WASHINGTON
– Sen. Chuck Grassley (R-Iowa) and Senate Agriculture Chairwoman Debbie
Stabenow (D-Mich.) along with their colleagues, Sens. Joni Ernst (R-Iowa) and Jon
Tester (D-Mont.), introduced legislation to give top U.S. agriculture and food
officials permanent representation on the Committee on Foreign Investment in
the United States (CFIUS). The bipartisan
Food
Security is National Security Act will also include new agriculture and
food-related criteria for CFIUS to consider when reviewing transactions that
could result in control of a U.S. business by a foreign company.
“As
we think about the future and the growing global population, it’s important to
consider our nation’s food supply. With foreign investments from around the
world going to American farmland and agricultural companies that are critical
to the nation’s supply chain it’s important that we provide adequate oversight
into these investments,” Grassley said. “Agriculture plays an essential
role in national security. As we continue to compete in a global economy and
our national security strategy continues to evolve, it’s important to have
representation of agricultural interests on CFIUS.”
“Our
national security depends on a food system that is safe, secure, and
resilient,” Stabenow said. “As foreign entities continue their acquisitions of
U.S. food and agriculture companies, American farmers and families deserve to
know these transactions receive proper scrutiny. This bill ensures that the
U.S. has the appropriate tools and people in place to safeguard America’s food
security, food safety, biosecurity, and the highly competitive U.S. farm sector
as a whole.” Stabenow, Chairwoman of the Senate Agriculture Committee, said.
“Foreign
acquisitions of Iowa and U.S.-based food and agriculture companies, especially
by Communist China, threaten the integrity of our food supply and the security
of our nation. Now more than ever, with supply chain disruptions continuing to
impact Iowans and Americans across the country, we need to do more to protect
our food and ag systems from being manipulated by bad actors abroad. That’s why
I’m backing this effort to scrutinize foreign investments in American
agricultural assets and help safeguard our homeland,” Ernst, a combat
veteran and member of the Senate Agriculture Committee, said.
“Montanans know that food security is national
security, and it’s essential that folks here at home have oversight over our
food supply to make sure we aren’t getting manipulated by foreign companies,” Tester said. “This
legislation will help ensure that foreign investments in American agriculture
are thoroughly vetted so we can protect our producers and consumers, and it
will prevent bad actors from calling the shots when it comes to our nation’s
supply chain.”
CFIUS is a panel of government officials tasked with reviewing
proposed mergers and acquisitions of U.S. companies by foreign entities. The
job of CFIUS is to assess whether transactions initiated by foreign entities could
threaten U.S. national security interests. Currently, CFIUS does not include
permanent representation from the U.S. Department of Agriculture (USDA) or the
U.S. Department of Health and Human Services (HHS), the two agencies with
primary responsibility for safeguarding the integrity, resiliency and quality
of the nation’s food supply.
The Food Security is National Security Act recognizes
that agricultural and food security is vital to national security and the
global economy. To protect U.S. food security, the legislation grants permanent
representation on CFIUS to both the Secretary of Agriculture and the Secretary
of HHS, which oversees the Food and Drug Administration.
The legislation also
adds new criteria to the CFIUS review process to ensure that proposed
transactions are reviewed specifically for their potential impact on American
food and agricultural systems, including availability of, access to, or safety
and quality of food. Specifically including food and agriculture in the review
process is an important national security safeguard and sends a strong signal
to potential foreign purchasers.
Key agriculture
stakeholders also understand the importance of bringing an agricultural
perspective to the CFIUS review process. Two of the largest farm organizations,
the American Farm Bureau Federation and the National Farmers Union, support the
Food Security is National Security Act,
echoing the call to evaluate the potential effects of mergers and acquisitions
in agriculture.
“The challenges presented by the pandemic and world supply chain
issues have driven home agriculture’s ties to national security. Monitoring and
evaluating mergers and acquisitions, as well as who contributes to our food
production and distribution, is critical. The Secretary of Agriculture
understands that, and he would bring a much-needed perspective to the Committee
on Foreign Investment in the United States,” American Farm Bureau Federation President Zippy Duvall said.
“In the past decade, there has been
an alarming amount of investment from foreign governments and companies in U.S.
agriculture,” National Farmers Union
President Rob Larew said. “Amidst rising consolidation in our domestic food
and agriculture system, these mergers and acquisitions pose a heightened threat
to our food security. NFU appreciates the introduction of this commonsense
legislation to bring greater scrutiny to these foreign investments, and to help
safeguard America’s food supply.”