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·         AFBF: Farm Groups Encourage SEC to Amend Proposed Rule

·         AFBF says proposed SEC rule has unforeseen consequences for agriculture



Farm Groups Encourage SEC to Amend Proposed Rule


Source: American Farm Bureau Federation (AFBF)

June 21, 2022


In formal comments filed recently, eleven farm groups encouraged the Securities and Exchange Commission to amend its proposed rule regarding climate disclosures. Micheal Clements shares more on what the groups requested.


Clements: The American Farm Bureau Federation and ten other agriculture groups submitted comments to the Securities and Exchange Commission late last week regarding its proposed climate disclosure rule. Andrew Walmsley, AFBF senior director of government affairs, says the groups provided technical documents outlining concerns and recommendations.


Walmsley: Traditionally, SEC is concerned about large companies that you would associate with Wall Street. But what the SEC has proposed through the scope three reporting requirements could touch every farmer and rancher in this country, as it's requiring those large companies to report emissions from suppliers from downstream and upstream, and that would capture many small, medium and large farmers.


Clements: Walmsley says the rule would require burdensome record keeping as well as create liability concerns and data privacy concerns.


Walmsley: We don't think the SEC, when they proposed this rule, really thought through the implications and costs and burdens that would be put on rural America. And so, we're encouraging them through this rulemaking process to reevaluate this rule and take our concerns to heart and propose a better rule that provides information that is useful to shareholders, but it does not create undue burdens on agriculture.


Clements: The comments include a list of recommendations that better serve farmers and ranchers.


Walmsley: So, our technical comments laid out some options for the agency, the easiest of which would be to scrap the scope three idea. We will continue to engage with SEC as they work through this rulemaking and encourage farmers and ranchers to reach out to their members of Congress. Those folks are ultimately accountable to the American public and have oversight with the SEC. I encourage your voice to be shared with your member of Congress or U.S. Senator.


Clements: Learn more at Micheal Clements, Washington.


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AFBF says proposed SEC rule has unforeseen consequences for agriculture


By Kellan Heavican, Brownfield

June 21, 2022


The American Farm Bureau Federation says a proposed rule that would require some companies to report climate-related emissions is nearly impossible for farmers to comply with.


Senior Director of Government Affairs Andrew Walmsley says the Security and Exchange Commission (SEC) is creating more questions than answers. “How as a farmer do I report this information? Where do I go to get this information?  We’re not a power plant that utilizes the same material and the same amount of resources on a regular basis. We make planting decisions each year.  We grow different crops depending on environmental conditions on how many inputs we need.”


The Enhancement and Standardization of Climate Related Disclosures for Investors would ask 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 the value chain.


He tells Brownfield producers who grow or raise products for the value chain would be subject to tracking and reporting their emissions. “The rule doesn’t directly regulate farmers and ranchers. But, because of that reporting requirement, we think these companies are going to have to get pretty intrusive and start asking for more detail information from farmers.”


The comment deadline for the rule closed on Friday and Walmsley says AFBF’s statement to the SEC reinforced climate-smart practices in agriculture...


more, including audio [8:57 min.]