Foreign Ownership, Control, and Influence (FOCI) Risks in the Food and Agriculture Sector

Foreign Ownership, Control, and Influence (FOCI) Risks in the Food and Agriculture Sector

Foreign Ownership, Control, and Influence
June 13, 2024
(FOCI) Risks in the Food and Agriculture Sector Brian E. Humphreys
In recent years, congressional concerns over potential risks to domestic food security posed by
Analyst in Science and
foreign ownership, control, and influence (FOCI) of critical infrastructure in the U.S. food and
Technology Policy
agriculture sector (FA Sector) have grown. FA Sector critical infrastructure encompasses many

elements of the nation’s food supply chain. Examples include farms, grain elevators, certain
testing laboratories, meatpacking facilities, and supermarkets.

The U.S. Department of Agriculture (USDA) and the Food and Drug Administration (FDA) are the designated Sector Risk
Management Agencies (SRMAs) for the FA Sector (1 of 16 federally designated critical infrastructure sectors). The SRMAs
identify four main categories of risk to FA Sector-related functions: food contamination and disruption (accidental or
intentional), disease and pests, severe weather, and cybersecurity. Partnerships are premised on the overarching assumption
that private-sector owners of critical systems and assets are good-faith actors in a shared enterprise focused on ensuring
availability and continuity of “national critical functions.”
However, FOCI risks more often relate to the control, exploitation, or malicious use of otherwise operable systems and assets
by self-interested foreign adversaries—instances where the good faith of asset owners cannot be assumed. This type of risk
has not been consistently or systematically assessed within the existing critical infrastructure security and resilience (CISR)
voluntary partnership framework. Potential FOCI risks in the FA Sector include prioritization of foreign markets over
domestic food security considerations; intellectual property (IP) theft of strategically important genetic engineering research;
illicit or forced technology transfer; control of agricultural land and basic agricultural inputs; access to sensitive infrastructure
information (e.g., vulnerability assessments based on voluntary disclosures by private-sector entities); and control of critical
cyber systems, assets, and networks.
The Biden Administration has released several policy directives that address various infrastructure and supply chain issues
specific to the FA Sector or—more broadly—to FOCI risks affecting multiple sectors. This includes a 2022 National Security
Memorandum (NSM), “Strengthening the Security and Resilience of United States Food and Agriculture” (NSM-16), which
contains provisions that expand federal regulatory reviews of foreign acquisitions of agricultural firms to include food
security (in addition to national security) and that mandate supply chain security assessments by federal agencies (including
USDA in the FA Sector).
Many recent assessments note trends toward consolidation and foreign ownership within key segments of U.S. agriculture.
For example, a USDA report identified the growing ownership concentration in meat and poultry manufacturing, pesticides
and crop seeds, and farm machine parts as sources of potential supply chain risk, although it did not specifically identify
FOCI as a factor. A 2021 joint report on FA Sector risks by the Department of Homeland Security (DHS) and the Office of
the Director of National Intelligence (ODNI) warned of the possibility of a “takeover of [an] important supply chain entity by
foreign investors” as part of an economic coercion and manipulation campaign. Foreign-owned or -controlled multinationals
already have large, legally acquired holdings in various FA Sector segments.
Some Members of Congress have expressed concern about the People’s Republic of China’s (PRC’s) acquisition of major
food processing and agrochemical firms that have significant market share in the United States. Some public interest groups
allege that multinationals may abuse IP protections for agrochemicals and genetically engineered seed, effectively control use
of agricultural land, and gain access to farm-level data. Multinationals counter that IP protections allow for investments in
new technologies and provision of innovative products at affordable prices to U.S. food producers. Foreign acquisitions of
U.S. farmland have also caused concern, prompting legislative proposals that would restrict certain acquisitions. According
to USDA, as of December 31, 2022, foreign entities—mainly Canada and some Western European countries—held an
interest in 44.3 million acres of U.S. agricultural land, or about 3.4% of the total. PRC-linked holdings are small by
comparison but have garnered scrutiny.
Policy options for Congress exist in several areas related to FOCI risks in the FA Sector. These areas include (1) federal
reviews of foreign investments and acquisitions of FA Sector assets, (2) requirements for data and reporting of foreign land
purchases, (3) resourcing of SRMA programs and activities, (4) assessments of FOCI risk, and (5) IP protections in the
bioeconomy and farming.
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Contents
Introduction ..................................................................................................................................... 1
Background: The Food and Agriculture Sector ............................................................................... 2
Risk Management in the FA Sector ........................................................................................... 3
SRMA Organization and Resourcing for FA Sector Engagements ........................................... 4
DHS Leadership and Coordination ........................................................................................... 6
Related Programs, Policies, and Directives .............................................................................. 7
National Security Memorandum for the FA Sector ............................................................. 7
Executive Order on Bioeconomy ........................................................................................ 9
Executive Order on CFIUS ............................................................................................... 10
Executive Order on America’s Supply Chains .................................................................. 10
Prospective Cyber Incident Reporting Requirements ........................................................ 11
Potential FOCI Risks in the FA Sector ........................................................................................... 11
Supply Chain Security .............................................................................................................. 11
Foreign Acquisition of Seed and Agricultural Chemical Suppliers ........................................ 12
Foreign Acquisition of Meat and Poultry Suppliers ................................................................ 13
Food Processing, Packaging, and Production ......................................................................... 14
Agricultural and Food Supporting Facilities ........................................................................... 14
Regulatory, Oversight, and Industry Organizations ................................................................ 15
The Role of Transnational Criminal Organizations ................................................................ 15
Foreign Control of U.S. Farmland .......................................................................................... 16
Land Ownership Risks ...................................................................................................... 16
Technology Use Agreements for Basic Agricultural Inputs .............................................. 17
Conclusion ..................................................................................................................................... 18

Tables
Table 1. Agency Deliverables in “National Security Memorandum on Strengthening the
Security and Resilience of United States Food and Agriculture” (NSM-16) ............................... 9

Contacts
Author Information ........................................................................................................................ 20

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Introduction
In recent years, congressional concerns have grown over potential risks to domestic food security
posed by foreign ownership, control, and influence (FOCI) of critical infrastructure in the U.S.
food and agriculture sector (FA Sector). Critical infrastructure is defined in statute as “systems
and assets, whether physical or virtual, so vital to the United States that the incapacity or
destruction of such systems and assets would have a debilitating impact on security, national
economic security, national public health or safety, or any combination of those matters.”1 Critical
infrastructure systems and assets in the FA Sector encompass many elements of the nation’s food
supply chain. Examples include farms, grain elevators, farm supply wholesalers, certain testing
laboratories, meatpacking facilities, bars and restaurants, and supermarkets.2
The national critical infrastructure security and resilience (CISR) enterprise combines both
varying degrees of regulation and voluntary public-private partnerships for information sharing
and best practices.3 The Department of Homeland Security (DHS) coordinates national strategy,
interagency activities, and public-private partnerships for infrastructure security and resilience.
DHS delegates sector leadership to other federal agencies in some cases, including the FA Sector.
The FA Sector is 1 of 16 designated critical infrastructure sectors under current presidential
directives.4
CISR programs and activities in the FA Sector are led by the U.S. Department of Agriculture
(USDA) and Food and Drug Administration (FDA), which are the FA Sector’s designated Sector
Risk Management Agencies (SRMAs). Public-private partnerships are largely voluntary and are
premised on the overarching assumption that private-sector owners of critical systems and assets
are good-faith actors in a risk management enterprise focused on protecting critical systems and
assets and the functions they enable.5 USDA and FDA identify four main categories of risk to FA
Sector-related functions: food contamination and disruption (accidental or intentional), disease
and pests, severe weather (i.e., droughts, floods, and climate variability), and cybersecurity.6
FOCI risks in the FA Sector are not associated with the incapacity or destruction of critical
systems and assets or disruption of essential functions. More often, FOCI risks relate to the

