Arkansas Agriculture Magazine | Fall 2021

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FALL 2021

Growing Popularity: Cover Crops Catch On

Plus:

2021 ArFB Convention Highlights


Arkansas Agriculture

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ARKANSAS FARM BUREAU • WINTER 2021


SAFE,

fresh

FOOD HOUSE FROM OUR FARM OR RANCH TO YOUR


FE ATURES Guest Column Zippy Duvall | Page 3

Growing Popularity Shaylee Wallace | Page 6

From the Ground UP Shaylee Wallace | Page 12

ARFB 2021 Convention Page 18

COLUMNS

Policy Update

Jarrod Yates | Page 28

Ag Law Update

Harrison Pittman | Page 32

COVER DESIGN by Bryan Pistole n

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FALL 2021

Edition 63


GuestCOLUMN Vincent “Zippy” Duvall, a poultry, cattle and hay producer from Greene County, Ga, is the 12th president of the American Farm Bureau Federation.

By Zippy Duvall

twitter.com/@ZippyDuvall

EPA Muddying the Waters Again

I

know my farmland like the back of my hand. I can tell you what field our cattle are grazing and under which tree a new mama is tending her calf. I can show you the exact spot my grandkids got their first lesson in feeding goats. I can tell you the spot where I told my father I wanted to be a farmer just like him. What I cannot tell you now is whether the ditch along my field that only has water in it after a heavy rain will be considered by the federal government as a water of the U.S. My father farmed this land and his father before him. Our family farm has changed over the decades as we are always looking for ways to do better and protect our natural resources, so our farm survives for generations to come. So to say that I was disappointed when the Environmental Protection Agency announced its plans to turn back the clock on responsible regulatory reform is an understatement. Not only are the EPA and the Army Corps of Engineers repealing the Navigable Waters Protection Rule, but while they work on a new rule, they are reverting to outdated regulations that have caused decades of confusion and litigation. When the economy is struggling, and the supply chain is at its breaking point, I cannot think of worse timing to create further backlogs with regulatory uncertainty and a cumbersome permitting process. Using the old significant nexus test, the federal government can now, again, extend its regulatory reach onto more private land. This “test” allows the

federal government to make case-by-case decisions to determine if a ditch or low spot is a water of the U.S. and subject to federal regulation. Farmers and ranchers could be required to get Clean Water Act permits for simple things like plowing a field, planting crops, or building a fence for their livestock. And if you’ve ever had to deal with a federal permitting process, you know the thick stack of paperwork is more than most farmers and ranchers can handle alone. We shouldn’t have to hire a team of lawyers and consultants to simply plow our field. As the EPA continues to pursue a new rule to replace the Navigable Waters Protection Rule, the agency must follow through on Administrator Regan’s promise to listen to rural America and understand how its rule will impact farms. The decision to rewrite the current rule brings uncertainty to farmers and ranchers who have been caught in the regulatory ping pong of the past three administrations. Farmers and ranchers – and all Americans – need a steady definition of “waters of the United States” that brings clarity and certainty to clean water efforts. The EPA must recognize the burden of overreaching regulations on farmers and respect the statute by not writing the term “navigable” out of the Clean Water Act. This rule serves as a crucial test for Administrator Regan as folks across the countryside watch closely, hoping he keeps his promise. *

The EPA must recognize the burden of overreaching regulations on farmers and respect the statute by not writing the term “navigable” out of the Clean Water Act.

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An official publication of Arkansas Farm Bureau Federation distributed to more than 53,300 farming and ranching households in Arkansas.

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Contact Paula Caruthers at Publishing Concepts for advertising rates pcaruthers@pcipublishing.com (501) 725-3553 Fax (501) 225-3735 Arkansas Agriculture is published quarterly by the Arkansas Farm Bureau Federation 10720 Kanis Rd., Little Rock, AR 72211 POSTMASTER: Send address changes to Arkansas Agriculture, P.O. Box 31, Little Rock, AR 72203 Issue #63 Publisher assumes no responsibility for any errors or omissions. All rights reserved. Reproduction without permission is prohibited. The Arkansas Farm Bureau Federation reserves the right to accept or reject all advertising requests. Send comments to: arkansasagriculture@arfb.com

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Growing Popularity: ARE COVER CROPS THE SEEDS OF FUTURE SUCCESS?

