Foreign Persons Must Report US Agricultural Land HoldingsMarch 24, 2015, 2:06 PM HST · Updated March 24, 2:09 PM 0 Comments
By Maui Now Staff
Foreign persons with an interest in agricultural lands in the US are being reminded to report their holdings and any related transactions to the US Secretary of Agriculture.
“Any foreign person who acquires, transfers or holds any interest, other than a security interest, including leaseholds of 10 years or more, in agricultural land in the United States is required by law to report the transaction no later than 90 days after the date of the transaction,” said James Robello, executive director for the US Department of Agriculture Farm Service Agency in Maui County.
Foreign investors are required to submit Agricultural Foreign Investment Disclosure Act reports with the FSA office.
“Failure to file a report, filing a late report or filing an inaccurate report can result in a penalty with fines up to 25 percent of the fair market value of the agricultural land,” said Robello.
Agricultural lands are defined as any land totaling 10 acres or more used for farming, ranching or timber production.
Reports are also required when land use changes from non-agricultural to agricultural, or from agricultural to nonagricultural. Foreign investors must also file a report when ownership changes hands.
The information from these disclosures are used in an annual report to the rresident and Congress assessing the impact of holdings on family farms and communities in the US.
For more information on AFIDA and FSA programs, call (808) 871-5500, ext 2, or visit the USDA website.