1 The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism (USA PATRIOT) Act (P.L. 107-56). The FA Sector is 1 of 16 designated critical infrastructure sectors under
current presidential directives. For information on the critical infrastructure risk management framework, see
Department of Homeland Security (DHS), The National Infrastructure Protection Plan (NIPP) 2013: Partnering for
Critical Infrastructure Security and Resilience, Washington, DC, 2013; and Food and Drug Administration (FDA),
U.S. Department of Agriculture (USDA), and DHS, Food and Agriculture Sector-Specific Plan, 2015, pp. 5-7,
https://www.usda.gov/sites/default/files/documents/2015-food-and-agriculture-sector-specific-plan.pdf (hereinafter FA
SSP).
2 See Appendix 6, FA SSP. According to the DHS Cybersecurity and Infrastructure Security Agency (CISA), the FA
Sector has critical dependencies with several other designated critical infrastructure sectors, including Water and
Wastewater Systems, Transportation Systems, Energy, and Chemical. However, an examination of foreign ownership
risks in these sectors and their potential applicability to the FA Sector is beyond the scope of this report. Likewise, this
report does not cover foreign ownership of systems, assets, and networks outside U.S. jurisdiction or imports of
essential foreign-sourced agricultural production materials into the United States.
3 See White House, “National Security Memorandum on Critical Infrastructure Security and Resilience,” (NSM-22),
presidential memorandum, April 30, 2024, https://www.whitehouse.gov/briefing-room/presidential-actions/2024/04/30/
national-security-memorandum-on-critical-infrastructure-security-and-resilience.
4 Ibid.
5 FA SSP.
6 For information on the critical infrastructure risk management framework, see DHS, The National Infrastructure
Protection Plan (NIPP) 2013: Partnering for Critical Infrastructure Security and Resilience, Washington, DC, 2013,
and FA SSP, pp. 5-7.
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control, exploitation, or malicious use of productive systems and assets by self-interested foreign
adversaries—instances where the good faith of asset owners cannot be assumed. This type of risk
has not been consistently or systematically assessed within the existing CISR voluntary
partnership framework.
Potential FOCI risks in the FA Sector identified in this report include prioritization of foreign
markets over domestic food security considerations; intellectual property (IP) theft of
strategically important genetic engineering research; illicit or forced technology transfer; control
of agricultural land and basic agricultural inputs; access to sensitive infrastructure information
(e.g., vulnerability assessments based on voluntary disclosures by private-sector entities); and
control of critical cyber systems, assets, and networks.
This report provides analysis of potential FOCI risks in the FA Sector and the bearing these risks
might have on the overall security and resilience of the sector. The report also provides options
for congressional legislation and oversight.
Background: The Food and Agriculture Sector
Presidential directives established critical infrastructure sectors that encompass broad areas of the
economy, government, and public services.7 There are currently 16 sectors and numerous
subsectors. The William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year
2021 (FY2021 NDAA; P.L. 116-283) defined the role of SRMAs.8 In each sector, SRMAs chair
the Government Coordinating Councils (GCCs), which provide for coordination among
interagency and intergovernmental partners. Sector Coordinating Councils (SCCs) operate as
counterparts to the GCCs, representing the interests of private-sector partners and other
nongovernmental stakeholders within a given sector. SCCs are voluntary, self-organized, and self-
governing bodies, often chaired by private-sector industry leaders.
The Department of Health and Human Services (HHS), acting through FDA, and USDA are the
designated co-SRMAs for the FA Sector. FA SCC membership is composed of major industry
enterprises and trade groups.9 Most sectors have a recognized Information Sharing and Analysis
Center (ISAC), which serves as a hub for threat reporting, analysis, and information sharing with
sector partners on cybersecurity and other matters.
The FA Sector’s ISAC was originally formed in 2002 but closed in 2008 after failing to attract an
active user base.10 Sector stakeholder interests were then represented by the Food and Ag Special
Interest Group (SIG) within the Information Technology (IT) ISAC. Some observers criticized

7 White House, “National Security Memorandum on Critical Infrastructure Security and Resilience” (NSM-22),
presidential memorandum, April 30, 2024, https://www.whitehouse.gov/briefing-room/presidential-actions/2024/04/30/
national-security-memorandum-on-critical-infrastructure-security-and-resilience/.
8 See Section 9002, “Sector Risk Management Agencies.” These coordinating bodies are chartered under Critical
Infrastructure Protection and Advisory Council (CIPAC) auspices. CIPAC authorities, originally established by DHS in
2006 pursuant to the Homeland Security Act of 2002 (P.L. 107-296), afford certain exemptions from public reporting
of meetings and disclosure of sensitive infrastructure information. See DHS, “Critical Infrastructure Partnership
Advisory Council,” 71 Federal Register 14930, March 24, 2006.
9 For a full list of FA Sector Coordinating Council membership and links to the current charter, see CISA, “Food and
Agriculture Sector: Council Charters and Membership,” https://www.cisa.gov/food-and-agriculture-sector-council-
charters-and-membership.
10 The Food Marketing Institute, an industry group, established an agriculture Information Sharing and Analysis Center
(ISAC) in 2002 prior to the establishment of DHS as an agency but disbanded it in 2008 due to “lack of activity and
information flow,” according to media reports. See “Food Sector Abandons Its ISAC,” Security Management,
September 1, 2008, https://www.asisonline.org/security-management-magazine/articles/2008/09/food-sector-abandons-
its-isac/.
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this arrangement as inadequate to the scale of cyber threats faced by the FA Sector.11 Industry
leaders rebranded the Food and Ag SIG as the Food and Agriculture Sector ISAC in 2023.12
Although the new ISAC continued to operate under IT-ISAC auspices, its leaders asserted that the
change would raise the profile of the organization and clarify its mission.13 Separately, in 2022,
DHS sponsored preliminary development of a state-level pilot ISAC for FA Sector issues through
the National Agriculture Biosecurity Center at Kansas State University.14
Policy options for Congress include whether current information-sharing organizations are
appropriately organized and have the necessary resources to meet FA Sector cybersecurity and
other security needs, as well as legislation to create new information-sharing organizations.15
Risk Management in the FA Sector
SRMAs consider a wide range of plausible man-made and natural hazard events that could
negatively affect availability and continuity of critical infrastructure functions.16 CISR programs
and activities in the FA Sector to date have been limited in scale and centered on traditional
agency missions, such as maintaining the national food safety system and safeguarding farm
production of raw foodstuffs from contamination.
FOCI risks affecting food and agriculture may be addressed through national security reviews of
certain covered foreign investment transactions, including mergers and acquisitions, by the
interagency Committee on Foreign Investment in the United States (CFIUS)—CFIUS authorities
are governed by Section 721 of the Defense Production Act of 1950 (P.L. 81-774), as amended.
CFIUS may recommend that the President block certain foreign investments, including those that
would result in foreign control of any critical infrastructure, if it determines that the transaction
would threaten to impair U.S. national security and the risk cannot be mitigated. CFIUS may
review certain covered foreign investment and real estate transactions involving the acquisition of

11 See Eric Geller, “The Dangerous Weak Link in the U.S. Food Chain,” Wired, April 6, 2023, https://www.wired.com/
story/us-food-agriculture-isac-cybersecurity/. The Food and Agriculture Industry Cybersecurity Support Act,
introduced in the 118th Congress (S. 2393 and H.R. 1219), would mandate creation of a cybersecurity clearinghouse for
the sector hosted by the National Telecommunications and Information Administration, a Department of Commerce
agency.
12 Food and Ag ISAC (an IT ISAC Community), “Built by Industry for Industry,” https://www.foodandag-isac.org/;
and “Food and Ag-ISAC Forms to Protect Agrifood Sector from Cybersecurity Threats,” Food Safety Magazine, May
26, 2023, https://www.food-safety.com/articles/8617-food-and-ag-isac-forms-to-protect-agrifood-sector-from-
cybersecurity-threats.
13 Tim Starks, “The Food and Agriculture Industry Gets a New Center to Share Cybersecurity Information,”
Washington Post, May 24, 2023, https://www.washingtonpost.com/politics/2023/05/24/food-agriculture-industry-gets-
new-center-share-cybersecurity-information/.
14 FDA, USDA, DHS, Food and Agriculture Sector Annual Report: Fiscal Year 2022, p. 17, https://www.fda.gov/
media/171959/download; Kansas State University, “Creation of a Kansas Food and Agriculture Information Sharing
and Analysis Organization,” https://www.k-state.edu/govrelations/federal/NABC-
CreationofaKansasFoodandAgricultureInformationSharingandAnalysisCenter.pdf.
15 Representative Pfluger introduced a bill in the 118th Congress, “Food and Agriculture Industry Cybersecurity
Support Act” (H.R. 1219), which directs the Government Accountability Office to report on the feasibility of creating a
dedicated FA Sector ISAC.
16 CISA defines a set of 55 National Critical Functions as “functions of government and the private sector so vital to the
United States that their disruption, corruption, or dysfunction would have a debilitating effect on security, national
economic security, national public health or safety, or any combination thereof.”
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agricultural land and corporate entities, and may consider “elements of the agriculture industrial
base that have implications for food security.”17
However, the range of transactions CFIUS covers is relatively narrow, focusing on national
security risks of corporate acquisitions, noncontrolling investments, and real estate transactions,
rather than CISR writ large. Options for Congress include legislation to expand CFIUS
jurisdiction over transactions in the FA Sector and to add the Secretary of Agriculture as a full
member of CFIUS.18 Another option is to provide USDA with additional appropriations to fund
expansion of CFIUS-related programs and activities to cover a wider range of FOCI risks in the
FA Sector.
SRMA Organization and Resourcing for FA Sector Engagements
USDA SRMA responsibilities reside with USDA’s National Security Division within the Office
of Homeland Security (OHS). The division oversees the agency’s programs and participation in
interagency activities, which may include FOCI-related risk management activities under
programs such as CFIUS, Critical Infrastructure and Insider Threat, Foreign National Vetting,
Intelligence, and FA Sector.19 FDA SRMA responsibilities reside with the Office of Analytics and
Outreach/Food Defense and Emergency Coordination Staff at the Center for Food Safety and
Applied Nutrition (CFSAN). Neither USDA/OHS nor FDA/CFSAN receives dedicated
appropriations for SRMA-related programs and activities. Instead, SRMA engagement appears to
be carried out in addition to other customary activities included in these offices’ program
portfolios.20
USDA requested $225,000 in funds to support OHS engagements with FA Sector stakeholders in
its FY2024 budget request.21 Referencing a ransomware attack on JBS—a Brazilian-owned meat
processing firm with extensive operations in the United States—USDA/OHS stated that as
“cybersecurity threats and vulnerabilities continue to grow, USDA is unable to conduct ... SRMA
responsibilities[,] which could have a significant impact on the safety and security of U.S.
agriculture” because of a lack of dedicated appropriations for this purpose.22 The FDA budget

