MARCH 2, 2023:
FEBRUARY 21, 2023:
(SD BROADCASTERS ASSOCIATION)– Republican South Dakota Gov. Kristi Noem suffered a second defeat today (Feb. 21, 2023) on a policy initiative.
On an 11 to 23 vote, the Senate defeated SB 185. It would have established a Committee on Foreign Investment and revised provisions related to foreign ownership of agricultural land. The bill’s target was China and the Chinese Communist Party’s control over companies and land ownership.
Republican Sen. Erin Tobin from Winner carried the bill on the Senate floor. She said though a small percentage of land transactions in the state were by foreigners, they could significantly impact the state’s security. Tobin and other Senators noted the need to protect Ellsworth Air Force Base and it being the home of the B-21 Raider stealth bomber.
“China wants the intelligence (on the bombers),” she said.
Opponents said the intention behind the bill was good, but needed too much work. They also warned of unintended consequences and giving a Governor a veto over a land transaction involving a foreign company or national.
Proponents said even if the bill wasn’t perfect, the Senate should pass it on to the House for more work.
Bill opponent, Republican Sen. Lee Schoenbeck from Watertown, said someone could buy a double-wide trailer near Ellsworth Air Force Base and fill it with electronics to spy. He said the bill wouldn’t cover that.
This morning, the House State Affairs Committee killed a Noem Administration proposal to end the sales tax on food, sending it to the 41st legislative day.
FEBRUARY 14, 2023:
Though nearly every farm group in the state opposed the bill, a Senate committee passed a Noem Administration measure that would set up a board to review farmland transactions involving foreign entities. Under the bill, the governor would make the ultimate decision– which could then be appealed to a court.
The Senate Agriculture and Natural Resources Committee passed SB 185 on a 7 to 0 vote.
Lobbyists from multiple agriculture focused organizations opposed the measure, saying it was too cumbersome and would put ag producers, commodities and processors at a competitive disadvantage in the international marketplace. They also argued that the issues of bad-actor countries’ nationals buying or leasing land and threatening national or food security should be handled at the federal level. The opposing groups are: South Dakota Farm Bureau; S.D. Corn Growers Association; S.D. Cattlemen’s Association; S.D. Soybean Association; S.D. Farmers Union; S.D. Bankers Association; S.D. Agribusiness Association; S.D. Association of Realtors; S.D. Wheat Growers Association; S.D. Dairy Producers Association; and the S.D. Association of Conservation Districts.
The Register of Deeds for Stanley County, Patty Duff, said fellow registers of deeds find portions of the measure “problematic.”
Some opponents were unvarnished in their opposition. “My people didn’t come to America to escape Communism but Monarchy,” said Todd Mortenson with the SD Cattlemen’s Association. He objected to the Governor making the final decision on whether an ag land transaction that involves foreign owners goes through. “It puts the power in the hands of one person,” Mortenson added.
The only proponent was Alan Vester, Noem’s general counsel. He said there is a growing threat of China buying or trying to buy farmland near military installations like Ellsworth Air Force Base east of Rapid City. Vester said Chinese entities have bought, according to one count, 340,000 acres of ag land in the U.S., including in North Dakota and Montana. He says he assumes they’ve also bought land in South Dakota. Vester added there has been no enforcement of the current laws regulating foreign ownership of farmland.
Several committee members said they have issues with the bill and its complexity but thought it should go to the full Senate for further consideration and amendment.
The bill’s sponsor, Republican Sen. Erin Tobin from Winner, was adamant. “This is an issue that we cannot leave in the hands of the federal government,” she said. “People in my district feel the same way.” Further, she noted the people in her district were also members of the same organizations opposing the measure at the hearing.
SB 185 now goes to the Senate for consideration.
FEBRUARY 9, 2023:
Foreign entities that own agricultural land in South Dakota would have to indicate that they have an interest in land in their corporate filings. That’s under a bill passed by a House committee this morning (Feb. 9, 2023).
HB 1189 requires entities such as limited partnerships, limited liability companies, and similar legal formations to disclose if they have foreign owners involved or not.
The sponsor, Republican Rep. Will Mortenson of Pierre, an attorney who advises landowners on ownership issues, says the bill is simply part of the information-gathering stage for determining the extent of foreign ownership of ag land in the state. He says the bill does not outlaw foreign ownership, but merely requires some information about that ownership. Mortenson said the bill is a step toward more future laws concerning foreign land ownership in the state.
