The Silent Invasion: Is China's Tightening Grip On U.S. Farmland A Threat To Our Food Security?

In this article:

During the most recent House Committee on Agriculture hearing, lawmakers from both sides of the aisle expressed deep concerns over China’s influence on American agriculture. With China’s ownership of U.S. farmland on the rise, the potential threats to food security and farmers’ competitiveness have become a focal point of discussion.

Chairman Glenn Thompson (R-Pennsylvania) highlighted the multifaceted threats posed by China, including intellectual property theft, cybersecurity breaches and the strategic acquisition of American farmland. The alarming rate at which China is purchasing U.S. agricultural land has raised red flags about national security and the resilience of rural communities.

The hearing follows increased scrutiny over foreign land ownership in the U.S. States like Arkansas and Texas have already taken measures to restrict land access to foreign entities, particularly those with ties to China. The fear is that proximity to military operations and critical infrastructure could pose significant risks.

Despite China owning less than 1% of foreign-owned U.S. farmland, the rapid growth of its holdings has caught national attention. Over the past decade, Chinese-owned land has increased fivefold, with significant acquisitions like the 2013 purchase of Smithfield Foods by China-based WH Group.

Don’t Miss: Gold has long been considered the ultimate safe-haven asset, but a growing number of investors are now turning to farmland for better returns and greater protection against inflation. See how farmland is becoming easier than ever to invest in. 

The challenge for lawmakers is to balance national security concerns with the economic realities of agriculture trade. China is the largest export market for U.S. food and agricultural products, and any disruption in trade relations could have devastating effects on American growers. Soybean Association President Josh Gackle emphasized the irreplaceable demand for soybeans in China, highlighting the delicate trade-off between security measures and maintaining export markets.

Efforts to diversify export markets and reduce dependence on China are underway, but the process is slow and unlikely to fully offset potential losses. The urgency of addressing these issues is clear as the U.S. navigates the complexities of safeguarding its agricultural sector while sustaining its position in the global market.

Check Out Next:

Image generated with Midjourney AI

"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!

Get the latest stock analysis from Benzinga?

This article The Silent Invasion: Is China's Tightening Grip On U.S. Farmland A Threat To Our Food Security? originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Advertisement