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South Dakota · SDCL ch. 43-2ASouth Dakota foreign ownership of agricultural land: the six-country ban and the 160-acre cap

South Dakota's chapter 43-2A covers agricultural land – land capable of producing crops, horticultural products, livestock, dairy, poultry or timber (SDCL 43-2A-1). A prohibited entity – a foreign entity, foreign government or foreign person from China, Cuba, Iran, North Korea, Russia or Venezuela – may not own agricultural land, and may not lease it or hold an easement on it except a lease exclusively for agricultural research on no more than 320 acres or for contract livestock feeding by a family farm unit or farm corporation (43-2A-2(1)–(2)). Any other foreign entity, foreign government or foreign person may not own more than 160 acres, not counting land held as security, though there's no limit on leases or easements for them (43-2A-2(3)–(4)). A foreign person is a natural person who isn't a U.S. citizen or a resident – a legal resident of a U.S. state, territory or D.C. claiming no residency abroad – and a foreign entity is one registered outside the U.S. or more than 10% foreign-owned (43-2A-1). A foreign person who is or becomes a resident may hold agricultural land on the same terms as residents while the residency continues, with three years to dispose of land over 160 acres after it ends (43-2A-5). Land acquired by devise or descent in violation must be disposed of within three years, land acquired in collecting a debt within three years, and other violations cured within two years (43-2A-3, 43-2A-4). Agricultural land owned in violation is forfeited to the state, and a prohibited entity's lease or easement is terminated, through an attorney general action; no title is invalid because of a former owner's alienage (43-2A-6). Anyone required to file a federal AFIDA report must file a copy with the state Department of Agriculture and Natural Resources, or face a civil penalty of up to 10% of the land interest's fair market value (43-2A-7.1). The chapter doesn't apply to those whose right to hold land is secured by treaty (43-2A-2).

The rules

  1. 1. Prohibited entities (43-2A-2(1)–(2))

    China, Cuba, Iran, North Korea, Russia, Venezuela – no ownership; leases only in narrow cases.

  2. 2. Other foreign owners (43-2A-2(3))

    No more than 160 acres; leases and easements unlimited.

  3. 3. Residents (43-2A-5)

    Same terms as residents while the residency lasts.

  4. 4. Violation (43-2A-6)

    Forfeiture to the state; leases and easements terminated.

What the TC can do

  • On a farmland sale, ask the closing agent how the buyer's citizenship, residence or ownership is confirmed.
  • For a foreign buyer that isn't a prohibited entity, ask how many South Dakota farm acres it already owns.
  • Remind a foreign buyer's agent about the federal AFIDA report and the state copy.

Questions about South Dakota foreign ownership

How much farmland can a foreign buyer own in South Dakota?

Up to 160 acres, not counting land held as security – unless it's a prohibited entity from one of the six listed countries, which may not own any (SDCL 43-2A-2).

What happens to South Dakota farmland owned in violation?

It's forfeited to the state through an attorney general action, after the periods to comply in 43-2A-3 and 43-2A-4 (SDCL 43-2A-6).

Add a task in ClosingCode to confirm the buyer's status on a farmland sale, with an owner and a due date.

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Source: South Dakota Codified Laws ch. 43-2A, as amended by SL 2024 ch 176 and SL 2026 ch 176 (sdlegislature.gov, read October 26, 2026).

General information, not legal advice. Whether a buyer or a parcel is covered is a legal question for a South Dakota attorney. ClosingCode is software; it is not a law firm or title company. This guide is not a substitute for the advice or services of an attorney.