Are there limits on foreigners buying farms?

Posted by Preston Bristow on May 10th, 2007 filed in Vermont Farms 101

Since my website and blog are available to anyone in the world, I do often get asked if there are limits on foreigners buying farms in the US. The US government has, for the most part, maintained an open door policy with respect to foreign investments in US real estate. There are, however, two reporting requirements that will affect many buyers of agricultural land.

The first is the International Investment and Trade in Services Survey Act (IITSSA) which requires the filing of form BE-13 with the US Dept. of Commerce, Bureau of Economic Analysis (BEA). The intent of this form is to gather statistical economic data. Farms purchased for under $3 million and that are under 200 acres are exempt from reporting, but ironically you still have to file to claim exempt status!

The second is the Agricultural Foreign Investment Disclosure Act (AFIDA) which requires the filing of form ASCS-153 with the US Dept. of Agriculture, Farm Services Agency (FSA) for any purchase of agricultural land in the US. The intent of this form is to gather information on foreign ownership of domestic agricultural land to determine whether such alien landholding is an issue of concern.

While it’s important to know about both forms (there are penalties for not filing), they are merely reporting requirements and in practical terms there are no restrictions on the purchases of farms in the US by non-citizens. I can suggest closing attorneys experienced in representing foreign buyers for anyone outside the US who would like to buy a farm in Vermont.