D

By Shaylee Wallace

rive through certain crop regions of the state after the fall harvest and you might still see tractors on the move and new seeds being planted. This is because a growing number of farmers are using cover crops to help prepare their land for future cash crops, despite the ongoing challenges of part shortages and input cost inflation.

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Cover crops are planted during the off-season – most commonly fall – and grown throughout the winter. Generally, they are non-cash crops, but some farmers are exploring options that could eventually produce profits (for more on this, see the link at the end of this article). Cover crops primarily serve to improve the soil and prepare for the next planting season. Over time, they provide a means to reduce soil erosion and runoff, while replenishing key soil nutrients and organic matter and providing weed control. Cover crops can also be beneficial to livestock producers, allowing a means to reduce feed costs while still providing quality animal nutrition. Cover crops can allow for nutrients and water to penetrate deeper into the soil when cash crops grow, and at the end of their growing season, cover crops can be tilled back into the soil after termination. Nutrients are then further released as the crop decomposes. A recent study by the Arkansas Agricultural Experiment Station demonstrated how cover crops can aid in soybean yields. The study was completed over the course of three years and examined the differences in inputs and yields between no-till, chemically terminated cover crop fields, double crop fields, and fallow fields. Wheat for grain was used in the double crop system, and the assortment of cover crops included cereal rye, barley, Austrian winter peas, black-seeded oats and a blend of Austrian winter peas, cereal rye, crimson clover and turnips. The study resulted in a 10.5 percent greater yield in soybeans grown after a cover crop. Soybeans grown in fallow fields yielded 57 bushels per acre, in comparison to cover crop fields yielding 63 bushels per acre. The double crop wheat fields yielded 53 bushels per acre with their later planting, with the profit from the wheat crop making up for the loss in soybean yields. The study also noted a savings between $30 and $60 an acre in input expenses with no-till practices in place. Adam Chappell, a row crop farmer from Cotton Plant, has had great success with cover crops. He was first introduced to cover crops during his search for a solution to his weed-control problem. Over a three-year period, he and his brother Seth had increased production to 10,000 acres and thought with the added acreage that production and profits would increase. At the time, the Chappells were continued on page 8>>

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Adam and Seth Chappell first decided to invest in cover crops over 10 years ago. Since then, they have had fewer weeds, less irrigation costs, improved soil quality and better water infiltration.

Cover crops help reduce erosion and tillage, while replenishing key soil nutrients and organic matter and providing weed control. 7


Pigweed is a common problem for Arkansas farmers. Chappell began to look for cover crop solutions soon after pigweed began to become resistant to herbicides. <<continued from page 7

of the biggest benefits? The improvement on their bottom line. “All those things we weren’t expecting or anticipating, we started noticing,” explained Chappell. We started noticing it in our bottom line. We weren’t having to irrigate as much; we were capturing more rainfall. The weed control, the budget for that went way down.” Chappell says cover crops have opened doors for them that would have otherwise remained closed. They are now 11 years into cover crop production and have started reducing fertility costs. They are also incorporating animals on the farm where they can. For farmers like Chappell looking to get started with cover crops, the U.S. Department of Agriculture’s Natural Resource Conservation Service (NRCS) has funding available to assist with seed and termination costs, up to 350 acres. Funding is provided through the NRCS Environmental Quality Incentive Program. Farmers must sign up for the program a year before planting. It is recommended to start with a few acres and to plant no later than mid-October to allow for adequate grow time throughout the fall. Cover crops certainly are not a singular fix for weed, insect or soil problems. They must be planned with an end goal in mind, and they are not without risks. Existing weeds, disease, pests and soil matter should all be kept in mind when selecting a cover crop. Farmers should also consider what cover crops

spending over $100 an acre in pigweed control alone. Chappell began to look for a new solution to controlling their weed problem. His online search led him to an organic, no-till pumpkin grower in Pennsylvania. “He was rolling down this big ol’ grass. It was almost over the hood of his tractor,” said Chappell. “He was just rolling it flat and planting pumpkin transplants into it. I don’t know if they have pigweed in Pennsylvania, but I know they have problem weeds. And this guy didn’t have any. He just had this big mat of green that he was rolling down, mechanically killing, and then, when that stuff died and turned brown, those pumpkin transplants were the only thing left in that field, and they were beautiful.” That was the moment it clicked for Chappell. They had already purchased herbicide for the fall but pulled together enough money to plant 300 acres of cereal rye that season. They planted their first cash crop into cereal rye cover crop in the spring of 2010. “We saw a significant reduction in the amount of herbicide we needed in those fields, that 300 acres versus the rest of the farm,” said Chappell. “After about three years, we were covering almost the entire farm with cover crop. We started planning bigger, letting it get bigger, and the bigger it got, the more benefits we saw.” Chappell noted fewer weeds, less irrigation and better water infiltration on their spring crops. One

Cover crops can also benefit livestock producers, providing quality animal nutrition while reducing feed costs.

