Last week was seen as a victory for U.S. agriculture as the Security and Exchange Commission responded to concerns raised by the agriculture community and affirmed that regulations intended for Wall Street should not extend to America’s family farms. Senior Farm and Ranch Broadcaster Ron Hays is talking with Congressman Frank Lucas about the SEC’s efforts to monitor U.S. agriculture.
In its final voting of the rule, the SEC removed the Scope 3 reporting requirements, which would have required public companies to report the greenhouse gas emissions of their supply chain. Lucas says the SEC and corporate America may have more up their sleeves.
“They still are going forward with a rule that requires climate disclosure,” Lucas said. “This just means that we have won the first step of the battle, but we have to continue the battle.”
Lucas said this is a partial victory, as he expects more regulations from the SEC in the future. While they may not directly require regulations on producers, the regulations they impose on those who buy from producers may have a large impact.
“The Securities Exchange Commission may not require me as a farmer to report that, but if the people I am selling my products to demand it before they will give me a market, it is the same trap,” Lucas said.
At the same time, there is concern that California has its own legislation similar to Scope 3, which Governor Newsom signed into law in October 2023. The U.S. Chamber of Commerce, the American Farm Bureau Federation, and others have filed a lawsuit against the State of California in the U.S. District Court for the Central District of California over its new corporate climate disclosure laws. These laws require businesses to report on emissions across their supply chain, including indirect emissions, regardless of where they occur.
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