Bill Summary
The Foreign Adversary Risk Management Act (FARM Act) aims to strengthen protections for the U.S. agriculture industry against foreign influence and control. The legislation amends the Defense Production Act of 1950 to include the Secretary of Agriculture as a key representative in the Committee on Foreign Investment in the United States (CFIUS). This addition ensures that agricultural investments by foreign entities are subjected to thorough review to prevent potential harm to U.S. agricultural production and supply chains.
Key provisions of the FARM Act include:
1. **Inclusion of Agriculture in CFIUS**: The Act designates the Secretary of Agriculture as a member of CFIUS, granting them a role in assessing foreign investments that could impact agriculture.
2. **Review of Foreign Transactions**: It mandates the review of any foreign transactions that may result in foreign control of U.S. businesses involved in agriculture, thus safeguarding against adverse foreign influence.
3. **Critical Infrastructure**: The Act recognizes agricultural supply chains as critical infrastructure, ensuring they receive appropriate regulatory attention and protection.
4. **Reporting Requirements**: Within one year of enactment, the Secretary of Agriculture and the Comptroller General are required to analyze and report on foreign investments in U.S. agriculture, including identifying potential threats to production and security, as well as documenting any espionage activities targeting the sector.
Overall, the FARM Act seeks to bolster the resilience and security of the U.S. agriculture industry in the face of increasing foreign investment and influence.
Possible Impacts
The proposed "Foreign Adversary Risk Management Act" (FARM Act) could affect people in several ways. Here are three examples:
1. **Increased Food Security**: By preventing foreign control over U.S. agricultural production and supply chains, the FARM Act aims to enhance food security for American consumers. If foreign entities are restricted from acquiring U.S. agricultural businesses, it may lead to more stable and reliable food supplies, reducing the risk of disruptions that could arise from foreign influence or control.
2. **Economic Impact on Farmers and Agricultural Businesses**: The requirement for foreign investments in agriculture to be reviewed could create hurdles for foreign capital that might otherwise support U.S. farmers and agricultural innovations. While it could protect against potentially harmful foreign influence, it may also limit access to investment that could help farmers expand their operations, adopt new technologies, or improve sustainability practices.
3. **Regulatory Oversight and Compliance Burden**: Agricultural businesses might face increased regulatory scrutiny and compliance costs as a result of this legislation. Companies engaging in transactions that involve foreign entities may need to navigate more complex approval processes, which could lead to delays in business operations and increased administrative burdens. This could be particularly challenging for smaller farms or businesses with limited resources.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 179 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 179
To amend the Defense Production Act of 1950 to prevent harm and
disruption to the United States agriculture industry by protecting
against foreign influence over agriculture production and supply
chains, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 22, 2025
Mr. Tuberville (for himself, Mr. Fetterman, Mr. Marshall, Mrs. Britt,
Mr. Scott of Florida, Mr. Schmitt, Mr. Sheehy, Mr. Cramer, Mr. Hoeven,
Mrs. Blackburn, Mr. Daines, Mrs. Fischer, and Ms. Lummis) introduced
the following bill; which was read twice and referred to the Committee
on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To amend the Defense Production Act of 1950 to prevent harm and
disruption to the United States agriculture industry by protecting
against foreign influence over agriculture production and supply
chains, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Foreign Adversary Risk Management
Act'' or the ``FARM Act''.
SEC. 2. UNITED STATES AGRICULTURE INCLUDED IN COMMITTEE ON FOREIGN
INVESTMENT IN THE UNITED STATES.
(a) Agriculture Representative.--Section 721(k)(2) of the Defense
Production Act of 1950 (50 U.S.C. 4565(k)(2)) is amended--
(1) by redesignating subparagraphs (H), (I), and (J) as
subparagraphs (I), (J), and (K), respectively; and
(2) by inserting after subparagraph (G) the following:
``(H) The Secretary of Agriculture.''.
(b) Review of Agriculture Investments by Foreign Entities.--Section
721(a)(4) of the Defense Production Act of 1950 (50 U.S.C. 4565(a)(4))
is amended--
(1) in subparagraph (A)--
(A) in clause (i), by striking ``; and'' and
inserting a semicolon;
(B) in clause (ii), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(iii) any transaction described in
subparagraph (B)(vi) that is proposed, pending,
or completed on or after the date of the
enactment of the Foreign Adversary Risk
Management Act.''; and
(2) in subparagraph (B), by adding at the end the
following:
``(vi) Any transaction, merger,
acquisition, transfer, agreement, takeover, or
other arrangement that could result in foreign
control of any United States business that is
engaged in agriculture and uses agricultural
products (as defined in the first section of
the Act of July 2, 1926 (44 Stat. 802, chapter
725; 7 U.S.C. 451)).''.
(c) Agricultural Supply Chains Included in Critical
Infrastructure.--Section 721(a)(5) of the Defense Production Act of
1950 (50 U.S.C. 4565(a)(5)) is amended--
(1) by striking ```critical infrastructure' means'' and
inserting the following: ```critical infrastructure'--
``(A) means'';
(2) by striking the period at the end and inserting ``;
and''; and
(3) by adding at the end the following:
``(B) includes, subject to regulations prescribed
by the Committee, agricultural systems and supply
chains.''.
(d) Agricultural Supply Chains Included as Critical Technologies.--
Section 721(a)(6)(A) of the Defense Production Act of 1950 (50 U.S.C.
4565(a)(6)(A)) is amended by adding at the end the following:
``(vii) Agricultural supply chains used for
agricultural products (as defined in the first
section of the Act of July 2, 1926 (44 Stat.
802, chapter 725; 7 U.S.C. 451)).''.
SEC. 3. REPORTS ON INVESTMENTS BY FOREIGN COUNTRIES IN UNITED STATES
AGRICULTURE INDUSTRY.
Not later than one year after the date of the enactment of this
Act, the Secretary of Agriculture and the Comptroller General of the
United States shall each--
(1) conduct an analysis of foreign influence in the United
States agriculture industry; and
(2) submit to Congress a report that includes a summary
of--
(A) foreign investments in the United States
agriculture industry;
(B) the potential for foreign investment to
undermine United States agriculture production and
agricultural supply chains;
(C) the largest international threats for increased
foreign control of, and investment in, the United
States agriculture sector; and
(D) agriculture-related espionage and theft
techniques used by foreign governments, including any
attempts to target United States agricultural
intellectual property, innovation, research and
development, cost or pricing data, or internal strategy
documents.
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