Environment (Climate Change)

HB 62, the Farmers Protection Act, prohibits banks from denying or canceling financial services to farmers based on their greenhouse gas emissions, fertilizer use, or machinery type. It creates a rebuttable presumption that banks violating this rule are acting on ESG (environmental, social, governance) commitments, requiring banks to prove decisions were financially motivated. Banks must annually attest to compliance under penalty of perjury, and violations may result in civil penalties up to $10,000 per incident. The law directly affects farmers, banks, credit unions, and state financial associations by restricting discriminatory lending practices tied to environmental factors.

The Farmers Protection Act (SB 554) aims to prevent discrimination in financing against agriculture producers. It makes it unlawful for banks to deny or cancel services to farmers based on their greenhouse gas emissions, use of fossil-fuel derived fertilizer, or fossil-fuel powered machinery. If a bank has an environmental, social, or governance (ESG) commitment related to agriculture, there is a rebuttable presumption that such a denial violates the act, unless the bank proves it was solely for financial reasons. The bill requires banks to submit annual compliance reports and allows for civil penalties for violations, which are also considered an unfair or deceptive trade practice.