WHAT IS HAPPENING: In March 2022, the Securities and Exchange Commission (SEC) proposed a rule requiring public companies to include climate-related disclosures in their financial statements. Notably, the rule would necessitate the disclosure of the public companies’ “Scope 3” emissions, indirect emissions from upstream and downstream activities in their supply chains. 

WHAT DOES THIS MEAN FOR YOU? 

The rule applies throughout a publicly traded company’s value chain, burdening all agricultural producers, particularly small and mid-sized farm operations. 

The Scope 3 emissions reporting requirement could impact most farms since a majority of agricultural products are used or sold by a publicly traded company.  

98% of all farms in the U.S., like yours, are independent, family operations that do not have the resources to track and report the emissions data necessary to meet the disclosure requirements. The increased production costs and difficulty in supplying emissions data to public companies will hinder your ability to compete in global markets and will encourage further market consolidation and vertically integrated supply chains. 

Farmers and ranchers are focused on growing the food, fuel and fiber this country needs, and have not had to worry about regulations intended for Wall Street. Unlike the large corporations currently regulated by the SEC, family farms and ranches don’t have teams of compliance officers. 

OUR ASK: Please tell Congress how the proposed SEC climate rule could harm family farms and ranches! 

LEARN MORE: https://www.fb.org/market-intel/overreach-of-sec-proposed-climate-rule-could-hurt-agriculture