A rule proposed by The Security and Exchange Commission (SEC) to require environmental divulgences by public organizations could seriously affect family farms and escalate the previously disturbing pace of consolidation in agriculture. The potential effect of “The Standardization and Enhancement of Climate-Related Disclosures for Investors” was discussed by the economists of The American Farm Bureau Federation. It was proposed to make it rule in the latest market.
The proposed rule for reporting on the scope of three emissions, which are the consequence of activities from resources not possessed or constrained by any firm but rather add to its value chain, has a lot of requirements for public companies. The farmers are required to provide a report on every raw product that is used in the process, even though the reporting is not done directly to the SEC. The economists at AFBF expect reporting requirements for ranches to create several substantial liabilities and costs. That could include operational and financial disruptions, reporting obligations, and technical challenges. Not just this, but there is also the risk of legal liabilities and financially crippling.
Zippy Duvall, President of AFBF was of the view that they never intended to subject farmers to wall street. He further added that the rule that is proposed, is an instance of overreach by the SEC, which intends to save the investors from the business practices that lead to unfavorable outcomes. The other corporations regulated by SEC have attorneys that handle SEC compliance issues. But farmers don’t have any such privilege. The given proposal would restrict the farmers from doing business with local companies. That would help strengthen food security.
The economists over at AFBF believe that SEC rules would affect the farmer in the following ways.
- Inflated costs because of consistency concerns. Ranchers could be expected to follow and uncover information on everyday activities;
- It would require personal and private data. Ranchers work and raise families in their business environment which is different from the public organizations and enterprises;
- Solidification, as smaller farms miss the mark on assets to conform to oppressive reporting necessities;
- Expanded liability because the timeline given to consent to Scope 3 discharges is unattainable.
The SEC has provided farmers only 39 days to review the proposed rule which contains more than 500 pages. And have almost 1,068 footnotes, and contains 750 direct questions. The public comments for the proposed rule are due on May 20.
Duvall believes that all this is an example of overreach by the SEC. He mentioned that ranchers are farmers and are already being regulated by multiple federal, local, and state agencies. Considering the stated circumstances, the new requirements imposed by SEC will even complicate the situation.
rganizations could seriously affect family farms and escalate the previously disturbing pace of consolidation in agriculture. The potential effect of “The Standardization and Enhancement of Climate-Related Disclosures for Investors” was discussed by the economists of The American Farm Bureau Federation. It was proposed to make it rule in the latest market.
The proposed rule for reporting on the scope of three emissions, that are the consequence of activities from resources not possessed or constrained by any firm but rather add to its value chain, has a lot of requirements for public companies. The farmers are required to provide a report on every raw product that is used in the process, even though the reporting is not done directly to the SEC. The economists at AFBF expect that reporting requirements for ranches to create several substantial liabilities and costs. That could include operational and financial disruptions, reporting obligations and technical challenges. Not just this, but there is also the risk of legal liabilities and financial crippling.
Zippy Duvall, President of AFBF was of the view that they never intended to subject farmers for wall street. He further added that the rule that is proposed, is an instance of overreach by SEC, who intends to safe the investors from the business practices that lead to unfavorable outcomes. The other corporations regulated by SEC have attorneys that handle SEC compliance issue. But farmers don’t have any such privilege. The given proposal would restrict the farmers from doing business with local companies. That would help strengthen the food security.
The economists over at AFBF believe that SEC rules would affect the farmer in following ways.
- Inflated costs because of consistency concerns. Ranchers could be expected to follow and uncover information on everyday activities;
- It would require personal and private data. Ranchers work and raise families in their business environment which is different from the public organizations and enterprises;
- Solidification, as smaller farms miss the mark on assets to conform to oppressive reporting necessities;
- Expanded liability because the timeline given to consent to Scope 3 discharges is unattainable.
The SEC has provided farmers only 39 days to review the proposed rule which contains more than 500 pages. And have almost 1,068 footnotes, and contains 750 direct questions. The public comments for the proposed rule are due on May 20.
Duvall believes that all this is an example of overreach by SEC. He mentioned that ranchers are farmers are already being regulated by multiple federal, local, and state agencies. Considering the stated circumstances, the new requirements imposed by SEC will even complicate the situation.