Arkansas has ordered Syngenta, a Chinese-owned global seeds producer, to sell 160 acres of farmland in the U.S. state within two years. The decision comes as U.S. farm groups and lawmakers are growing concerned about foreign land ownership and its potential impact on national security. The state’s governor, Sarah Huckabee Sanders, emphasized that the order is about determining where loyalties lie. Syngenta expressed its disappointment with the decision, stating that it is a shortsighted action that will harm Arkansas farmers. The company currently owns about 1,500 acres of U.S. agricultural land used for research and development.
The enforcement action by Arkansas is the first under a state law passed in 2021 that restricts certain foreign parties from acquiring or holding land. China is among the prohibited parties due to its status as a subject of U.S. arms export controls. Syngenta, which was acquired by ChemChina in 2017 and later merged with Sinochem Holdings Corp, is pursuing an initial public offering in Shanghai. Failure to comply with the order to sell its land may result in legal action and the company being forced out of the state. Additionally, Syngenta was fined $280,000 for its failure to timely report foreign ownership.
According to a filing with the U.S. Department of Agriculture, Syngenta acknowledged that a significant interest in the company’s ownership lies indirectly with a foreign person from China. However, Syngenta emphasized that no one from China has directed its executives regarding U.S. land acquisitions. The company’s land holdings have undergone examination by the U.S. government during the ownership transition process. It is worth noting that foreign individuals hold an interest in approximately 3.1% of privately held agricultural land in the U.S., with Canada accounting for the largest share of foreign-held land at 31%.
