These States Have The Most Foreign-Owned Land

Foreign ownership of U.S. land has increased by 23.3% over the last decade, reaching 32.0 million acres in 2023, prompting legislative action in some states to restrict such ownership. While foreign-owned land accounts for only 1.4% of the total U.S. land area, the proportion varies significantly by state, with Maine having the highest share at 15.3%, primarily forest land owned by entities from Canada and the Netherlands.

Analysis

Foreign ownership of U.S. land increased by 23.3% over the decade from 2013 to 2023, rising from 25.9 million acres to 32.0 million acres, according to U.S. Department of Agriculture data. While this represents a modest 1.4% of total U.S. land area, the trend has prompted several states to enact legislation aimed at limiting such ownership or enforcing stricter reporting requirements. The distribution of foreign-owned land is notable: while counties with the highest proportions are often found in the South and Midwest, the state with the largest percentage of foreign-owned land is Maine, at 15.3%, predominantly comprising forest land (2,964,036 acres) with Canada and the Netherlands being significant landowners. Across various states, primary landholding types include forest, cropland, and pasture, with entities from countries like Canada, the Netherlands, Germany, and the United Kingdom frequently appearing as major landowners. For instance, Texas has the largest total value of foreign-owned land at $9.8 billion, primarily forest land, while California's foreign-owned land, valued at $4.8 billion, is mainly cropland. This data, sourced from the Agricultural Foreign Investment Disclosure Act database, underscores a growing, albeit still small, international stake in U.S. real assets, with varying concentrations and types of land use across states.

Key Decisions for Investors

• Investors in U.S. real assets, particularly timberland and agricultural REITs, should closely monitor evolving state-level legislation regarding foreign land ownership, as new restrictions could impact asset liquidity and future acquisition strategies.
• The significant concentration of foreign ownership in specific states, such as Maine's 15.3% primarily in forest land, may indicate heightened competition or specific valuation pressures in those regional markets for relevant asset classes.
• Consider the long-term implications of increasing foreign investment in U.S. land on supply chains and commodity prices, especially for agricultural and timber products, and assess potential regulatory risks stemming from concerns over national interests.