Farm Progress America, March 6, 2025

Mike Pearson takes a look at the Corporate Transparency Act and when it will go into effect and how it impacts farmers.

After months of legal wrangling, the CTA is moving forward and will be in effect March 21.

It was passed in 2021 to identify money laundering. The CTA has been in of and out for three years. March 21 is the deadline to file paperwork.

Years of court challenges blocked the enforcement of the CTA.

Most companies structured as corporations, limited liability companies (LLC's) or similar entities must report who benefits from them. This includes individuals who own 25 percent of a business.

The goal is to prevent money laundering and fraud. But the reporting burdens has raised concerns including those in agriculture.

Businesses created after January 1, 2025 have until the end of 2025 to comply. However, any business formed in 2024 must comply by the March 21 which is less than two weeks away.

Failure to comply will result in fines.

The requirements look here to stay but interim rules will be announced March 21.

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 .