Committee backs cleanup to foreign‑ownership rules for agricultural land

The House Agriculture and Natural Resources Committee voted to send Senate Bill 40 to the House floor with a do‑pass recommendation after proponents described it as a technical cleanup to South Dakota’s foreign‑ownership statutes.

Hunter Roberts of the Department of Agriculture and Natural Resources told the committee the bill clarifies that someone who acquires minority foreign ownership through inheritance must divest the violating interest within three years. Roberts said the measure also gives equity owners the first right to purchase forfeited land at fair market value — allowing the department to use twice assessed value or an appraisal in setting that price — and adds a penalty of up to 10% of fair market value for failures to report transactions under the federal Agricultural Foreign Investment Disclosure Act to the state agency.

"This is a cleanup from what we passed a few years ago," Roberts said, arguing the 10% penalty will give the state "teeth" to ensure timely reporting and let South Dakota act sooner when federal filings lag.

Jasper Deagle, a registered lobbyist for the South Dakota Stock Growers, said the association echoed the department’s position and asked the committee to support the bill.

With no opponents registered, Representative Gosh moved the committee to recommend the bill, and Representative Ladner seconded the motion. The committee secretary recorded the vote; the chair announced the motion received the votes needed and that SB 40 will go to the House floor with a do‑pass recommendation.

The committee did not take up amendments in the hearing. The bill’s supporters said the changes are intended to streamline enforcement and reduce the lag created by waiting on federal filings.