Federal Court Blocks Corporate Transparency Act, Offering Relief to Farmers and Ranchers

Farmers and ranchers have received a temporary reprieve from federal reporting requirements under the Corporate Transparency Act (CTA), thanks to a nationwide injunction issued by the U.S. District Court for the Eastern District of Texas. The ruling delays enforcement of the Beneficial Ownership Information (BOI) filing requirements, which were set to take effect on January 1, 2025.

The CTA mandates businesses, including many family farms and ranches, to report ownership information to the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). Supporters argue the law combats financial crimes, but agricultural groups say it places an unnecessary burden on small businesses.

The National Cattlemen’s Beef Association (NCBA) welcomed the court’s decision, calling it a significant victory for producers. “The Corporate Transparency Act requires millions of family farmers and ranchers to file complex paperwork and disclose beneficial ownership information with the federal government under penalty of severe fines and jailtime,” said NCBA Executive Director of Government Affairs Kent Bacus. “Cattle producers are relieved that this mandate is on hold while the law is being considered by the courts.”

The American Farm Bureau Federation echoed these concerns. President Zippy Duvall noted that the CTA creates uncertainty for farmers and ranchers and praised the injunction as a necessary step toward addressing constitutional issues.

The injunction stems from Texas Top Cop Shop, Inc. v. Garland, a lawsuit challenging the CTA’s legality. Differences in court rulings over the law’s constitutionality suggest the case could eventually reach higher courts.

While the injunction provides temporary relief, agricultural groups continue to advocate for a long-term legislative solution. Farmers and ranchers are encouraged to consult legal and financial professionals to determine how the CTA may affect their operations in the future.

Source: AgNet West