Wednesday, December 25, 2024
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Foreign Owned Agricultural Land and Potential Chinese Influence in Mississippi and Other States



The Restore Liberty group from Mississippi has determined that Mississippi currently has close to one (1) million acres of agricultural land that is under foreign corporationsโ€™ control.  Mississippi agricultural land is being obtained by foreign corporations at a very high rate and is being bought at higher than market value prices for the properties. Additionally, other properties are being purchased in cities or more industrialized areas for what appears to be for the purpose of Bitcoin mining or for the purpose of obtaining intellectual property.

Most of the cities in Mississippi are interested in maintaining trade with the PRC (Peopleโ€™s Republic of China), especially those along the Mississippi River. They wish to maintain relationships regarding exporting agricultural products.

The PRC is consistently inviting Mississippi mayors to China through the U.S. Heartland China Association (USHCA) for events and travel.  These mayors appear to be treated quite well when attending these events at the expense of the PRC. This is not exclusive to the state of Mississippi but appears to focus on cities that have a connection to the Mississippi River. The Mississippi River is a primary trade route into the heart of the United States and a major pipeline for intermodal transport of goods within the United States.

The PRC is interested in getting the United States government to be more lenient on the PRC regarding climate and trade issues, and they appear to be recruiting mayors to assist with this endeavor.  Many mayors across Mississippi seemed to be concerned about the foreign land buying issue across the country. They are concerned that this may affect their trade capabilities with the PRC and other foreign countries. It is possible that they may lose Chinaโ€™s business in their cities or regions.

During the 2023 Mississippi Legislative session, proposed House Bill 280 originally sought to โ€œgrandfather-inโ€ almost 800,000 acres controlled by foreign interests, but Mississippiโ€™s Agricultural Commissioner, Andy Gipson, was able to get that stopped on the floor where it eventually became a study committee bill that Mississippi Governor, Tate Reeves, approved. Had this not been stopped, all agricultural land, commodities, and assets to foreign nations sold before July 1, 2023, would have remained. This committee brought to light large disparity in the Mississippi Forestry sector. A very large portion of the timber industry is controlled by foreign corporations, the majority from the Netherlands.

Below are some highlights for Mississippi taken from the most recent December 31, 2021, FSA:

โ€œForeign Holdings of U.S. Agricultural Landโ€ report. The full FSA report is included in Appendix B of this report.

โ€ข 777,176 acres of land in Mississippi was held by foreign interest in 2021 (2.6%). This is an increase from 618,752 acres in 2011 (2.1%)

โ€ข 757,816 agricultural acres was held by foreign interest in 2021 (2.5%). This is an increase from 600,456 acres in 2011 (2.0%). The use of the 2021 agricultural acres included:

o 177,139 Cropland

o 11,060 Pasture

o 550,265 Forest

o 19,352 Other Agriculture

โ€ข The Netherlands has the largest agricultural and non-agricultural landholdings by country of foreign investors in Mississippi (357,582 acres) followed by Germany (60,352 acres). China is reported by the USDA to hold some 88 acres of agricultural land (from official reports from the Committee on Foreign Land Ownership in Mississippi). In Mississippi, most of the timber land is owned by large foreign timber corporations.

Chinese Influence

China already has influence in Mississippi through businesses and through its Heartland initiative. China is the second highest foreign employer in the state, second only to Japan. Chinaโ€™s largest employment company in Mississippi is Milwaukee Tool.

The United States Heartland China Association (USHCA) is a 501(c)3 bipartisan organization, and according to their description, is committed to building bridges and promoting opportunities between the peoples of the Heartland Region (21 states located in the USA between the Great Lakes to the Gulf of Mexico) and the Peopleโ€™s Republic of China. They say that their focus will be on trust building efforts connecting government officials, business leaders, and educational and community interests with like-minded institutions between said region. Four hundred and thirty Fortune 1000 companies are headquartered in 84 of the cities within the Heartland Region.

