Implementation of the Agricultural Foreign Investment Disclosure Act of 1978

The Agricultural Foreign Investment Disclosure Act of 1978 requires foreign investors in U.S. agricultural land to register with the Department of Agriculture (USDA). A request was made for verification of the accuracy of registrations received by USDA by determining how many of the foreign investors identified in a previous report had actually registered.

All but 47 of the 224 transactions identified in the report had been registered as of October 22, 1979. The 47 unregistered transactions represented only 3 percent of the total acreage identified in the report. However, a number of problems with the implementation of the Act were noted. The more significant problems include: half of the unregistered owners said they were unaware of the Act and its requirements; since a USDA report analyzing the registration information is late, it does not include all of the information; it would be difficult and costly to determine the extent of registration; there is no cost-effective way of ensuring that the information is accurate; certain program procedures and regulations are vague because they had to be hurriedly assembled; the availability to the public of the investor's identities may be a deterrent to registration; continuing publicity is essential to help ensure that investors are kept aware of the Act's requirements; and, while allowing a formal grace period before assessing penalties may encourage registration, it would require a change in the law.