WASHINGTON—American Farm Bureau Federation is reminding farmers that time is running out to file Beneficial Ownership Information with the federal government—or face fines or even jail time.

AFBF economists indicated more than 230,000 farms nationwide are required to file, but data indicates less than 11% of all eligible businesses have done so.

Virginia farmers who operate as a corporation, LLC or a limited partnership are required to report additional small business entities in which they have an ownership stake to the U.S. Treasury’s Financial Crimes Enforcement Network by Jan. 1, 2025.

This requirement stems from the Corporate Transparency Act, a federal law passed in 2021 that was created to combat money laundering. Many farms are required to complete a BOI if they employ fewer than 20 employees or receive under $5 million in cash receipts.

“It certainly creates more burdensome paperwork for farmers,” said Tony Banks, senior assistant director of agriculture, development and innovation for Virginia Farm Bureau Federation. “But thankfully there is no filing fee. We encourage our state’s farmers to get this done before the deadlines.”

Companies are now required to provide operational information, including details about each beneficial owner. A beneficial owner is anyone who owns at least 25% of the company or has “substantial control” over the business. The online registry will collect names, dates of birth, home addresses and photo IDs.

“Certain farms are among the businesses included in this law to report information about their beneficial owners,” explained Ben Rowe, VFBF director of national affairs. “Congress’ intent was to try to make it harder to illegally hide assets and to prevent financial crimes, particularly through the use of shell companies. However, because of the additional regulatory burden the law would place on farmers, the American Farm Bureau Federation opposed the bill.”

Entities registered before Jan. 1, 2024, have one year to file their first BOI. Those created and registered after that must file their BOI within 90 days of receiving notice from the secretary of state. Entities created after Jan. 1, 2025, will have 30 days to upload reports.

The law’s 23 reporting exemptions generally apply to large businesses that already disclose that information. For example, banks and accounting firms are exempt, but farms are not. However, most tax-exempt entities are not required to file reports.

In March, the U.S. District Court for the Northern District of Alabama held the CTA unconstitutional. Some relief was granted, only limited to the National Small Business Association—plaintiffs backed by AFBF.

The court’s decision could pave the way for further challenges to the CTA.

“It is advisable for agricultural enterprises to consult with their financial advisers to better understand how the CTA impacts their business,” Banks recommended.

Failure to report may result in civil and criminal penalties of up to $10,000 and up to two years’ imprisonment. Visit the Financial Crimes Enforcement Network website portal at fincen.gov/boi to file reports and updates.

Farmers are encouraged to contact an accountant or attorney if unsure about filing a BOI.

Media: Contact Mike Tomko, AFBF communications director, at 202-406-3642.