Illinois Farm Bureau, American Farm Bureau Federation and 117 other ag groups are calling on the U.S. Securities and Exchange Commission to extend its comment period on a proposed rule that would require companies to report their efforts to cut greenhouse gas emissions in their supply chains.
The 510-page proposed rule, known as the Enhancement and Standardization of Climate Related Disclosures for Investors, would mandate publicly traded companies with goals to reduce their carbon footprint start tracking and disclosing their progress to the SEC.
It would also require companies to report when they purchase carbon offsets, including credits stemming from agricultural practices, like cover crops or no-till.
Under the proposed rule, food and ag companies would be required to both collect data from farmers on emissions and supply it to their customers, like a grocery retailer, who have set their own reduction goals.
Those changes would translate to "new sources of substantial costs and liabilities" for producers and the ag industry, the ag groups said in a April 26 letter to the SEC.
"These include almost certain reporting obligations, technical challenges, significant financial and operational disruption and the risk of financially crippling legal liabilities," the groups wrote. "In doing so, the rule would have meaningful consequences for our members’ ability to produce this country’s food, fuel and fiber as well as for the security and stability of U.S. agricultural supply chains."
This story was provided by FarmWeekNow.com.