Farm Progress America, Dec. 12, 2024

Mike Pearson takes a look at a a law that could have major implications for farmersand farm related businesses.

Texas judge filed an injunction halting the enforcement of the corporate transparency Act which would require 230,000 farm businesses ownership to provide information to the United States Treasury Department.

The CTA was passed in 2021 and was designed to stop financial crime including tax fraud and money laundering.

Farms that are LLC's will even have to provide beneficial ownership information.

Farmers will have to provide birthdays, addresses, names and other personal information.

The law targeted anyone with a 25 percent ownership stake or control of a business.

The American Farm Bureau Federation estimates about 230,000 farms or 13 percent of all farms nationwide will have to provide the necessary information if the legislation is not stopped permanently.

The filing requirement would not only impact current owners but also any future changes in the business.

The issue is far from settled and Congress may revisit the legislation in the new year.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness .