Even though they have not perpetrated any crime, thousands of farmers may face criminal charges if they fail to file information with the federal government. They may face steep fines and possible jail time for failing to file their businesses with the federal government.

Jan. 1, 2025, is the deadline to file Beneficial Ownership Information (BOI) with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).

New analysis in a Market Intel by American Farm Bureau Federation economists shows more than 230,000 farms are being mandated to file, but government data indicates less than 11% of all eligible businesses nationwide have done so.

Actually, all businesses are supposed to comply with The Corporate Transparency Act of 2021. The Treasury Department says that they must register any “beneficial owner” of a company to better enable the agency to investigate money laundering.

Many farms are structured as either a c-corporation, s-corporation or limited liability company (LLC), which are now required to be registered if they employ fewer than 20 employees or receive under $5 million in cash receipts – which covers the vast majority of farms.

 “The use of LLCs is an important tool for many farms to keep personal and business assets separated, but small businesses often lack the staff to track and stay in compliance with changing rules and regulations,” said AFBF President Zippy Duvall. “It’s clear that many farmers aren’t aware of the new filing requirement. Unclear guidance and lack of public outreach are now putting thousands of America’s farmers at risk of violating federal law.”

 Businesses that fail to file, or do not update records when needed, could face criminal fines up to $10,000 and additional civil penalties of up to $591 per day. Failure to file could also lead to felony charges and up to two years in prison.

“The greater farm economy will also be impacted by CTA requirements,” AFBF economists write. “Many feed and supply stores, crop marketers like grain elevators and the greater rural business community are also likely required to file their BOI and subject to penalties if they do not comply. The regulatory burdens and potential enforcement crackdowns could have ripple effects throughout the entire food, fiber and fuel supply chains.”

According to Gina Stevens, Montana Farm Bureau Federation Taxation Committee Chair, if your entity is set up with a lawyer, contact that lawyer to see if the BOI has already been filed. If you must file a BOI, it needs to be completed either by yourself or by an tax attorney. Your accountant cannot do this for you.

Stevens, a Hardin accountant, added that if you formed a reporting entity in 2024 you only have 60 days to file this form.

“We’ve been telling people that if they file with the Montana Secretary of State, chances are they need to file a BOI. If you are unsure whether you are required to file your business’s BOI with FinCEN, contact your accountant or tax attorney immediately,” noted Stevens. “It is wiser to inquire and find out you don’t need to file a BOI than face high fines and even jail time if you needed to file but didn’t.”

Basin Electric Power Cooperative in Montana is among the first wave of 16 rural electric cooperatives that will receive subsidies from the USDA’s Empowering Rural America (New ERA) to leverage projects for carbon-free energy in rural communities across 23 states. The majority of new electricity sources that will be funded are solar and wind power.

The funds will fund “renewable energy projects” totaling 1400 megawatts across Montana, North Dakota and South Dakota. A press release states that the efforts will reduce greenhouse gas pollution by an estimated 2.2 million tons annually.

In total USDA estimates these projects will avoid more than 43 million metric tons of greenhouse gas emissions annually.

USDA estimates New ERA government funding will spur the creation of an estimated 4,500 long-term jobs and 16,000 short-term jobs.

As a result of these projects, renewable capacity supply for rural co-ops will increase by 35 percent from 26 to nearly 35 gigawatts, with wind and solar capacity rising by more than 60 percent from 14 gigawatts to 23 gigawatts.

A few examples of clean energy projects providing real savings to co-op members are Dairyland Power Co-operative, which is expecting rates 42 percent lower over ten years compared with business as usual; and Great River Energy, which expects cost reductions by $30 million annually. More member savings can be found below, compiled from the USDA’s announcement. 

“With the help of the New ERA program, rural cooperatives across the country are leading the way in demonstrating how to deploy clean energy to deliver affordable and reliable power for the benefit of their member-owners — and in ways that really work for the communities they serve. The diversity of investments and approaches taken by co-operatives is a testament to the power of the co-op model in fostering innovation tailored to local community needs,” said RMI electricity expert Uday Varadarajan.

 The clear winner in terms of technology was utility-scale solar, however an encouraging number of co-ops will also be investing in utility-scale battery storage systems, demand-side resources, and transmission improvements, which can support additional clean energy investments in the future. 

