S. 4391

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4391 Introduced in Senate (IS)]

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119th CONGRESS
2d Session
S. 4391

To ban new corporate ownership of agricultural land, and for other 
purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

April 27, 2026

Mr. Booker (for himself and Mr. Sanders) introduced the following bill; 
which was read twice and referred to the Committee on Agriculture, 
Nutrition, and Forestry

_______________________________________________________________________

A BILL

To ban new corporate ownership of agricultural land, and for other 
purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Farmland for Farmers Act of 2026''.

SEC. 2. FINDINGS.

Congress finds that--
(1) it is the longstanding policy of the United States to 
foster and encourage the family farm system of agriculture in 
the United States;
(2) the maintenance of the family farm system of 
agriculture is essential to the social and economic wellbeing 
and national security of the United States;
(3) agricultural land is--
(A) a critical and limited resource of the United 
States that provides needed food and fiber for the 
people of the United States and others throughout the 
world; and
(B) a source of wealth, including generational 
wealth, for the people of the United States;
(4) since the 2008 financial crisis, corporations and, in 
particular, pension funds, have increasingly turned to farmland 
investment;
(5) from 2005 to 2025--
(A) the number of institutionally owned farm 
properties rose three-fold; and
(B) the market value of that property increased 
from less than $2,000,000,000 to more than 
$16,000,000,000;
(6) large corporate investors that own farmland--
(A) are more focused on short-term profits than 
long-term land conservation; and
(B) have less interest than independent family 
farmers in ensuring that agricultural land is used in a 
way that most benefits the local community;
(7) since 2005, farmland prices in the United States have 
nearly doubled;
(8) higher farmland prices provide an advantage to well-
capitalized corporate interests who can often outbid 
independent family farmers;
(9) continued expansion of ownership and control of 
agricultural land by corporate owners, especially institutional 
investors--
(A) threatens the future use of the agricultural 
land for the benefit of the people of the United 
States; and
(B) is detrimental to the welfare and national 
security of the United States;
(10) the operational scope and economic impacts of 
corporate ownership of agricultural land--
(A) is increasingly interstate; and
(B) directly affects the continued well-being and 
security of millions of residents of rural communities; 
and
(11) there is a national public interest in regulating 
corporate ownership of agricultural land.

SEC. 3. DEFINITIONS.

