Impact of Foreign Ownership Restrictions on U.S. Dairy Farm Energy Projects
Foreign ownership of U.S. agricultural land, particularly in the dairy sector, has become a contentious issue. According to a U.S. Department of Agriculture report, foreign entities, mostly Canadian, have interests in nearly 45 million acres of agricultural land. The Agricultural Foreign Investment Disclosure Act (AFIDA) has required disclosure of such investments since 1978, but recent trends show an increase in state-level restrictions.
California, the leading dairy state since 1993, produced 41.9 billion pounds of milk in 2021, which accounts for over 20% of the nation’s milk. Despite foreign ownership of over 1.1 million acres of its agricultural land, California does not prohibit foreign ownership, as noncitizens have equal property rights. However, attempts to legislate restrictions, like the 2022 Senate Bill 1084, were vetoed.
In Wisconsin, where the dairy industry generates $52.8 billion annually, laws limit foreign ownership to 640 acres. Proposed Assembly Bill 218 aims to reduce this limit to 50 acres and more strictly controls ownership near military bases and by nations such as China and Russia.
Idaho, producing 16.8 billion pounds of milk in 2021, restricts foreign government control of agricultural land. Recent bills have tightened these restrictions, banning certain foreign entities fr om acquiring property rights.
Texas, known for beef cattle but also a significant dairy producer with 16.6 billion pounds of milk in 2023, has enacted laws effective September 2025, preventing foreign ownership from nations deemed security risks. Short-term leases are exempted under these laws.
New York, hosting nearly 2,800 dairy farms in 2024, does not currently restrict foreign ownership but has proposed legislation to prohibit acquisitions by foreign adversaries.
These developments present challenges for renewable energy projects on dairy farms, as restrictions may lim it access to land for biogas, wind, and solar initiatives. Developers must navigate this evolving legal landscape, as few exemptions exist for energy projects under these laws.
