Arkansas has ordered Syngenta to sell 160 acres (65
hectares) of farmland in the United States state within two years on Tuesday
because the company is Chinese-owned, drawing a sharp rebuke from the global
seeds producer.
US farm groups and lawmakers are increasingly scrutinizing
foreign land ownership due to concerns about national security.
"This is about where your loyalties lie," Arkansas
Governor Sarah Huckabee Sanders said at a news conference.
Syngenta said it was disappointed and called the decision a
shortsighted action that will hurt Arkansas farmers. The company owns about 1,500
acres (610 hectares) of US agricultural land for research, development and
regulatory trials on products used by US farmers, spokesman Saswato Das said.
"Our people in Arkansas are Americans led by Americans
who care deeply about serving Arkansas farmers," Das said. The company has
owned the site in Craighead County for 35 years, he added.
The order is Arkansas' first enforcement action under a
state law passed this year that prohibits certain foreign parties from
acquiring or holding land. China is among the prohibited parties because it is
subject to US arms export controls known as the International Traffic in Arms
Regulations (ITAR), Arkansas Attorney General Tim Griffin said.
A rival of US company Corteva and German firms BASF and
Bayer, Swiss agrichemicals and seeds group Syngenta was bought for US$43
billion by ChemChina in 2017 and folded into Sinochem Holdings Corp in 2021.
ChemChina is a "state-owned enterprise" in China, Griffin said.
Syngenta is now pursuing an initial public offering in
Shanghai.
If Syngenta fails to sell its land, owned by subsidiary Northrup
King Seed Co, Griffin can force them to get out of our state with legal action,
Huckabee Sanders said.
The state also fined Syngenta $280,000 for failure to report
foreign ownership in a timely manner.
In a form filed with the US Department of Agriculture about
the property last year, Syngenta said, "Ultimately, the foreign person
that holds indirectly a significant interest in the person owning the land is
from China," according to a copy of the document posted by Griffin's
office.
But no one from China has ever directed Syngenta executives
to buy, lease or otherwise engage in US land acquisitions, Das said.
Since Syngenta had Chinese ownership, the company has purchased
an additional 200 agricultural acres (80 hectares), he said.
"All Syngenta land holdings have been examined by the
US government, through two administrations, as Syngenta was transitioning to
ChemChina ownership," Das said.
Foreign persons held an interest in approximately 40 million
acres (16.2 million hectares) of US agricultural land as of December 31, 2021,
the USDA said. That was 3.1% of all privately held agricultural land and 1.8%
of all land. China had less than 1% of foreign-held land, while Canadian
investors had 31%.