In this Act:
(1) Actively engaged in farming.--
(A) In general.--The term ``actively engaged in 
farming'', with respect to a natural person who is a 
shareholder in an authorized legal entity, an officer, 
a director, or an employee of an authorized legal 
entity, a member or manager of an authorized legal 
entity, a partner in an authorized legal entity, a 
beneficiary or trustee of an authorized legal entity, 
or any other individual, means--
(i) regularly and frequently making or 
taking an important part in making management 
decisions substantially contributing to or 
affecting the operation of a farm or forest; or
(ii) performing physical work, which 
significantly contributes to cultivation, 
stewardship, crop or livestock production, or 
food production.
(B) Exclusion.--The term ``actively engaged in 
farming'' does not include solely providing capital.
(2) Agricultural land.--The term ``agricultural land'' 
means land located in a State that--
(A) is cropland, grassland, rangeland, pasture, 
forestland or other agricultural land on which 
agricultural or forest-related products or livestock 
are produced; or
(B) if the land is idle as of the date of transfer 
of an ownership interest in the land, was used within 
the 10-year period preceding the date of that transfer 
for production of agricultural or forest-related 
products or livestock.
(3) Authorized farmer or rancher cooperative.--The term 
``authorized farmer or rancher cooperative'' means a farmer-
controlled or rancher-controlled entity--
(A) with bylaws requiring 1 vote per member;
(B) from which benefits are derived and distributed 
equitably by each of the farmer or rancher owners;
(C) the members of which are actively engaged in 
farming; and
(D) that is not a subsidiary of, or owned in any 
part by, a multilayer subsidiary entity.
(4) Authorized legal entity.--The term ``authorized legal 
entity'' means a legal entity that meets each of the following 
requirements:
(A) The legal entity is not a subsidiary of, or 
owned in any part by, a multilayered subsidiary entity.
(B) The shareholders, partners, members, or 
beneficial owners of the legal entity do not exceed 25.
(C) The shareholders, partners, members, or 
beneficial owners of the legal entity are all natural 
persons who are actively engaged in farming.
(5) Beneficial owner.--The term ``beneficial owner'', with 
respect to a legal entity, means any person who, directly or 
indirectly, through any contract, arrangement, understanding, 
relationship, or otherwise, has or shares--
(A) voting power, including the power to vote for, 
or to direct the voting of, the legal entity; or
(B) investment power, including the power to 
dispose, or to direct the disposition, of an interest 
in the legal entity.
(6) Corporation.--The term ``corporation'' means--
(A) a domestic corporation organized pursuant to 
the laws of a State; and
(B) a foreign corporation.
(7) Fiduciary capacity.--The term ``fiduciary capacity'' 
means an undertaking to act as executor, administrator, 
personal representative, guardian, conservator, or receiver.
(8) Indirect.--The term ``indirect'' means to act, or 
attempt to accomplish an act, through an interest in a business 
association, through 1 or more affiliates or intermediaries, or 
by any method other than a direct approach, including by any 
circuitous or oblique method.
(9) Institution of higher education.--The term 
``institution of higher education'' has the meaning given the 
term in section 101(a) of the Higher Education Act of 1965 (20 
U.S.C. 1001(a)).
(10) Legal entity.--The term ``legal entity'' means any 
corporation, business trust, estate, trust, partnership, 
limited liability company, association, joint venture, public 
corporation, cooperative, pension or investment fund, or any 
other legal or commercial entity organized or created under the 
laws of any State or country.
(11) Multilayer subsidiary entity.--The term ``multilayer 
subsidiary entity'' means--
(A) a privately held or publicly traded legal 
entity that exists within a hierarchy of legal entities 
that includes 2 or more levels of subsidiary entities;
(B) a privately held or publicly traded legal 
entity that has as its parent or subsidiary a 
management or holding company; or
(C) a privately held or publicly traded legal 
entity that engages in intramarket transfers using 
special purpose vehicles.
(12) Natural person.--The term ``natural person'' means a 
human being.
(13) Ownership interest.--
(A) In general.--The term ``ownership interest'', 
with respect to agricultural land, means all interest 
acquired, transferred, or held in the agricultural 
land.
(B) Exclusions.--The term ``ownership interest'', 
with respect to agricultural land, does not include--
(i) security interests;
(ii) contingent future interests;
(iii) noncontingent future interests that 
do not become possessory on the termination of 
the present possessory estate;
(iv) surface or subsurface easements and 
rights-of-way used for a purpose unrelated to 
agricultural production; and
(v) an interest solely in mineral rights.
(14) Pension or investment fund.--The term ``pension or 
investment fund'' means--
(A) a pension or employee welfare benefit fund 
(however organized);
(B) a mutual fund;
(C) a life insurance company separate account;
(D) a common trust of a bank or other trustee 
established for the investment and reinvestment of 
money contributed to the common trust;
(E) a real estate investment trust; and
(F) an investment company (as defined in section 
3(a) of the Investment Company Act of 1940 (15 U.S.C. 
80a-3(a))).
(15) Secretary.--The term ``Secretary'' means the Secretary 
of Agriculture.
(16) State.--The term ``State'' means--
(A) each of the 50 States;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico;
(D) the United States Virgin Islands; and
(E) any territory or insular possession subject to 
the jurisdiction of the United States.
(17) Trust.--
(A) In general.--The term ``trust'', with respect 
to property, means a fiduciary relationship that 
subjects the person by whom the property is held to 
equitable duties to deal with the property for the 
benefit of another person, which arises as a result of 
a manifestation of an intention to create the fiduciary 
relationship.
(B) Inclusions.--The term ``trust'' includes a 
legal entity holding property as trustee, agent, escrow 
agent, attorney-in-fact, or in any similar capacity.
(C) Exclusions.--The term ``trust'' does not 
include--
(i) a person acting in a fiduciary 
capacity; or
(ii) a revocable trust.
(18) Unauthorized legal entity.--The term ``unauthorized 
legal entity'' means a legal entity that is not an authorized 
legal entity.

