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HR 8531

Farmland for Farmers Act of 2026

119th Congress Introduced by Pramila Jayapal and 3 co-sponsors

Prohibits unauthorized legal entities from owning or holding agricultural land to keep farming land in the hands of actively engaged farmers and authorized cooperatives.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 8531

Overview

  • Bill: HR 8531, Farmland for Farmers Act of 2026
  • Session: 119th Congress, 2nd Session
  • Introduction: April 27, 2026
  • Primary purpose: Ban new ownership of agricultural land by unauthorized (non-authorized) legal entities, effectively restricting corporate and investment-fund ownership of farmland and protecting family farmers. Establishes definitions, compliance measures, enforcement mechanisms, and state authority to regulate or tighten restrictions.

Main goals and intent

  • Preserve the family farm system as a core national policy and protect farmland from increasing institutional and corporate ownership.
  • Address concerns about land concentration, rising farmland prices, and potential national security and community impacts from interstate corporate ownership of agricultural land.
  • Create a framework to ensure ownership and control of farmland remain with actively engaged farmers or authorized farmer/rancher cooperatives.

Key provisions and changes enacted by the bill

  • Section 4. Restrictions on Agricultural Land Holdings and Exceptions

    • Prohibits unauthorized legal entities from directly or indirectly acquiring or holding an ownership interest in agricultural land.
    • Establishes a broad set of exceptions, including:
    • Bona fide encumbrances for security
    • Land for research or experimental purposes
    • Land acquired by public higher education institutions or nonprofit groups for research/demo/test purposes
    • Land acquired by a legal entity for non-agricultural purposes (with conditions to keep land used otherwise)
    • Land acquired by entities through debt collection, law process, or liens with certain time-limited disposition
    • Municipal corporations or nonprofit entities exempt from federal tax
    • Fiduciary capacity acquisitions
    • Heirs’ property arrangements
    • Authorized farmer or rancher cooperatives
    • Land owned on enactment date may continue under existing ownership
    • Defines research/exploration uses and public seed varieties with criteria limiting commercialization in such contexts.

  • Section 3. Definitions

    • Clarifies key terms: actively engaged in farming, agricultural land, authorized farmer or rancher cooperative, authorized legal entity, beneficial owner, corporate definitions, fiduciary capacity, natural person, ownership interest, pension/investment fund, and more.
    • Distinguishes actively engaged in farming from purely capital investment.

  • Section 5. Compliance

    • Requires obtaining and submitting a certifying affidavit to the Secretary at acquisition, affirming compliance.
    • Beginning with the first tax year after enactment, requires entities with ownership interests in agricultural land to file a tax-return affidavit certifying compliance.
    • Applies compliance documentation to USDA programs and Farm Credit System eligibility.
    • Excludes unauthorized entities from USDA Farm Service Agency or Farm Credit participation.
    • Annual reporting to Congress on violations and compliance data.

  • Section 6. Enforcement

    • Federal enforcement: Secretary refers violations to the Attorney General, who can seek divestiture through district court orders and public sale if needed.
    • Penalties: Civil penalties up to twice the fair market value of the land per violation; per-violation basis; criminal penalties for knowingly violating as a share holder or related roles (up to 5 years imprisonment or fines).
    • State enforcement: State Attorneys General can sue to enjoin practices, compel divestiture, seek damages, and impose civil penalties with a specified framework; includes parens patriae actions on behalf of residents.
    • Public records: Orders and covenants run with land titles; penalties recoverable across districts.

  • Section 7. State Authority

    • Authorization for States to regulate ownership of agricultural land within their borders to be at least as restrictive as the federal act, and potentially more restrictive, including broader definitions of actively engaged in farming.

Who would be affected

  • Unauthorized legal entities (e.g., certain corporations, investment funds, pension funds, and similar ownership structures) would be prohibited from acquiring or holding agricultural land, with specified narrow exceptions.
  • Authorized farmers, farmer cooperatives, and institutions of higher education/qualified nonprofits could continue appropriate land ownership under defined conditions.
  • Individual farmers and ranchers who are actively engaged in farming, and authorized farmer/rancher cooperatives, would be central to compliance as eligible landowners.
  • State governments and local counties would have a role via state enforcement and potential stricter regulations.
  • The Department of Agriculture and Farm Credit System programs would require compliance documentation as a condition of eligibility.

Procedural and timeline aspects

  • Effective upon enactment: New ownership by unauthorized entities would be prohibited going forward; existing ownership under certain exceptions may continue subject to conditions.
  • Compliance documentation required at acquisition and annually with tax filings.
  • Mandatory annual reporting to Congress by the Secretary on violations.
  • Enforcement includes a graduated approach: investigations, potential divestiture within one year of an order, and public sale if divestiture is not completed.
  • State-level parallel enforcement provisions empower state Attorneys General to act directly in defense of residents’ interests.

Notes and context

  • The bill cites findings about the rise of institutionally owned farmland since 2008, escalating farmland prices, and concerns about long-term land stewardship and national security.
  • Co-sponsors include Pramila Jayapal, Jill Tokuda, Shri Thanedar, and Jim McGovern.

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

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