Beware that there is a new law in place for those Canadians buying farmland in Iowa.
Governor Kim Reynolds has signed the new law that requires more disclosures of information and could extend to a subpoena of the purchaser’s financial records.
Foreign landowners are now required to provide detailed information about their landholdings in other states exceeding 250 acres. Failure to report holdings every two years could result in fines of up to $10,000 per violation.
Additionally, failure to disclose leases or purchases of farmland by foreign entities could lead to fines of up to 25 per cent of the property's value per violation.
The law grants the state attorney general enhanced oversight powers, including the ability to subpoena financial records and land purchase agreements from foreign landowners for investigations into potential violations of foreign farmland owner restrictions.
Reynolds and supporters argue that Iowa’s strong laws restricting foreign farmland ownership are crucial for protecting American agriculture.
Reynolds emphasizes Iowa’s fertile soil and high production capacity make it a prime target for foreign entities seeking to gain an advantage in the global market. The governor contends that stricter regulations are necessary to combat evolving threats to American agriculture, particularly from countries such as China.
Reynolds and Attorney General Brenna Bird encourage Iowans to report any instances of improper foreign ownership of farmland in the state.
Bird assures her office will investigate such reports and emphasizes the importance of enforcing the new law to safeguard Iowa's farmland.
According to 2022 data from the United States Department of Agriculture foreign investors currently hold nearly 514,000 acres of agricultural land in Iowa, accounting for approximately 1.6 per cent of the state’s total privately held agricultural land.
