We don’t know what kind of nonsense folks in other parts of the state have been seeing and hearing in this campaign about the dangers of Chinese ownership of our farmland, but it’s been a central issue in the Third Congressional District television commercials for contenders for Blaine Luetkemeyer’s soon-to-be-vacated seat. It even has oozed into the governor’ race and the state auditor’s race.
China, like the illegal immigrant, is a campaign bogeyman this year. One congressional candidate, Bob Onder, has decided name-calling is a proper way to attack his main competitor, Kurt Schaefer—something that should not be unexpected given that Onder has the full support of Donald Trump, the nation’s leading advocate of character-assassination.
Onder has been sending out direct mail pieces charging “Shanghai Schaefer” with voting to let China have Missouri farmland.
Gubernatorial candidate Mike Kehoe faces the same criticism, without name-calling so far. And incumbent Treasurer Vivek Malik has a commercial that assures us that no state funds are invested in anything Chinese.
Onder and Kehoe’s opponents aren’t shooting straight with the voters. But what else is new in today’s politics? Or politics, ever, for that matter.
Here’s what really went on ten years ago, and more, on which these attack ads are based:
Missouri was among several Midwest states to pass laws in the 1970s that prohibited or restricted foreign land ownership amid concerns over Japanese investment. Missouri law completely banned foreign land ownership until 2013, when lawmakers passed a bill allowing as much as 1% of agricultural land to be sold to foreign entities. The move was an economic necessity to deal with a situation in rural north Missouri.
One of the biggest agricultural issues of the time was Corporate Agriculture, Big Ag, if you will, personified by an outfit called Premium Standard Farms that set up huge contract hog-raising and processing operations in north Missouri, a sparsely-settled part of our state that relied on agriculture for its economy.
Premium Standard revolutionized the pork industry. It had been founded in 1988 with the goal of producing premium pork and was the first pork producer in America to get into vertical integration—in other words, controlling the market from birth of the pig to the marketing of the pig’s parts after it grew up. To accomplish that, PSF bought a lot of land and contracted with many farmers to raise pigs the company would process. North Missouri went from being a region of independent farmers to being suppliers. But Premium Standard offered an economic stability the region had not previously had.
PSF was a huge concern in terms of environmental issues as well as generating concerns about gobbling up small family farms, an anachronistic phrase that had faded from reality many years earlier. It was the second-biggest pork producer and the sixth-biggest pork processor in the country.
In 1999, six people sued for damages, namely odors, coming from PSF’s hog farms. The court ordered PSF to pay then $4.6 million. In 2010, a Jackson County jury gave seven neighboring farmers $11 million in damages because of odors produced on PSF’s 43-hundred acre finishing farm—which processed about 200,000 hogs a year—near Berlin.
By then, Smithfield Foods had bought PSF for $800 million in cash, stock, and assumed debt.
At one time, Smithfield—headquartered in Princeton, Missouri with a processing plant in Milan—ran 132 company-owned farms and had 109 contract farms in Missouri. It also leased farms and eight feed mills.
When China’s biggest pork producer, Shunghui International, wanted to buy Smithfield about five years later, it ran into the state law prohibiting foreign ownership of farm land (several other Midwestern states had adopted similar laws).
As your faithful scribe recalls, the law threatened the purchase as well as the economy of a wide part of north Missouri. So the legislature passed a new law allowing foreign interests to own one percent of Missouri farmland. That cleared the way for Shanghai Holdings, as the United States entity for Shunghui International was known, to take over Smithfield—now known as the WH Group—and the approximately 40,000 acres Smithfield owned. At the time, few people suspected letting foreigners own one percent of Missouri’s farmland would be a major campaign issue or some kind of proclaimed major national security threat.
Senators Kurt Schaefer and Mike Kehoe voted for that bill, which passed the Senate unanimously. Governor Nixon vetoed it. The Republican-dominated legislature overrode the veto.
Schaefer later lost a Republican primary election for Attorney General to Eric Schmitt and has been a lobbyist and Columbia attorney since. Kehoe was appointed Lieutenant Governor by Governor Parson, who sponsored the farmland bill in 2013. Parson is a farmer in southwest Missouri.
The MOST Policy Initiative says Missouri ranks 9th in the nation in foreign-owned acreage—but the 324,658 acres held amounts to only 0.78% of all of our farmland, ranking us 35th in that category.
Nationally, we are not under any threat of a foreign government buying our country. The USDA put out a list in 2021 showing how much various countries own of our land. Five countries own two percent of the total land in the United States.
Here’s the top ten as compiled by Forbes:
- Canada (12,845,000 acres)
- Netherlands (4,875,000)
- Italy (2,703,000)
- United Kingdom (2,538,000)
- Germany (2,269,000)
- Portugal (1,483,000)
- France (1,316,000)
- Denmark (856,000)
- Luxembourg (802,000)
- Ireland (760,000)
China ranks 18th on that list with 0.3 million acres.
There is some sentiment today to either reimpose the total limit or cut it back to one-half of one percent. The Center for Strategic Studies has estimated the WH Group now owns more than 146,000 acres of farmland here. Earlier this year, Governor Parson issued an executive order banning companies antagonistic to national security from owning land within ten miles of staffed military sites. No antagonistic foreign entity owns any of that land now.
We don’t know about you, but we don’t plan to vote for candidates who rely on public ignorance of an issue or its history or its significance to level distorted charges against opponents. We’re more likely to vote for a candidate that shoots straight, doesn’t overstate his or her capabilities or the capabilities of the office, who spends less time attacking an opponent and more time outlining a realistic program that benefits the people who will cast votes.
But aiming for the gut is far easier than appealing to the intellect, so don’t expect any break from the fertilizer distribution in the days ahead
As usual Bob, a well thought out and clearly written column. Related to farming, this week the St. Francois County Commission heard the Quarterly Report from the county Extension Office with Kendra Graham, a longtime Extension Ag Specialist. It centered on the recent 150th annual County Fair and the FFA and 4-H livestock auction. I had a picture of Kendra when she was 12 years old with her prize steer she was selling in 1994 that I shared with all attendees. I asked how farming in this county has changed in her last 3 decades and she said the biggest change was the loss of dairy farms. At one time there were 22 milk producing farms in this county….today 0! I was waiting for a local politician to blame “dem dare Chinamen!”