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Legislative bills

Senate Republicans Introduce Legislation to Exempt Family Farmers and Ranchers from Burdensome GHG Emissions Reporting Rules

Strategic Insights

— 2 min read

Senate Republicans have introduced the Protect Farmers from the SEC Act, a legislation aimed at exempting family farmers and ranchers from the proposed greenhouse gas (GHG) emissions reporting rules by the U.S. Securities and Exchange Commission (SEC). The SEC's proposal, part of the Biden administration's climate agenda, would require public companies to disclose GHG emissions from operations and upstream and downstream activities, placing a significant reporting burden on family farmers and ranchers who provide raw products to the value chain.

Key Takeaways:

  • The Protect Farmers from the SEC Act is co-sponsored by Senators John Boozman (R-AR), Mike Braun (R-IN), and Congressman Frank Lucas (OK-03), who argue that the SEC's proposal is misguided and would impose unnecessary paperwork on family farmers and ranchers.
  • The SEC's climate disclosure proposal would require public companies to disclose GHG emissions from operations, purchased electricity, steam, heat, or cooling, and indirect emissions that occur in upstream and downstream activities.
  • The value chain reporting component of the proposal would place a significant burden on family farmers and ranchers who provide raw products to the value chain, inundating small, family-owned farms with costly compliance requirements.
  • The Protect Farmers from the SEC Act is backed by leading agriculture organizations, including the American Farm Bureau, National Pork Producers Council, National Cotton Council, and U.S. Cattlemen's Association.
  • Family farmers and ranchers are struggling with record-high input costs, supply chain bottlenecks, labor shortages, drought, and other natural disasters, making the proposed GHG emissions reporting rules an additional burden.

Statistics:

  • The SEC's climate disclosure proposal would require public companies to disclose GHG emissions from operations and upstream and downstream activities.
  • The value chain reporting component of the proposal would place an additional burden on family farmers and ranchers who provide raw products to the value chain, with an estimated 80% of small farms being family-owned.
  • The SEC's proposal would require public companies to disclose emissions from operations, purchased electricity, steam, heat, or cooling, and indirect emissions that occur in upstream and downstream activities.
  • The Protect Farmers from the SEC Act aims to exempt family farmers and ranchers from the proposed GHG emissions reporting rules, citing the lack of climate metrics that meet reality.

Sources:

  • "Senate Republicans Introduce Bill to Block SEC Climate Disclosure Rule." NBC News.
  • "Protect Farmers from the SEC Act." Congress.gov.
  • "SEC's Climate Disclosure Proposal." U.S. Securities and Exchange Commission.
  • "Statement of Senator John Boozman (R-AR) on the Protect Farmers from the SEC Act." Senate Agriculture, Nutrition & Forestry Committee.

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