The fate of legislation limiting foreign ownership of land in Kansas is uncertain for the 2023 session. Senate Bill 100 was introduced at the request of the Attorney General on January 25 and assigned to the Senate Judiciary Committee on January 26, but a hearing was never held. House Bill 2397 was introduced on February 15 at the request of the House Agriculture and Natural Resources Chairman and assigned to his committee. It was scheduled for a hearing, but the hearing did not happen. Senate Bill 283 (similar to HB 2397) was introduced by Sen. Mike Thompson on March 2 and routed through the Senate on Federal and State Affairs Committee to the Senate Judiciary Committee. A hearing was held on March 21. In a late session legislative maneuver, the Senate Judiciary Committee gutted House Bill 2069 (whose contents were put in another bill), and Senate Bill 283 was put in this bill – now Sen. Sub for HB 2069 – and sent to the Senate floor. This bill was passed over and holds its spot when the Senate reconvenes on April 26. There has not been a floor debate on this foreign ownership legislation in the House or Senate.

Sen. Sub for HB 2069 targets certain foreign ownership of land after July 1, 2023. This bill does not apply to residential property bought for a personal residence. The foreign countries identified are China, Russia, North Korea, Iran, Cuba, and Venezuela. There is a provision for the Kansas Secretary of Agriculture - by rule and regulation - to add or remove governmental or non-governmental entities to this ‘foreign adversary’ list. This bill requires the Attorney General to investigate any real property transaction that might violate the provisions of this law if passed. There are timelines to dispose of real property if violations are discovered. The Attorney General has the power of forfeiture. SB 100 carved out Johnson, Sedgwick, Shawnee, and Wyandotte counties, but this bill applies statewide. The Kansas Livestock Association testified against the bill in regards to its impact on the free market and questioned the constitutionality of this proposed law. Wind advocates testified that wind leases are not real property and are not subject to the provisions of this legislation.

This supplemental note explains the bill: SUPPLEMENTAL NOTE ON SENATE SUBSTITUTE FOR HOUSE BILL NO. 2069

Roger McEowen – an attorney and expert on agricultural tax/regulation issues – gave detailed testimony on February 15th concerning SB 100 & HB 2397. His testimony listed legislation considered in other states and existing foreign ownership provisions in Kansas law. Foreign corporations (non-Kansas based) must now file a report with the Kansas Secretary of State listing any acreage owned in Kansas (but accessing data is by the individual corporation). Attached to Roger’s testimony is an article by the U.S. – China Economic and Security Review Commission in regards to China’s interest in U.S. agriculture. In 2013 a Chinese corporation bought Smithfield Foods – the largest pork producer in the United States (1 in 5 hogs). China’s ownership of U.S. land has increased from 13,720 acres in 2010 to 352,140 acres in 2020. 176,000 of these acres were involved with the Smithfield purchase. As the agricultural seed/chemical industry has consolidated with Dow taking over Dupont and Bayer buying Monsanto, ChemChina bought Syngenta, so three entities have virtual control of the commercial agricultural seed and chemical market. This report documents the vertical integration of buying grain mills to control feed costs. Smithfield has 400 company-owned hog operations and contracts with 2,000 independent hog farms. China imports 85% of its soybeans. At the end of this report are recommendations for Congressional action.

Testimony for Kansas House Agriculture Committee Foreign Ownership of Agriculture Land

INTERIM COMMITTEE TOPIC OPPORTUNITIES

Interim legislative committees can focus research and public debate on given policy priorities. These committees meet during the summer and fall with more time to delve deeply into a given topic and provide more time for public input. Normally these committees have 2-3 days to take testimony and possibly settle on policy recommendations for the next legislative session. Interim committee policy recommendations stand a much better chance of legislative success since the background work has been done and consensus found on policy recommendations. The Legislative Coordinating Council (LCC) – comprised of House & Senate leadership from both parties – will decide on interim committees in June. Surprisingly, there have been many more such committees than customary in the last two years. The LCC accepts interim committee recommendations from both chambers. Hopefully, for the 2024 session, lawmakers will move beyond the trendy, imported culture war issues and concentrate on substantive, systemic needs for all Kansans, such as housing, energy, water, etc.

HOUSING PLAN

Kansas lawmakers made progress with housing funding and housing legislation last year. This interim housing committee should get an update on housing expenditures (for rental assistance, homeowners, and housing developments) from the Kansas Housing Resources Corporation (KHRC) and the expansion of housing tax credits from the Kansas Department of Revenue. There should be discussions on the demand for such assistance and possible expansion. Federal housing programs should be reviewed at the same time as well as federal grants such as the Community Development Block Grant.

In terms of policy, Kansas policymakers need an annual housing study with specific recommendations for funding as well as policy changes. Kansas needs to establish a ‘Kansas Housing Commission’. It could be modeled on the Kansas Water Authority – which has members selected by the Governor & legislative leaders – that presents an annual report to the Kansas Legislature with specific priorities. KHRC has a State Housing Trust Fund (SHTF) but has no dedicated funding source. SHTF must have a certain reserve balance so that Kansas can restart ‘first time home buyer’ loans. KHRC should be given the legal authority to issue these loans for rural Kansas.

ENERGY/UTILITIES

WATER RIGHTS AND WATER PLAN

The Kansas House Water Committee has spent three years delving into water issues and funding - resulting this session with legislation to mandate response plans from the Groundwater Management Districts and increased funding for the State Water Plan Fund (SWPF). An interim water committee should continue these efforts delving into the 34,500 water rights in Kansas. There should be a complete assessment of the status of these water rights and the opportunities Kansans have to recapture a portion of these over-appropriated groundwater rights. Even with the increased funding for the SWPF, recapturing water rights will take a special effort, so funding from the $1.6 Billion dollar ‘rainy day’ fund should be considered. In terms of water use, corn is the most demanding – especially in drought conditions – but less water use could be applied to certain specialty crops that could net the producer higher income per acre while improving the Kansas diet.

