USDA Proposed AFIDA Overhaul Expands Commercial Real Estate Reporting Requirements
Foreign-owned commercial real estate stakeholders, including developers, infrastructure operators, and holders of timberland or conservation land, will face new mandatory AFIDA disclosure obligations if the USDA’s proposed rule is finalized, as it expands the definition of agricultural land and eliminates long-standing exemptions for small parcels, short-term leases, and easements.
On June 25, 2026, the USDA published a proposed rule (Docket No. USDA-2026-0001) to overhaul Agricultural Foreign Investment Disclosure Act (AFIDA) reporting requirements, with targeted changes impacting commercial real estate. The proposal replaces outdated 1987 SIC codes with 2022 NAICS codes to capture renewable energy generation, agricultural supply chain, and research activities as covered agricultural use, eliminates the 10-acre de minimis exemption, narrows the lease exemption to terms under one year (with no exemption for foreign adversary-controlled entities), and removes the easement and right-of-way exemption entirely. It also clarifies that local zoning designations do not remove land from the agricultural land definition, and expressly includes conservation program enrollments that could be used for agricultural production. Foreign-owned commercial real estate stakeholders should review existing land holdings, lease portfolios, and easement interests for potential AFIDA exposure, and monitor the rulemaking process for finalization.