A Chinese-owned seed producer must sell 160 acres of farmland that it owns in the northeastern part of Arkansas under a state law restricting foreign ownership of agricultural land, officials said on Oct. 17.
Northrup King Seed Co. is a subsidiary of Syngenta Seeds, which is owned by China National Chemical Corp. (ChemChina), a Chinese Communist Party-owned firm.
“I am ordering ChemChina, as a ‘prohibited foreign-party-controlled business,’ to divest this land within two years, or I will commence an enforcement action in Craighead County circuit court,” Arkansas Attorney General Tim Griffin, a Republican, said in a statement.
Mr. Griffin said he expects the company to sell the land, avoiding litigation that could end up with a judicial order that the land be sold through foreclosure.
The move was made under the state’s Act 636, which bars certain foreign entities from owning farmland in Arkansas. The entities include foreign governments in countries subject to International Traffic in Arms Regulations. China is subject to those rules.
Parties acting as an agent or other fiduciaries for such entities also are banned from holding farmland in the state.
ChemChina is also on the U.S. Department of Defense’s list of banned military companies.
“That is a clear threat to our national security and to our great farmers, especially since the Chinese government enacted a law in 2017 requiring Chinese citizens abroad to collaborate with their country’s security officials on intelligence work with no questions asked,” Arkansas Gov. Sarah Huckabee Sanders, another Republican, told reporters at a press conference.
“This isn’t about where you’re from. We welcome Chinese Americans, Russian Americans, and anyone else who’s given up foreign oppression for American freedom. This is about where your loyalties lie. We simply cannot trust those who pledge allegiance to a hostile foreign power.”
Authorities are also imposing a fine on Northrup King Seed for failure to report its links to China.
Syngenta reported to the U.S. Department of Agriculture that the foreign person that holds a “significant interest” in the farmland owner “is from China” but failed to submit a report with the Arkansas Department of Agriculture, which is required under state law.
The fine is $280,000, or 25 percent of the estimated value of the land per Syngenta filings.
The law enables the attorney general to seek up to 25 percent of the land value in such cases.
“I have full confidence that they’re going to divest themselves of the property, and they’re going to pay the fine,” Mr. Griffin told reporters.
Syngenta told media outlets in a statement it was disappointed in the steps taken by the state, where it has owned land since 1988. The firm asserted that no one from China had directed its executives to acquire the land.
“Our people in Arkansas are Americans led by Americans who care deeply about serving Arkansas farmers. This action hurts Arkansas farmers more than anyone else,” the company stated.
Syngenta also noted that it filed updated documents with federal and state authorities.
The company didn’t respond by press time to a request by The Epoch Times for more information.
Movement on Foreign-Owned Land
While the Arkansas move was the first of its kind by a U.S. state, American officials have increasingly scrutinized foreign-owned land.Some 26 states have enacted laws that prohibit foreigners from owning some or all farmland, according to a compilation from the University of Arkansas’s National Agriculture Law Center. That number includes 12 states, including Arkansas, that enacted or amended a law restricting foreign land investments in 2023 alone.
“I’m curious as to what is the rationale that the states have in apparently saying, ‘You can’t own it, but you can rent it and you can deplete resources, water, or minerals,’” he said. “What is the rationale behind these laws?”
Foreigners own more than 40 million acres of U.S. farmland, according to the U.S. Department of Agriculture.
Chinese-owned companies have made large purchases in recent years, including a block of 370 acres near an Air Force Base in North Dakota.
“We are concerned in the United States that Chinese ownership may impact our food supply chains and our energy supply chain. And secondly, we’re also concerned that the Chinese government may, through Chinese companies ... gain access to not just our assets, our physical assets, but also sensitive information,” Zoe Liu, a Council on Foreign Relations fellow, said during the panel.
