Rep. Mann Expresses Concerns with Proposed SEC Regulations on Agricultural Producers
Judd Weil-News Director firstname.lastname@example.org
Last week, U.S. Representative Tracey Mann (KS-01) joined 117 of his colleagues in sending a letter to the Securities and Exchange Commission (SEC), expressing their concerns with a new proposed rule that would have a negative impact on U.S. agricultural producers.
The proposed rule, “Enhanced and Standardization of Climate-Related Disclosures for Investors,” would mandate that all public companies issue extensive climate disclosures, including detailed reports for every company in their supply chain.
Agricultural producers are among the largest suppliers of raw materials to public companies, almost every farmer or rancher has products that will eventually touch a public company.
While farm and ranch operations are not public companies, they could still be obligated to track and report data on their greenhouse gas emissions because of their prevalence in the supply chain.
Most agricultural producers do not have the resources necessary to gather all the information required by the proposal, or the team of attorneys necessary to ensure compliance with SEC regulations. If finalized, this rule could restrict small producers from selling their products to certain buyers and force consolidation.
"The SEC was established to oversee capital markets and protect investors, not to scrutinize the day-to-day activities of farmers and ranchers in the name of climate protection," said Rep. Mann. "This proposed rule goes way beyond the SEC’s statutory authority, buries producers in even more onerous regulations, and infringes upon the privacy of the men and women who feed, fuel, and clothe the world. Farmers and ranchers are the original conservationists. They shouldn’t be subject to overreaching climate regulations from the SEC."
This proposed rule poses significant privacy, liability, and compliance concerns for Kansas farmers and ranchers.
“On top of soaring energy and input costs farmers and ranchers are facing, the SEC’s proposed rule would add complexity and uncertainty in addition to privacy concerns for small family farms and ranches everywhere," said Kansas Farm Bureau President Rich Felts. "While the SEC claims the rule only applies to public companies, it would effectively create a bureaucratic quagmire for farmers and ranchers growing the raw materials necessary to feed, fuel, and clothe our country.”
"This is a classic case of regulatory overreach by the federal government," said Kansas Livestock Association Chief Executive Matt Teagarden. "Accurately calculating agricultural emissions at the farm- and ranch-level is nearly impossible. If implemented, the proposed rule will increase costs and add legal liability for livestock producers and lead to higher food costs for consumers.”
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Click here to read the full text of the letter.