(The Center Square) – Farmers, the backbone of North Carolina’s No. 1 industry, are protected in a proposal that prohibits financial discrimination based on environmental, social and governance policies in investments.
Emissions, fossil-fuel derived fertilizer and fuel-powered machinery could not mitigate any bank decisions on an agriculture producer if the bill becomes law. Environmental, social and governance policies are commonly called ESG. They are notably tied to climate regulations and environmental sustainability.
The Farmers Protection Act, authored by Rep. Neal Jackson, R-Moore, was referred to the Committee on Judiciary 1.
Banks are to file annual reports indicating compliance and are subject to financial penalty.
The discrimination prohibited, as written in the bill, includes it being “unlawful for a bank to deny or cancel its service to an agriculture producer based, in whole or in part, upon the agriculture producer’s greenhouse gas emissions, use of fossil-fuel derived fertilizer, or use of fossil-fuel powered machinery.”
Agriculture is a $111.1 billion industry annually in the state, including $18 billion growth since 2022.
North Carolina is No. 1 nationally each in all tobacco, flu-cured tobacco, sweet potatoes, and poultry and eggs. It is No. 2 in Christmas tree sales, production of turkeys, and food-size trout sold. It is No. 3 in cucumbers and hogs, No. 4 in peanuts and broilers (chicken), and No. 5 in cotton.