17 Executive Order (E.O.) 14083, “Ensuring Robust Consideration of Evolving National Security Risks by the
Committee on Foreign Investment in the United States,” 87 Federal Register 57369, September 15, 2022. Committee
on Foreign Investment in the United States (CFIUS) reviews may involve consultation with a designated USDA
official. CFIUS is an interagency body comprising nine Cabinet members and others, as appointed. For more
information on CFIUS authorities and activities, see CRS In Focus IF10177, The Committee on Foreign Investment in
the United States, by Cathleen D. Cimino-Isaacs and Karen M. Sutter.
18 See CRS In Focus IF12312, Foreign Ownership of U.S. Agriculture: Selected Policy Options, by Renée Johnson.
19 See USDA, National Security Division, “National Security Division Related Topics,” https://www.usda.gov/da/ohs/
nsd.
20 Based on review of the FA SSP; USDA Office of Homeland Security (OHS), 2024 USDA Explanatory Notes, 2023,
https://www.usda.gov/sites/default/files/documents/02-2024-OHS.pdf; Department of Health and Human Services
(HHS), Food and Drug Administration: Justification of Estimates for Appropriations Committees, 2023,
https://www.fda.gov/media/166182/download; FDA, “Food Defense,” https://www.fda.gov/food/food-defense; and
FDA, “What We Do at CFSAN,” https://www.fda.gov/about-fda/center-food-safety-and-applied-nutrition-cfsan/what-
we-do-cfsan.
21 See USDA OHS, 2024 USDA Explanatory Notes, p. 2-7; and Geller, “The Dangerous Weak Link in the U.S. Food
Chain.” Geller notes, “By comparison, the Energy Department requested $245 million for its Office of Cybersecurity,
Energy Security, and Emergency Response.”
22 USDA OHS, 2024 USDA Explanatory Notes, p. 2-7.
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justification for FY2025 does not show any dedicated SRMA appropriations for FA Sector
activities.23
USDA and FDA list FA Sector engagement activities in annual Food and Agriculture Sector
Specific Plan (FA SSP) progress reports, including exercises with FA Sector stakeholders.24 The
exercises include several food defense emergency scenarios but do not include FOCI-related
threats or other FOCI issues that might affect emergency response. In April 2024, the
Cybersecurity and Infrastructure Security Agency (CISA) hosted the Cyber Storm IX exercise, a
major national cybersecurity exercise, which focused on the FA Sector as a possible target of
cyberattacks.25 The extent to which potential FOCI-related vulnerabilities or threats were
incorporated into the exercise scenario is not clear.26
The USDA Office of Inspector General (OIG) has participated in the interagency Foreign
Influence Investigations Working Group, but it is not clear what the scope of the activity was or
whether the group is still active.27 Some former agency officials and infrastructure protection
experts have publicly voiced general concerns about the scope and effectiveness of FA Sector
SRMA engagements with key stakeholders, according to media reports, although these concerns
do not appear to be specific to management of FOCI risks.28
USDA is not an official member of CFIUS but is sometimes brought in at the Treasury
Department’s discretion on certain transactions. Some Members of Congress have argued that
USDA should be a full member given the number of CFIUS cases and sensitive foreign
acquisitions involving agriculture, biotechnology, and other USDA equities.29 USDA/OHS
currently has one staff member fully dedicated to CFIUS, according to the agency’s FY2024
budget justification. USDA requested an additional $500,000 and two full-time employees in
anticipation of a potential increase in the scope of CFIUS activity, to include a wider array of
agriculture-related transactions. According to its FY2024 budget justification, USDA concluded
an agreement with the Treasury Department, giving it “enhanced access” to CFIUS cases that
“requires additional OHS and [Office of the General Counsel] resources to ensure we support the

23 HHS, Food and Drug Administration, Justification of Estimates for Appropriations Committees: Fiscal Year 2025,
2024, https://www.fda.gov/media/176925/download.
24 See DHS, Food and Agriculture Sector Annual Report: Fiscal Year 2021, https://www.fda.gov/media/165833/
download. FDA provides free emergency exercise scenarios for FA Sector stakeholders on its website, “Food Related
Emergency Exercise Bundle (FREE-B) Download,” https://www.fda.gov/food/food-defense-tools/food-related-
emergency-exercise-bundle-free-b-download. The content is listed as current as of March 5, 2024.
25 See Jen Easterly, “Prepared Together—Cyber Storm IX Recap,” Cybersecurity and Infrastructure Security Agency
(CISA), May 16, 2024, https://www.cisa.gov/news-events/news/prepared-together-cyber-storm-ix-recap. According to
Jen Easterly, the CISA Director, “Participating organizations worked directly with CISA and coordinating bodies such
as Sector Risk Management Agencies and Information Sharing and Analysis Centers to understand roles and
capabilities during a cyberattack.”
26 CISA has released after-action reports for past Cyber Storm exercises, typically several months after their
conclusion. No after-action report for Cyber Storm IX is available as of this writing.
27 See FY2021 FA SSP annual progress report, and USDA Office of Inspector General, Semiannual Report to
Congress: Second Half April 1, 2022–September 30, 2022, no. 88, October 2022, p. 32, https://usdaoig.oversight.gov/
sites/default/files/reports/2023-12/SARC_FY%25202022_Second%2520Half_508.pdf.
28 Geller, “The Dangerous Weak Link in the U.S. Food Chain.” For example, Geller quotes Mark Montgomery, former
executive director of the Cyberspace Solarium Commission, as saying that USDA as co-SRMA is “significantly less
effective” than other SRMAs. Brian Harrell, a former assistant director for infrastructure security at CISA, is quoted as
saying that the FA Sector needs its own ISAC to provide “a true operational assessment.”
29 For example, Congressman Frank Lucas, “Lucas Legislation Addressing Foreign Land Acquisition Passes Through
Committee,” press release, September 29, 2023, https://lucas.house.gov/posts/lucas-legislation-addressing-foreign-
land-acquisition-passes-through-committee.
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agreement between Departments. Previously USDA reviewed less than 50 CFIUS cases annually,
and since August 2022, our workload has increased to over 250 cases.”30
Options for Congress include requesting additional information about the scope and extent of
FDA and USDA activities to support CISR (and specifically FOCI) risk management programs
and activities in the FA Sector and providing appropriations to support additional SRMA
engagement with the FA Sector. A potential oversight question for Congress could be whether
FOCI-related risks are included in relevant exercise scenarios provided by SRMAs (see above).
Congressional oversight could also include examination of reports and data on sector engagement
from the relevant FA Sector SRMAs—to include appropriate quantifiable metrics and criteria of
success. Greater overall engagement with industry stakeholders may clarify what, if any,
differences exist between the rate and quality of foreign- and U.S.-owned firms’ participation in
public-private partnerships and the nature of those differences.
DHS Leadership and Coordination
DHS is responsible for overall coordination of federal CISR activities. It maintains food and
agriculture defense programs and activities through the Office of Health Security to support the
FA Sector according to legislative requirements and executive branch policy directives.31 In
addition, DHS previously provided grant funding to the University of Minnesota Center of
Excellence for food protection and defense, which now operates independently as the Food
Protection and Defense Institute. The institute supports interdisciplinary research on protection of
the global food supply, “including supply chain resilience, information sharing, risk analysis and
assessment, education, epidemiology, [and] economics,” among other topics.32
In 2019, CISA introduced National Critical Functions as a conceptual framework for identifying
and assessing cross-sector risk to essential or systematically important infrastructure systems,
assets, and networks, to complement and expand the existing sector-based CISR framework.
CISA defines National Critical Functions as
functions of government and the private sector so vital to the United States that their
disruption, corruption, or dysfunction would have a debilitating effect on security, national
economic security, national public health or safety, or any combination thereof.33
The 55 designated National Critical Functions include production and provision of agricultural
products and services, and human and animal food products and services.34