SEC. 4. RESTRICTIONS ON AGRICULTURAL LAND HOLDINGS AND EXCEPTIONS.

(a) In General.--Except as provided in subsection (b), an 
unauthorized legal entity shall not, directly or indirectly, acquire or 
otherwise hold an ownership interest in any agricultural land.
(b) Exceptions.--
(1) In general.--Subsection (a) shall not apply to the 
following:
(A) A bona fide encumbrance taken for purposes of 
security.
(B) Agricultural land acquired for research or 
experimental purposes.
(C) Agricultural land acquired and operated--
(i) by or for a public institution of 
higher education for research, experimental, 
demonstration, or test purposes; or
(ii) by or for a nonprofit corporation 
organized specifically for research, 
experimental, demonstration, or test purposes 
in support of or in conjunction with an 
institution of higher education.
(D) Agricultural land acquired by a legal entity 
for immediate use in non-agricultural purposes, subject 
to the condition that the land remain in use for non-
agricultural purposes.
(E) Agricultural land acquired by a legal entity by 
process of law in the collection of debts, pursuant to 
a contract for deed executed prior to the date of 
enactment of this Act, or by any procedure for the 
enforcement of a lien or claim on the agricultural 
land, whether created by mortgage or otherwise, if all 
agricultural land acquired is disposed of not later 
than 5 years after the date on which the legal entity 
acquires the title to the agricultural land.
(F) Agricultural land acquired or owned by a 
municipal corporation.
(G) Agricultural land acquired or owned by a 
nonprofit legal entity that--
(i) is organized under the laws of any 
State as a nonprofit legal entity; and
(ii) qualifies as tax exempt under section 
501 of the Internal Revenue Code of 1986.
(H) Agricultural land that is acquired or owned by 
a legal entity in a fiduciary capacity.
(I) Agricultural land that is acquired or owned by 
a legal entity formed by owners of heirs' property (as 
defined in section 761.2(b) of title 7, Code of Federal 
Regulations (or a successor regulation)).
(J) Agricultural land that is acquired or owned by 
an authorized farmer or rancher cooperative.
(K) Agricultural land owned by a legal entity on 
the date of enactment of this Act, subject to the 
condition that the legal entity owning the land on that 
date of enactment continues to own the agricultural 
land.
(2) Research or experimental purposes.--For purposes of 
paragraph (1)(B), agricultural land is acquired for research or 
experimental purposes if the agricultural land is used in 
accordance with any of the following:
(A) Research and experimental activities.--
(i) In general.--Research and experimental 
activities are carried out on the agricultural 
land and commercial sales of products produced 
from farming the agricultural land do not occur 
or are incidental to those research or 
experimental activities.
(ii) Incidental sales.--For purposes of 
clause (i), commercial sales are sales that are 
incidental to the research or experimental 
purposes of the legal entity when the sales are 
less than 25 percent of the gross sales of the 
primary product of the research and 
experimental activities carried out on the 
agricultural land.
(B) Public seed varieties.--
(i) In general.--The agricultural land is 
used for the primary purpose of testing, 
developing, or producing public seed varieties 
or plants for sale or resale to farmers as seed 
stock and commercial sales of other products 
produced from farming the agricultural land do 
not occur or are incidental.
(ii) Incidental sales.--For purposes of 
clause (i), commercial sales described in that 
clause are incidental if the sales are less 
than 25 percent of the gross sales of the 
primary product of the testing, development, or 
production of public seed varieties or plants 
for sale or resale to farmers as seed stock 
carried out on the agricultural land.
(3) Land acquired by law.--For purposes of paragraph 
(1)(E)--
(A) the 5-year period described in that paragraph 
shall be a covenant running with the title to the 
agricultural land against any grantee, assignee, or 
successor of the legal entity; and
(B) any agricultural land acquired shall not be 
used for farming during the 5-year period described in 
that paragraph, except under a lease to an authorized 
legal entity in accordance with this Act.

