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KentuckyHB 3152025 Regular SessionHouse

AN ACT relating to the acquisition of agricultural land.

Sponsored By: Scott Sharp (Republican)

Signed by Governor

EscheatsInternational Trade and RelationsLand UsePropertyReal EstateState AgenciesHomeland SecurityAgricultureAttorney General

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 2 costs, 1 mixed.

Foreign-linked applicants lose farm program access

The law bars certain foreign-linked people and entities from joining three Kentucky agencies’ agricultural programs. It covers nonresident aliens, foreign businesses, foreign agents, trustees, and fiduciaries legally tied to governments listed in 22 C.F.R. 126.1. This includes those legally required to follow those governments’ instructions or carry out their decisions. The ban covers programs run by the Department of Agriculture, Agricultural Development Board, and Kentucky Agricultural Finance Corporation.

Foreign farmland reporting and forfeiture rules

People and entities subject to federal Agricultural Foreign Investment Disclosure Act reporting must also file a copy with Kentucky’s agriculture department. The same federal deadline applies, and the law does not waive federal reporting duties. The department must review these reports and reports voluntarily submitted by county registers of deeds alleging violations. Evidence of a suspected violation must go to the Attorney General, who may bring an enforcement case. When a court finds an illegal farmland purchase or acquisition, the land becomes Kentucky’s and must be sold through court-ordered foreclosure. Sale money pays reasonable litigation costs first, then overdue property taxes, then mortgages and other liens in court-set priority. Any money left goes to Kentucky’s budget reserve trust fund, not the former owner. A lease that violates the law must be canceled and is void.

Foreign-linked buyers face Kentucky farmland limits

The law bars certain foreign-linked people and entities from buying, leasing, or gaining interests in public or private Kentucky farmland. It covers nonresident aliens, foreign businesses, foreign agents, trustees, and fiduciaries legally tied to governments listed in 22 C.F.R. 126.1. This includes those legally required to follow those governments’ instructions or carry out their decisions. Covered owners may keep land acquired before the law’s effective date, but generally cannot acquire more. An exception allows entities with an active national security agreement with the Committee on Foreign Investment in the United States to hold up to 350 acres. That land must serve agricultural research, development, or experimental purposes, including testing, developing, or producing crop inputs for sale or resale to farmers. Eligible inputs are seeds, plants, pesticides, soil amendments, biologicals, and fertilizers. Another exception allows only the land needed for a nonfarm business, including permit or application filings. Development must finish within five years of acquisition; missing that deadline violates the law. Until development, farming is allowed only through leases to family farm units, family farm corporations, or authorized farm corporations. Existing foreign businesses may also acquire adjacent land to expand a business they already own and operate.

Sponsors & Cosponsors

Sponsor

  • Scott Sharp

    Republican • House

Cosponsors

  • David Hale

    Republican • House

  • Emily Callaway

    Republican • House

  • John Hodgson

    Republican • House

  • Kim King

    Republican • House

  • Patrick Flannery

    Republican • House

  • Steven Doan

    Republican • House

  • T.J. Roberts

    Republican • House

  • Walker Thomas

    Republican • House

  • Wade Williams

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 127 • No: 2

Senate vote • 3/14/2025

passed

Yes: 34 • No: 2

House vote • 2/28/2025

3rd reading, passed

Yes: 93 • No: 0

Actions Timeline

  1. signed by Governor (Acts Ch. 84)

    3/25/2025

  2. delivered to Governor

    3/14/2025

  3. enrolled, signed by President of the Senate

    3/14/2025Senate

  4. enrolled, signed by Speaker of the House

    3/14/2025Senate

  5. passed 89-1

    3/14/2025Senate

  6. House concurred in Senate Committee Substitute (1) and Floor Amendment (3)

    3/14/2025Senate

  7. posted for passage for concurrence in Senate Committee Substitute (1) and Floor Amendment (3)

    3/14/2025Senate

  8. to Rules (H)

    3/14/2025House

  9. received in House

    3/14/2025House

  10. passed 34-2 with Committee Substitute (1) and Floor Amendment (3)

    3/14/2025Senate

  11. Floor Amendments (1) and (2) withdrawn

    3/14/2025Senate

  12. 3rd reading

    3/14/2025Senate

  13. passed over and retained in the Orders of the Day

    3/13/2025Senate

  14. floor amendments (2) and (3) filed to Committee Substitute

    3/13/2025Senate

  15. posted for passage in the Regular Orders of the Day for Thursday, March 13, 2025

    3/12/2025Senate

  16. 2nd reading, to Rules

    3/12/2025Senate

  17. floor amendment (1) filed to Committee Substitute

    3/11/2025Senate

  18. reported favorably, 1st reading, to Calendar with Committee Substitute (1)

    3/11/2025Senate

  19. to Agriculture (S)

    3/6/2025Senate

  20. to Committee on Committees (S)

    3/4/2025Senate

  21. received in Senate

    3/4/2025Senate

  22. 3rd reading, passed 93-0

    2/28/2025House

  23. posted for passage in the Regular Orders of the Day for Friday, February 28, 2025

    2/27/2025House

  24. 2nd reading, to Rules

    2/27/2025House

  25. reported favorably, 1st reading, to Calendar

    2/26/2025House

Bill Text

  • Current

    3/14/2025

    PDF

  • Introduced

    2/28/2025

    PDF

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