RMI (founded as Rocky Mountain Institute) provided resources to applicants in the form of a series of webinars, bootcamps, and a financial modeling tool to support ambitious and efficient project designs by co-ops. We have also published a Community Benefits Catalog to support applicants for federal funding in the creation and execution of community benefit plans (CBPs), to ensure every project supports the long-term growth and financial welfare of local communities. 

A new report from researchers at the University of Montana shows shorter school weeks may hurt student performance and school budgets, according to a report from Montana Public Radio.

While a growing number of schools in Montana have switched to four-day weeks, the researchers say data analysis on four-day school weeks “demonstrates a disturbing trend for education in Montana.” They found that student performance under four-day school weeks declines the longer a district uses the schedule, and lags behind kids in traditional five-day weeks.

Schools with shorter weeks often spend more on instruction, maintenance, transportation and food per student than similarly sized schools on a five-day schedule. A typical Class-B school in Montana would likely spend about $100,000 more annually after transitioning to a four-day week, according to the report.

State lawmakers allowed schools to switch to four-day instruction in 2005. Since then, 260 mostly small schools have adopted the schedule. District leaders have suggested shorter weeks could help them recruit and retain teachers. But the researchers say more evidence is needed to prove or disprove that argument.

The report’s authors recommend a return to five-day school weeks statewide.

New research suggests that the U.S. economy has been in a recession for the last two years if one adjusts the statistics used for inflation, reports Epoch Time.

According to Bureau of Labor Statistics data, cumulative inflation since 2019 has totaled nearly 25 percent. But inflation figures have been understated by nearly half, resulting in cumulative growth to be “overstated by roughly 15%,” say economists EJ Antoni and Peter St. Onge.

“. . . these adjustments indicate that the American economy has actually been in recession since 2022,” they wrote in a new study published in Brownstone Journal.

Undercounting inflation has implications for economic growth because rapid price changes have bolstered the nominal values of a wide array of economic metrics “without resulting in any real change.”

New orders for durable goods have increased 7.5 percent (nominal) but fallen 13.4 percent (real). Retail sales have rocketed more than 23 percent (nominal) but rose 3.2 percent after adjusting for inflation. Nominal disposable personal income has surged about 35 percent, but the real rate has been just nearly 13 percent.

Nominal GDP at a seasonally adjusted annualized rate shows the national economy has soared 37.4 percent from the first quarter of 2019 to the second quarter of 2024. But the way the Bureau of Economic Research evaluates those figures is “flawed,” report the economists.

Utilizing more accurate measures for housing, regulatory costs, and indirect costs yields a more accurate inflation measurement and therefore a more accurate valuation of real GDP, say the researchers.

Antoni and St. Onge conclude that the adjusted real GDP (gross domestic product) fell 2.5 percent from the first quarter of 2019 to the second quarter of 2024, which means that the nation entered a recession in the first quarter of 2022 and remained in that contraction through the second quarter of 2024.

The paper aimed to address various “egregious biases in inflation statistics” to gauge an accurate assessment of inflation over the last five years.

“The CPI has grossly underestimated housing cost inflation,” they wrote, highlighting that the consumer price index (CPI) fails to “actually account” for the direct cost of homeownership. Instead, federal statisticians rely on the “owners’ equivalent rent of residences,” which accounts for more than 26 percent of the CPI.

“If the costs to rent and own change commensurately over time, then this methodology will be relatively accurate,” the economists stated. “Unfortunately, the cost of owning a home has risen much faster than rents over the last four years and the CPI has grossly underestimated housing cost inflation.”

Measuring price changes when consumers are not directly charged for services is another challenge to accurately measuring inflation.

Health insurance is one example of this hurdle to correctly assessing inflation.

“Premiums are used both to pay for the actual cost of providing the service of insurance (risk mitigation) and for medical services and commodities,” the report said. “The CPI neglects both, and instead imputes the cost of health insurance from the profits of health insurers.”

Along with the Montana Department of Natural Resources and Conservation (DNRC), Governor Greg Gianforte announced a record-setting oil and gas lease sale on state trust lands, totaling $2.85 million in revenue.

