THREE AREAS TO COVER IN YOUR WINTER PREPARATION
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After a weather event , producers need to account for and accurately document all livestock loss and property damage . If feeding or transport equipment is damaged , producers may have to rent or borrow equipment to continue properly caring for their livestock . These expenses should be considered and accounted for in a risk management plan , as well as a plan of action for where to acquire or borrow such equipment . Maintenance of storage areas is also important and can save producers money .
“ Extreme cold can not only affect the cattle , equipment and personnel on a feedyard or background operation but also the products used to treat animal health challenges ,” Schmidt said . “ It is important to ensure the storage of antibiotics and vaccines remains at its appropriate temperature range . If these products get too cold or freeze , it can cause antibiotics to precipitate and possibly lose efficacy and vaccine components to denature and become ineffective .”
The old saying by Benjamin Franklin goes , “ If you fail to plan , you plan to fail .” Cattle producers should have a risk management plan documented and well-known by all members of the operation for year-round emergencies , not only winter storms . Use these recommendations as a checklist when evaluating your risk
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a beneficial owner is anyone with a stake of 25 % or more in a company , a person who controls the operations of a company , or a person who profits from a company . For family farmers or ranchers , the list of beneficial owners can be long especially given all the involvement from various family members . NCBA Tax and Credit Committee Chair Dan Rorvig , a North Dakota rancher , says the Corporate Transparency Act will greatly impact cattle operations .
“ This is a new law that most cattle producers are unfamiliar with ,” Rorvig said . “ Deadlines to file beneficial ownership reports are coming up , and most producers will need to file before Dec . 31 of this year to avoid steep penalties and possible jail time .”
Producers are required to file beneficial ownership reports if their farm and ranch fits certain criteria such as being structured as a limited liability company ( LLC ) or other form of corporation , being registered with their state ’ s secretary of state , and having 20 or fewer employees .
“ Many producers have their operations structured as an LLC , partnership , and corporation , and those are the types of business structures that will need to file beneficial ownership reports with FinCEN ,” Bacus said . “ Even if your farm or ranch doesn ’ t fit one of those categories , but you filed paperwork with your secretary of state , the Corporate Transparency Act may still apply to you . It is very important that you contact your tax advisor or attorney as soon as possible to see if you will be affected .”
Although the Corporate Transparency Act is meant to combat financial crime , many cattle producers have raised concerns about the burden this requirement places on family farms and ranches . NCBA Tax and Credit Committee Vice Chair Jeff Magee ,
Creating a winter storm plan will help protect your cattle , employees and assets .
management plan . Recognizing potential problems is only one part of the equation — establishing solutions to those problems is key .
NEW CORPORATE TRANSPARENCY ACT IMPACTS FARMERS AND RANCHERS
a Mississippi cattle producer and former agent for the Internal Revenue Service ( IRS ), said that while the threat of financial crime is very real , this law has only increased the challenges facing cattle producers .
“ I know from my time as an IRS agent that criminals certainly take advantage of corporations and use complicated business structures to hide their crimes , but forcing more paperwork on farmers and ranchers is not going to help anyone catch more criminals ,” Magee said . “ Back in 2021 when this law was passed , NCBA did not have policy to engage on this issue , but we recently passed policy at the 2024 Summer Business Meeting and now NCBA — working with a host of other business organizations — is pushing back on this mandate .”
While NCBA will continue fighting against this law , it is important that cattle producers understand the law remains on the books for now . Producers are strongly encouraged to consult with a tax advisor or attorney to see if they must file necessary beneficial ownership reports and avoid costly penalties . According to FinCEN , failure to comply may result in daily fines of $ 500 or even up to two years in federal prison . Companies formed before 2024 have until the end of this year to file reports , but new companies created in 2024 have just 90 days to file . The deadline shortens even more for companies created in 2025 , who have just 30 days to file .
To view the beneficial ownership report form , read frequently asked questions , and access additional resources , please visit www . FinCEN . gov / boi .
This is not professional advice . Consult with a tax advisor or attorney for advice as to whether the Corporate Transparency Act applies to you .
10 NATIONAL CATTLEMEN www . NCBA . org