USDA to Re-Enforce Compliance of the Agricultural Foreign Investment Disclosure Act (AFIDA)

If you are a foreign person with a significant interest or substantial control in agricultural land in the United States, you are required to report a transaction anytime you buy or sell land, to comply with the Agricultural Foreign Investment Disclosure Act (AFIDA). If you do not, the USDA could potentially impose a penalty that could be up to 25% of the land’s fair market value. It is also important to note that this requirement applies to foreign businesses and governments.

The USDA recently launched a new filing portal in January, which can be found here:

https://afida.landmark.usda.gov/

The new digital portal will gather the same information found on the current form FSA-153 and those subject to filing may still file using the current FSA-153 hard copy form if desired. However, filers should not duplicate filings by using both submission options.

Please contact your advisors to make sure you’re in compliance if you are buying or selling land.

Background on AFIDA

AFIDA became law in 1978, and its regulations were created to establish a nationwide system for the collection of information pertaining to foreign ownership of U.S. agricultural land. The regulations require foreign investors who acquire, transfer, or hold an interest in U.S. agricultural land to report such holdings and transactions to the Secretary of Agriculture.

The data obtained from AFIDA disclosures are used in the preparation of an annual report to Congress, which is published online.

The AFIDA regulations define the term “foreign person” and specify the information that must be included in the report. AFIDA focuses on foreign persons who hold direct or indirect interest in the agricultural land, provided those foreign persons with an indirect interest have “significant interest or substantial control” in the direct interest holder.

In July 2025, the USDA launched the National Farm Security Action Plan and has taken steps to strengthen enforcement of AFIDA.

Failure to timely file an accurate report can result in a penalty of up to 25 percent of the fair market value of the agricultural land.

For more information on AFIDA, click HERE.

White House Budget to be Unveiled by the End of the Week

The second budget of President Donald Trump’s second term is to be released at the end of this week. Trump has said he wants to increase defense spending by 50%, to $1.5 trillion, which defense hawks will be pleased to support.

But it’s unclear how the administration would spend such a large increase. The most likely place would be Iran, where it has been reported that the President is considering sending in ground troops. The Pentagon sent in a request to the White House as well – $200 billion more for the war in Iran. Similar to the last budget, legislators assume there will be deep cuts to non-defense spending, like science, foreign aid, and health.

Once appropriators have Trump’s blueprint, they’re aiming to start marking up their funding bills in mid- to late-April.

Reconciliation 2.0 Potentially on the Horizon

Last summer, Republicans passed a major tax bill using a budgetary process called reconciliation. This allows for passage using only a simple majority in the Senate. Now, it seems like reconciliation round 2 is on the horizon, with the President posting that he wants a reconciliation bill done this summer.

That doesn’t mean it’s a lock, though. The bill would require near unanimity from Republicans in the House, whose majority has shrunk since last summer, as well as the Senate. Senate Majority Leader John Thune (R-SD) has said if it does happen, it would have to be “narrowly focused.”

Chairman of the Ways and Means Committee Jason Smith (R-MO) has said that if it does happen, “tax will be in [the bill].” Importantly, Smith has been a supporter of restoring the gambling loss tax deduction to 100%, and reconciliation would be one way to do that.

This possibility is still months away, but we will keep you updated as things progress.


Did You Know?

President George Washington was a founding member of the Alexandria Jockey Club.