30 USDA OHS, 2024 USDA Explanatory Notes, pp. 2-7.
31 See DHS, DHS Fact Sheet on National Security Memorandum-16 on Strengthening the Security and Resilience of
United States Food and Agriculture, 2022, https://www.dhs.gov/sites/default/files/2022-11/
NSM_DHS%20FACT%20SHEET%20on%20NSM%20Food%20and%20Agriculture.pdf; also see DHS, Science and
Technology Directorate (DHS S&T), “Food and Agriculture Defense,” https://www.dhs.gov/science-and-technology/
food-and-agriculture-defense. According to the web page, “S&T’s food and agriculture defense work includes risk
assessments; threat characterizations; countermeasures to defend against pathogens, pests, and toxins; food defense and
ingestion threat modeling; characterizations of chemical threats for food contamination and adulteration; laboratory
experiments and foundational research; diagnostics; veterinary medical countermeasures; decontamination strategies;
trainings; and coordination with partners for joint efforts that defend food and agriculture systems.”
32 See University of Minnesota, Food Protection and Defense Institute, “Protecting the Global Food Supply Through
Research, Education, and the Delivery of Innovative Solutions,” https://foodprotection.umn.edu/.
33 See CISA, “National Critical Functions,” https://www.cisa.gov/national-critical-functions.
34 See CISA, “National Critical Functions Set,” https://www.cisa.gov/national-critical-functions-set.
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Related Programs, Policies, and Directives
The 2013 National Infrastructure Protection Plan (NIPP) and the FA SSP have provided the
primary risk management guidance for FA Sector stakeholders over the past decade.35 The FA
SSP defines risk “in the context of the NIPP 2013 ... as the potential for loss, damage, or
disruption to the Nation’s critical infrastructure resulting from destruction, incapacitation, or
exploitation during some future manmade or naturally occurring event.”36 These documents
outline an organizational approach and framework for sector risk management—primarily
through voluntary public-private partnerships—but generally do not direct specific agency
actions. FA Sector Annual Reports provide updates on progress toward meeting FA SSP goals.37
(The FA SSP and the subsequent annual progress reports do not specifically identify foreign
ownership of agricultural land or sector assets as threats to the FA Sector.)
Section 9002 of the FY2021 NDAA (P.L. 116-283) directed the Secretary of Homeland Security
to assess the current CISR policy framework and assess the need for changes to the existing
critical infrastructure sectors. In November 2021, CISA submitted a statutorily mandated report
on its assessment of the CISR framework and preliminary findings. It suggested, among other
things, that the review process offered “an opportunity” to designate a Bioeconomy Sector
separate from the existing FA Sector.38 (The National Security Memorandum [NSM] on Critical
Infrastructure Security and Resilience [NSM-22] retained existing sectors without modification
but did not foreclose the possibility of new sectors in the future.) The bioeconomy is the portion
of the economy based on products, services, and processes derived from biological resources
(e.g., plants and microorganisms). Some of the FOCI risks in the FA Sector, such as IP protection
of genetically engineered seed traits, relate to the bioeconomy.
Options for congressional action include oversight over DHS updates of its CISR policy
framework as mandated in the FY2021 NDAA, to include changes to risk assessment scope and
methods, and creation of a new Bioeconomy Sector. Another option would be oversight of
executive branch programs and activities set forth in Executive Order (E.O.) 14017, NSM-16,
NSM-22, Section 9002(b) of P.L. 116-283, and other laws, policies, and directives that may have
a bearing on assessment of FOCI risks in the FA Sector.
National Security Memorandum for the FA Sector
On November 10, 2022, the White House released an NSM, “Strengthening the Security and
Resilience of United States Food and Agriculture” (NSM-16), which covers the security and
resilience of food and agriculture systems and supply chains; directs federal agencies to take
actions to “identify and assess threats, vulnerabilities, and impacts” from high-consequence and
catastrophic incidents; and prioritize resources “to prevent, protect against, mitigate, respond to,

35 NSM-22 directs SRMAs to submit new sector-specific plans to the Secretary of Homeland Security within 270 days
of issuance—January 25, 2025—and then biennially by February 1 of each year.
36 FA SSP, p. 5.
37 See FDA, “Food and Agriculture Sector and Other Related Activities: Food and Agriculture Sector Reports,”
https://www.fda.gov/food/food-defense-initiatives/food-and-agriculture-sector-and-other-related-activities. The website
has links to four FA Sector Annual Reports since 2015, for 2020, 2021, 2022, and 2023, respectively.
38 CISA, FY 2021 National Defense Authorization Act: Section 9002(b) Report, November 12, 2021, p. 2,
https://www.cisa.gov/resources-tools/resources/section-9002b-report. The term bioeconomy “refers to the share of the
economy based on products, services, and processes derived from biological resources (e.g., plants and
microorganisms). The bioeconomy is crosscutting, encompassing multiple sectors, in whole or in part (e.g., agriculture,
textiles, chemicals, and energy).” See CRS Report R46881, The Bioeconomy: A Primer, by Marcy E. Gallo.
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and recover from the threats and hazards that pose the greatest risk.”39 It supersedes previous
White House policy guidance given in Homeland Security Presidential Directive 9 (HSPD-9),
issued in 2004.40
NSM-16 identifies a wide range of threats facing sector stakeholders, to include chemical,
biological, radiological, and nuclear (CBRN) threats; intentional introduction of hazardous
contaminants; natural or genetically engineered pathogens and pests; and cybersecurity breaches
leading to disruption of networked systems or IP theft. As with the earlier plans and directives, it
does not specifically identify foreign ownership and control as a threat.
NSM-16 assigns primary responsibility for coordinating executive branch actions to the Assistant
to the President for National Security Affairs (APNSA). The APNSA must provide an annual
report to the President summarizing implementation progress, identifying capability gaps, and
providing recommendations to close those gaps. Relevant provisions and reporting requirements
are summarized in Table 1.
In March 2023, the FA Sector SRMAs and DHS jointly published the interim risk review
mandated under NSM-16. The review contains a short section on foreign acquisitions in the FA
Sector as a “potential factor contributing to risk,” which states:41
Foreign acquisition of U.S. agricultural assets may pose risks to the U.S. food and
agriculture sector in some cases. For example, a recent research report prepared to support
the deliberations of the U.S.-China Economic and Security Review Commission describes
several potential risks to U.S. agriculture associated with recent acquisitions and attempted
acquisitions of U.S.-based agricultural assets (including agricultural land, intellectual
property [such as IP related to genetically modified seeds], and U.S.-based food producers
and logistics companies), which may include loss of economic competitiveness, reduced
exports, negative environmental impacts, and associated public health risks.42
The review supports several other required assessment and planning products mandated by NSM-
16 (see Table 1), which are in progress as of this writing, according to information posted on
agency websites.43
Three other relevant E.O.s preceded NSM-16—E.O. 14801 on the bioeconomy, E.O. 14083
related to CFIUS reviews, and E.O. 14017 on supply chain security and resilience. They are
discussed below.

39 See White House, “National Security Memorandum on Strengthening the Security and Resilience of United States
Food and Agriculture,” presidential memorandum, November 10, 2022, https://www.whitehouse.gov/briefing-room/
presidential-actions/2022/11/10/national-security-memorandum-on-on-strengthening-the-security-and-resilience-of-
united-states-food-and-agriculture/.
40 White House, “Homeland Security Presidential Directive 9 (HSPD-9), Defense of United States Agriculture and
Food,” presidential memorandum, January 30, 2004, https://georgewbush-whitehouse.archives.gov/news/releases/2004/
02/20040203-2.html.
41 HHS, USDA, DHS, National Security Memorandum on Strengthening the Security and Resilience of United States
Food and Agriculture: 120-Day Food and Agriculture Interim Risk Review, March 2023, p. 16, https://www.fda.gov/
media/170114/download.
42 Ibid., p. 22.
43 See FDA, “National Security Memorandum on Strengthening the Security and Resilience of United States Food and
Agriculture” (content current as of March 5, 2024), https://www.fda.gov/food/food-defense/national-security-
memorandum-strengthening-security-and-resilience-united-states-food-and; and USDA, “Vulnerability Assessments”
(content current as of July 31, 2023), https://www.fsis.usda.gov/food-safety/food-defense-and-emergency-response/
food-defense.
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Table 1. Agency Deliverables in “National Security Memorandum on Strengthening
the Security and Resilience of United States Food and Agriculture” (NSM-16)
Department and Agency
Requirement
Timeline
Status
DOJ, DHS
Provide threat assessment to leaders of
Within 60 days
No information
(in coordination with DOD
relevant federal agencies on actors,
(January 9, 2023)
and relevant agencies)
threats, delivery systems, and methods
of publication of
that could be directed against the FA
NSM-16, then
Sector.
annually.
USDA, HHS, other relevant
Conduct sector vulnerability assessment
Within 180 days
In progress
agencies
based on identified threats.
(May 9, 2023) of
(in coordination with FSLTT
publication of
partners)
NSM-16, then as
needed.
DHS
Provide comprehensive data-driven
Within 1 year
In progress
(in coordination with DOJ,
sector risk assessment informed by
(November 10,
USDA, HHS, and relevant
required threat and vulnerability
2023) of
agencies)
assessments, prioritizing highest risks.
publication of
NSM-16, then
annually.
USDA, HHS
Develop strategy and action plan based
Within 180 days
In progress
(in coordination with
on risk assessment. Provide information
of risk
relevant agencies)
on resilience capabilities, costs, and
assessment
benefits; conduct risk mitigation analysis;
completion, then
and recommend research and
revisions as
development options to support
needed.
mitigation.
USDA, HHS, DHS
Conduct interim risk review on critical
Within 120 days
Published
(in coordination with
and emergent risks to FA Sector.
(March 10, 2023)
relevant agencies)
of publication of
NSM-16.
Sources: CRS analysis of NSM-16 and U.S. Department of Agriculture (USDA) and Food and Drug
Administration online updates.
Notes: DHS = Department of Homeland Security; DOD = Department of Defense; DOJ = Department of
Justice; FA Sector = Food and Agriculture Sector; FSLTT = federal, state, local, territorial, and tribal; HHS =
Department of Health and Human Services.
Executive Order on Bioeconomy
On September 12, 2022, President Biden issued E.O. 14081, “Advancing Biotechnology and
Biomanufacturing Innovation for a Sustainable, Safe, and Secure American Bioeconomy.”44 The
E.O. focused on the economic potential of the bioeconomy and federal support of research and
development (R&D), data sharing, workforce training, regulatory reforms, and other goals and
objectives. In addition, it contained a security-related objective:
Secure and protect the United States bioeconomy by adopting a forward-looking, proactive
approach to assessing and anticipating threats, risks, and potential vulnerabilities
(including digital intrusion, manipulation, and exfiltration efforts by foreign adversaries),
and by partnering with the private sector and other relevant stakeholders to jointly mitigate
risks to protect technology leadership and economic competitiveness.

44 E.O. 14801, “Advancing Biotechnology and Biomanufacturing Innovation for a Sustainable, Safe, and Secure
American Bioeconomy,” 87 Federal Register 56849, September 15, 2022.
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Accordingly, the E.O. instructed the APNSA and the Assistant to the President for Economic
Policy to coordinate with the Secretaries of Defense and Agriculture and other agency leaders to
identify actions to “mitigate risks posed by foreign adversary involvement in the
biomanufacturing supply chain and to enhance biosafety, biosecurity, and cybersecurity in new
and existing infrastructure.” Additionally, it required the Secretary of Homeland Security to
conduct vulnerability assessments of bioeconomy-related critical infrastructure and National
Critical Functions and to “enhance coordination with industry on threat information sharing,
vulnerability disclosure, and risk mitigation for cybersecurity and infrastructure risks to the
United States bioeconomy.”
For more information on E.O. 14081 and bioeconomy issues, see CRS Report R47274, White
House Initiative to Advance the Bioeconomy, E.O. 14081: In Brief; CRS Report R46881, The
Bioeconomy: A Primer; and CRS Report R47265, Synthetic/Engineering Biology: Issues for
Congress.
Executive Order on CFIUS
On September 15, 2022, President Biden issued E.O. 14083, “Ensuring Robust Consideration of
Evolving National Security Risks by the Committee on Foreign Investment in the United States,”
to update the factors taken into consideration in the CFIUS review process as part of ongoing
implementation of the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA;
P.L. 115-232, Title XVII, Subtitle A).45 E.O. 14083 notes that certain foreign investments “may
undermine supply chain resilience efforts and therefore national security by making the United
States vulnerable to future supply disruptions” and directs CFIUS to consider the effect of
covered transactions on supply chain resilience and security, including with respect to “elements
of the agriculture industrial base that have implications for food security,” among other sectors.
For more information on E.O. 14083, see CRS In Focus IF12415, CFIUS Executive Order on
Evolving National Security Risks and CFIUS Enforcement Guidelines.
Executive Order on America’s Supply Chains
On February 24, 2021, President Biden signed E.O. 14017, “America’s Supply Chains,” to ensure
that supply chains are “resilient, diverse, and secure” against threats and hazards that might affect
the “availability and integrity of critical goods, products, and services.”46 It contains two
requirements related to foreign investment issues (not specific to the FA Sector): (1) a progress
report on developing domestic critical minerals supply chains and (2) recommendations for
federal incentives and regulatory changes to encourage domestic and foreign investment in
critical goods and materials. As with the more recent NSM, it assigns the White House
coordination role to the APNSA. It requires each critical infrastructure sector SRMA to produce a
report on relevant supply chain risks within one year. USDA, as co-SRMA in the FA Sector,
published the required report (hereinafter the USDA supply chain report) in February 2022.47

45 E.O. 14083, “Ensuring Robust Consideration of Evolving National Security Risks by the Committee on Foreign
Investment in the United States,” 87 Federal Register 57369, September 15, 2022.
46 E.O. 14017, “America’s Supply Chains,” 86 Federal Register 11849, March 1, 2021.
47 USDA, Agri-Food Supply Chain Assessment: Program and Policy Options for Strengthening Resilience,
Washington, DC, February 2022, https://www.ams.usda.gov/supply-chain.
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Prospective Cyber Incident Reporting Requirements
In April 2024, DHS issued a proposed rule, “Cyber Incident Reporting for Critical Infrastructure
Act Reporting Requirements.”48 The proposed rule was issued in compliance with provisions of
the Cyber Incident Reporting for Critical Infrastructure Act of 2022 (CIRCIA), enacted under
Division Y of the Consolidated Appropriations Act, 2022 (P.L. 117-103). It requires CISA to (1)
engage in rulemaking to mandate reporting of cybersecurity incidents to the agency, (2) enforce
noncompliance with required reporting, and (3) disseminate analysis based on the information
collected. The FA Sector annual progress report for FY2022 noted that the FA Sector GCC and
SCC “assisted in shaping the implementation” of CIRCIA requirements, without providing
further detail.49
According to P.L. 117-103, the reporting requirements apply to entities in federally designated
critical infrastructure sectors “that [satisfy] the definition established by the Director in the final
rule.” In designating covered entities, CISA proposed both general (e.g., size) and sector-based
criteria. CISA declined to apply sector-based criteria to the FA Sector following consultations
with the co-SRMAs.50 Instead, CISA would apply a general size-based criterion to agricultural
enterprises, which exempts small businesses from regulatory compliance, likely “based on the
mean, median, or mode of number of employees across such entities.”51 According to CISA, the
intent is to cover larger entities in the FA Sector to allow for development of “sector-specific
threat and trends analysis.”52 The threat of state and non-state foreign adversaries was discussed
throughout the proposed rule. However, the discussion did not include potential FOCI risks.
Potential FOCI Risks in the FA Sector
Supply Chain Security
A 2021 joint report on FA Sector risks by DHS, the Office of the Director of National Intelligence
(ODNI), academics, and industry stakeholders (hereinafter the joint report) identified certain
FOCI threats in agricultural supply chains.53 Specifically, it identified the possibility of a
“takeover of [an] important supply chain entity by foreign investors” as part of an economic
coercion and manipulation campaign but did not elaborate on specific cases, threats, or
acquisition mechanisms.54 A 2022 report (hereinafter the Review Commission report) by the
congressionally mandated U.S.-China Economic and Security Review Commission provided
information on these and other issues as they related to China. The report stated that acquisition
of major domestic agribusinesses may “confer undue leverage over U.S. supply chains” and lead
to restructuring of supply chains that negatively affects domestic producers and service
providers.55

