This bill is designed to protect American agriculture from foreign control by countries the U.S. considers national security concerns. Specifically, it blocks people acting on behalf of China, Russia, Iran, or North Korea from buying or investing in U.S. farmland and agricultural companies. The President can make exceptions if they believe allowing a particular deal is important for national security, but this would be rare and case-by-case.

The bill also brings the Secretary of Agriculture into a government committee that reviews foreign investments in sensitive U.S. industries. This committee will now specifically look at deals where foreign investors want to buy stakes in American agricultural businesses. Additionally, the Department of Agriculture has to study and report back on what risks these foreign purchases could create for American farming and food production.

In practical terms, if a foreign company or investor from one of these four countries tries to buy a farm, a seed company, a food processor, or similar agricultural business in the U.S., the deal would be blocked unless the President personally approves it. The goal is to keep control of American food production in American hands and prevent these countries from gaining influence over what Americans grow and eat.

PASS Act of 2023

Rounds, Mike

Promoting Agriculture Safeguards and Security Act of 2023 or the PASS Act of 2023 This bill establishes requirements to address the national security risk to the agricultural sector of the United States. Specifically, the bill prohibits persons who are acting on behalf of China, Russia, Iran, or North Korea from purchasing or investing in U.S. agricultural land and companies. The President may waive this prohibition, on a case-by-case basis, if the President determines that the waiver is vital to U.S. national security interests. The bill also places the Secretary of Agriculture on the Committee on Foreign Investment in the United States (CFIUS) and requires CFIUS to review certain transactions involving investments by foreign persons in the U.S. agricultural sector. Additionally, the Department of Agriculture must report on the risks that foreign purchases of U.S. businesses engaged in agriculture pose to the agricultural sector of the United States.