One thing that is clear is the lack of a universal national policy governing water rights and water use. In states that are water insecure in the Southwest, there is a dizzying and arcane array of regulations that are barely equal now to the challenges of current domestic use, much less answering the needs of foreign agriculture. It seems the barest common sense that there should be some federal entity protecting citizens’ rights to water against anonymous industrial agribusiness. As yet that has not happened. And while California and the Southwest would seem the most obvious areas that will face serious water challenges in the future, we have already seen similar drought conditions playing out in other states, such as Nebraska, Kansas, and Oklahoma. Eventually we may find that dry states must be supplied in some measure by wet states. Logic would dictate that laws regarding water use and access should be firmly in place before selling off resources to another nation.

States like Iowa have banned the sale of farmland to foreign buyers and others have laws that limit the number of acres that can legally be sold, but it can be quite tricky to tell who is doing the buying. Foreign buyers can hide their identity by creating an American corporation, or buying through a U.S. majority-owned subsidiary.

So just how much of our farmland are we willing to sell? And who decides? Most proposed deals must go through the Committee on Foreign Investment in the United States (CFIUS). Established under the Ford Administration in 1975, it has broad powers to accept or deny requests for foreign acquisitions of American companies and land. After September 11, additional criteria were included under the jurisdiction of the CFIUS, including food, water, and agriculture. The committee is made up of representatives from 16 government agencies, and chaired by the Secretary of the Treasury. It includes members from the Department of Defense, Homeland Security, the State Department, and the Departments of Commerce, Energy, and Justice, as well as the offices of the U.S. Trade Representative and Science and Technology Policy. Its reviews and deliberations are closed to the public, and decisions are handed down with virtually no transparency.

The dangers of high land prices are obvious—especially for younger farmers who are trying to get established and farmers who want to steer away from Big Ag approaches. The dangers of ownership by large corporations and foreign buyers are equally clear. But there is another danger to high, rapidly rising land prices—one that brings to mind the great real estate bust of 2007: a bubble. Bubbles can be devastating, leaving small land owners underwater on their mortgages and depriving them of the crucial collateral they need to get loans on operating expenses.