AFIDA Agricultural Land Compliance: What Foreign Investors Must Know in 2025

The Agricultural Foreign Investment Disclosure Act (AFIDA), enacted in 1978, requires foreign persons who acquire, transfer, or hold interests in U.S. agricultural land to report those holdings to the U.S. Department of Agriculture (USDA). Despite being over four decades old, AFIDA has gained renewed attention in 2025 as Congress and state legislatures have intensified scrutiny of foreign ownership of U.S. farmland — particularly ownership by nationals of countries perceived as strategic competitors.

For Turkish investors who own or are considering acquiring U.S. agricultural land, AFIDA compliance is a non-negotiable legal obligation. This guide explains who must report, what must be reported, and the consequences of non-compliance.

AFIDA defines agricultural land broadly to include:

• Farmland: Land used for the production of crops, fruits, vegetables, or other agricultural commodities
• Timberland: Land used for the production of timber or forest products
• Pastureland: Land used for grazing livestock
• Other rural land: Land that is not within a metropolitan statistical area (MSA) and is not used for urban or suburban purposes

The definition is intentionally broad. Turkish investors who own rural land in the United States — even if it is not currently being farmed — may be subject to AFIDA reporting if the land could be used for agricultural purposes.

AFIDA applies to foreign persons, defined as:

• Foreign individuals: Non-U.S. citizens and non-U.S. permanent residents
• Foreign entities: Corporations, partnerships, trusts, and other entities organized under the laws of a foreign country
• U.S. entities with foreign ownership: U.S. corporations, partnerships, and trusts in which a foreign person holds a 10% or more interest

Key point for Turkish investors: A Turkish national who is a U.S. permanent resident (green card holder) is not a foreign person for AFIDA purposes and is not required to report. However, a Turkish national on a non-immigrant visa (H-1B, E-2, L-1, etc.) is a foreign person and must report.

Similarly, a U.S. LLC owned 10% or more by a Turkish national who is not a U.S. permanent resident is subject to AFIDA reporting.

Foreign persons must file a USDA Form FSA-153 within 90 days of:

• Acquiring an interest in U.S. agricultural land
• Transferring an interest in U.S. agricultural land
• Changing the use of agricultural land (e.g., converting farmland to non-agricultural use)

The report must include:

• The legal description and acreage of the land
• The purchase price or value of the interest acquired
• The identity of the foreign person (name, address, country of citizenship or organization)
• The nature of the interest acquired (fee simple, leasehold, etc.)
• The intended use of the land

Annual reporting: Foreign persons who hold interests in U.S. agricultural land must also file an annual report with the USDA by February 1 of each year, disclosing all agricultural land holdings as of December 31 of the prior year.

Failure to comply with AFIDA can result in significant penalties:

• Civil penalty: Up to 25% of the fair market value of the agricultural land interest for failure to file a required report
• Ongoing penalty: Additional penalties for each day a required report remains unfiled after the deadline

The USDA has historically been lenient in enforcing AFIDA penalties, but enforcement has intensified in recent years as Congress has increased pressure on the agency to crack down on foreign ownership of U.S. farmland.

In addition to AFIDA, many U.S. states have enacted their own restrictions on foreign ownership of agricultural land. As of 2025, more than 20 states have laws restricting or prohibiting foreign ownership of agricultural land, with several states enacting new restrictions in 2023 and 2024.

States with significant restrictions include:

• Iowa: Prohibits non-resident aliens and foreign corporations from acquiring agricultural land
• Minnesota: Restricts alien ownership of agricultural land
• North Dakota: Prohibits non-citizen, non-resident aliens from acquiring agricultural land
• Missouri: Restricts foreign government ownership of agricultural land
• Florida: Enacted restrictions in 2023 on ownership by nationals of "foreign countries of concern" (including China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria)

Important: Turkey is not currently designated as a "foreign country of concern" under Florida's law or similar state laws. However, Turkish investors should monitor state-level developments, as the list of restricted countries could expand.

In addition to AFIDA, certain acquisitions of agricultural land near military installations or critical infrastructure may be subject to CFIUS review. CFIUS has jurisdiction over real estate transactions that:

• Are within or adjacent to a military installation or other sensitive government facility
• Could provide a foreign person with access to sensitive information about military activities

Turkish investors acquiring agricultural land near U.S. military bases or other sensitive facilities should assess whether CFIUS filing is required or advisable.

1. Assess your AFIDA status before acquiring: Before acquiring any U.S. rural or agricultural land, determine whether you are a "foreign person" under AFIDA and whether the land is "agricultural land" subject to reporting.

2. File within 90 days: If you acquire an interest in agricultural land, file USDA Form FSA-153 within 90 days. Do not wait until the annual reporting deadline.

3. File annual reports: If you hold agricultural land, ensure that annual reports are filed by February 1 each year.

4. Review state law: Before acquiring agricultural land in any state, review that state's foreign ownership restrictions. State restrictions may be more onerous than AFIDA.

5. Assess CFIUS implications: If the land is near a military installation or other sensitive facility, assess whether CFIUS filing is required.

6. Engage experienced counsel: AFIDA compliance, state-level restrictions, and CFIUS implications require experienced legal guidance. Do not rely on general real estate counsel for these specialized issues.

AFIDA compliance is a critical but often overlooked obligation for Turkish investors in U.S. agricultural land. With enforcement intensifying and state-level restrictions proliferating, Turkish investors must understand their reporting obligations before acquiring U.S. rural or agricultural property.

ULF New York advises Turkish clients on AFIDA compliance, state-level agricultural land restrictions, CFIUS implications, and U.S. real estate investment structuring. Contact us to discuss your U.S. agricultural land investment.

This article is for informational purposes only and does not constitute legal advice. AFIDA regulations and state-level restrictions continue to evolve; consult qualified legal counsel for current guidance.