In this file:
· Stealth SEC Climate Rule Could Create Chaos Down on the Farm
· SEC Greenhouse Gas rule could have unintended consequences for cattle producers, NCBA says
Stealth SEC Climate Rule Could Create Chaos Down on the Farm
By Steve Cubbage, AgWeb
September 16, 2022
Remember this spring when the USDA dangled more than $2 billion worth of grant money so that someone might discover how to raise climate-smart commodities? Think of this as the multibillion dollar carrot to “encourage” producers to find a more climate-friendly approach to their work.
Ironically, during the time that the USDA was playing the role of good cop in this social and political drama concerning the fate of our planet, another bureaucratic agency was quietly making moves to fulfill its role as the bad cop. On March 21, 2022, the Securities and Exchange Commission proposed a rule that would require publicly held companies to provide extensive climate disclosures, including measured impacts for their entire supply chains.
So there it is—“their entire supply chain.” That’s the stick, a big stick, with potentially big consequences for those involved in the value chain—all the way down to the farm gate. Although farmers and ranchers are not public companies and, therefore, are not required to report directly to the SEC, the obligations to their regulated customers could be enormous. Those customers—examples include Walmart, Kellogg’s, Pepsi-Co and Levi Strauss—will be under enormous social and financial pressure to significantly reduce their scope 3 greenhouse gas emissions, which are emissions produced by activities occurring upstream and downstream in the value chain.
Direct Impact ...
Ready Or Not ...
It’s Really Upped The Ante ...
SEC Greenhouse Gas rule could have unintended consequences for cattle producers, NCBA says
By Brent Barnett, Brownfield
September 16, 2022
The chief council for the National Cattlemen’s Beef Association says a proposed greenhouse gas disclosure rule could lead to unintended consequences for farms and ranches.
Mary-Thomas Hart says the US Senate Committee on Banking heard testimony from Securities and Exchange Commission chairman Gary Gensler on Thursday. “Some key takeaways from that hearing, Members of Congress are concerned about the FCC’s attempt to extend its authority into an area where it’s never been able to regulate before,” she says. “Also, an area where it’s not the technical expert.”
Hart says the SEC’s greenhouse gas disclosure rule would require publicly traded companies to disclose their direct (scope 1), indirect/energy use (scope 2), and supply chain (scope 3) greenhouse gas emissions.
She tells Brownfield there currently isn’t an accurate way for individual producers to measure how much methane is emitted from their cattle or how much carbon is sequestered through grasslands. “Until we have that technology available, I don’t think we should be comfortable giving information to a publicly traded company that’s been going to be given to the federal government,” she says. “It creates a significant new burden for cattle producers up and down the supply chain.” Hart says ag groups says the SEC can get the information it needs for scope 3 emissions (the supply chain) through existing publicly available data sets...
more, including audio [5:53 min.]