“We’ll continue to ramp up American-made energy in Montana to make our state and nation energy independent and secure,” Gov. Gianforte said. “All the while, we’ll prioritize additional revenues from these oil and gas lease sales for the benefit our schools and to ensure our kids have access to the best education possible.”

Approved by the State Board of Land Commissioners this morning, this sale represents the most revenue from a single sale since 2012.

It also ranks as the highest average bid price per acre and on a single tract in the history of oil and gas lease sales on state trust lands.

The sale included 4 tracts in in Pondera, Richland, and Toole counties. The lease sale was held on an online auction format through EnergyNet from August 29 to September 4.

“DNRC has the privilege of managing natural resources to generate revenue from state trust lands throughout Montana to support our public schools,” said DNRC Director Amanda Kaster. “This record-setting sale will bring additional funding for students in public schools throughout the state.”

Funds generated by leases on state trust lands contribute to the education fund for the state. Oil and gas leases are comprised of a set annual leasing fee per acre, plus a one-time competitive bid, known as the bonus amount. If the leases are developed and produce oil, they generate additional royalty revenues.

DNRC manages state trust lands, including the auction of oil and gas leases. For more information on oil and gas lease sales, see here.

To better warn citizens about emergency situations, Yellowstone County Disaster and Emergency Services is implementing a new emergency system called Yellowstone County Informed (YCI).

Citizens are encouraged to sign up to receive emergency notifications via texts, emails, cell phones, etc. at https:// member. everbridge.net/   305943405396532/ new. The new notification system serves all residents of Yellowstone County in partnership with emergency service providers throughout the county and the City of Billings. Annemarie Overcast, Yellowstone County Department of Emergency Services Coordinator, explained that the county implemented the new system because they had to have such a platform to access Integrated Public Alert and Warning System called IPAWS, a system which issues alerts from the Department of Justice, such as Amber Alerts.

There are many options in selecting a platform, explained Overcast and the County chose Everbridge. Since Everbridge allows each jurisdiction to brand their own system, County officials chose the name Yellowstone County Informed or YCI.The system enables the city and county to issue public service announcements, as well as emergency warnings. Public entities can use it to inform the public about work schedules, road closures, community meetings, etc..

How well the system works depends largely upon citizen participation. You can’t be notified if officials do not have contact information. “It’s an opt in service.”

You may register several means of notification such as your home, mobile or business phones, email address, text messages and more —  as well as, request to be informed about more than one location. Overcast recommended providing more than one means of contact.

To create an account enter contact preferences at bit.ly/YCInform or text  YCINFORM to 888-777.

An app is also available from the Apple App Store or from the Google Play Store. Enter Billings or Yellowstone County into the search to sign up for local alerts.

The Montana Department of Commerce announced that $900,000 of federal grant funding is available to help small Montana businesses accelerate and grow international sales. The U.S. Small Business Administration funding is administered through Commerce’s State Trade Expansion Program.

“Commerce’s STEP grant makes world-wide markets more accessible to Montana’s small businesses,” said Paul Green, Director of the Montana Department of Commerce. “Since 2011, Commerce’s efforts through the STEP grant have produced a return on investment to Montana of $1.2 billion.”

The STEP grant will be used to support foreign trade missions, Montana pavilions at international trade shows and other international marketing projects. Since 2011, Montana has received $6.6 million in STEP grant funding from the SBA, matched it with $2.2 million in state funds, and awarded over 1,000 grants supporting 1,800 jobs.

Eligible Montana exporters can apply for 50 percent reimbursement of up to $10,000 for eligible marketing activities, like trade show exhibition, market research and U.S. commercial service programs and foreign language translation. Other eligible marketing activities include international compliance testing, intellectual property protection, digital marketing and travel stipends. Eligible applicants may receive up to $30,000 in STEP awards per year.

Montana Technological University has been awarded $6.5 million from Department of Defense using Defense Production Act (DPA) authorities to create seven online stackable certificates that will grow the workforce needed to boost domestic supply of critical minerals and rare earth elements.

Critical minerals and rare earth elements are necessary for advanced manufacturing of modern technology, but currently they are sourced from foreign countries, creating national defense concerns.

