On August 15, the Ag Council board of directors held its August meeting at the new University of Arkansas System Division of Agriculture's Northeast Arkansas Rice Research and Extension Center in Harrisburg. Below is a summary of the meeting and slide presentations from the meeting.
The meeting began with a tour of the new rice research center led by Station Director Tim Burcham. The facility tour began in the large conference room and included walkthroughs of the learning kitchen, education foyer, offices, labs, and additional meeting spaces. In addition to the field research, the center aims to be focused on agriculture technology, innovation, as well as education and promotion. The building was largely funded by the rice industry at the direction of the rice research and promotion board, and additional private donations from industry partners also helped finance the project. Burcham noted that the building would host a grand opening event August 30th that will feature Governor Sarah Sanders.Registration link for grand opening
Following the tour, attendees gathered to hear from a slate of guest speakers.
Representative Rick Crawford was first to speak. He provided an update on the efforts to advance a farm bill. He spoke about his role as a member of the House Agriculture Committee noting that he was adamant about updating farm related programs to better meet the recent economy. He expressed pleasure for the enhancements to the commodity and crop insurance titles of the farm bill. He described the adjustments to reference prices, marketing loans, and payment limits. He also described enhancements to crop insurance, particularly Supplemental Coverage Option (SCO). He also expressed concern for the current economic challenges of the industry and announced that he was already explaining the concern to Chairman GT Thompson and Speaker Mike Johnson in hopes of improving chances of passing a farm bill and getting supplemental assistance for the current year. He noted that he planned to help lead the charge in developing a supplemental ad-hoc aid package. A conversation ensued with deep concern for the current challenges being expressed by Ag Council leaders, including two who serve on Farm Credit Association institutions (Ag Heritage and Mid-America).
ArkansasOnline Article
Scott Stiles and Hunter Biram, economists with the University of Arkansas System's Division of Agriculture, followed the congressman with a presentation relating to the contents of the farm bill as well as data related to the current economic environment. With regard to the contents of the farm bill proposals, safety net provisions in the bipartisan House Agriculture Committee passed bill and the framework released by U.S. Senate Agriculture Committee Vice Chairman John Boozman are very similar. In addition, these two proposals offer a much stronger and improved safety net when compared to current law and the proposed outline of U.S. Senate Agriculture Committee Chairwoman Debbie Stabenow.
Regarding the current economic challenges, it was noted that a new farm bill would not provide any help for the 2024 crop year, and payments under the new law would not reach farmers until fall of 2026. The current conditions and forecast shows input costs far outstripping commodity prices received for all major commodities grown in Arkansas. The conditions merit consideration of an ad-hoc program to mitigate economic harm that could come from such a substantial downturn and insufficient farm bill safety net.
In addition to futures market prices, local cash prices are also hurting farmers as the basis widens due to transportation costs and disruptions including rail strikes, river levels, shipping constraints, etc. This condition may worsen in coming weeks as harvest picks up. While yields are expected to be strong this year and compete with state records, costs of production and commodity prices broadly prohibit profitability regardless of yield for most farms. The losses are anticipated to be substantial and may impact farmers' ability to repay production loans and receive financing for the 2025 crop year. If this plays out in a significant manner, widespread problems would emerge throughout the farm economy and in rural communities.
An ad-hoc program is likely merited as the conditions resemble challenges in recent years when many ad-hoc programs emerged to limit the damage. These programs were implemented by democrat and republican administrations sometimes with the help of Congress. Funding was delivered from the Commodity Credit Corporation (CCC). The scale of the current challenge is comparable to the time in which USDA issued the $14.5 billion Market Facilitation Program (MFP) to address market impacts from the trade war with China.
Stiles Presentation
Biram Presentation
Article on Wide Basis
Keith Scoggins (USDA NRCS) and Bill Robertson (Retired UofA Cotton Specialist), both offered a presentation and conversation about cover crop considerations for farmers. The two spoke about opportunities and challenges in incorporating cover crops in Arkansas. The presentation covered benefits associated with adopting cover crops as well as risks, and the two spoke about future steps to take in considering fall cover crops this year. They suggested cost share programs through NRCS and climate smart grant programs, which can offer payments that can cover some of the costs of seed and production. In addition, they discussed the opportunity to find additional incentives from those wanting to source credits for green house gas (GHG) emission reductions or offsets.
Scoggins Presentation
Climate Smart Dashboard for Financial Assistance for Practices
Allyson White Lewis, AI Coach & Consultant, joined the meeting to address the advancement of artificial intelligence and its potential applications for the agriculture industry. Lewis explained her efforts to educate people, businesses, educators, and industries on the potential of AI as a service. She provided an interactive demonstration of various AI platforms with a focus on agriculture interests and needs.
Lewis Website: 7MinuteAI
Lewis Presentation
Lewis ChatGPT Prompt Guide
Lunch provided by Mitchell Williams Law Firm: https://www.mitchellwilliamslaw.com