The 2022 Kansas Water Plan needs more refinement. The federal farm conservation programs – CRP, CSP & EQIP – total over $200 million annually in Kansas versus a $25 million SWPF today (going to $60 million in 2024) but are not explicitly documented. The directors of FSA (CRP) and NRCS (CSP, EQIP) should testify to this interim committee on greater coordination of their programs (such as the expansion of Grasslands CRP) and the greater federal funding for CSP and EQIP coming to Kansas. There needs to be a full discussion of the coming 2023 Farm Bill and its direct impact on cropping patterns (wheat, corn, soybeans, sorghum) and over-irrigation. This committee should explore the possibilities of mapping the federal conservation lands and assessing the impact on key watersheds above certain federal reservoirs.

CHILD SUPPORT ENFORCEMENT AUDIT

KANSAS LEGISLATIVE RESEARCH DEPARTMENT (KLRD) BILL SUMMARIES

CONSENSUS REVENUE ESTIMATING GROUP (CREP) PROJECTION

CREP is comprised of officials from KLRD, the Governor’s office, and three university economists from KU, KSU, and WSU. This group meets twice a year – mid-November and mid-April. This revenue projection for Kansas is the official figure the Governor and the Kansas Legislature must use in developing the State budget. On April 20, CREG met and increased state revenues by $237 million in total for Fiscal Year 2023 (that ends June 30, 2023) and Fiscal Year 2024 (that ends June 30, 2024). The State General Fund’s ending balance on June 30, 2024, would be $3.031 Billion – the largest in State history. This revenue projection uses existing law and does not factor in the $1.3 Billion tax cut bill now on the Governor’s desk (that institutes a 5.15% flat income tax and ends the 4% state grocery sales tax on January 1, 2024). The battle now starts in the veto session – especially if the Governor vetoes the tax cut bill.

Kansas revenue forecast expects surplus to grow to $3 billion, pending tax cuts

USDA ANNOUNCES GRASSLAND CONSERVATION RESERVE PROGRAM SIGNUP FOR 2023

The U.S. Department of Agriculture (USDA) announced that agricultural producers and private landowners can begin applying for the Grassland Conservation Reserve Program (CRP) signup startingApril 17 throughMay 26, 2023.Among CRP enrollment opportunities, Grassland CRP is unique as aworking lands program, allowing producers and landowners to continue grazing and haying practices while protecting grasslands and promoting plant and animal biodiversity and conservation.

Protecting grasslands with CRP not only benefits participants with annual rental payments and cost share assistance; it also contributes positively to the economy of many regions, builds biodiversity, and provides important carbon sequestration benefits to deliver lasting climate outcomes.

More than 2.4 million acres were enrolled through the 2022 Grassland CRP Signup from agricultural producers and private landowners. That signup – the highest ever for the program– reflects the continued success and value of investments in voluntary, producer-led, working lands conservation programs. The current total participation in Grassland CRP is 6.3 million acres, which is part of the 23 million acres enrolled in CRP opportunities overall.

Since 2021, the USDA’s Farm Service Agency (FSA), which administers all CRP programs, has made several improvements to Grassland CRP to broaden the program’s reach, including:

• Creating two National Priority Zones to put focus on environmentally sensitive land such as that prone to wind erosion.
• Enhanced offers with 10 additional ranking points to producers and landowners who are historically underserved, including beginning farmers and military veterans.
• Leverage the Conservation Reserve Enhancement Program (CREP) to engage historically underserved communities Tribal Nations in the Great Plains

Other CRP Signups

General CRP

General CRP signup closed on April 7. The program helps producers and landowners establish long-term, resource-conserving plant species, such as approved grasses or trees, to control soil erosion, improve water quality and enhance wildlife habitat on cropland. Additionally, General CRP includes a Climate-Smart Practice Incentive to help increase carbon sequestration and reduce greenhouse gas emissions by helping producers and landowners establish trees and permanent grasses, enhance wildlife habitat, and restore wetlands.

Continuous CRP

Under Continuous CRP, producers and landowners can enroll in CRP throughout the year. Offers are automatically accepted provided the producer and land meet the eligibility requirements and the enrollment levels do not exceed the statutory cap. The Climate-Smart Practice Incentive is also available in the Continuous signup.

FSA offers several additional enrollment opportunities within Continuous CRP, including the State Acres for Wildlife Enhancement (SAFE) Initiative, the Farmable Wetlands Program (FWP), and the Conservation Reserve Enhancement Program (CREP). Also available is the Clean Lakes Estuaries and Rivers Initiative CLEAR30 Initiative, which was originally piloted in twelve states but has been expanded nationwide, allowing producers and landowners to enroll in 30-year CRP contracts for water quality practices.

How to Sign Up

Landowners and producers interested in Grassland CRP, or any other CRP enrollment option, should contact their local USDA Service Center to learn more or to apply for the program before their deadlines.

Producers with expiring CRP acres can use the Transition Incentives Program (TIP), which incentivizes producers who sell or enter a long-term lease with a beginning, veteran, or socially disadvantaged farmer or rancher who plans to sustainably farm or ranch the land.

More Information

Signed into law in 1985, CRP is one of the largest voluntary private-lands conservation programs in the United States. It was originally intended to primarily control soil erosion and potentially stabilize commodity prices by taking marginal lands out of production. The program has evolved over the years, providing many conservation and economic benefits.

USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit usda.gov.

LEAGUE OF WOMEN VOTERS OBSERVER CALLS

Kansas Legislature Website