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Buying up American farmland not part of China’s agricultural investment strategy, US panel told

  • ‘No clear evidence’ that foreign land ownership has caused US farmland prices to rise or that domestic food production is compromised, Senate hears
  • As China strives to be self-sufficient in food production, American lawmakers ponder legislation addressing concerns about espionage and data

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US Democratic senator Debbie Stabenow of Michigan chairs the Senate Agriculture Committee that convened Wednesday’s hearing. Photo: Getty Images via AFP
Bochen Hanin Washington

Buying American farmland is not part of China’s current agricultural investment strategy, US lawmakers heard at a hearing by the Senate Agriculture Committee on Wednesday.

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“We’re seeing investments in farmland in places in sub-Saharan Africa, Southeast Asia, Eastern Europe, as well as Russia. But by and large, China’s foreign investments in farmland have bypassed North America,” said David Ortega, a professor and economist at Michigan State University.

There was also “no clear evidence” that foreign land ownership was causing American farmland prices to rise, Ortega said. Nor did such ownership threaten “our ability to produce food”, he added.

Foreign ownership accounts for about 3 per cent of privately held agricultural land in the US, and Chinese entities own less than 1 per cent of that amount.

Why is the Chinese government so concerned about food security?

Nevertheless, American lawmakers have sharpened their focus on the national security implications of foreign land ownership, particularly investments from China.

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