AG COUNCIL NEWS & INFORMATION BRIEF
April 11, 2023
WASHINGTON AG UPDATE
Boozman Talks Farm Bill: Senator Boozman recently joined Agri-Pulse to discuss the latest developments on the reauthorization efforts in Congress. In the interview Boozman spoke strongly about the need to update commodity programs with higher reference prices to help farmers impacted by changes in economic factors since the implementation of the 2018 farm bill. Senator Boozman emphatically noted in the interview that "there is not going to be a farm bill I support that does not take care of farmers and their safety nets." More...Agri-Pulse Newsmakers March 31
USDA Undersecretary for Rural Development Tours Arkansas: Senator Boozman helped host USDA Undersecretary for Rural Development Xochitl Torres Small on a visit to Arkansas in recent days. Secretary Small toured tornado damaged areas in and around Wynne before holding a roundtable discussion in Fayetteville addressing rural development issues and needs in Arkansas. Small is awaiting Senate confirmation to serve as Deputy Secretary of Agriculture, which, if confirmed by the Senate, would place her second in command at USDA. More...USDA RD Funding Announcement | ArkansasOnline
USDA RMA Announces New Margin Protection Insurance for Soybeans & Corn: USDA recently issued an announcement through the Risk Management Agency (RMA) that noted new Margin Protection (MP) plan of insurance that will be available for corn and soybeans beginning in 2024. MP is a privately developed product that was submitted to the FCIC Board under Section 508(h) of the Federal Crop Insurance Act. Margin Protection is offered as an area based plan that can be purchased as a stand-alone policy or purchased in conjunction with a Yield Protection or Revenue Protection policy. The plan provides producers with coverage against an unexpected decrease in their operating margin. More...USDA Announcement | Agri-Pulse
Biden Vetoes Congressional Resolution to Vacate New WOTUS Rule: Following Congressional approval of a joint resolution to overturn the new waters of the United States (WOTUS) rule under the Congressional Review Act, President Biden vetoed the measure on April 6. The resolution passed the Senate 53-43 after the House previously approved 227-198. The rule itself went into effect March 20, but a federal court halted implementation of the new rule in two states. Additional states, including Arkansas are awaiting injunction requests in the State of West Virginia vs. EPA, which involves 24 states. More...Agri-Pulse I | Agri-Pulse II | Agri-Pulse III | H.J. Res. 27
USDA Announces $1 Billion Toward Rural Energy for America Program: USDA recently announced plans to commit an additional $1 billion from the Inflation Reduction Act (IRA) to Rural Energy for America Program (REAP) grants to help farmers and rural communities invest in energy efficiency projects and renewable energy projects, such as solar and wind energy projects. USDA began receiving grant applications April 1. The maximum federal share which may be requested is up to 50% of the total project cost for all energy-efficiency projects and zero-emissions renewable energy systems, however most projects are eligible for grants of up to 25% of the total project cost with the maximum grant is $1 million for renewable energy systems and $500,000 for energy-efficiency projects. More...REAP Program | USDA Announcement
ARKANSAS AG UPDATE
Fund Established to Support Wynne Community in Tornado Relief Efforts: Following a devastating tornado that hit the community of Wynne, Arkansas, on March 31st, a disaster relief effort was launched to help aid the community in its efforts to clean up and rebuild. According to reports, approximately 1,200 citizens in the area are without homes as between 300 and 400 homes destroyed or damaged. In addition, the school and sewer plant demolished and daily necessities in short supply. More...BBC Article on Arkansas Tornadoes | Wynne Schools Relief Fund Info | Cross County Relief Fund Info
General Assembly Reaches End of Legislative Session: The Arkansas General Assembly reached its adjournment of the legislative session on Friday, April 7, after 90 days in session. They will return on May 1 to address any clean-up issues or vetoes before final (sine die) adjournment. The legislative session closed with Governor Sanders receiving all major parts of her legislative initiatives, which included a tax cut package that included tax cuts for personal and corporate income; public safety and criminal justice legislation that included a new prison; and comprehensive education reform that included vouchers for students and higher teacher pay. In addition to these priorities, the legislature also passed the Revenue Stabilization Act (RSA), which sets the budget plan for the coming fiscal year.
In regard to agriculture policies and our members, we monitored and advocated our policy positions on several bills that impact our industry (list), including some that were approved by the General Assembly. Below are a few highlighted issues from the session.
