What Energy Companies Should Know About USDA’s AFIDA Rulemaking

Executive Summary

On June 25th, the U.S. Department of Agriculture (USDA) published a notice of proposed rulemaking (Proposed Rule) that would significantly revise its implementation of the Agricultural Foreign Investment Disclosure Act of 1978 (AFIDA). The Proposed Rule would repurpose AFIDA for national security enforcement by multiplying penalty amounts, expanding the industries covered, eliminating exemptions, and add significant time and costs to all filers. Comments are due August 10, 2026.

For energy and infrastructure companies—including oil and gas pipeline operators, renewable energy developers, and upstream exploration and production companies—the Proposed Rule represents a fundamental expansion of AFIDA’s reach. For the first time, easements and rights of way granted to pipeline operators across agricultural land, as well as short term leases, would be subject to AFIDA reporting. Companies with 10% or greater aggregate foreign ownership should assess their compliance