Gov. Kristi Noem’s general counsel spoke in favor of the bill, as did numerous agricultural groups in the state.
The bill passed the House Agriculture and Natural Resources Committee on a 13 to 0 vote. It now goes to the House for further action.
JANUARY 31, 2023:
A bill that will restrict foreign purchases of agricultural land in South Dakota has been introduced in the South Dakota Legislature.
The plan creates a new board, the Committee on Foreign Investment in the United States – South Dakota (CFIUS-SD), which will investigate proposed purchases of ag land by foreign interests and recommend either approval or denial to the Governor.
The prime sponsors of the legislation are Senator Erin Tobin of Winner and Representative Gary Cammack from Union Center.
The CFIUS-SD board would be made up of three ex officio members: the Governor’s General Counsel (who would serve as board chair), the Secretary of the Department of Agriculture and Natural Resources, and the Director of the South Dakota Office of Homeland Security (part of the South Dakota Department of Public Safety). The board would also include two governor’s appointees: an agricultural industry expert who owns at least 160 acres of agricultural land in South Dakota, and a national and/or state security or foreign policy expert.
If approved, the jurisdiction of CFIUS-SD would cover transactions on or after July 1, 2023, including:
- Any transaction of any number of acres – including a land transfer, purchase, grant, devise, descent, or inheritance of agricultural land – involving a “foreign entity” (any foreign person, foreign government, foreign business, or any organization controlled by a foreign person, government, or business);
- Any lease of agricultural land to a foreign entity for a period of one year or longer; and,
- Any transaction previously considered by the federal CFIUS board.
Currently, South Dakota has a law on the books limiting aggregate foreign ownership of agricultural land to 160 acres.
“For those of us who have lived and worked on the land, we know that it’s our past, but also our future,” said Senator Erin Tobin. “We grow the world’s food, and we need to protect the security of that food supply for our kids.”
“With vital national security resources like Ellsworth Air Force Base, we cannot afford for our enemies to purchase land in South Dakota,” said Representative-elect Gary Cammack. “We want to keep this land in the hands of South Dakota agriculture producers. I look forward to working with Governor Noem and my colleagues to guarantee the continued security of our state and nation.”
Governor Kristi Noem’s Office created a “Myth vs. Fact” sheet on this bill, which can be found here: https://governor.sd.gov/doc/ForeignAgLand_Myth-vs-Fact.pdf.
DECEMBER 13, 2022:
Two state legislators plan to propose a bill in the upcoming legislative session that would restrict foreign purchases of agricultural land in South Dakota. The plan creates a new board, the Committee on Foreign Investment in the United States – South Dakota (CFIUS-SD), which will investigate proposed purchases of ag land by foreign interests and recommend either approval or denial to the Governor.
The prime sponsors of the legislation will be Senator Erin Tobin (R-Winner) and Representative-elect Gary Cammack (R-Union Center).
“For those of us who have lived and worked on the land, we know that it’s our past, but also our future,” said Senator Erin Tobin. “We grow the world’s food, and we need to protect the security of that food supply for our kids.”
The CFIUS-SD board would be made up of three ex officio members: the Governor’s General Counsel (who would serve as board chair), the Secretary of the Department of Agriculture and Natural Resources, and the Director of the South Dakota Office of Homeland Security (part of the South Dakota Department of Public Safety). The board would also include two governor’s appointees: an agricultural industry expert who owns at least 160 acres of agricultural land in SD, and a national and/or state security or foreign policy expert.
“With vital national security resources like Ellsworth Air Force Base, we cannot afford for our enemies to purchase land in South Dakota,” said Representative-elect Gary Cammack. “We want to keep this land in the hands of South Dakota agriculture producers. I look forward to working with Governor Noem and my colleagues to guarantee the continued security of our state and nation.”
The jurisdiction of CFIUS-SD would cover transactions on or after July 1, 2023, including:
- Any transaction of any number of acres – including a land transfer, purchase, grant, devise, descent, or inheritance of agricultural land – involving a “foreign entity” (any foreign person, foreign government, foreign business, or any organization controlled by a foreign person, government, or business);
- Any lease of agricultural land to a foreign entity for a period of one year or longer; and,
- Any transaction previously considered by the federal CFIUS board.
Currently, South Dakota has a law on the books limiting aggregate foreign ownership of agricultural land to 160 acres.
Comments