Mike Pearson tell us how a final rule from the SEC regarding the climate could impact farmers.

For two years, the SEC has been taking comments on the rule, Enhancement and standardization on climate disclosures for investors.

The rule is needed because as climate changes some publicly traded businesses will face additional risk or higher costs and regulators feel it's needed to know the risk and cost to investors.

Much of the debate has centered around the scope free commissions. The final rule dropped the requirement to report scope's emissions.

Agriculture refused the rule because it would have required farmers to track their emissions data. Farmers have been trusted with natural resources and has used climate smart practices to protect them.

However, farmers cant afford an officer to handle the SEC requirements.

Public traded businesses with $75 million annual revenue will have to report Scope I and II emissions and emissions directly from their assets.

Despite changes it has already inspired a lawsuit filed at the 11th Circuit Court in Atlanta, Ga. by 10 republican led states.

Some are speaking out saying the SEC is being used as a puppeteer to carry out the Biden administration's climate agenda.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness.