Chicom Agriculture Land Acquistion Crisis

[catfish1957]

There are so many things right now getting coverage on this news cycle, one item has almost gone unnoticed, and this could escalate into crisis unless somthing is done soon.  That fact is that the Chicoms are scooping up U.S Farmland at an alarming rate.  As acreage and ownership grows this will give them the ability to take those crops off the commodity markets, and ship direct to China.  This in turn, if not abated, could create serious food shortages, and spirally high prices elsewhere. 

Thankfully, at least Tucker Carlson has highlighted this issue twice, and had a segment on his show last night.

https://video.foxnews.com/v/6303026807001#sp=show-clips

[Kamaji]

John Phipps: Have Chinese Investors Stolen American Agriculture?

By U.S. FARM REPORT August 2, 2021
Recently, reporters at website Politico, offered this ominous observation.

“Chinese firms have expanded their presence in American agriculture over the last decade by snapping up farmland and purchasing major agribusinesses, like pork processing giant Smithfield Foods. By the start of 2020, Chinese owners controlled about 192,000 agricultural acres in the U.S., worth $1.9 billion, including land used for farming, ranching and forestry, according to the Agriculture Department.”

This is simply bad reportage. While 192,000 acres seems like big number it begs for some context. Digging down into the source report from the ERS, we discover that while Chinese investors, not the government, have increased their ag holdings, the large majority is “other agriculture land”. I tried semi-hard to find a definition for this category, and the best I can tell you is what it isn’t: cropland, pasture, or forest. Zooming in on cropland, which is what most farmers care about, Chinese investors own measly 33,000 acres. But how about those Canadians, eh? Or compare China to Germany. Chinese-owned cropland numbers are roughly similar to Denmark, and I don’t see Congress obsessed about a Viking raid.

*  *  *

Source:  https://www.agweb.com/news/business/farmland/john-phipps-have-chinese-investors-stolen-american-agriculture

[catfish1957]

John Phipps: Have Chinese Investors Stolen American Agriculture?

By U.S. FARM REPORT August 2, 2021
Recently, reporters at website Politico, offered this ominous observation.

“Chinese firms have expanded their presence in American agriculture over the last decade by snapping up farmland and purchasing major agribusinesses, like pork processing giant Smithfield Foods. By the start of 2020, Chinese owners controlled about 192,000 agricultural acres in the U.S., worth $1.9 billion, including land used for farming, ranching and forestry, according to the Agriculture Department.”

This is simply bad reportage. While 192,000 acres seems like big number it begs for some context. Digging down into the source report from the ERS, we discover that while Chinese investors, not the government, have increased their ag holdings, the large majority is “other agriculture land”. I tried semi-hard to find a definition for this category, and the best I can tell you is what it isn’t: cropland, pasture, or forest. Zooming in on cropland, which is what most farmers care about, Chinese investors own measly 33,000 acres. But how about those Canadians, eh? Or compare China to Germany. Chinese-owned cropland numbers are roughly similar to Denmark, and I don’t see Congress obsessed about a Viking raid.

*  *  *

Source:  https://www.agweb.com/news/business/farmland/john-phipps-have-chinese-investors-stolen-american-agriculture

We own 3 farms in different states , and let me provide a little update on how the Chicoms  interact in this business   Those listed like Germany and Denmark are market players  who are eager to sell their crops at fair commodity prices.  Chicoms not so much.  They more than likely will silo all of it, and ship via barge to their location, all at  reduced governemnt controlled agri-rates.    Also realize that there is a lot of specuation that the Chicoms are also flying under the radar with REIT investments that pretty much phantom their ownership.  And the issue of decoupling chicom government and private investors?  Don't kid yourself.  Just look at the bond mess over there, and how the governemnt is intimately involved, under the guise of independent investment.

Let me go on record to say, I don't like ANY foreign ownership of our farm land, and if pressed would support legislation requiring citizenship to own or operate.  Because right now, we are about the onl country that does allow foreigners to come buy farm land in bulk.  Our farms are essential to our well being as a country.  Don't releinquish it.

[Kamaji]

There are about 915 million acres of agricultural land in the U.S.; Chinese investors own about 192,000 acres.  That's about 0.02% of the total agricultural land in the U.S.

WADR, that's not even a rounding error.

By comparison, Bill Gates is reputed to own/control about 242,000 acres of agricultural land in the U.S.

[catfish1957]

There are about 915 million acres of agricultural land in the U.S.; Chinese investors own about 192,000 acres.  That's about 0.02% of the total agricultural land in the U.S.

WADR, that's not even a rounding error.

By comparison, Bill Gates is reputed to own/control about 242,000 acres of agricultural land in the U.S.

What now might seem like a trickle, could easily turn into a flood, especially if we lose reference currency status.  Can you imagine what will happen if these SOB's can start buying it pennies on the dollar?

If you read my prior post, you also got to realize that it did not include REIT investments, or any other financial vehicle that may be heavily invested in farmland.  .02% could easily turn into 20% almost overnight.  Thus the need for legislative need and call for action now.  Before we get to the point of no return.

Another factor to consider is the concept of the family farm is dying. Most offspring of farmer are not interested in the hard work needed to perpetuate the family traditon of farming.  This will be creating a market of available farms for the forseable future.  General options will be the ever growing size of corporate farm interest, or foregin ownership. 

You seem pretty cavalier, thinking many of these might be hijacked to feed the Chicoms, and not care. This will only impact supply and cost for U.S in one way.  Higher  cost and less supply.

[DefiantMassRINO]

They have acquired access to and control over US pork with the Chi-com acquisition of Swift meats processing plants.  They ship fozen half hogs to China.  The United States is becoming a colony of China's.

[Kamaji]

What now might seem like a trickle, could easily turn into a flood, especially if we lose reference currency status.  Can you imagine what will happen if these SOB's can start buying it pennies on the dollar?

If you read my prior post, you also got to realize that it did not include REIT investments, or any other financial vehicle that may be heavily invested in farmland.  .02% could easily turn into 20% almost overnight.  Thus the need for legislative need and call for action now.  Before we get to the point of no return.

Another factor to consider is the concept of the family farm is dying. Most offspring of farmer are not interested in the hard work needed to perpetuate the family traditon of farming.  This will be creating a market of available farms for the forseable future.  General options will be the ever growing size of corporate farm interest, or foregin ownership. 

You seem pretty cavalier, thinking many of these might be hijacked to feed the Chicoms, and not care. This will only impact supply and cost for U.S in one way.  Higher  cost and less supply.

Unless they have sufficient voting power to control the REIT, merely investing in a REIT doesn't give them the ability to control the underlying real property.  In fact, holding too high a percentage of the stock of a REIT could queer the intended U.S. tax treatment of the investment, particularly of distributions thereon.

[Kamaji]

They have acquired access to and control over US pork with the Chi-com acquisition of Swift meats processing plants.  They ship fozen half hogs to China.  The United States is becoming a colony of China's.

That is a much bigger concern, in my opinion.  I definitely do not like the idea of the Chinese government controlling the processing of my food, even if one does not consider whether they are using their control to make preferential sales of foodstocks back to China.

[catfish1957]

Unless they have sufficient voting power to control the REIT, merely investing in a REIT doesn't give them the ability to control the underlying real property.  In fact, holding too high a percentage of the stock of a REIT could queer the intended U.S. tax treatment of the investment, particularly of distributions thereon.

Especially in a $ meltdown, you don't think the Chicom's could pull off a passive takeover? i.e largest shareholder and help dicatate the direction of the REIT.   Who knows what the exchane rates might be after we are decimated.   You underestimation of the financial clout of our biggest enemy is pretty shocking.