According to the USHCA, their mission is to foster and support a positive, productive, and mutually beneficial relationship between the people of the United States and China by creating more channels of collaboration and opportunities for economic growth in the American Heartland Region. China is currently approaching mayors from Mississippi and inviting them to participate in trips and programs from China. Reports show that China is working to foster relationships with these mayors directly instead of working with the federal government.

The USHCA senior advisors include former Mississippi Gov. Ronnie Musgrove (D), former Oklahoma Gov. Brad Henry (D), former Missouri Gov. Matt Blunt (R), former U.S. Ambassador to Cambodia Kenneth Quinn, and former North Dakota Governor and George W. Bush administration Secretary of Agriculture, Ed Schafer. USHCAโ€™s strategic advisors have previously included Biden administration Senior White House Adviser in charge of infrastructure, Mitch Landrieu, and Biden administration Export-Import Bank of the U.S. director, Reta Jo Lewis.

United States Heartland China Association is an organization that also seeks to build relationships between government officials and business leaders and enhance educational and community ties between the United States and China. Chinese state media outlet China Daily has reported that USHCA has been attacked as โ€œpro-China.โ€ USHCAโ€™s โ€œHeartland Regionโ€ covers 21 states: North Dakota, South Dakota, Nebraska, Kansas, Colorado, Oklahoma, Texas, Minnesota, Iowa, Missouri, Arkansas, Louisiana, Wisconsin, Michigan, Illinois, Indiana, Ohio, Kentucky, Tennessee, Mississippi, and Alabama. In 2022, Sen. Marco Rubio (R-FL) alleged that USHCA plays a โ€œvital roleโ€ in supporting Chinese Communist Party (CCP) influence efforts in the United States. In October 2022, USHCA president, Bob Holden, asserted that U.S./China relations need to be a โ€œwin-winโ€ situation on agricultural cooperation.

In April 2022, USHCA hosted the U.S./China high level agricultural dialogue in Des Moines, Iowa. U.S. Ambassador to China, Nicholas Burns, former U.S. Ambassador to China, Terry Branstad, and Chinese Ambassador to the U.S., Qin Gang, all participated in this event. At the eventโ€™s conclusion, USHCA and the China Agriculture Association for International Exchange (CAAIE) signed an agreement for deeper cooperation.

In November of 2023 USHCA sponsored the following Mayors to attend events in China. Mayor Jim Brainard (USHCA Board Co-Chair); Mayor Barbara Buffaloe (Columbia, MO), Mayor Lumumba (Jackson, MS), Mayor Tannehill (Oxford, MS), Mayor Norton (Rochester, MN), and Mayor Harris (Shelby County, TN). The culmination of the trip took place in Shanghai, at the Yangtze-Mississippi Forum. https://www.globaltimes.cn/page/202311/1301329.shtml

COFCO Americaโ€™s Resources

COFCO stands for China Oil and Foodstuff Corporation which is Chinaโ€™s largest food and agricultural company that is state owned. Headquarters are in Geneva, Switzerland.

Zhang, Mingee & Associates Law Firm

Zhang, Mingee & Associates Law Firm is a partnership law firm founded in 2018. Their Attorneys are licensed in Texas, Alabama, and Mississippi, and they have extensive international experience and knowledge. They provide comprehensive legal services to their clients, and they are located in Jackson, MS. Since its founding, Zhang, Mingee & Associates has served companies, as well as small and medium-sized enterprises and individuals in China, Singapore, United States, Canada, South Africa, and Thailand. Their clients operate in diverse fields including heavy equipment manufacturing and distribution, real property management and disposition, international trade, pharmaceutical manufacturing and distribution, and business merger and acquisition. The focus of their practice is on:

  • The Chinese community, consisting of individuals and companies who are in China and wish to do business in the United States.
  • Chinese individuals who require legal services either in China or the United States.
  • Non-Chinese companies who wish to do business in China or with Chinese companies.

Zhang, Mingee & Associatesโ€™ attorneys were educated in prestigious institutions in China and the United States. The firmsโ€™ members have lived and worked in China, Japan, and Hong Kong.

