Who owns your farm? The government wants to know. But legal wrangling has left businesses stuck in a regulatory tug-of-war.
ICYMI: In 2021, The Corporate Transparency Act (CTA) became a law through the National Defense Authorization Act. The CTA requires most corporations, limited liability companies, and similar businesses to report information about their beneficial owners to the Financial Crimes Enforcement Network.
The law is designed to combat money laundering and tax evasion. You have shell organizations and bad actors to thank for that.
For farmers, that means operations must disclose owner information to the government. But farmers and other business owners worry about privacy issues, plus having to jump through more regulatory hoops.
Legal lockup: The law was supposed to go into effect Jan. 1, 2024. However, months of legal battles left the latest deadline for businesses to disclose information as Jan. 13, 2025.
But now, the CTA has been in even more regulatory limbo since December. A federal appeals court reinstated an injunction on the law—and no one knows the (new) official deadline.
Soundbite: “Conflicting rulings make it difficult for entities to determine next steps. A final decision is expected soon, but the timeline remains unpredictable.” — Jim Wiesemeyer, Washington Bureau Chief for Farm Journal
Standing by: The back-and-forth has created uncertainty. But businesses are still encouraged to keep a close eye on regulations and be ready with the required information if enforcement begins.