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SB 40 South Dakota Senate · 2026 Regular Session

revise the compliance requirements for limitations on foreign ownership of agricultural land.

SB 40 revises South Dakota's rules on foreign ownership of agricultural land. It clarifies that foreign entities (including foreign governments and individuals) cannot own more than 160 acres of agricultural land, except for land inherited or held as security for debt. The bill requires foreign landowners to submit copies of their federal reports (under the Agricultural Foreign Investment Disclosure Act) to the state Department of Agriculture, with a civil penalty of up to 10% of the land's fair market value for failing to report. Violations of ownership limits may result in land forfeiture or lease termination, enforced by the Attorney General.
Bill status signed all 5 stages cleared
Introduction
Jan 2026
Committee Review
Mar 2026
Senate Passage
Jan 2026
House Passage
Mar 2026
Signed into Law
Mar 2026
Introduced Jan 13, 2026 Signed Mar 12, 2026
Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Enrolled · 5 edits · Mar 5, 2026
MODERATE
This bill updates South Dakota's laws governing foreign ownership of agricultural land, clarifying compliance requirements and enforcement procedures. It maintains existing acreage limits while adding specific provisions for lease termination, civil penalties, and reporting obligations to federal agencies.
Scope change
The bill applies to foreign entities, governments, and persons seeking to own or lease agricultural land in South Dakota, with no change to the fundamental scope of applicability.
REQUIREMENT

Updated acreage limits for foreign ownership to 160 acres and lease restrictions for prohibited entities to 320 acres for agricultural research purposes.

Requires foreign entities to file reports with the Department of Agriculture and Natural Resources in accordance with federal Agricultural Foreign Investment Disclosure Act requirements.

ENFORCEMENT

Added provisions for forfeiture of land acquired in violation of the law, including civil penalties equal to fair market value for minority owners who violate restrictions.

Establishes civil penalties up to 10% of fair market value for failure to report, with collection authority in state courts.

TIMELINE

Sets a three-year statute of limitations for enforcing forfeiture or lease termination actions.

Floor votes · Senate Jan 16, 2026 · House Mar 4, 2026

How they voted

32–0
Passed · 3 other
Total votes 35
Jan 16, 2026
D Democratic3
3 Yea
100% Yea
R Republican32
29 Yea 3
90% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
13
Key actions
8
Committee
2
Mar 12, 2026
Signed into law
Signed by the Governor on 2026-03-12 S.J. 529
executive
Mar 9, 2026
Lower · Passed
Signed by the Speaker H.J. 543
lower
Mar 5, 2026
Lower · Passed
Signed by the President S.J. 485
lower
Mar 4, 2026
Lower · Passed
House of Representatives Do Pass , Passed, YEAS 65, NAYS 2 H.J. 515
lower
Mar 3, 2026
Lower · Passed
Agriculture and Natural Resources Do Pass , Passed, YEAS 9, NAYS 0 H.J. 35
lower
Jan 20, 2026
Introduced
First read in House and referred to House Agriculture and Natural Resources H.J. 53
lower
Jan 16, 2026
Upper · Passed
Senate Do Pass , Passed, YEAS 32, NAYS 0 S.J. 60
upper
Jan 15, 2026
Upper · Passed
Certified uncontested, placed on consent , Passed, S.J. 1
upper
Jan 15, 2026
Upper · Passed
Agriculture and Natural Resources Do Pass , Passed, YEAS 7, NAYS 0 S.J. 1
upper
Jan 13, 2026
Introduced
First read in Senate and referred to Senate Agriculture and Natural Resources S.J. 10
upper
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.