INFB Applauds SEC for Exempting Farmers from Stringent Climate Reporting

By Andi Anderson

The recent decision by the Securities and Exchange Commission (SEC) to exclude Scope 3 reporting requirements from its final Climate Disclosure Rule has received commendation from the Indiana Farm Bureau (INFB). The rule, which would have mandated public companies to disclose the greenhouse gas emissions of their supply chain, raised concerns for the agricultural sector, particularly small, family-owned farms.

INFB President Randy Kron expressed gratitude for the SEC's responsiveness to the concerns of the farming community. The initial proposal would have imposed extensive reporting obligations on farmers, requiring them to track various activities contributing to greenhouse gas emissions, such as operating machinery, using fertilizer, and selling crops. The removal of these onerous reporting requirements is seen as a significant victory for agriculture, allowing farmers to focus on their daily tasks without the burden of extensive reporting.

Kron highlighted the potential impact on small farms, stating that compliance with such reporting requirements could have excluded them from doing business with public companies or suppliers to public companies. The concern over increased consolidation in agriculture was emphasized, particularly in light of the recent decline in the number of U.S. farms, as indicated by the 2022 Census of Agriculture.

Farm Bureau members actively participated in advocating against Scope 3 reporting over the past two years, sending nearly 20,000 messages to both the SEC and Capitol Hill. Kron credited this grassroots advocacy as a major factor in preventing Scope 3 reporting from being included in the final rule.

The INFB expressed its commitment to protecting natural resources while acknowledging the importance of preventing regulatory burdens that could disproportionately affect small farms. The organization has been working for over a century to support and strengthen Indiana agriculture and its communities.

Photo Credit: Indiana Farm Bureau