PASS Act of 2023 Promoting Agriculture Safeguards and Security Act of 2023
Impact
If enacted, the bill would empower CFIUS to review and potentially block agricultural-related transactions that involve foreign entities classified under specific categories, such as those operating on behalf of prohibited countries, which include China, Russia, Iran, and North Korea. The bill introduces a framework for assessing risks associated with foreign investments in agriculture, with the aim of preventing foreign control of U.S. agricultural companies and protecting the nation's agricultural economy from foreign influence. It mandates the prohibition of transactions that pose substantial control risks unless a waiver is granted by the President under exceptional circumstances.
Summary
House Bill 683, known as the Promoting Agriculture Safeguards and Security Act of 2023 (or PASS Act), seeks to amend the Defense Production Act of 1950 by adding the Secretary of Agriculture to the Committee on Foreign Investment in the United States (CFIUS). The main goal of this bill is to increase scrutiny over foreign investments in U.S. agricultural transactions, particularly those involving real estate used for agricultural purposes. This legislative change reflects a growing concern regarding the implications of foreign ownership on domestic food production and national security.
Contention
While the bill has garnered support from proponents who argue that it enhances national security by protecting domestic agricultural interests, it may also attract criticism and concern from those who view it as an infringement on free market principles or an overreach into private enterprise. Critics may argue that such legislative measures could hurt foreign investments that provide capital and innovation in the agricultural sector. The balance between protecting national interests and promoting an open investment climate is likely to remain a focal point of debate surrounding this bill.
Foreign Adversary Risk Management Act or the FARM ActThis bill places the Secretary of Agriculture on the Committee on Foreign Investment in the United States (CFIUS). It also requires CFIUS to review any investment that could result in foreign control of any U.S. agricultural business.Further, the bill includes agricultural systems and supply chains in the definitions of critical infrastructure and critical technologies for the purposes of reviewing such investments.The Department of Agriculture and the Government Accountability Office must each analyze and report on foreign influence in the U.S. agricultural industry.