I have long fought efforts to politicize financial decisions. Sadly, this is something we continue to see at the federal level. For example, look at the U.S. Securities and Exchange Commission (SEC). The SEC’s primary focus should be shoring up the strength and stability of the U.S. capital markets. Instead, under the direction of Chairman Gary Gensler, the agency has proposed regulations that would require all publicly-traded companies to disclose climate change related information.

There are a number of problems with this proposal. The SEC already requires these companies to disclose material information and various companies disclose climate-related information because it is material to their business. Telling companies this information is material, regardless of whether such a determination has been made, weakens the current disclosure system. Further, this reporting burden would be imposed on stakeholders nationwide, including agricultural producers, at a time when they already face considerable compliance, fuel, labor and other high input costs.