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HB 4233

Property: land sales; prohibition for foreign entity to purchase farmland in Michigan; provide for. Amends title & secs. 35 & 36 of 1846 RS 66 (MCL 554.135 & 554.136) & adds sec. 36a.

2025-2026 Regular Session Introduced by Greg Alexander and 23 co-sponsors

Michigan prohibits foreign entities from purchasing farmland to protect agricultural land ownership and food security while raising trade compliance and enforcement concerns.

REFERRED TO COMMITTEE ON GOVERNMENT OPERATIONS
#property:landsales
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WeVote Research Nonpartisan
Bill Summary · HB 4233

Legislative bill overview

HB 4233 prohibits foreign entities from purchasing farmland in Michigan by amending property law sections 554.135 and 554.136 and adding new restrictions under section 554.136a. The bill passed the House with immediate effect on May 13, 2025, and is now under review by the Government Operations Committee.

Why is this important

Agricultural land ownership is strategically and economically significant, affecting food security, rural communities, and property values. Such restrictions reflect growing national concerns about foreign investment in critical infrastructure, though they raise questions about trade implications and property rights enforcement mechanisms.

Potential points of contention

  • Definition and enforcement complexity: The bill requires clear definitions of "foreign entity" (individuals vs. corporations, investor types) and mechanisms to verify and enforce ownership restrictions, which can be administratively burdensome
  • Trade and constitutional concerns: Foreign ownership restrictions may conflict with federal trade agreements, interstate commerce protections, or reciprocal trade obligations that could trigger legal challenges
  • Existing foreign ownership: The bill's retroactive application and whether it affects currently-held farmland by foreign entities remains unclear, potentially creating fairness and transition questions

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

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