A last-minute court of appeals ruling could put tens of thousands of farmers in legal crosshairs for failing to register their
businesses with the federal government. Farmers who operate corporations and limited liability companies are once again required
to file Beneficial Ownership Information with the U.S. Department of Treasury's Financial Crimes Enforcement Network (FinCEN) or
face stiff fines or jail time.
A federal district court ruled earlier in December to halt the requirement, but today the United States Court of Appeals for the
Fifth Circuit lifted the injunction, meaning a Jan. 1, 2025 deadline is back in effect. Analysis from AFBF economists shows more
than 230,000 farms are required to file, but as of October, less than 11% of all eligible businesses nationwide had done so.
Businesses that fail to file, or do not update records when needed, could face criminal fines up to $10,000 and additional civil
penalties of up to $591 per day.
Farmers are encouraged to contact an accountant or attorney if they are unsure whether they are required to file their operation.