48 DHS, “Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA) Reporting Requirements,” 89 Federal
Register 23644, April 4, 2024 (hereinafter CIRCIA rulemaking).
49 FA SSP FY2022 update, p. 12, https://www.fda.gov/media/171959/download.
50 CIRCIA rulemaking, p. 23702.
51 Ibid.
52 Ibid., p. 23683.
53 Office of the Director of National Intelligence and DHS, Threats to Food and Agricultural Resources, Washington,
DC, 2021.
54 Ibid., p. 61.
55 Lauren Greenwood, Staff Research Report: China’s Interests in U.S. Agriculture: Augmenting Food Security
(continued...)
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The Review Commission report also identified risks of IP theft, illicit technology transfer, and
foreign control of domestic FA Sector supply chains. According to the report, these activities are
part of a coordinated and deliberate policy of the government of the People’s Republic of China
(PRC) to address China’s domestic food security challenges by increasing productivity through
illicit technology transfer and overseas diversification of its agricultural supply chains.56 In
addition, the report warned that the PRC-linked firms may attempt to reverse-engineer illegally
acquired U.S. seed varieties to identify vulnerabilities to crop disease and other threats.
The USDA supply chain report identified the growing ownership concentration in meat and
poultry manufacturing, pesticides and crop seeds, and farm machine parts as sources of potential
risk.57 It did not specifically identify FOCI as a threat or risk factor. However, foreign-owned
or -controlled multinationals have significant presence in these areas of production.
Foreign Acquisition of Seed and Agricultural Chemical Suppliers
In 2016, ChemChina announced plans to acquire Syngenta, a Swiss-based agricultural
conglomerate (with extensive business operations in the United States) for $43 billion.58 The
acquisition—claimed as the largest foreign acquisition by a PRC company at the time—became
the subject of CFIUS review and was eventually approved.59 While CFIUS reviews are not
public, media reports suggested that the review would likely focus on defense-specific issues,
such as proximity of Syngenta facilities to U.S. military bases and ownership of potentially
sensitive military contracts, more than food-security-related FOCI issues.60
In a press release following CFIUS’s approval of the transaction, Senator Grassley (IA) stated:
It’s clear that China is looking at purchasing companies with food production expertise as
part of a long-term strategic plan and a component of their national security. We need to
be looking at these mergers in the same way, so it makes sense for CFIUS to take that angle

Through Investment Abroad, U.S.-China Economic and Security Review Commission, May 26, 2022, p. 3,
https://www.uscc.gov/annual-report/2022-annual-report-congress.
56 The government of the People’s Republic of China has released national-level strategies in recent years highlighting
acquisition of biotechnology from foreign firms as a priority. For more information, see CRS In Focus IF11684,
China’s 14th Five-Year Plan: A First Look, by Karen M. Sutter and Michael D. Sutherland.
57 According to the report, “In 2019, the four largest fed cattle processing companies accounted for 85 percent of the
total U.S. annual slaughter; the four largest hog processing companies accounted for 67 percent of the total annual hog
slaughter; and the four largest chicken processing companies accounted for 53 percent of the total annual slaughter.”
See USDA, Agri-Food Supply Chain Assessment: Program and Policy Options for Strengthening Resilience,
Washington, DC, February 2022, p. 13.
58 Syngenta is one of the four largest suppliers of crop seeds and agricultural chemicals in the United States, according
to the USDA Economic Research Service. See USDA Economic Research Service, “Two Companies Accounted for
More than Half of Corn, Soybean, and Cotton Seed Sales in 2018-2020,” https://www.ers.usda.gov/data-products/chart-
gallery/gallery/chart-detail/?chartId=107516.
59 Michael Shields, “ChemChina Clinches Landmark $43 Billion Takeover of Syngenta,” Reuters, May 5, 2017,
https://www.reuters.com/article/idUSKBN1810CM/; Shangjing Li, “Simpson Thacher Helps ChemChina Obtain
CFIUS Clearance for $43 Bln Syngenta Buy,” Asian Legal Business, August 26, 2016,
https://china.legalbusinessonline.com/node/73060; ChemChina and Syngenta, “ChemChina and Syngenta Receive
Clearance from the Committee on Foreign Investment in the United States,” press release, August 22, 2016,
https://www.syngenta.com/sites/syngenta/files/press-release-pdf/2017/20160822-en-joint-release.pdf.
60 Diane Bartz, “ChemChina, Syngenta to Move Quickly on U.S. National Security Review,” Reuters, February 3,
2016, https://www.reuters.com/article/idUSKCN0VD03C/; “‘No Security Issues’ in Syngenta Sale to China,”
CHEManager International, July 4, 2016, https://www.chemanager-online.com/en/news/no-security-issues-syngenta-
sale-china.
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into consideration when reviewing these transactions. The fact that a state-owned
enterprise may have yet another stake in U.S. agriculture is alarming.61
In 2020, ChemChina and Sinochem—a Chinese state-owned multinational chemical
manufacturing conglomerate—consolidated their agricultural assets into Syngenta.62 In response,
some Members of Congress called upon the Treasury Secretary, as chair of CFIUS, to include
food security issues in assessments of any foreign acquisitions of FA Sector entities.63 In the 118th
Congress, several bills under consideration would expand CFIUS reviews of foreign investment
transactions in the FA Sector to include food security issues and would mandate regular USDA
membership as opposed to informal, ad hoc participation.
The Consolidated Appropriations Act, 2024 (P.L. 118-42, §787), enacted in March 2024, requires
the Secretary of Agriculture to be included as a member of CFIUS on a case-by-case basis with
respect to covered transactions involving agricultural land, agriculture biotechnology, or the
agriculture industry (including agricultural transportation, agricultural storage, and agricultural
processing), as determined by the chair of CFIUS in coordination with the Secretary of
Agriculture.64 Congress provided $2 million in appropriated funds, to remain available until
expended, for USDA to implement this provision.
Foreign Acquisition of Meat and Poultry Suppliers
The MITRE Corporation noted in a July 2021 report (hereinafter the MITRE report) on domestic
meat and poultry supply chains that some foreign-owned U.S. meat and poultry providers
prioritized exporting meat products to their home country rather than supplying domestic
consumption needs when spot shortages occurred during the COVID-19 public health
emergency.65 Further, the report recommended that FA Sector SRMAs and certain interagency
partners identify foreign ownership of key processing and production facilities and analyze “the
policy implications of non-compliance with U.S. government mandates during an emergency.”66
Four major multinational agricultural companies control the majority of U.S. beef production.
Two of these—JBS and National Beef Packing Company—are owned or controlled by Brazilian

61 Office of Sen. Chuck Grassley, “Grassley Statement on Conclusion of CFIUS Review of ChemChina-Syngenta
Merger,” press release, August 22, 2016, https://www.grassley.senate.gov/news/news-releases/grassley-statement-
conclusion-cfius-review-chemchina-syngenta-merger.
62 Reuters, “ChemChina, Sinochem Merge Agricultural Assets - Syngenta,” January 5, 2020, https://www.reuters.com/
article/idUSKBN1Z40HA/.
63 House Foreign Affairs Committee, “McCaul, Crawford Urge Treasury Department to Review Merger Between
Chinese Government-Backed Military Companies,” press release, April 15, 2021, https://foreignaffairs.house.gov/
press-release/mccaul-crawford-urge-treasury-department-to-review-merger-between-chinese-government-backed-
military-companies/.
64 Other legislation in the 118th Congress would broaden CFIUS’s authorities to review and potentially prohibit certain
foreign purchases of real estate and/or agricultural land (e.g., H.R. 917/S. 369, H.R. 558, S. 1066, H.R. 1448, H.R.
4577, H.R. 5078/S. 2060), add USDA as a permanent CFIUS member agency (e.g., H.R. 683/S. 168, S. 2312, H.R.
3378, H.R. 4577, S. 2312, H.R. 5078/S. 2060), and expand the defined scope of U.S. critical infrastructure to explicitly
include agricultural systems and supply chains (e.g., H.R. 513/S. 68).
65 Bradford Brown et al., U.S. Food Supply Chain Security: A Network Analysis, MITRE Corporation, July, 2021, p. 4,
https://www.mitre.org/sites/default/files/2021-10/pr-21-1826-us-food-supply-chain-security-a-network-analysis.pdf.
66 Ibid., p. 6.
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entities.67 Similarly, the acquisition of Smithfield Foods by WH Group Limited—a PRC firm—
conferred control of 20% of the domestic pork processing industry to a foreign owner.68
Reports that some foreign-owned meat processing plants prioritized deliveries to their home
countries during the COVID-19 pandemic could also be a subject for congressional oversight and
legislation.
Food Processing, Packaging, and Production
The MITRE report found that trends toward consolidation of entities were highly pronounced in
the processing, packaging, and production of meat and poultry, creating a “dense and complex
network” with several “key hubs” that were potentially vulnerable to disruption by man-made or
natural causes:69
With their high connectivity, these five key hubs have significant and extensive influence
on the resilience and continuity of the U.S. meat supply chain. A disruption in any one of
these hubs can have a large downstream effect on the rest of the network. The potential for
disruption is further exacerbated by the network structure of “super embedded hubs” where
each of these five key hubs are tightly interconnected.70
The MITRE report considered several types of intentional threats to such hubs, to include
biological, physical, or cyber-based attacks. The report did not specifically consider FOCI risks as
they might relate to any of these types of attacks. It is not clear whether foreign-owned entities
are more vulnerable to these attacks than their U.S.-owned counterparts or whether the fact of
foreign ownership itself may be a threat in some cases. A report by the Food Protection and
Defense Institute (hereinafter the FPDI report) asserts that cybersecurity vulnerabilities,
exacerbated by poor technical competence and a lax security culture, are widespread throughout
FA Sector supply chains, but the FPDI report does not attribute specific risks to FOCI threats in
the FA Sector.
Although not specific to the FA Sector, E.O. 14083 of September 2022 states:
investments by foreign persons with the capability and intent to conduct cyber intrusions
or other malicious cyber-enabled activity—such as ... the operation of United States critical
infrastructure ... may pose a risk to national security.
It is not yet clear whether FOCI risks to critical infrastructure identified in E.O. 14083 would fall
within the scope of various risk management activities mandated in NSM-16, because the latter
directive is still in the early implementation phase as of the date of this report (see “National
Security Memorandum for the FA Sector” section).
Agricultural and Food Supporting Facilities
Agricultural and food supporting facilities include R&D facilities. The joint report states that
these may be targeted by foreign entities for purposes of espionage, theft of trade secrets, and IP

67 Christopher Walljasper, “More Foreign Ownership of U.S. Beef Processors Raises Food Safety Concerns,”
Investigate Midwest, December 19, 2019, https://investigatemidwest.org/2019/12/18/more-foreign-ownership-of-u-s-
beef-processors-raises-food-safety-concerns/.
68 See Fitch Ratings, “Fitch Affirms Smithfield Foods, Inc.’s IDR at ‘BBB’; Outlook Stable,” October 10, 2022,
https://www.fitchratings.com/research/corporate-finance/fitch-affirms-smithfield-foods-inc-idr-at-bbb-outlook-stable-
10-10-2022.
69 Bradford Brown et al., U.S. Food Supply Chain Security: A Network Analysis, p. 4.
70 Ibid.
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theft.71 Further, these activities may confer competitive advantages on foreign entities and provide
“coercion points on aggressive corporate takeovers of U.S. corporations.”72 The joint report
identifies “small and emerging corporations, universities, and government research organizations”
as the most vulnerable entities of such targeting.73
Regulatory, Oversight, and Industry Organizations
The USDA OIG noted investigations involving foreign influence or interference in the FA Sector
in some recent reports to Congress. In its FY2022 (second half) semiannual report to Congress,
the USDA OIG reported substantiated allegations of insider threat activity involving a senior
official at USDA’s Animal and Plant Health Inspection Service (APHIS). Investigators found that
the official maintained “inappropriate relationships” with foreign nationals, failed to report
personal and official foreign travel, violated IT security, and accepted a gift from a foreign
official without properly reporting it.74 The FY2020 (first half) report noted that OIG audited
USDA controls to prevent “unauthorized access to, and transfer of, USDA-funded research
technology to foreign countries” by foreign research collaborators and found weaknesses that
required correction by USDA agencies.75 Semiannual USDA OIG reports for FY2023—the most
recent available as of this writing—do not note any FOCI-related activities.
An option for Congress would be to exercise its oversight authorities to ascertain whether the
recommended corrections suggested by USDA OIG to prevent further occurrences of IP theft by
foreign entities were implemented. Another option for Congress would be to request the relevant
OIG report in nonredacted form from USDA.
The Role of Transnational Criminal Organizations
A 2019 study included in the FPDI report found that FOCI threats in the FA Sector were not
necessarily limited to otherwise legitimate business transactions. According to the FPDI study,
“transnational criminal organizations (TCOs) are already heavily involved in large-scale food-
related crimes such as counterfeiting, economically motivated adulteration, theft and resale, and
smuggling.”76 Further, cargo thefts are often aided by malicious cyber intrusions to penetrate
agricultural supply chains and to identify and reconnoiter targets.77

71 Office of the Director of National Intelligence and DHS, Threats to Food and Agricultural Resources, p. 26.
72 Ibid.
73 Ibid.
74 See USDA Office of Inspector General, Semiannual Report to Congress: Second Half April 1, 2022–September 30,
2022, no. 88, October, 2022, p. 87, https://usdaoig.oversight.gov/sites/default/files/reports/2023-04/
SARC_FY%25202022_Second%2520Half_508.pdf. No motive was reported. Among other activities, the Animal and
Plant Health Inspection Service (APHIS) has oversight responsibilities in animal health, biotechnology, imports and
exports of food and plant products, and international services. The Department of Justice (DOJ) declined to prosecute
the official; their security clearance was revoked by the agency.
75 USDA Office of Inspector General, Semiannual Report to Congress: First Half, October 1, 2019–March 31, 2020,
no. 83, May 2020, p. 5, https://usdaoig.oversight.gov/sites/default/files/reports/2023-04/sarc2020_1st_half_508.pdf.
The public report was fully redacted. According to USDA, “Due to the nature of our findings and the agency’s
responses, the report contains sensitive content. Thus, we are withholding it from public release due to concerns about
the risk of circumvention of law.” See USDA Office of Inspector General, USDA’s Controls to Prevent the
Unauthorized Access and Transfer of Research Technology, p. 1, https://www.oversight.gov/sites/default/files/oig-
reports/50701-0002-21.pdf.
76 Food Protection and Defense Institute, The Cyber Risk to Food Processing and Manufacturing, September 2019,
p. 9, https://conservancy.umn.edu/bitstream/handle/11299/217703/FPDI-Food-ICS-Cybersecurity-White-Paper.pdf.
77 Ibid.
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In some cases, foreign-controlled firms have been targeted by TCOs for criminal exploitation or
have themselves engaged in criminal practices. According to media reports, meat production by
JBS facilities in the United States was disrupted in 2021 by a ransomware attack, which JBS
attributed to a Russian TCO.78 It is not clear whether foreign-owned entities are more vulnerable
to these attacks than their U.S.-owned counterparts. The previous year, J&F Investimentos S.A.,
the Brazilian investment group that controls JBS,79 pleaded guilty to violations of the Foreign
Corrupt Practices Act as part of a bribery scheme in Brazil to obtain financing and other benefits
and agreed to pay a $256 million criminal penalty.80
Foreign Control of U.S. Farmland
FOCI risks to U.S. farmland may involve direct ownership of the land or de facto control over
land use for agricultural purposes, such as use of specific seed varieties and pesticides.
Land Ownership Risks
Increasing scarcity of arable land globally coupled with increasing demand for agricultural
commodities has made U.S. farmland an attractive investment for certain foreign entities.
Motivations for land acquisitions may be economic, strategic, or both. USDA tracks foreign
acquisition of agricultural and nonagricultural land under authorities of the Agricultural Foreign
Investment Disclosure Act of 1978 (AFIDA; P.L. 95-460). According to USDA, as of December
31, 2022, foreign persons and entities held an interest in 44.3 million acres of U.S. agricultural
and nonagricultural land, accounting for 3.4% of total privately owned land.81
Owners from five countries (Canada, the Netherlands, Italy, the United Kingdom, and Germany)
accounted for approximately 62% of all foreign-owned U.S. agricultural land in 2022. Other
countries with aggregate owner holdings of more than 500,000 acres were Portugal, France,
Denmark, Luxembourg, Mexico, Switzerland, the Cayman Islands, Japan, and Belgium. As of
year-end 2022, USDA reports that PRC entities accounted for 383,935 acres, or 0.8%, of total
foreign-owned U.S. agricultural land.82
Ownership of U.S. agricultural land by PRC entities, as reported by USDA under AFIDA, appears
negligible, accounting for less than 1% of total foreign-owned U.S. agricultural land as of year-
end 2022. However, the Review Commission report raised concerns about the noncommercial
purposes of PRC acquisitions (i.e., increasing China’s food security) and the apparent
acceleration of the pace of acquisitions, which have elicited concern both from Congress and

