American Farm Bureau Federation President Zippy Duvall commented today on the Securities and Exchange Commission’s (SEC) comment period extension for the proposed rule, “The Enhancement and Standardization of Climate Related Disclosures for Investors.” The proposal would require public companies to report on Scope 3 emissions, which are the result of activities from assets not owned or controlled by a publicly traded company but contribute to its value chain. While farmers and ranchers would not be required to report directly to the SEC, they provide almost every raw product that goes into the food supply chain.
“AFBF appreciates the SEC extending the comment period for its proposed climate-reporting rule. We asked for the extension because America’s farmers and ranchers need time to fully understand the consequences of this 510-page proposal.
“We have deep concerns that the SEC is proposing a rule that will subject farmers to regulations that are intended for Wall Street. Unlike large corporations currently regulated by the SEC, farmers don’t have teams of compliance officers and attorneys dedicated to handling SEC compliance issues. Increased costs, legal liabilities and privacy concerns could create obstacles to ensuring food security at a time when the world is increasingly looking to America’s farmers for help. We urge the SEC to avoid enacting regulations that will keep farmers and ranchers from focusing on growing the food, fuel and fiber this country needs.”
Read a Market Intel analysis of the proposed SEC rule here.