The American Dream
Land ownership has always been deeply intertwined with the American identity. From the earliest days of settlement, land was seen as foundational to liberty, independence, self-determination, and economic opportunity.
Colonists and immigrants from all over the world came here in search of a new life — a new life more often than not, centered around the opportunities and independence that came with owning the ground underneath their feet.
That heritage continued into the establishment of the United States. For many settlers, land was more than just a means of survival; it was a path to upward mobility. Access to land ownership was particularly appealing to those who had little or no chance of improving their circumstances in the places from which they immigrated from.
In a country where social hierarchies and economic systems were less rigid than in Europe or the rest of the world, acquiring land allowed individuals to succeed in ways that would have been impossible for them in the old world.
Land is the Cornerstone of the American Dream
Fundamentally, the concept of the “American Dream” took shape with land ownership at its core.
The idea that anyone could come to America, work hard, and acquire land to grow their own food, start a business, build a home and raise a family became a powerful narrative that has attracted, and continues to attract, immigrants from around the globe.
And even today, as our society has shifted dramatically over the last century from a primarily agrarian one, to a much more urban and suburban society, the point remains:
The food we eat, the resources we grow, the Homes, and businesses we build, are grown and built on land.
Foreign Ownership
Foreign land ownership on the other hand, particularly ownership by hostile foreign entities, threatens the American dream for citizens, and those who wish to become American citizens.
The increasing presence of foreign entities in the agricultural land market restricts the available supply of land, and threatens opportunities for American citizens to own land, and thus achieve their American dream.
According to the U.S. Department of Agriculture (USDA), as of 2012, foreign entities owned approximately 26.1 million acres of U.S. agricultural land.
Fast forward just 10 years to the end of 2022, those numbers have increased to 43.4 million acres, nearly doubling. That’s nearly the size of the State of Florida.
Foreign ownership is continuing to increase year after year.
Specific States
According to that same 2022 report, the states with the largest percentages of foreign owned land include Maine at more than 21%, Hawaii with the second highest at nearly 13%, then followed by Alabama, Michigan, Louisiana, Nevada, and Florida, each of which have more than 8% of their private Ag land owned by foreign entities or individuals.
Here in Texas, while our percentage of foreign ownership is not as high, it is continuing to increase, and we have more actual acreage that is foreign owned than any other State, reaching roughly 5 and a half Million acres, nearly 3.5% of all of our private Ag land. That’s nearly the equivalent size of the State of New Jersey. And those numbers have nearly doubled in the last ten years.
Economic and Financial Concerns
One major concern, of course, is the impact of foreign ownership on land prices. Foreign investors, often with significant financial resources and deep pockets, can outbid local farmers and ranchers, driving up land prices and making it more difficult for Texans to purchase land.
This can have a particularly devastating impact on young farmers, newly naturalized citizens and those trying to enter the agricultural industry.
Foreign ownership of Ag land also raises concerns about control over the food supply. If foreign entities own significant portions of the land used to produce food, they could potentially influence the availability and price of food in the United States, and the world. This is particularly concerning when the foreign owners are from nations that may not have America’s best interests at heart.
Allowing foreign entities to own large amounts of agricultural land can create economic dependence on those foreign investors. If a significant portion of a state’s agricultural industry is controlled by foreign entities, the state could become vulnerable to economic coercion or manipulation by those foreign powers.
Of course, when foreign entities own our land, there is a concern that they may not contribute as fully to the tax base as domestic owners, thereby shrinking the tax base even further, placing a higher burden on Texas taxpayers and making issues such as property tax relief and elimination even harder.
What Have Other States Done?
According to the National Agricultural Law Center, to date, 24 states have enacted some type of prohibition or restriction on foreign governments or entities buying real property.
One of the most recent examples includes South Dakota, which in March of this year, passed legislation into law prohibiting hostile foreign entities and governments from owning South Dakota agricultural land.
What about Texas?
Unfortunately, Texas has yet to take any action on this threat.
Texas must take steps to ensure that hostile foreign governments, companies, individuals, or their proxies, cannot buy or control Texas’ valuable agricultural land.
The Texas Legislature should pass strong legislation in the 89th regular session to ensure this.
At the same time, we should be looking at what else contributes to the in-affordability of land for Texans:
At the State and local level, property taxes are perhaps the greatest hindrance to property ownership.
At a time when inflation, the cost of living and other economic issues place undue burdens on Texas taxpayers, property taxes continue to rise, with no end in sight, and fundamentally, serve as a form of perpetual rent to the government, and make achieving the American dream more difficult for Texans.
The Legislature should take steps to phase out and completely eliminate property taxes, so that Texans can truly own the ground underneath their feet.
Conclusion
Some have argued that putting restrictions on foreign land ownership would hurt immigrants. But in reality, it does just the opposite. Why would we allow foreign governments or their proxies (governments that many of these immigrants are fleeing from in search of a better life) the ability to buy up the land and real property in this State, thereby taking land off the market and making it more difficult for those very same immigrants to come here and live the American Dream.
Our farming and rural communities are the backbone of our nation, and the backbone of the entire world’s food supply, but they are also under threat. Instead of Texans harvesting their own crops, timber and livestock from their own land, our land itself is being increasingly harvested by foreign entities.
The United States, including Texas, is NOT an economic zone to be used or exploited by foreign nations or companies.
Texas land should be available for Citizens and those who wish to come here and make this nation their home, not for foreign governments, entities or individuals whose allegiance is elsewhere.
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