CHAPTER 43-2A
ALIEN OWNERSHIP OF AGRICULTURAL LAND
43-2A-1 Definitions.
43-2A-2 Limitations on foreign ownership--Exceptions.
43-2A-3 Agricultural land acquired in violation--Period to comply.
43-2A-4 Aliens acquiring agricultural land by process of law--Time to alienate title.
43-2A-5 Nonresident alien becoming bona fide resident--Right to acquire agricultural land.
43-2A-6 Violation--Forfeiture to state--Enforcement--Impact on title.
43-2A-6.1 Violation--Investigation--Subpoena power.
43-2A-6.2 Violation--Burden of proof.
43-2A-6.3 Violation--Appeal.
43-2A-7 Reports monitored by Department of Agriculture and Natural Resources.
43-2A-7.1 AFIDA report--Duplicate filing with department.
43-2A-8 Exception for property owned by corporation for nonfarming purposes--Cement Plant Commission property.
43-2A-1. Definitions.
Terms used in this chapter mean:
(1) "Agricultural land," land capable of being used in the production of:
(a) Agricultural crops;
(b) Fruit and other horticultural products;
(c) Livestock or livestock products;
(d) Milk or dairy products;
(e) Poultry or poultry products; or
(f) Timber;
(2) “Foreign entity,” any organization that:
(a) Is registered outside of the United States or its territories; or
(b) Has more than ten percent ownership by a foreign government, foreign person, or any combination thereof. However, this permissive threshold does not apply to a prohibited entity;
(3) “Foreign government,” a government or state-controlled enterprise of a government, other than the United States, its states, its territories, or its federally recognized Indian tribes;
(4) “Foreign person,” a natural person who is not a United States citizen or a resident;
(5) “Prohibited entity,” a foreign entity from, foreign government from, or foreign person from:
(a) The People’s Republic of China;
(b) The Republic of Cuba;
(c) The Islamic Republic of Iran;
(d) The Democratic People's Republic of Korea;
(e) The Russian Federation; or
(f) The Bolivarian Republic of Venezuela; and
(6) “Resident”, any individual who is a legal resident of this state, of another state or territory of the United States, or of the District of Columbia, and makes no claim of residency in a foreign country.
Source: SL 1979, ch 291, § 7; SL 2024, ch 176, § 1.
43-2A-2. Limitations on foreign ownership--Exceptions.
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:
(a) Agricultural land acquired by devise or inheritance; or
(b) 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.
Source: SL 1979, ch 291, § 1; SL 2024, ch 176, § 3.
43-2A-3. Agricultural land acquired in violation--Period to comply.
Any foreign entity, foreign government, foreign person, or prohibited entity that acquires agricultural land in this state by devise or descent, in violation of this chapter, has three years from the transfer of ownership to dispose of the land.
Any foreign entity who violates this chapter by other means has two years from the initial date of the violation to comply with this chapter or to dispose of the property.
Source: SL 1979, ch 291, § 4; SL 2024, ch 176, § 4.
43-2A-4. Aliens acquiring agricultural land by process of law--Time to alienate title.
The prohibitions of § 43-2A-2 do not apply to agricultural lands acquired by process of law in the collection of debts, or by any procedure for the enforcement of a lien or claim thereon, whether created by mortgage or otherwise. However, all agricultural lands so acquired shall be disposed of within three years after acquiring title.
Source: SL 1979, ch 291, § 2.
43-2A-5. Nonresident alien becoming bona fide resident--Right to acquire agricultural land.
Any foreign person who is or becomes a resident may acquire and hold agricultural land in this state, upon the same terms as a resident of this state, during the continuance of the residency.
If the foreign person ceases to be a resident, the foreign person has three years from the time the residency is terminated to dispose of agricultural land in excess of one hundred sixty acres.
Source: SL 1979, ch 291, § 3; SL 2024, ch 176, § 5.
43-2A-6. Violation--Forfeiture to state--Enforcement--Impact on title.
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.
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 of 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.
Source: SL 1979, ch 291, § 6; SL 2024, ch 176, § 6.
43-2A-6.1. Violation--Investigation--Subpoena power.
The Department of Agriculture and Natural Resources shall refer evidence of noncompliance to the attorney general, who shall investigate the evidence for violations of this chapter. The attorney general may bring an action pursuant to title 15 to enforce this chapter.
After the attorney general commences an enforcement action, the attorney general may, in addition to any authority granted under §§ 15-6-28.2 to 15-6-28.4, inclusive, subpoena from a subject foreign entity, foreign government, foreign person, or prohibited entity:
(1) Real property titles;
(2) Deeds;
(3) Real estate transaction documents;
(4) Financing or financial documents related to the ownership or financing of the agricultural land transaction;
(5) Documents depicting the identity of any party to the agricultural land transaction; and
(6) Any other information necessary to demonstrate a violation of § 43-2A-2.
Source: SL 2024, ch 176, § 7.
43-2A-6.2. Violation--Burden of proof.
The attorney general shall prove any violation of § 43-2A-2 by a preponderance of the evidence.
Source: SL 2024, ch 176, § 8.
43-2A-6.3. Violation--Appeal.
A foreign entity, foreign government, foreign person, or prohibited entity, whose agricultural land interest was forfeited by an enforcement action brought by the attorney general, may appeal within thirty days of the judgment, pursuant to chapter 15-26A.
Source: SL 2024, ch 176, § 9.
43-2A-7. Reports monitored by Department of Agriculture and Natural Resources.
The Department of Agriculture and Natural Resources shall review:
(1) Any report received by the department in accordance with § 43-2A-7.1;
(2) Any report transmitted to the department pursuant to the Agricultural Foreign Investment Disclosure Act of 1978, 7 U.S.C. § 3505 (January 1, 2024);
(3) Any annual report required by § 59-11-24; and
(4) Any report voluntarily submitted by a county register of deeds alleging a violation of this chapter.
If the department has reason to believe that a violation of this chapter may have occurred, the department must refer the evidence to the attorney general, who must investigate in accordance with § 43-2A-6.1.
Source: SL 1979, ch 291, § 5; SL 2021, ch 1 (Ex. Ord. 21-3), § 14, eff. Apr. 19, 2021; SL 2024, ch 176, § 10.
43-2A-7.1. AFIDA report--Duplicate filing with department.
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 et seq. (January 1, 2024) 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.
Source: SL 2024, ch 176, § 2.
43-2A-8. Exception for property owned by corporation for nonfarming purposes--Cement Plant Commission property.
This chapter does not apply to agricultural land owned by a foreign entity, a foreign government, or a foreign person for an immediate or potential nonagricultural use.
A foreign entity, a foreign government, or a foreign person may hold agricultural land in an amount necessary for the conduct of its nonagricultural business operations. Pending the development of agricultural land for a nonagricultural use, the land may not be used for farming, except under lease to a family farm unit, a family farm corporation, or an authorized farm corporation.
A foreign entity, foreign government, or foreign person developing land for nonagricultural use has five years from acquiring interest to initiate a nonagricultural business operation or be deemed in violation of this chapter.
For purposes of this section, the term "nonagricultural business operation" includes the filing of a permit or an application with this state, a political subdivision of this state, a federally recognized Indian tribe, or a federal agency having jurisdiction over the project for permitting purposes.
All real property owned or held by this state by and through the South Dakota State Cement Plant Commission, as of December 28, 2000, is owned or held by it and its successors in title for immediate or potential use for nonfarming purposes and the real property is necessary for nonfarming business operations.
Source: SL 2000 (SS), ch 4, § 1; SL 2024, ch 176, § 11.