- Income Tax Cut Plan: Governor Sarah Sanders plan to reduce income taxes for individuals and corporations represented the last major priority for the Governor this legislative session. She signed the measure into law on Monday, April 10. It (SB549) reduces the state’s corporate income tax rate from 5.3 percent to 5.1 percent and lower the upper individual income tax rate from 4.9 percent to 4.7 percent. It will be retroactive to January 1, 2023. More...ArkansasOnline | TalkBusiness
- Bill to Consolidate Department of Agriculture: SB403, a bill to consolidate different boards, commissions, and committees at the Department of Agriculture was approved by the General Assembly. The bill, sponsored by Senator Blake Johnson, abolishes the Agriculture Board and abolishes other boards, commissions, and committees within Department while handing off those responsibilities to one of four primary agencies, which include the State Plant Board, the Livestock and Poultry Commission, the Forestry Commission, and the Natural Resources Commission. The Ag Council worked with the bill sponsor and the Sanders Administration to address specific concerns related to the Boll Weevil Eradication program, which will continue by statute to be managed by the Cotton Grower Organization known as the Boll Weevil Eradication Foundation. Ag Council was neutral to this measure.
- Bill to Address Constitutional Concerns Related to Research and Promotion Boards: SB506, a bill to transfer the resident agent and administrative services of commodity research and promotion boards to the Arkansas Department of Agriculture and to change the nomination and appointment process for those boards was approved by the General Assembly. The measure did not receive enough votes in the Senate to adopt an emergency clause so the new law will go into effect 90 days after being signed by Governor Sanders. An alternative bill (HB1843), which would have granted the board the authority to choose location of resident agent and administrative service providers, did not advance out of the House. Ag Council was neutral to both measures.
- Proposal to Mandate New Dicamba Rule: HB1800, a bill that would have required a new, more restrictive rule limiting use of dicamba failed to receive enough votes in the House. The House voted down the bill with a vote of 27-40. If enacted, the bill would have required the Arkansas State Plant Board to start a new rulemaking process for dicamba use that would require a more restrictive cut-off date between April 1 and June 12 with mandatory incorporation of restrictions based on a specific temperature. The Ag Council opposed this bill as it was counter to our policy that supports the Plant Board as being the body to establish rules on their own accord for all crop protection products. We had concerns for the precedent this policy would have set in legislating rules for crop protection products and superseding the abilities of individuals and groups to petition the Plant Board for rules related to crop protection products.
- Bill to Increase Rice Checkoff: SB499, a bill to increase the assessment on rice for the rice research and promotion program did not advance in the General Assembly. The bill was referred from the Senate floor back to the Senate Agriculture Committee before it was able to receive a vote in the Senate, and time ultimately ran out on the effort. The rice assessment supports rice industry research, education, and promotion efforts in Arkansas and Washington, DC. The assessment was last updated in 1999. Over the years inflation has eroded the purchasing power of dollars collected, and overall industry collections have faced other challenges including reduced acreage in Arkansas and other rice producing states. Ag Council supported this measure as it was crafted by the Arkansas Rice Federation in cooperation with key members of the General Assembly per our policy position on the matter.
- New State Solar Energy Policy: SB295 became Act 278, which sets new net-metering rules and other policies related to renewable energy production in Arkansas. The measure was amended during the legislative process in an effort to provide a compromise between renewable energy advocates and the utility providers who were supporting the bill. The legislation scales back laws and regulations that have supported broad expansion of renewable energy development through solar projects. The Ag Council expressed concerns with this measure prior to being amended. More...ArkansasOnline
- Legislation Limiting Foreign Ownership of Farmland: The General Assembly approved a proposal (SB383) aimed at restricting foreign investments in agricultural land. Specifically, the measure restricts foreign investments of governments and entities from several different countries, such as China, Cuba, Iran, North Korea, and Syria while also boosting reporting requirements and establishing a new agriculture intelligence office at the Arkansas Department of Agriculture. Ag Council was neutral to this measure.
- Bill to Expedite Drivers License Testing: The General Assembly approved HB1548, a bill that eliminates a state law mandating a 30 day waiting period between a written exam and a behind the wheel skills test for individuals seeking drivers licenses. The bill eliminates the arbitrary waiting period (red tape) and allows for individuals to take skills tests without being forced to wait 30 days because of a state law. Ag Council supported this measure.
