Proposed SEC Climate Rule Will Force Farmers to Comply with Expansive Green House Gas Reporting Requirements

The SEC is rushing to push through a highly problematic rule and the consequences of this lengthy and complicated rule are impossible to predict! It is crucial you not only submit comments but write to your members of Congress.

Please read more below:

If this proposed rule passes, the Securities and Exchange Commission (SEC) will require publicly traded companies to allow access to climate-related information from all of their suppliers throughout their entire supply chain. This requirement from the SEC goes above and beyond the intended purpose of the SEC, which is to enforce laws against market manipulation and fraud.

According to the purposed rule, farmers, who are at the beginning of the food chain and are not publicly traded organizations, will be trapped and mandated to report their GHG emissions, broken down by carbon dioxide, methane, nitrous oxide, etc. This data will be distributed to the public companies’ investors to assist them in determining how good or bad the company is doing in regards to their Green House Gas (GHG) impact. The investor can then determine if they want to remain a shareholder with the company or sell their shares.

Currently, there are almost 2,500 companies registered with the SEC that sell raw products, sourced by farmers, to be used by publicly traded companies to make their final products.

The Venture Dairy Cooperative and Wisconsin Dairy Alliance believe this proposed rule has the potential to add many additional challenges for dairy farmers of all sizes. Compliance costs to track individual day-to-day activities and/or failure to comply subsequently could demand huge fines for the dairy farmer in addition to concerns over liabilities issues and additional labor costs—all hurdles that could impact future viability. Finally, data taken from the farm would no longer be private and farmers could be at risk of losing a home for their milk if their GHG emissions are too high.

It’s clear that the SEC is trying to move outside of its authority in order to circumvent the legislative process. This needs to be stopped!

The SEC announced an extension for public comments on this rule which is now June 17, 2022

It is imperative that you contact your legislators to tell them how this overreach of the SEC’s Proposed Climate Rule could impact your dairy operation. A very short e-mail is fine.

Refer to this file number on your message: File Number S7-10-22 “The Enhancement and Standardization of Climate-Related Disclosure for Investors”