The bill amends existing laws regarding the ownership and leasing of agricultural land in South Dakota, specifically targeting foreign entities and prohibited entities. Key changes include the stipulation that a foreign entity, foreign government, or foreign person may not own more than one hundred and sixty acres of agricultural land, excluding land held as security for indebtedness. Additionally, there are no restrictions on the leasing of agricultural land by foreign entities, provided they are not classified as prohibited entities. The bill also clarifies that agricultural land owned in violation of these provisions is subject to forfeiture to the state, and any leases or easements held by prohibited entities will be terminated.

Furthermore, the bill introduces compliance requirements for individuals required to report to the United States Department of Agriculture under the Agricultural Foreign Investment Disclosure Act. These individuals must file a copy of their report with the South Dakota Department of Agriculture and Natural Resources. Failure to comply may result in a civil penalty imposed by the attorney general, which can be up to ten percent of the fair market value of the agricultural land interest. The attorney general is also granted the authority to enforce these penalties and collect them through legal action in the appropriate circuit court.

Statutes affected:
Introduced, 01/06/2026: 43-2A-2, 43-2A-6, 43-2A-7.1
Enrolled, 03/05/2026: 43-2A-2, 43-2A-6, 43-2A-7.1