Zhang, Mingee & Associates have special expertise in select areas, including Immigration law, Business law, Corporation Law, Contract Law, Real Property Law and Intellectual Property law.

Chinese Owned Land in the United States

Some interesting notes about Chinese owned land in the United States is that the according to the USDA reporting, the Chinese invest in large portions of land classified as โ€œOther Landโ€. Other land is classified as swamp, marshes, or bare rock. China has far more percentage of โ€œOther Landโ€ than any other foreign investors. It is uncertain why China has such a large percentage. Another issue is that regulators have a difficult time monitoring and enforcement of any violations to any Agricultural Foreign Investment Disclosure Act (AFDIA) regulations.

Another systemic weakness of foreign owned land is that land can be purchased by another foreign corporation that may be controlled by China or under PRC influence but shows on official record that the land is owned by nations considered friendly to the United States such as a Netherlands based corporation. (For more information regarding this, please read the articles attached below for a more detailed breakdown of how there is a lack of transparency and follow-through in the system for recording purchases, transfers, and the loopholes that are problematic.)

The Importance of the Mississippi River to the PRC

The Mississippi River is a very strategic waterway for commerce but also allows a way for vessels to travel from the Gulf of Mexico directly into the United States Heartland. This can also have significant military value to foreign adversaries as numerous foreign flagged vessels enter the Mississippi River daily. Ocean going vessels can go as far as Baton Rouge, Louisiana. However, cargo placed on barges can go all the way into the heart of America. With China also showing interest in land on the Mississippi River and our port system, care and concern should be placed on the future impacts of commerce and national security. Any foreign owned assets along the river could pose a potential threat to future commerce and security of the United States.

The Delaware Connection

Many businesses that are established in Mississippi under foreign ownership first establish their business in Delaware, and all these businesses have a letter from the Delaware Secretary of Stateโ€™s office to the Mississippi Secretary of Stateโ€™s Office, giving the foreign owned business a status as a legitimate corporation. Our research found numerous copies of these letters on file with the MS Secretary of the Stateโ€™s Office. Research your state for the same pattern.

Recommendations: Many states have enacted restrictions on foreign owned land, 24 states in total. My home state of Mississippi is one of those states. However, the law has limited restrictions and is NOT being enforced. Mississippi broke their own law, wanted to grandfather in the breaking of the law, and write a new law. Are your state laws being enforced? What limitations do your state laws have, if any? Do you know your state law regarding this? Mississippi, as well as other states, should follow Arkansasโ€™ strong lead. Also, if your state is in the Heartland Region, begin to research the information pertaining to your mayors. Research the presence of COFCO in your state.

Americaโ€™s First Policy Institute has some solid suggestions at the federal and state levels.

We need to support policies that:

1)    Limit and regulate foreign donations and endowments from foreign governments or foreign nations to state universities and schools.

2)    Scrutinize aliens from countries and combatant and enemy countries who come wanting to attend our American institutions of higher learning.

3)    Crack down on the transfer of Intellectual Property back to Chinese entities; enact and enforce strict punishment if law is violated.

4)    Eliminate PRC owned corporations or companies from state-controlled pension funds.

5)    Strengthen USDA reporting requirements and bring transparency in the areas of ownership, use, and change in use of land ownership.

6)    Increase classified briefings to the USDA.

7)    Establish state offices of Agricultural Intelligence and work alongside other states to trend patterns and legitimate concerns.

8)    Work on shoring up full independence regarding agriculture at the state level.

9)    Refuse real estate transactions with foreign corporations near military assets.

Additional Sources and Reports:

https://rebeccachaney.substack.com/p/land-of-our-fathers (Executive Summary)

https://rebeccachaney.substack.com/p/land-of-our-fathers-4b2 (Part 1)

https://rebeccachaney.substack.com/p/land-of-our-fathers-part-ii (Part 2)

https://rebeccachaney.substack.com/p/land-of-our-fathers-part-iii (Part 3)