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HB 2277

Changes the laws regarding the foreign ownership of real property, with a penalty provision

2026 Regular Session Introduced by Will Jobe

HB 2277 limits foreign ownership of Missouri agricultural land to 1% and requires pre-transaction review, with court-ordered divestiture for violations and penalties.

Referred: Emerging Issues(H)
#agriculture #departmentof #businessandcommerce
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Bill Summary · HB 2277

Overview

HB 2277, introduced in the Missouri General Assembly (Session 2026), would overhaul Missouri’s laws governing foreign ownership of real property, with a focus on agricultural land. The bill repeals several existing provisions and replaces them with new sections that impose stricter restrictions, expanded enforcement authority, and new penalties. It also adds a prohibition on certain foreign entities and individuals from possessing agricultural land, including foreign adversaries and designated terrorist organizations.

Main purpose and intent

  • Strengthen state-level controls on foreign ownership of agricultural land.
  • Require pre-transaction review and potential divestiture if ownership limits are exceeded.
  • Expand enforcement by involving both the Department of Agriculture and the Attorney General.
  • Prohibit possession or acquisition of land by foreign adversaries, foreign terrorist organizations, and specially designated global terrorists, with mandatory court action and divestiture.

Key provisions and changes

  • Repeal and replacement: Replaces eight existing sections (442.560, 442.566, 442.571, 442.576, 442.581, 442.586, 442.591, 442.592) with eight new sections, plus 442.594, all related to foreign ownership of land.
  • Scope of restrictions:
    • Prohibits aliens and foreign businesses from acquiring agricultural land in Missouri beyond a 1% aggregate ownership cap (effective August 28, 2026).
    • Requires prior submission and review by the Department of Agriculture and the Attorney General for any acquisition or transfer of agricultural land by aliens or foreign businesses.
    • If an acquisition violates the 1% cap, it is subject to court action to divest within a two-year period, with divestiture provisions running with the land title.
  • Definitions (sample):
    • Agricultural land: parcels over five acres capable of agricultural use.
    • Foreign business: entities with foreign ownership or control, disregarding corporate form for ownership purposes.
    • Alien: non-U.S. citizen and non-resident.
    • Foreign adversary, foreign terrorist organization, and specially designated global terrorist: defined terms aligned with federal designations.
  • Enforcement and remedies:
    • The Attorney General has authority to review and approve/reject transfers; if not acted on within 30 days, the transaction is deemed compliant.
    • Violations trigger court-ordered divestiture; failure to divest leads to sale of land at public auction.
    • Rules and reporting are subject to Missouri rulemaking procedures; incorporated protections for rule validity and nonseverability.
  • Prohibition on certain foreign actors (new section 442.594):
    • Beginning August 28, 2026, prohibits possession or acquisition by foreign adversaries, foreign terrorist organizations, or specially designated global terrorists.
    • Requires court action and divestiture if violated; notifications and Patriot Act considerations apply.

Who/what is affected

  • Aliens (non-U.S. citizens/non-residents) and foreign businesses that own or seek to acquire agricultural land in Missouri.
  • Foreign adversaries and designated terrorist organizations (including globally designated terrorists).
  • Landowners and fiduciaries (agents, trustees) holding agricultural land on behalf of aliens/foreign entities.
  • Department of Agriculture and the Missouri Attorney General, which jointly review and enforce compliance.
  • Land transactions involving agricultural property, with potential divestiture and public sale orders if noncompliant.

Procedural and timeline aspects

  • Effective date for most provisions: August 28, 2026.
  • Mandatory review window: 30 days for the Attorney General to act on proposed acquisitions; otherwise, transaction is deemed compliant.
  • Divestiture timeline: two-year period to divest noncompliant agricultural land, with title covenants running with the land.
  • Ongoing reporting and rulemaking: department and AG may promulgate rules; compliance subject to general statutory rulemaking processes.

Summary

HB 2277 tightens Missouri’s oversight of foreign involvement in agricultural land, introducing a 1% ownership cap, mandatory pre-transaction reporting, dual oversight by the Department of Agriculture and the Attorney General, and robust penalties including court-ordered divestiture and potential public sale. It also extends protections to prohibit possession or acquisition of land by foreign adversaries and terrorist-designated entities, aligning enforcement with national security considerations.

Compiled from official sources — confirm details with the bill’s official record.

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