Farm Groups Oppose SEC Emissions Rule

Seven agricultural organizations urge the SEC to exempt farmers from proposed Scope 3 emissions reporting requirements.

Updated on Nov. 3, 2026 in Organic Food

Live Poll

Should federal climate reporting rules apply to companies buying from family farms?

The American Farm Bureau Federation and six other agricultural groups sent a letter to the Securities and Exchange Commission opposing a proposed rule that would require public companies to report Scope 3 emissions. The rule would reach emissions from agricultural operations in companies' value chains.

Why it matters

Public companies that produce goods from agricultural products would need to collect and report emissions data from the farms that supply them. Farm groups argue this would burden family farmers and could accelerate consolidation in U.S. agriculture.

Ninety-eight percent of farms are family owned, and 90% of family-owned farms are small. The letter asks the SEC to exempt farmers from Scope 3 reporting and to bar companies from compelling farmers to provide emissions information.

The players

American Farm Bureau Federation

The American Farm Bureau Federation is a national nonprofit advocacy organization representing U.S. farmers and ranchers on federal policy.

Securities and Exchange Commission

The Securities and Exchange Commission is the federal agency that regulates U.S. securities markets and public company disclosure requirements.

The details

Scope 3 emissions are generated by activities a publicly traded company does not own or control but that contribute to its value chain. Registrants may respond by sourcing from larger operations or vertically integrating their supply chains to meet reporting requirements.

November 3, 2026: Farm groups' letter to the SEC reported as sent this week.

Food Supply Context

The SEC's proposed rule would extend public-company climate disclosure into agricultural supply chains that are dominated by small family farms. Farm groups argue this reach could push value toward larger, vertically integrated producers.

Shoppers buying from public food companies could see supply chains reshaped as those companies seek emissions data from their farm suppliers. Smaller farms may face higher compliance costs that could eventually affect product availability and prices.

The takeaway

The debate centers on whether emissions reporting can be applied to small farms without pushing them out of business. The outcome will shape how public companies source food and how family farms compete.