In what could be called a historic and groundbreaking move, the state of Arkansas has decided to take action against foreign ownership of agricultural land in the state. This makes Arkansas the first state in the country to force a Chinese-based company to give up domestic land.
In a historic move, the Arkansas Attorney General’s office has taken action against foreign ownership of agricultural land in the state. On Tuesday, October 17, Northrup King Seed Co., a subsidiary of Syngenta Seeds, which is owned by the Chinese state-owned company ChemChina, was ordered to divest itself of 160 acres (774,400 square yards) of agricultural land in Craighead County.
The order was issued under legislation passed by the majority-Republican Legislature and signed by Republican Governor Sarah Huckabee Sanders earlier this year.
Syngenta expressed disappointment with the state’s decision regarding their property which they have possessed since 1988. The company stated that no one from China had ever instructed its executives to purchase, lease or otherwise acquire land and that such an action would hurt Arkansas farmers more than anyone else.
Many states are increasingly concerned about foreign ownership of agriculture due to cases where Chinese-affiliated entities have purchased property near military bases in North Dakota and Texas.
Prior to 2023, fourteen states had enacted legislation prohibiting or restricting foreign ownership and investment in private agriculture but this number rose to 24 states as legislators considered new laws on the issue this year specifically targeting investments from China, Iran, North Korea and Russia according to Micah Brown, a staff attorney at the National Agriculture Law Center at University of Arkansas.
The state also fined Syngenta $280k for failing to report its foreign ownership according to law passed earlier this year giving them 30 days pay up as well as filing amended reports with both federal government and state agencies.
However Attorney General Tim Griffin declined comment on whether he had spoken with representatives from Syngenta regarding selling off their property or paying their penalty fine, citing his full confidence that they would do so without further prompting from him or his office if necessary taking legal recourse against them if need be for noncompliance.
