening national food security and sovereignty. Despite this narrative making the rounds in U.S. political circles, empirical evidence tells a completely different story. Rather than a widespread buyout, Chinese real estate holdings in the agricultural sector are limited to a few specific deals and represent an insignificant fraction of total U.S. acreage. Outside of targeted risks, such as land situated near military bases or corporate entities with obscure ownership trails, the true footprint of Chinese-owned farmland is virtually negligible.


What do the numbers say?


Data from the US Department of Agriculture shows that Chinese-linked investors own roughly 248,000 acres of agricultural land in the United States. While that figure may appear large on its own, it represents only about 0.02 percent of the country's estimated 880 million to 900 million acres of farmland. China's holdings also account for less than one percent of all farmland owned by foreign investors. Based on those figures, the available data does not support claims that China is broadly buying up American farmland.



Who Owns America's Farmland


Foreign ownership overall accounts for about 43 million to 46 million acres, or roughly 3 percent to 4 percent of U.S. farmland. According to the US news outlet The Daily Economy, the largest share belongs to America's allies, not its rivals. Canada alone owns about 13 million to 15 million acres, nearly one-third of all foreign-owned farmland, or about 40 to 60 times more than China.

The outlet further claimed that European countries such as the Netherlands, the United Kingdom, Germany, Italy, and Portugal collectively own millions more acres. If acreage alone were considered a threat, the focus would fall on America's allies rather than China.
ADVERTISEMENT


What Kind of Land Is Being Bought


Much of the land classified as foreign-owned is not traditional cropland. Instead, it includes timberland, renewable energy projects, grazing areas, and institutional investment holdings, according to the US news outlet The Daily Economy.

According to the outlet, foreign-owned agricultural land in states such as Texas is frequently used for wind and solar energy projects instead of traditional farming. It added that these properties are generally linked to regular corporate or pension fund investments, rather than government efforts to influence agricultural production.


ADVERTISEMENT
China's Concentrated Holdings


More than 80 percent of Chinese-linked farmland holdings are associated with just a handful of transactions. The most notable is the 2013 acquisition of Smithfield Foods, which included about 146,000 acres of land. Despite the political debate surrounding the deal, Smithfield continues to operate as a U.S.-based company, producing primarily for American consumers under U.S. laws and regulations.
ADVERTISEMENT

Chinese-linked farmland is concentrated in states including Texas, North Carolina, Missouri, Utah, and Florida. Even in those states, however, it represents far less than one percent of total farmland. There is no evidence that these holdings have a meaningful impact on crop production, food prices, or America's food security.
Download
The Economic Times Business News App
for the Latest News in Business, Sensex, Stock Market Updates & More.
READ MORE
ADVERTISEMENT

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

More from our Partners

Loading next story
Business News › US › US News › Is this China’s plan to subjugate America? The truth behind Beijing buying vast tracts of land in the USA
Text Size:AAA
Success
This article has been saved

*

+