- Bill to Include Chicot County for Water Conservation Tax Credits: The General Assembly approved HB1624, a bill to make Chicot County an eligible county to receive full access to Water Conservation and Development Tax Credits. Chicot County was inadvertently excluded from an enhancement made to the tax credit program in 2021. This bill ensures that farmers and landowners in Chicot County will be eligible to receive full incentives for investments made in land leveling, surface water storage, tail water recovery systems, irrigation automation systems, and other eligible practices relate to the incentive program. Ag Council supported this measure.
- Bill to Prohibit State Government from Purchasing and Using Chinese UAVs and Related Software: The General Assembly approved HB1653, a bill to prohibit state government from purchasing and using Chinese made UAVs and related software. Ag Council was neutral on this measure.
- Bill to Eliminate Sales & Use Taxes on Repair and Replacement of Farm Machinery & Equipment: The General Assembly did not vote on HB1506, a bill to eliminate sales and use taxes on repair and replacement of farm machinery and equipment. Ag Council supported this measure.
- Bill to Adopt Fedeal Law Concerning Income Tax Deductions for Depreciation & Expensing of Property:The General Assembly did not vote on HB1044, a bill to adopt additional federal law concerning income tax deductions for depreciation and expensing of property. The bill would have adjusted such deductions so they would be in line with federal law changes made in the Jobs and Tax Cut Act of 2017. Ag Council supported this measure.
- Bill to Place Burden of Proof for Ag Nuisance Lawsuits on Party Bringing Action: The General Assembly approved HB1434, a bill to place the burden of proof for ag nuisance lawsuits on the party bringing action against a farm operation. The purpose of this measure is to decrease risks associated with frivolous lawsuits against farms for common farming practices. Ag Council supported this measure.
- Bill to Ensure Nutrient Management Plans Related to Utilization of Poultry Litter is Not Public Record: The General Assembly approved HB1707, a measure to ensure soil nutrient applications of poultry litter and related nutrient management plans are not public records. The purpose of this measure is to ensure that farms can continue to utilize poultry litter as a crop nutrient source and do so under related management plans without concerns for such activities and practices being made public. Ag Council supported this measure.
Ag Council Spring Board of Directors Meeting: The Ag Council of Arkansas will hold its next board of directors meeting on Tuesday, May 9th, at the Lon Mann Cotton Research Station in Marianna, Arkansas. Doors will open at 8:30 and the meeting will begin at 9am and conclude with lunch. Attendees can expect to receive an overview of the General Assembly's legislative session, an update on the development of the farm bill, and other relevant information facing the row crop industry. Guest speakers will include Arkansas Secretary of Agriculture Wes Ward and Senate Agriculture Committee Republican Staff Director Fitzhugh Elder. More...Event Info
Farm Credit MidSouth Completes Merger with Farm Credit MidAmerica: On April 1, a merger deal between Farm Credit MidSouth and Farm Credit MidAmerica was completed. The new, combined entity will retain the name Farm Credit Mid-America and will provide financial services to 137,000 farmers and rural customers across 391 counties in six states. The addition of Midsouth's territory expands the Farm Credit Mid-America footprint to include the Mississippi River Delta region west of Memphis, Tennessee. It adds locations in Arkansas and Missouri to the established locations in Indiana, Kentucky, Ohio and Tennessee. Rice and sweet potatoes, among other new commodities, will be added to the cooperative’s existing portfolio. Dane Coomer, Franklin Fogleman, Jr. and Gary Sitzer, formerly of the Farm Credit Midsouth Board of Directors, will now join Farm Credit Mid-America's board of directors. More...Agri-Pulse | Farm Credit
UofA Issues Arkansas Rice Update: On Friday, April 7th, the University of Arkansas System Division of Agriculture's Cooperative Extension Service issued a new rice update for the 2023 crop year. The report provides an update for the crop year by describing various economic factors ,weather factors, and agronomic facing rice farmers in Arkansas so far this year. More...4.7.2023 Rice Update | Latest UofA Crop News
