OMAHA (DTN) -- The American Farm Bureau Federation is warning farmers and other rural businesses about the approaching Jan. 1, 2025, deadline to provide business ownership information to the U.S. Treasury Department.

AFBF estimates more than 230,000 farmers are affected by the Beneficial Ownership Information (BOI) provisions of the Corporate Transparency Act (CTA).

Passed in 2021, the CTA requires business ownership interests to file a report with Treasury. The law was created through a provision in the National Defense Authorization Act to reduce financial crimes such as tax fraud and money laundering. It was also passed coming out of the pandemic when there was a great deal of fraud -- more than $200 billion -- tied to problems such as Small Business Administration (SBA) disaster loans.

AFBF, in its Market Intel report, notes the BOI requirement applies to any small business that files documents to incorporate with their state business authority -- such as their secretary of state office. This includes corporations, limited partnerships and limited liability companies. Registered businesses must register any beneficial owner of the company with the Treasury's Financial Crimes Enforcement Network (FinCEN).

Looking at 2022 Ag Census data, AFBF noted there are about 230,000 farm operations that reported operating as a partnership under state law, a family held corporation or a non-family held corporation.

These 230,000 or so farms make up about 13% of all farm operations, but they have about 33% of farm acres, AFBF stated.