Thousands of farmers could face severe penalties, including fines and jail time, if they do not meet a new federal reporting deadline. The U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) requires businesses, including many farms, to submit Beneficial Ownership Information (BOI) by January 1, 2025.
A recent analysis from the American Farm Bureau Federation (AFBF) estimates that more than 230,000 farms must file, but government data shows fewer than 11% of eligible businesses nationwide have done so.
The Corporate Transparency Act, passed in 2021, aims to prevent money laundering by requiring businesses to disclose their “beneficial owners.” Farms structured as c-corporations, s-corporations, or limited liability companies (LLCs) must file if they have fewer than 20 employees or receive under $5 million in revenue—criteria that apply to most farms.
AFBF President Zippy Duvall warns that unclear guidance and limited outreach have left many farmers unaware of the requirement. “Many farms rely on LLCs to protect assets, but small businesses often struggle to keep up with changing regulations,” Duvall said.
Farms that fail to comply could face fines of up to $10,000, daily penalties of $591, and even felony charges carrying up to two years in prison. AFBF economists note that these requirements could also affect other rural businesses, including feed stores and grain elevators, with ripple effects across the agricultural supply chain.
Farmers unsure about their filing status are encouraged to consult an accountant or attorney to avoid penalties.
Need to file a Beneficial Ownership Information Report?
Sabrina Halvorson
National Correspondent / AgNet Media, Inc.
Sabrina Halvorson is an award-winning journalist, broadcaster, and public speaker who specializes in agriculture. She primarily reports on legislative issues and hosts The AgNet News Hour and The AgNet Weekly podcast. Sabrina is a native of California’s agriculture-rich Central Valley.