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119-hr-8531119th CongressWALLET

Farmland for Farmers Act of 2026

Sponsored By: Representative Tokuda, Jill N. [D-HI-2]

Introduced

Summary

Limits institutional and multilayer ownership of farmland. This bill would require agricultural land to be owned by natural persons who are actively engaged in farming. It would define a narrow class of authorized legal entities with no more than 25 natural-person owners and bar multilayered or fiduciary structures that try to evade the rule.

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  • Farmers and family owners: Ownership interests in agricultural land must be held by natural persons actively engaged in farming, with narrow exceptions for research, cooperatives, heirs’ property, and certain debt or lien situations.
  • Institutional investors and trusts: Unauthorized entities such as pension or investment funds, multilayered entities, and trusts would be prohibited from acquiring or holding farmland. Violations can trigger civil and criminal penalties, penalties tied to fair market value, daily fines with an overall cap, and a required divestiture within 1 year.
  • States, federal programs, and enforcement: States may adopt rules at least as restrictive and state attorneys general can bring civil actions. The bill also authorizes federal enforcement, bars noncompliant entities from USDA programs and the Farm Credit System, mandates ongoing attestations and documentation, and requires annual reporting to Congress on violations and divestitures.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 2 costs, 2 mixed.

Tough penalties and forced land sales

If enacted, the Secretary would report suspected ownership violations to the Attorney General. A court could order an unauthorized entity to divest and would give the owner one year to sell the land; that one-year rule would run with the title. The Secretary could assess civil penalties up to twice the land's fair market value for each violation, and nonpayment could lead to collection suits. Natural persons who knowingly violate the Act could face up to 5 years in prison and federal fines. State attorneys general could also sue, seek daily penalties (up to $3,000 per day as set by a court), and recover damages or force divestiture. Unauthorized entities could be barred from USDA programs and the Farm Credit System after enactment.

Limits on who can own farmland

If enacted, the bill would bar unauthorized business entities from directly or indirectly buying or holding agricultural land. "Agricultural land" would include cropland, pasture, rangeland, forestland, and land farmed within the prior 10 years. Only natural persons actively engaged in farming, or narrowly defined authorized entities with no more than 25 natural-person owners (all actively farming), could own farmland. Subsidiaries of multilayer corporate owners would be disallowed.

New sworn filings for farmland owners

If enacted, legal entities that buy or hold farmland would have to sign sworn affidavits saying they comply with the ownership rules. Purchasers must file an acquisition affidavit with the Secretary at the time of purchase. Starting with the first taxable year after enactment, any entity with an ownership interest in farmland would file a sworn compliance affidavit with its federal tax return each year. Entities applying for USDA programs or Farm Credit would have to provide documents proving compliance.

Narrow exceptions for research and foreclosures

If enacted, the bill would allow two narrow exceptions to the ownership ban. Land used only for research, testing, demonstration, or experimental work would be allowed so long as commercial sales from farming the land are incidental (less than 25% of gross sales of the research product). Land acquired by process of law (for example foreclosure or enforcement of a lien, or a contract for deed executed before enactment) could be held but must be disposed of within 5 years. That 5-year disposal requirement would be a covenant on the title and the land generally could not be farmed during that time except by lease to an authorized owner.

Sponsors & CoSponsors

Sponsor

Tokuda, Jill N. [D-HI-2]

HI • D

Cosponsors

  • Rep. McGovern, James P. [D-MA-2]

    MA • D

    Sponsored 4/27/2026

  • Rep. Thanedar, Shri [D-MI-13]

    MI • D

    Sponsored 4/27/2026

  • Rep. Jayapal, Pramila [D-WA-7]

    WA • D

    Sponsored 4/28/2026

Roll Call Votes

No roll call votes available for this bill.

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