The certificates will upskill the labor force, which has been detrimentally impacted by the loss of accredited educational programs in the U.S. over the past several years. Very few programs that do remain offer remote courses. Students will take courses online in Extractive Metallurgy; Mineral Processing; Mineral Deposit Exploration; Hydrogeology of Mines; Mining Engineering; Mineral Project Management & Evaluation, and Environmental Management for Mining Operations.

Classes will launch in Fall 2025.

By T.A. DeFeom, The Center Square

Attorneys general from 17 states, including Montana, are suing to stop the federal government from implementing a program they say gives migrant agricultural workers rights that American citizens working farm jobs do not have.

The coalition of states, led by South Carolina, contends that the U.S. Department of Labor’s “Improving Protections for Workers in Temporary Agricultural Employment in the United States” rule effectively grants collective bargaining rights to agricultural migrant workers in the country under the H-2A visa program.

The U.S. District Court for the Southern District of Georgia’s Brunswick Division granted a motion for a preliminary injunction, stopping the rule from taking effect while the lawsuit is pending. The injunction is limited to the case’s plaintiffs.

Neither a nationwide injunction nor a nationwide stay is appropriate in this case,” U.S. District Court Judge Lisa Godbey Wood wrote in the order. “Plaintiffs argue that universal relief is needed because this case implicates federal immigration laws, nationwide relief would protect similarly situated nonparties, and it would be more practical than party-specific preliminary relief. …These arguments are unavailing.”

Miles Berry Farm, the Georgia Fruit and Vegetable Growers Association and the states of Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Missouri, Montana, Nebraska, North Dakota, Oklahoma, Tennessee, Texas and Virginia joined South Carolina in the lawsuit. The action names the labor department, Assistant Secretary for the department’s Employment and Training Administration José Javier Rodríguez and its Wage and Hour Division Administrator Jessica Looman.

“Here we go again,” South Carolina Attorney General Alan Wilson said in an announcement. “The Biden administration is almost constantly trying to enact rules and regulations that it does not have the authority to do, but we’ll keep fighting this unconstitutional overreach every time it happens.”

Governor Greg Gianforte visited with two multi-generation, family businesses on his 56 County Tour in Missoula and Jefferson counties.

“The American Dream is alive and well in Montana thanks to our hardworking job creators committed to carrying on their family legacy,” Gov. Gianforte said. “We will continue to support them through our pro-business, pro-jobs policies and efforts to strengthen our workforce.”

Starting off the day in Missoula, the governor met with the second generation of the Reid family at their manufacturing business, Diversified Plastics.

Founded in 1976 in Rod Reid’s garage, the custom plastics fabrication and engineering company has grown to occupy a large facility in Missoula and employs over 75 Montanans in competitive, high-wage jobs.

Meeting with Rod’s son, Brad, and touring the facility, the governor heard more about the company and the products they manufacture, as well as about the apprentice and work-based learning opportunities they provide.

Making plastic products for a wide variety of industries, Diversified Plastics operates around the clock to make components for operations including ski lifts, car washes, food processing, and agriculture.

Reid shared that nearly all of his employees receive on-the-job training and they have had success operating a two-year long apprenticeship through the Montana Department of Labor & Industry for Montanans to learn molding. The company also offers opportunities for local high school students to train with them.

“When I first started working for my dad, we had eight employees. Today, we have 75 employees in Missoula in a high-wage job,” Reid said. “Thanks to the support from the state through loan programs, we’ve been able to expand our operation with the goal to continue to increase wages, employ more people, and get a larger tax base.”

Continuing on to Whitehall, the governor stopped by Smith Supply to visit with the Smith brothers and learn more about their family business serving Montana producers.

Providing feed, lumber, and other ag and ranch supplies, the Smiths bring over 65 years of experience operating their own ranch, producing hay and grain and raising cattle and hogs.

Touring the store and warehouse with the family’s second generation, the governor met with four of the brothers leading the operation started by their grandfather in 1959 and met their kids and grandkids.

“Now the third generation is coming into play and even their kids are already out here helping out and riding in the equipment. It’s good to see,” said John Smith.

Supporting Montana’s small business owners, family farmers, and family ranchers is a top priority for Gov. Gianforte. Since taking office, the governor has increased the business equipment tax exemption from $100,000 to $1 million eliminating the business equipment tax burden for more than 5,000 small businesses, farms, and ranches.