North Carolina’s farmland bill cleared the Senate and is now law, but it does not ban every foreign person from owning land. Session Law 2026-54 restricts defined prohibited foreign parties from acquiring specified agricultural land and property near military installations. Most of its provisions take effect April 1, 2027.
What happened to the bill?
The North Carolina General Assembly enacted House Bill 133 as Session Law 2026-54 on July 8, 2026. The act is titled the North Carolina Farmland and Military Protection Act.
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| Date | Legislative action |
|---|---|
| June 23, 2026 | The Senate passed HB 133 by a 42-3 vote. |
| June 25, 2026 | The House concurred by a 111-2 vote. |
| July 8, 2026 | HB 133 became Session Law 2026-54. |
HB 133 is separate from Senate Bill 394. The General Assembly’s bill page lists SB 394’s last action as referral back to a House committee on June 9, 2026; it is not the enacted law discussed here.
Does North Carolina ban foreign ownership of farmland?
No. The act does not prohibit all foreign ownership. It applies to parties who meet the law’s definition of a “prohibited foreign party,” and to specified types of land or property. Nationality by itself does not establish that a person or entity is covered.
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Which land and property are covered?
- Agricultural land: The act uses the state’s statutory definition tied to agricultural production. It includes an exception for certain research-and-development leases totaling no more than 250 acres in aggregate.
- Property near military installations: The restriction applies to property within a 50-mile radius of a covered military installation.
The statute also provides for limited de minimis interests and other exceptions, including certain entities reviewed through the Committee on Foreign Investment in the United States (CFIUS).
Who counts as a prohibited foreign party?
The statutory definition covers certain adversarial foreign governments and state-controlled enterprises, entities organized under relevant foreign laws, and entities meeting specified significant-interest or substantial-control tests. The law sets technical thresholds for those tests and defines related CFIUS exclusions. A particular buyer’s status therefore depends on the statutory criteria and applicable exceptions, not simply on where that buyer is from.
When do the restrictions take effect?
Most provisions take effect April 1, 2027. Certain provisions concerning maps and effective dates took effect July 7, 2026; that earlier date does not move the main start date for the restrictions.
Existing interests and later acquisitions
A covered interest held before April 1, 2027 may continue, subject to registration requirements and restrictions on acquiring new interests. If a prohibited party makes an acquisition after the effective date in violation of the act, the interest must be divested within one year.
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Transactions and the required map
A buyer of covered land must provide the required affidavit no later than closing. By April 1, 2027, the North Carolina Real Estate Commission, coordinating with the Department of Military and Veterans Affairs, must publish a map of covered military facilities and applicable distance boundaries. The map must be updated annually.
How can the law be enforced?
The Attorney General may investigate and pursue a receivership proceeding if a violation occurs. The act generally excludes liability for a person who fails to determine whether a party is prohibited or who fails to handle the affidavit requirement. Knowingly selling in violation of the act is a Class 2 misdemeanor. The statute also says it creates no private right of action.
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What reason did the legislature give?
The General Assembly said the law is intended to protect agricultural land and military installations from potential adversarial foreign government control, citing food and fiber production and national security. That is the legislature’s stated rationale; the official materials do not establish a quantified impact study supporting it.
The official materials establish the law and its legislative history, but do not establish how it will be implemented in practice, whether courts will interpret its provisions, or what economic effects it may have.
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