WASHINGTON, D.C. – A proposed rule from the Securities and Exchange Commission (SEC) that could impact ranchers and others in production agriculture has led a group of senators to send a letter accusing the SEC of over-reach.
While the proposed SEC climate disclosure regulation applies only to publicly-traded companies, the Republican Senators have drawn a line to family ranchers and farmers as also being impacted.
Senators John Hoeven (R-N.D.) and Tim Scott (R-S.C.) led a group of 30 Republican senators pushing back on the proposed rule they say will place unworkable climate disclosure regulations on farmers, ranchers and agriculture producers.
The senators called on the SEC to rescind the overreaching proposal, which would require publicly-traded companies to include certain climate-related disclosures in their registration statements and periodic reports. The rule would impose extensive new, complex and burdensome greenhouse gas reporting requirements on all entities within a company’s value chain, including ranchers and farmers who fall outside of the SEC’s Congressionally-provided authority.
“We have serious concerns regarding the SEC’s regulatory overreach, as well as the impact that this proposed rule will have on the agricultural industry,” wrote the senators. “This substantial reporting requirement would significantly burden small, family-owned farms with a new, complex and unreasonable compliance requirement, resulting in costly additional compliance expenses, reduced access to new business opportunities, and potential consolidation in the agriculture industry.
“This proposed rule moves well beyond the SEC’s traditional regulatory authority by mandating climate change reporting requirements that will not only regulate publicly traded companies, but will impact every company in the value chain.”
