Reuters – Arkansas has ordered Syngenta to sell 160 acres of farmland in the U.S. state within two years, citing its Chinese ownership. The move drew a sharp rebuke from the global seeds producer.
U.S. farm groups and lawmakers are increasingly scrutinizing foreign land ownership due to concerns about national security.
“This is about where your loyalties lie,” Arkansas Governor Sarah Huckabee Sanders said at a news conference.
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Syngenta said it was disappointed and called the decision “a short-sighted action” that will hurt Arkansas farmers. The company owns about 1,500 acres of U.S. agricultural land for research, development and regulatory trials on products used by U.S. farmers, said spokesperson Saswato Das.
“Our people in Arkansas are Americans led by Americans who care deeply about serving Arkansas farmers,” Das said.
It is the state’s first enforcement action under a law passed this year that prohibits certain foreign parties from acquiring or holding land. China is among the prohibited parties because it is subject to U.S. arms export controls known as the International Traffic in Arms Regulations, Arkansas Attorney General Tim Griffin said.
Previously Swiss-owned, Syngenta was bought for US$43 billion by ChemChina in 2017 and folded into Sinochem Holdings Corp in 2021. ChemChina is a “state-owned enterprise” in China, Griffin said.
If Syngenta fails to sell, Griffin can “force them to get out of our state” with legal action, Huckabee Sanders said.
The state also fined Syngenta $280,000 for failure to report foreign ownership in a timely manner.
No one from China has ever directed Syngenta executives to buy, lease or otherwise engage in U.S. land acquisitions, Das said.