MidSouth Ag Law Seminar Set for June 8-9: The Mid-South Agricultural and Environmental Law Conference, set forth by the National Ag Law Center (NALC) based at the University of Arkansas, will take place in Memphis June 8-9 marking its 10th year. The conference, which focuses on issues relevant to the Mid-South, will include sessions on solar leasing, the 2023 Farm Bill, farm succession and healthcare planning. All net proceeds from registrations and sponsorships will go towards the newly created NALC Scott Fancher Ag Law Scholarship. More...MidSouth Ag Law Seminar Information | Agenda & Registration | Scott Fancher Ag Law Scholarship
Ag Council Featured in Farm Press: The Ag Council of Arkansas was recently featured in Delta Farm Press. The feature highlighted the history of the organization, its current leadership, and its policy priorities for the General Assembly and the Farm Bill. More... Farm Press Feature
Delta Classic Golf Tournament Scheduled for July 20: The Delta Classic Golf Classic, a four person scramble format event held a The Ridges at Village Creek, is scheduled for July 20th. The event serves as an important fundraiser to support students in the University of Arkansas's Department of Crop, Soil, & Environmental Sciences. With support from alumni and friends, CSES has awarded over $480,000 in scholarships to our deserving students. More...Tournament Information | Registration
May 31 is Deadline to Apply for Century Farm Program: The Arkansas Century Farm Program application deadline is May 31. The program recognizes Arkansas’s rich agricultural heritage and honors families who have owned and farmed the same land (at least ten acres) for at least 100 years. The program is administered by the Arkansas Department of Agriculture. Qualifying farms will receive a personalized Arkansas Century Farm certificate and metal sign listing the farm name and year established. More...Century Farm Program | Application Form (printable version)
Additional Arkansas Ag Resources:
USDA Arkansas Newsletter
UADA Crop Budgets
UofA Variety Test Homepage
Rice Performance Trial Data
Cotton Variety Testing Update
2023 Arkansas Grown Publication
Digital Edition of Delta Farm Press
ECONOMIC & INDUSTRY NEWS
April 10 Crop Progress Report: On Monday, April 10th, USDA National Agricultural Statistics Service (NASS) issued a Crop Progress Report for Arkansas showing 21 percent of the corn crop planted, 12 percent of the rice crop planted, and 6 percent of the soybean crop planted. Winter wheat was reported as 10 percent headed. Soil moisture levels remain elevated, but conditions have allowed for significant progress in planting across Arkansas. More...Arkansas Report | US Report
April 11 WASDE Report: On Tuesday, April 11th, USDA issued an updated World Agricultural Supply and Demand Estimate (WASDE) Report. The WASDE offers the latest estimates from USDA on global supply and demand factors for each major agricultural commodity. More...WASDE | Secretary Briefing | Visualization
March 31 Prospective Plantings Report: On Friday, March 31st, USDA National Agricultural Statistics Service (NASS) issued a Prospective Plantings Report showing estimated crop plantings for the 2023 crop year. According to the report, soybean and corn acres are expected to be up while cotton is expected to be down nearly 20% this year. Rice acreage is expected to be slightly higher than 2021 and 2022 in Arkansas, but largely flat nationally. More...Arkansas Report | US Report | UADA Summary
Arkansas Farm Income Projected to Dip in 2023: According to a recent news release from the University of Arkansas, farm income in Arkansas is expected to fall in 2023 following 2022’s record high, and the decline is expected to exceed the national rate, according to the University of Missouri Rural & Farm Finance Policy Analysis Center. The report concluded that Arkansas is expected to see a 32 percent decrease in net farm income, compared to a projected 19 percent decrease in U.S. net farm income. More...UADA News Release | Arkansas Summary | University of Missouri Report
Cotton Incorporated Seeks Nominees for Cotton Hall of Fame: Cotton Incorporated’s Board of Directors is seeking nominations for the Cotton Research & Promotion Hall of Fame. The program was designed to recognize and honor individuals who have made significant contributions to the Cotton Research & Promotion Program or to the cotton industry in general on a regional or national level. Producer Interest Organizations must be submitted no later than May 12, 2023. Please contact Andrew Grobmyer at andrew.grobmyer@agcouncil.net to submit recommended nominations from the Ag Council of Arkansas. More...About the Cotton Hall of Fame | Nomination Information & Form
DTN Market Insights: Commodity Market Info
Arkansas Economic Profile: 2022 Pocket Facts - News | USDA Arkansas Ag Economic Overview | Arkansas Ag Census Data | Arkansas Historical Data | Arkansas Farms & Land Report | Arkansas Land Values & Cash Rent Report
Arkansas Farm Labor Report
UofA Crop Updates | UofA Land Grant Research & Extension Service Video