Bismarck, N.D. – Congressman Kelly Armstrong (R-ND) recently cosponsored the Protect Farmers from the SEC Act. This legislation will prohibit the U.S. Securities and Exchange Commission (SEC) from requiring an issuer of securities to disclose greenhouse gas emissions (GHG) from upstream and downstream activities in the issuer’s value chain arising from farms and ranches.
“The SEC’s climate disclosure rule would pile more red tape on producers, but do nothing to keep our air and water clean. North Dakota’s farmers and ranchers are already some of the best stewards of the environment. They live and work on the land. They raise their families there. Their livelihoods depend on it being taken care of. We need to get the federal government out of their way so they can continue to feed and fuel the world. That is why I am proud to cosponsor this legislation,” said Congressman Armstrong.
On March 21, 2022, the U.S. Securities and Exchange Commission proposed a rule, “The Enhancement and Standardization of Climate-Related Disclosures for Investors” (climate disclosure rule), that would require registrants, publicly traded companies registered with the SEC, to include certain climate-related disclosures in their statements and periodic reports, including measured impacts for their entire supply chain.
Specifically, the proposed rule requires a registrant to disclose information about its direct greenhouse gas emissions (Scope 1) and indirect emissions from purchased electricity or other forms of energy (Scope 2). In addition, a registrant would be required to disclose greenhouse gas emissions from upstream and downstream activities in its value chain (Scope 3) under many – if not most – circumstances.
Specifically, the Protect Farmers from the SEC Act:
- Prohibits the SEC from requiring an issuer of securities to disclose greenhouse gas emissions from upstream and downstream activities in the issuer’s value chain arising from a farm.
- Defines the production, manufacturing, or harvesting of an agricultural product through the Agricultural Marketing Act of 1946, outlines upstream and downstream activities, and defines greenhouse gases.
- Removes the SEC’s exemptive authority in relation to this Act.
The Protect Farmers from the SEC Act is supported by the American Farm Bureau Federation, National Cattlemen’s Beef Association, National Association of Wheat Growers, National Cotton Council, National Corn Growers Association, National Pork Producers Council, USA Rice, American Sugar Alliance, American Soybean Association, National Potato Council, United States Cattlemen’s Association, National Council of Farmer Cooperatives, and the Agricultural Retailers Association.
Find bill text of the Protect Farmers from the SEC Act here.
Find a summary here.