revise the compliance requirements for limitations on foreign ownership of agricultural land.

26.445.17 101st Legislative Session 40

2026 South Dakota Legislature
Senate Bill 40
ENROLLED

AN ACT

ENTITLED An Act to revise the compliance requirements for limitations on foreign
ownership of agricultural land.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 43-2A-2 be AMENDED:
43-2A-2. The following provisions apply to the ownership or leasing of agricultural
land in this state:
(1) A prohibited entity may not own agricultural land in this state;
(2) A prohibited entity may not lease or hold an easement on agricultural land in this
state, unless:
(a) The lease is exclusively for agricultural research purposes and encumbers
no more than three hundred and twenty acres; or
(b) The lease is exclusively for contract feeding of livestock, at an animal
feeding operation, by a family farm unit, a family farm corporation, or an
authorized farm corporation;
(3) Excluding a prohibited entity, a foreign entity, foreign government, or foreign
person may not own more than one hundred and sixty acres of agricultural land in
this state, provided this limitation does not include agricultural land held as security
for indebtedness; and
(4) Excluding a prohibited entity, there is no restriction on easements or the number
of acres of agricultural land that a foreign entity, foreign government, or foreign
person may lease.
This section does not apply to a foreign entity, foreign government, or foreign
person whose right to hold land is secured by treaty.
Section 2. That § 43-2A-6 be AMENDED:
26.445.17 2 40
SB40 ENROLLED
43-2A-6. Any agricultural land owned in violation of this chapter is forfeited to the
state. Any agricultural land lease, or easement, held by a prohibited entity in violation of
this chapter, is terminated.
Any agriculture land acquired by devise or descent, wherein a minority owner is in
violation of this chapter, is subject to forfeiture of the violating minority owner’s interest
share, plus an additional civil penalty in an amount equal to the fair market value of the
violating minority owner's interest share.
The attorney general shall enforce the forfeiture or the termination of a lease or
easement. A forfeiture or a termination of a lease or easement may not be adjudged
unless the action to enforce is brought within three years after evidence of a violation o f
this chapter is referred to the attorney general, as provided for in § 43-2A-6.1. No title to
land is invalid or liable to forfeiture by reason of the alienage of any former owner or
interested person.
Any fractional interest in any land forfeited to the state must first be made available
to the other equitable owners of the land at fair market value. The attorney general may
determine fair market value under this section by an appraisal or a value of two times the
assessed taxable valuation of the land.
Section 3. That § 43-2A-7.1 be AMENDED:
43-2A-7.1. Any person required to submit a report to the United States
Department of Agriculture in accordance with the Agricultural Foreign Investment
Disclosure Act of 1978, 7 U.S.C. §§ 3501 to 3508 inclusive (January 1, 2026), shall file a
copy of the required report with the secretary of the Department of Agriculture and Natural
Resources, within the time period required for submission under 7 U.S.C. § 3501.
If the person fails to report as required under this section, the attorney general
may impose a civil penalty, not to exceed ten percent of the fair market value of the
agricultural land interest held on the date the penalty was assessed. The attorney general
shall forward any civil penalty collected under this section to the state treasurer, for
deposit in the general fund.
The attorney general may bring an action to collect the civil penalty in the Sixth
Judicial Circuit Court in Pierre or in the circuit court of any county of this state in which
any portion of the relevant agricultural land is located.
26.445.17 3 40
SB40 ENROLLED
An Act to revise the compliance requirements for limitations on foreign ownership of
agricultural land.

I certify that the attached Act originated in
the:

Senate as Bill No. 40

Secretary of the Senate

President of the Senate

Attest:

Secretary of the Senate

Speaker of the House

Attest:

Chief Clerk of the House

Senate Bill No. 40
File No. ____
Chapter No. ______

Received at this Executive Office
this _____ day of _____________,

2026 at ____________M.

By
for the Governor

The attached Act is hereby
approved this ________ day of
______________, A.D., 2026

Governor

STATE OF SOUTH DAKOTA,
ss.
Office of the Secretary of State

Filed ____________, 2026
at _________ o'clock __M.

Secretary of State

By
Asst. Secretary of State