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Bill

Bill

HB 518

Relating to the ownership of agricultural land by nonresident aliens or foreign entities.

89th Legislature (2025) Introduced by Cody Harris and 2 co-sponsors

HB 518 restricts nonresident aliens and foreign entities from owning or controlling Texas agricultural land, potentially capping foreign ownership to protect state agricultural interests and security.

Referred to State Affairs
0
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Bill Summary · HB 518

Legislative bill overview

HB 518 proposes restrictions on foreign ownership of agricultural land in Texas by establishing limitations on how much farmland nonresident aliens and foreign entities can purchase or control. The bill would require disclosure of foreign ownership interests and potentially impose size caps or outright prohibitions on such acquisitions.

Why is this important

Agricultural land represents a significant economic and strategic asset, with concerns that foreign ownership could affect food security, water rights, rural communities, and national security interests. Texas has substantial agricultural resources, making land ownership policies a matter of state economic and policy importance.

Potential points of contention

  • Constitutional concerns: Federal courts have previously struck down similar state-level restrictions on foreign land ownership as conflicting with federal authority over international commerce and treaties
  • Economic impact: Restrictions could reduce land values, limit seller options, decrease investment capital in agricultural sectors, and potentially violate international trade agreements
  • Definition and enforcement challenges: Determining what constitutes "foreign control" (through corporate structures, partnerships, or indirect ownership) and enforcing restrictions presents significant administrative complexity
  • Reciprocity and retaliation: Foreign nations may respond with restrictions on American agricultural investments abroad or other trade countermeasures

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

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