Source: Rita Jane Gabbett, MEATINGPLACE, 3/15/17


U.S. Senators Chuck Grassley (R-Iowa) and Debbie Stabenow (D-Mich.) have introduced new bipartisan legislation to give top U.S. agriculture and food officials permanent representation on the Committee on Foreign Investment in the United States (CFIUS).

The “Food Security is National Security Act of 2017” also would include new agriculture and food-related criteria for CFIUS to consider when reviewing transactions that could result in control of a U.S. business by a foreign company.

“As we think about the future and the growing global population, it’s important to consider who will control the food supply. Today, there may not be a food shortage in the world, only distribution problems that are more the result of politics not logistics.

In the decades to come, it may be a different story,” Grassley said. “The approval by CFIUS of the sale of U.S. agricultural assets seem more focused on the present state of the food industry instead of the future supply situation. We owe it to our farmers and Americans who rely on farmers to grow their food to be more strategic.”

“Protecting the integrity, safety, and resiliency of America’s food system is core to our national security,” Stabenow added. “As foreign entities continue their aggressive acquisitions of U.S. food and agriculture companies, it’s imperative that these transactions face additional scrutiny.“

CFIUS is a panel of government officials tasked with reviewing proposed mergers and acquisitions of U.S. companies, including foreign entities seeking to purchase U.S. agricultural and food assets.

The legislation would give both the Secretary of Agriculture and the Secretary of Health and Human Services permanent representation on CFIUS to protect U.S. food security.

The legislation also adds new criteria to the CFIUS review process to ensure that proposed transactions are reviewed specifically for their potential impact on American food and agricultural systems, including availability of, access to, or safety and quality of food. The senators said specifically including food and agriculture in the review process is an important national security safeguard and sends a strong signal to potential foreign purchasers.

The move comes nearly four years after China’s WH Group bought U.S. pork giant Smithfield Foods. Brazil’s JBS is already a large owner (through its U.S. subsidiary) of a number of U.S. meat and poultry processing entities, including poultry producer Pilgrim’s Pride. This week, JBS USA purchased deli and prepared foods maker Plumrose USA.

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