SEC. 5. COMPLIANCE.

(a) Certifying Affidavit.--For any acquisition of an ownership 
interest in agricultural land by a legal entity after the date of 
enactment of this Act, at the time of acquisition, the legal entity 
purchasing the agricultural land shall sign, and submit to the 
Secretary, an affidavit, under penalty of perjury, certifying 
compliance with this Act.
(b) Federal Tax Return Affidavit.--Beginning with the first taxable 
year after the date of enactment of this Act, any legal entity with an 
ownership interest in agricultural land shall file an affidavit along 
with the Federal tax return submitted by the legal entity, under 
penalty of perjury, certifying compliance with this Act.
(c) USDA Programs and Farm Credit System.--Any legal entity 
applying to participate in any program of the Department of Agriculture 
or the Farm Credit System after the date of enactment of this Act shall 
provide documentation that demonstrates compliance with this Act as a 
condition of eligibility for the program.
(d) Ineligibility.--Any unauthorized legal entity that holds an 
ownership interest in agricultural land described in section 4(b)(1)(K) 
shall not be eligible to participate in any program of the Department 
of Agriculture or the Farm Credit System after the date of enactment of 
this Act.
(e) Reports to Congress.--Each calendar year, the Secretary shall 
submit to Congress, and make publicly available on the website of the 
Department of Agriculture, a report on violations of this Act 
discovered through affidavits received under subsections (a) and (b) 
and documentation received under subsection (c).

SEC. 6. ENFORCEMENT.

