In 2023, the State of Florida enacted Chapter 2023-33, Laws of Florida (“2023 Foreign Ownership Law”). Among other prohibitions, the 2023 Foreign Ownership Law prohibits individuals and entities who meet the definition of “foreign principal” from purchasing agricultural land within the State of Florida. “Agricultural land” as used in the 2023 Foreign Ownership Law is defined as land classified as agricultural under section 193.461, Florida Statutes. Land purchased in violation of the 2023 Foreign Ownership Law is subject to forfeiture to the State.

The 2023 Foreign Ownership Law requires three agencies to promulgate rules to implement the new requirements: the Florida Department of Agriculture and Consumer Services (“FDACS”), the Florida Department of Commerce (“FDOC”), and the Florida Real Estate Commission (“FREC”). In January 2024, the FDOC adopted Rule Chapter 73C-60, Florida Administrative Code, implementing section 692.203, Florida Statutes, which applies to the purchase of certain real property on or around military installations or critical infrastructure facilities by certain foreign principals. That same month, the FREC adopted Rule Chapter 61J2-10.200, which contains the form affidavit a buyer must provide under the 2023 Foreign Ownership Law.

As part of the ongoing requirements created by the 2023 Foreign Ownership Law, FDACS recently filed Rule Chapter 5J-27, Florida Administrative Code (“Rule”). The Rule, effective April 4, 2024, implements the ownership of agricultural lands by foreign principals provisions created by the 2023 Foreign Ownership Law. The Rule provides additional definitions, details the registration requirements, and provides terms under which a safe harbor for closing agents and sellers of agricultural property to foreign principals applies. 

In addition to prohibiting acquisition of certain agricultural lands by certain foreign principals, the 2023 Foreign Ownership Law requires owners of agricultural lands meeting the definition of foreign principal to timely register with the FDACS or face civil penalties. As part of the new Rule, FDACS promulgated the following form which is now available for foreign principals to register: Agricultural Land Owned by a Foreign Principal. Because the 2023 Foreign Ownership Law already restricts ownership of agricultural land, a foreign principal that owned agricultural land before July 1, 2023 was required to register with FDACS by January 1, 2024, even though the form was just created and the rule only becomes effective April 4. 

Stearns Weaver Miller is monitoring the implementation of the 2023 Foreign Ownership Law and will continue to provide continuous updates on the possible impacts of the new law on business and property interests. 

The information provided in this email does not, and is not intended to, constitute legal advice; instead, all information in this email is for informational purposes only. Information in this email is general in nature and may not constitute the most up-to-date legal or other information. Readers of this email should contact us or an attorney of their choice to obtain advice with respect to any particular legal matter. No reader of this email should act or refrain from acting on the basis of information in this email without first seeking legal advice from counsel. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. This email does not create an attorney-client relationship between the reader and the authors of the email or this law firm.