Kim Reynolds signs Iowa farmland law regulating foreign ownership. Here's what it does:

Gov. Kim Reynolds has signed a law with new disclosure requirements for foreign owners of Iowa farmland — and steeper penalties if they fail to comply.

Reynolds, a Republican, signed Senate File 2204 Tuesday morning at the Iowa State Capitol. The governor called for the proposal in January during her annual Condition of the State address, and it sailed through the Iowa Legislature in February with unanimous support.

Reynolds said Iowa already had a strong law on foreign land ownership that was a model for the nation, and the new legislation makes it even stronger.

"When Iowa speaks, the country listens," Reynolds said. "And with this bill our message is unmistakable: American soil belongs in American hands."

More: Iowa lawmakers pass bill boosting regulations for foreign farmland owners. What to know:

What does the law on foreign-owned farmland regulations do?

The law gives Iowa Attorney General Brenna Bird the power to subpoena financial information, purchase agreements and other documents while investigating possible violations of Iowa's foreign land ownership regulations.

It also requires foreign landowners to provide details to the state about their holdings in other states that exceed 250 acres. The Iowa secretary of state must submit an annual report of foreign landholdings to state leaders.

The law boosts penalties for foreign owners who fail to register their land holdings or meet reporting requirements.

• Failing to register a purchase or holding will result in a fine of up to 25% of the property's value per violation. Previously, the law called for a fine of no more than $2,000 per violation.

• Failing to report holdings once every two years will result in a penalty of up to $10,000 per violation.

"If you’re a foreign landowner, we will know who you are," Sen. Dan Zumbach, R-Ryan, said at the bill signing. "We will know where you are. We will know what you are up to and we will know your intentions. And if you’re planning on breaking Iowa’s law, you will receive the wrath of AG Bird."

How much farmland in Iowa is owned by foreign entities?

As of 2022, about 514,000 acres of Iowa farmland are held by foreign entities, according to U.S. Department of Agriculture data. That amounts to roughly 1.6% of the state's 32 million acres of crop, timber and other agriculture land.

The bulk of those holdings are long-term leases for wind, solar and other renewable energy projects.

China appears to be a minor owner of Iowa acreage, according to USDA data. Chinese-owned seed and crop protection company Syngenta owns 281 acres in Boone County.

The largest foreign holder is Canada, at close to 200,000 acres, followed by Italy at 104,400 acres. Around 181,300 acres are not specified because federal authorities not being able to identify nationalities (these landholders could be partners across several nations).

Des Moines Register reporters Galen Bacharier and Donnelle Eller contributed reporting.

Stephen Gruber-Miller covers the Iowa Statehouse and politics for the Register. He can be reached by email at [email protected] or by phone at 515-284-8169. Follow him on Twitter at @sgrubermiller.

This article originally appeared on Des Moines Register: Kim Reynolds signs law boosting oversight of foreign farmland owners