(a) Referral.--If the Secretary determines that a legal entity has 
acquired, or holds title to or interest in, agricultural land in 
violation of this Act, the Secretary shall report that violation to the 
Attorney General for enforcement in accordance with subsection (b).
(b) Enforcement by Attorney General.--
(1) In general.--On receipt of a referral of a violation of 
this Act reported by the Secretary pursuant to subsection (a), 
the Attorney General--
(A) shall conduct an investigation relating to that 
referral; and
(B) may initiate an action in the district court of 
the United States with jurisdiction over the county in 
which the applicable agricultural land is located to 
require divestiture of the agricultural land by the 
legal entity.
(2) Notice; order.--
(A) In general.--The Attorney General shall file 
notice of the pendency of an action brought under 
paragraph (1)(B) with the recorder of deeds of each 
county in which the applicable agricultural land is 
located.
(B) Order required.--If the applicable district 
court of the United States finds that the agricultural 
land subject to an action brought under paragraph 
(1)(B) was acquired, or held, in violation of this Act, 
the court shall--
(i) enter an order declaring that 
violation; and
(ii) file a copy of the order with the 
recorder of deeds in each county in which any 
portion of the agricultural land is located.
(3) Divestment of agricultural land.--
(A) In general.--On issuance of an order described 
in paragraph (2)(B), the unauthorized legal entity 
owning or having an ownership interest in the 
agricultural land subject to that order shall have a 
period of 1 year from the date on which the order was 
issued to divest the agricultural land.
(B) Covenant.--The 1-year period described in 
subparagraph (A) shall be deemed to be a covenant 
running with the title to the agricultural land against 
any legal entity, grantee, assignee, or successor.
(C) Violation.--Any agricultural land not divested 
in accordance with subparagraph (A) shall be sold at 
public sale in the manner prescribed by law for the 
foreclosure of a mortgage by action.
(4) Enjoinment.--Any prospective or threatened violation of 
this Act may be enjoined through an action brought by the 
Attorney General in a manner provided by law.
(5) Penalties.--
(A) Civil penalties.--
(i) In general.--Any natural person or 
legal entity that violates this Act may be 
assessed a civil penalty by the Secretary in an 
amount that is not more than 2 times the fair 
market value of the agricultural land at issue 
for each violation.
(ii) Multiple violations.--Each violation 
of this Act shall constitute a separate 
offense.
(iii) Notice.--No penalty shall be assessed 
on any natural person or legal entity unless 
the natural person or legal entity is given 
notice and opportunity for a hearing with 
respect to the violation.
(iv) Failure to pay.--
(I) In general.--On failure to pay 
the penalty assessed under clause (i), 
the Secretary may request the Attorney 
General institute a civil action in a 
district court of the United States for 
any district in which the natural 
person or legal entity is found, 
resides, or transacts business to 
collect the penalty.
(II) Deference.--In any action 
commenced under subclause (I), the 
applicable district court of the United 
States shall sustain the issuance of a 
penalty by the Secretary under clause 
(i) if supported by substantial 
evidence.
(B) Criminal penalties.--
(i) In general.--Any natural person who 
knowingly violates this Act as a shareholder, 
partner, member, or beneficial owner of an 
unauthorized legal entity with an ownership 
interest in the agricultural land at issue 
shall be imprisoned for not more than 5 years, 
fined in accordance with section 3571 of title 
18, United States Code, or both.
(ii) Multiple violations.--Each violation 
of this Act shall constitute a separate 
offense.
(c) Enforcement by State Attorneys General.--
(1) In general.--If the attorney general of a State has 
reason to believe that an interest of the residents of the 
State has been, or is, threatened or adversely affected by the 
engagement of an unauthorized legal entity in a practice that 
violates this Act, or a regulation promulgated pursuant to this 
Act, the attorney general of the State may, as parens patriae, 
bring a civil action on behalf of the residents of the State in 
an appropriate district court of the United States--
(A) to enjoin that practice;
(B) to compel divestiture of the agricultural land;
(C) to obtain damages, restitution, or other 
compensation on behalf of the residents of the State;
(D) to obtain such other relief as the court 
considers appropriate; or
(E) to obtain a civil penalty in an amount 
determined under paragraph (2).
(2) Civil penalties.--
(A) Calculation.--Subject to subparagraph (B), for 
purposes of imposing a civil penalty under paragraph 
(1)(E) with respect to an unauthorized legal entity 
that violates this Act, the amount determined under 
this paragraph is the amount obtained by multiplying--
(i) the number of days that the 
unauthorized legal entity is not in compliance 
with this Act; and
(ii) an amount not greater than $3,000, as 
determined by the appropriate district court of 
the United States.
(B) Maximum total liability.--The total amount of 
civil penalties that may be imposed with respect to an 
unauthorized legal entity that violates this Act shall 
not exceed the greater of $1,000,000 and the fair 
market value of the ownership interest in agricultural 
land involved in the applicable action for all civil 
actions brought against that unauthorized legal entity 
under paragraph (1) for that violation.
(3) Investigatory powers.--Nothing in this paragraph 
prevents the attorney general of a State from exercising the 
powers conferred on the attorney general by the laws of the 
State to conduct investigations, to administer oaths or 
affirmations, or to compel the attendance of witnesses or the 
production of documentary or other evidence.
(4) Actions by other state officials.--In addition to civil 
actions brought by State attorneys general under paragraph (1), 
any other officer of a State who is authorized by the State may 
bring a civil action under that paragraph, subject to the same 
requirements and limitations that apply under that paragraph to 
civil actions brought by the attorney general in the State.
(5) Savings provision.--Nothing in this subsection 
prohibits an attorney general or other authorized official of a 
State from initiating or continuing any proceeding in a court 
of the State for a violation of any civil or criminal law of 
the State.

SEC. 7. STATE AUTHORITY.

(a) In General.--Pursuant to its powers under the Commerce Clause 
of section 8 of article I of the Constitution of the United States, 
Congress hereby authorizes States to regulate legal entities that are 
permitted to own agricultural land within the State in a manner that is 
at least as restrictive as the manner described in this Act.
(b) Inclusions.--Regulation under subsection (a) may include more 
restrictive requirements, including restrictions that provide more 
stringent definitions of ``actively engaged in farming'', 
notwithstanding whether the requirements are more burdensome for owners 
of agricultural land in a certain State, who are residing in other 
States, to satisfy.
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