WASHINGTON, D.C. – Ranchers, farmers and other rural businesses across the country are facing a critical deadline to comply with new federal regulations or risk steep penalties. By January 1, 2025, thousands of ranches and farms (and some related ag businesses) must file Beneficial Ownership Information (BOI) with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
This requirement stems from the Corporate Transparency Act of 2021. The law is designed to prevent money laundering, other financial crimes and national security. It also addresses public concerns regarding the ownership of U.S. ag land and other ag resources by foreign interests – requiring that all “beneficial owners” be included in the filing.
Analysis by the American Farm Bureau Federation (AFBF) reveals that over 230,000 ranches and farms are subject to this requirement, yet government data shows fewer than 11% of eligible businesses nationwide have complied.
Many ranches and farms are organized as c-corporations, s-corporations, or limited liability companies (LLCs), which are now required to file if they employ fewer than 20 people or generate less than $5 million in annual cash receipts—a category that encompasses most ranches and farms.
Non-compliance can result in significant consequences. Penalties include criminal fines up to $10,000, additional civil fines of $591 per day, and even felony charges that could lead to two years of imprisonment.
The filing requirement extends beyond ranches and farms to other rural businesses such as feed suppliers, grain elevators, and crop marketers, potentially affecting the broader agricultural economy.
Ranchers, farmers and others unsure about their obligations are urged to consult an accountant or attorney for guidance. Failing to meet the deadline could lead to financial and legal troubles for those who remain unaware or unprepared.
Compliance with this new regulation is essential to avoid penalties and ensure smooth operations for farms and rural businesses alike.
