230,000 Farmers & Ranchers Need to File Paperwork with Federal Government by Jan 1, But Most Don't Know It

Under the Corporate Transparency Act, thousands of farmers and ranchers must file Beneficial Ownership Information (BOI) with the Treasury Department or face criminal penalties. Most are unaware.

Many ranchers and farmers are required to file Beneficial Ownership Information (BOI) with the Treasury Department by January 1, 2025 or face steep penalties, but most are not aware of this requirement, or that it applies to them.

The Corporate Transparency Act of 2021, in an effort to prevent money laundering, required businesses to register all “beneficial owners.” This applies to any small business structured as a c-corporation, limited liability company (LLC), or s-corporation. A small business is one that makes less than $5 million in cash receipts or employs less than 20 employees.

Over 230,000 farms in the U.S. match this description and are thus required to file this paperwork according to a new report from Market Intel by the American Farm Bureau Federation. Of all 30 million American small businesses required to file under this law, less than 11% have done so.

Most farmers and ranchers who have failed to comply are simply unaware of the requirement. There have been attempts in Congress to protect small businesses from these invasive demands and severe punishments, including an attempt to extend the BOI filing deadline, but so far those efforts have failed.

According to the report from the Farm Bureau Federation:

Small businesses often lack the time and the staff to track ever-changing rules and regulations pushed out by the federal government. The Corporate Transparency Act is an added burden for small business owners nationwide, including farmers and ranchers. With unclear guidance and a lack of public awareness, businesses of all sizes are struggling to comply with new BOI requirements and are quickly approaching a deadline that bears criminal consequences.

During a tough year for agriculture, the process of consulting an attorney or accountant and filing onerous paperwork is yet another crushing burden on law-abiding American producers. Businesses that do not file BOI paperwork could face up to $10,000 in criminal fines and additional civil penalties of up to $591 per day, as well as felony charges and up to two years in prison.

Read the full report from Market Intel here.