This bill, called the PASS Act, gives the federal government new power to block foreign purchases of American farmland and agricultural businesses, especially when those purchases involve countries considered hostile to the U.S. Specifically, it targets foreign investors from China, Russia, Iran, and North Korea from buying agricultural land or controlling agricultural companies in America.

Here's how it works: When the Department of Agriculture learns about a foreign person trying to buy farmland or an agricultural business, they notify a government committee that reviews foreign investments. That committee then has 30 days to decide whether to investigate the deal further or require the foreign buyer to submit additional information. If the committee determines the purchase would be problematic—particularly if the farmland is near military bases or other sensitive government facilities—the President can block the entire transaction. The only exception is if the President decides the deal is in America's national interest and grants a special waiver.

The bill affects foreign investors and companies trying to acquire agricultural assets in the U.S., potentially making it much harder for them to complete purchases. American farmers and agricultural businesses could see changes in who can buy their land or invest in their operations. The government has one year to write the detailed rules for how this will work, and the new restrictions will apply to any agricultural deals that are being proposed, are pending, or have been completed after the rules take effect.

PASS Act

Rounds, Mike

Promoting Agriculture Safeguards and Security Act or the PASS ActThis bill establishes requirements to address the national security risk to the U.S. agricultural sector.Specifically, the bill prohibits foreign persons (i.e., individuals or entities)&nbsp;who are acting on behalf of China, Russia, Iran, or North Korea from engaging in certain transactions that would result in the person (1) purchasing or leasing&nbsp;U.S. agricultural land near a military installation or another facility or property that is sensitive for national security reasons, or (2) controlling a U.S. agricultural company.&nbsp;The prohibition does not apply if a party to the transaction voluntarily chooses to abandon the transaction. The President may waive this prohibition, on a case-by-case basis, if the waiver is in the national interest. The bill also places the Secretary of Agriculture on the Committee on Foreign Investment in the United States (CFIUS)&nbsp;with respect to transactions (1) related to the purchase of agricultural land or agricultural biotechnology, or (2) otherwise related to the U.S. agricultural industry. The bill also requires&nbsp;CFIUS to review certain transactions involving investments by foreign persons in U.S. agricultural land.The&nbsp;President must direct the issuance of regulations to implement these changes. The regulations must take effect not later than one year after&nbsp;the bill's enactment.Further,&nbsp;the prohibitions and requirements in&nbsp;this bill (1)&nbsp;take effect 30 days after the effective date of the regulations; and (2)&nbsp;apply to any covered transactions that are proposed, pending, or completed on or after the effective date.