There’s been a lot of talk and handwringing this year over the Corporate Transparency Act, which requires small businesses to report ownership information to the federal government by Jan. 1. So when the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction blocking the legislation from being enforced, it constituted a win particularly for farmers and ranchers across the state.
The regulation, which was said to be a way to crack down on money laundering and organized crime funding, targeted businesses with fewer than 20 full-time employees, an operating presence in the U.S., and/or $5 million or less in gross receipts. A multitude of ag operations fall under that umbrella, and you’d be hard pressed to find one that has time for that kind of red tape. The ag community voiced concerns over the administrative burden, high costs for compliance, potential threats to privacy, conceived overreach of the federal government, and — of course — the penalties
The CTA required companies to disclose the name, date of birth, physical residence address, and photo ID for all “beneficial owners” by Jan. 1, 2025, or face hefty civil penalties and even jail time.
Agriculture advocates across the country, including the American Farm Bureau Association and the National Cattlemen’s Beef Association, lauded the decision to pause until the court case is fully decided.
So this December, the only red tape Florida growers will wrestle with will be wrapped around presents.