78 Tom Polanske and Jeff Mason, “U.S. Says Ransomware Attack on Meatpacker JBS Likely from Russia,” Reuters,
June 1, 2021, https://www.reuters.com/world/us/some-us-meat-plants-stop-operating-after-jbs-cyber-attack-2021-06-
01/.
79 See JBS, “Ownership and Corporate,” https://ri.jbs.com.br/en/esg-investors/corporate-governance/ownership-and-
corporate/.
80 DOJ, “J&F Investimentos S.A. Pleads Guilty and Agrees to Pay over $256 Million to Resolve Criminal Foreign
Bribery Case,” press release, October 14, 2020, https://www.justice.gov/opa/pr/jf-investimentos-sa-pleads-guilty-and-
agrees-pay-over-256-million-resolve-criminal-foreign.
81 CRS from USDA, Foreign Holdings of U.S. Agricultural Land Through December 31, 2022 (Report 6),
https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/EPAS/PDF/2022_afida_annual_report_12_20_23.pdf.
Data cover sole foreign and joint U.S. ownership of privately held agricultural and nonagricultural land (out of a total
of 1,290.5 million acres).
82 Ibid. For more background on the Agricultural Foreign Investment Disclosure Act of 1978 and foreign ownership of
farm land, see CRS In Focus IF11977, Foreign Ownership and Holdings of U.S. Agricultural Land, by Renée Johnson,
and CRS Report R47893, Selected Recent Actions Involving Foreign Ownership and Investment in U.S. Food and
Agriculture: In Brief, by Renée Johnson.
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from certain agricultural stakeholders and industry observers.83 Legislation to restrict certain sales
of agricultural land, tighten disclosure requirements, and expand federal review of foreign
investment transactions has been introduced in recent Congresses.84
Neither USDA, FDA, nor businesses associated with the FA Sector track or compile data on any
associated farm assets and property conveyances that may be attached to the farmland ownership
or property investment, such as buildings, equipment, machinery, livestock, and IP and other
production-related or technology rights. This may create data gaps that complicate analysis of
relevant events or trends. Congress may consider what data categories used for AFIDA
disclosures are sufficient to identify FOCI-related risks to the FA Sector.
Technology Use Agreements for Basic Agricultural Inputs
Large agrochemical and seed firms—many foreign owned—commonly require customers to sign
technology use agreements for use of seed and pesticides. Technology use agreements for
patented seed varieties typically impose legally enforceable conditions on end users (farmers) that
cover a range of common agricultural practices.85 Some public interest groups and critics claim
that the current patent system gives too much power to large firms, exceeds congressional intent,
and allows for agency overreach in granting and enforcing IP rights.86
“Ownership of [seed] biotech traits enable a level of control over every acre containing the trait,”
one law firm wrote in response to a 2022 USDA request for public comment on competitiveness
in the agricultural seed production business. “The contractual terms reach far beyond grants of
[IP] rights and impose wide-ranging, intrusive, and often poorly defined, obligations and
requirements on licensees.”87
Enforcement clauses of technology use agreements may allow firms to have unrestricted access to
licensees’ properties and facilities, business records (including receipts for chemicals and
herbicides), internet service provider details, required crop-record submissions to USDA, and
detailed records of farming practices (e.g., fertilizing, planting, and harvesting).88 Violations may
result in lawsuits or cancellation of use agreements, which may have the practical effect of cutting
off access to seed supply for planting.
Some public interest groups assert that corporate collection and ownership of detailed data on
farming practices may also raise fair data use and privacy issues. According to the American
Antitrust Institute, “digital farming will likely enhance incentives to amass and appropriate
valuable farm data for potential use as a strategic competitive asset.”89

83 See Review Commission report.
84 For more information on recent legislation and policy development, see CRS In Focus IF12312, Foreign Ownership
of U.S. Agriculture: Selected Policy Options, by Renée Johnson, and CRS Report R47893, Selected Recent Actions
Involving Foreign Ownership and Investment in U.S. Food and Agriculture: In Brief, by Renée Johnson.
85 For an overview of relevant legislation, court cases, and enforcement policies as presented to farmers, see Wisconsin
Department of Agriculture, Trade and Consumer Protection, What Is the U.S. Plant Variety Protection Act?
https://datcp.wi.gov/Documents/BrownBagSeed.pdf.
86 For a public interest group perspective on congressional intent and other legal issues, see Debbie Barker et al., Seed
Giants vs. U.S. Farmers, Center for Food Safety & Save Our Seeds, 2013, pp. 13-15,
https://www.centerforfoodsafety.org/files/seed-giants_final_04424.pdf.
87 Joel E. Cape, Comments of Cape Law Firm, Cape Law Firm, USDA Docket No. AMS-AMS-22-0025, June 15,
2022, pp. 2 and 4, https://www.regulations.gov/comment/AMS-AMS-22-0025-0062.
88 Debbie Barker et al., Seed Giants vs. U.S. Farmers, p. 23.
89 Diana L. Moss, Comments of the American Antitrust Institute, American Antitrust Institute, USDA Docket No.
(continued...)
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Because foreign-owned agrochemical and seed firms predominate in the U.S. market (see
“Foreign Acquisition of Seed and Agricultural Chemical Suppliers” section), it follows that
foreign-owned and -controlled entities may be able to amass detailed farm-level data—whether
collected through IP enforcement activities or other means—across broad swaths of U.S.
agricultural land.
Global agriculture firms assert that the patent system incentivizes and protects long-term R&D
investments, which are necessary to produce seed traits such as those that have made higher crop
yields possible over time at reasonable cost to farmers.90 Additionally, they assert that acquisition
of farm-level data facilitates development of precision agriculture products, as well as
individualized recommendations for seed and herbicide use that benefit farmers.
In 2021, the Biden Administration directed USDA to prepare a report on consolidation within the
agricultural seed industry, for which the agency subsequently sought public comment.91
Commenters—ranging from small organic farmers to major multinational conglomerates—noted
the trend toward consolidation and globalization in the seed industry, the seed industry’s
convergence with the agrochemical industry, and the increasing prevalence of seeds engineered to
withstand various treatments (often sold by the same firms) against pests, weeds, and disease. In
general, arguments centered on ecological, economic, and competitiveness concerns, rather than
potential FOCI risks. Nonetheless, in some cases, foreign firms’ acquisitions of major seed
producers have raised security concerns (see “Foreign Acquisition of Seed and Agricultural
Chemical Suppliers” section).
Options for Congress include amending patent law to clarify its intent regarding the use of utility
patents for genetically engineered seed traits and examining IP enforcement practices that
foreign-owned firms may use to collect farm-level data and whether data are aggregated and used
in ways that safeguard U.S. security interests.
Conclusion
FOCI within the U.S. FA Sector is widespread. Foreign-owned multinationals are present
throughout the sector, in segments such as meat processing, agricultural chemicals, and crop
seeds. Some foreign acquisitions of corporate entities or agricultural land may be subject to
CFIUS review but are generally legal and generally allowed. In the R&D field, collaboration with
foreign nationals and research institutions is commonplace in both the public and private sector.
Further, the national CISR enterprise itself frequently relies on collaboration of U.S. public- and
private-sector entities with their foreign counterparts. SRMAs generally assume that asset owners
are good-faith actors, regardless of nationality.
However, FOCI may also present potential risks to the FA Sector, as seen in allegations of
unauthorized technology transfer, theft or misappropriation of IP, prioritization of overseas
markets over domestic demand, and attempted land purchases near sensitive military assets. Other
potential areas of concern, such as farm-level data gathering by multinational firms and alleged

AMS-AMS-22-0025, May 16, 2022, p. 17, https://www.antitrustinstitute.org/wp-content/uploads/2022/05/USDA-
Comment-Agbiotech-6-10-22-REVISED-FINAL-FOR-AAI-WEBSITE.pdf. Another nonprofit, The Open Markets
Institute makes substantially similar arguments in its comments. See Open Markets Institute, The Open Markets
Institute’s Comments on “Competition and the Intellectual Property System: Seeds and Other Agricultural Inputs,”
May 16, 2022, pp. 5-7, https://www.regulations.gov/comment/AMS-AMS-22-0025-0033.
90 For example, see Syngenta, “Intellectual Property & Regulatory,” https://www.syngenta.com/en/about/faq/
intellectual-property-regulatory.
91 USDA Agriculture Marketing Service, “Competition and the Intellectual Property System: Seeds and Other
Agricultural Inputs,” https://www.regulations.gov/document/AMS-AMS-22-0025-0001.
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abuse of IP protections to control farming practices, relate primarily to concerns about corporate
consolidation and concentration that are not specific to foreign ownership. Nonetheless, some
Members of Congress and other observers have raised concerns over foreign acquisitions of U.S.
and multinational firms in key FA Sector segments.
The full extent to which specifically foreign ownership, control, or influence over critical
infrastructure systems and assets affects the overall level of risk to critical functions of the FA
Sector (i.e., the safe production, distribution, and supply of food) has yet to be established. Much
of the publicly available reporting is conjectural and anecdotal, complicating any more systemic
analysis of FOCI risk to the FA Sector. Legislative mandates for data gathering on certain
commercial transactions (e.g., AFIDA) and cybersecurity incident reporting (e.g., CIRCIA), as
well as executive branch directives to appropriate federal agencies to conduct relevant studies,
may offer an opportunity for more authoritative analyses.

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Author Information

Brian E. Humphreys

Analyst in Science and Technology Policy

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