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will be beneficial or counterproductive to their crop rotation. Soybeans are considered a great crop to establish cover crops alongside because of their high seeding rates, but each farmer should experiment with what works best for their operation. As farmers look for future solutions, cover crops seem to be a viable answer that continues to grow in popularity. Farmers can find more information about cover crops from NRCS or the University of Arkansas Division of Agriculture via their local Extension offices or online. To learn more about cover crops, listen to an interview with University of Arkansas Associate Professor of Soil Fertility/Soil Testing Trent Roberts on the Oct. 21 episode of Arkansas AgCast at https://bit.ly/AgCastCover. To learn more about one farmer exploring a potentially profitable cover crop, listen to the Dec. 10 episode at https://bit.ly/YellowPeas. *

Farmers should plan their cover crops according to their cash crops. Considering existing weeds, disease, pests and soil matter will help eliminate risks when using cover crops.

With Cover Crops

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Without Cover Crops

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Kenny Pickering isn’t seeing as many hogs running on his ranch these days, and that’s a good thing. Pickering Cattle Company is an established beef operation in Sevier County in southwest Arkansas. As the third generation to run cattle on this property, Pickering has had his ups and downs with feral hogs but now he has help. “They root up the ground and destroy grazing areas,” Pickering said. “Not only do they tear up the areas where they eat, they make the ground so rutted that you can’t put a tractor on it to pull off hay for the winter. There were some ruts a couple of feet deep on the property.” Pickering turned the tides against the feral hogs with a good bit of help. Jackson Lee at the Cossatot Conservation District is a trapper who’s been hard at work removing feral hogs from Pickering’s property as well as many other landowners in the immediate area. Thanks to a recent grant through the 2018 Farm Bill , all of this work is free for the landowner. “When we first start trapping an area with these big corral traps, you catch a bunch of hogs quickly, but you have to stay at it,” Lee said. “We’re not seeing the hogs hit the bait as often, but we know there are still a few around. We’ll keep at it as long as we can to keep the damage down. If you let up, they can reproduce so quickly that you just can’t stop keeping an eye out once they’re established in your area.” 177

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Arkansas Feral Hog Eradication Task Force

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Jackson Lee with the Cossatot Conservation District has teamed up with landowner and cattle producer Kenny Pickering to remove hundreds of feral hogs from Pickering’s beef operation in Sevier County. Photo by Randy Zellers.

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Not one to let someone else do all the work, Pickering upped his odds of success tremendously by working with Lee to coordinate when and where the traps would be best suited to work while posing little disturbance to his cattle operation. He also secured feed to use as bait, not only for traps on his property, but also for trapping efforts throughout Cossatot Conservation District. The added effort has paid in spades with most of the hogs and their damage being removed from his property, so he can focus on his work.

67 67

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The task force has removed

11,253 feral hogs since January 1, 2021.

Arkansas Federal Hog Eradication Task Force


Attention Landowners: The free feral hog control program is available to landowners throughout the state through APHIS Wildlife Services at 501-835-2318. For more information on how to control feral hogs on your property, go to www.agriculture.arkansas.gov/ arkansas-department-of-agriculture-services/feral-hog.

Help stop the spread of feral hogs throughout Arkansas. Download the app Survey 123 to report observed and removed feral hogs. Use the QR code to access the Arkansas feral hog survey.


FROM THE GROUND UP: HOW GRAZING PROTOCOLS CAN BENEFIT ARKANSAS RANCHERS

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armers and ranchers across Arkansas continue to look for innovative ways to steward the land. In recent years, many have started working towards raising more livestock with less inputs. For some, this has led to implementing grazing programs on their operations. Many Arkansas ranchers are familiar with the 300-day grazing program, a management effort to reduce the number of days a producer must feed hay and lower their input costs. The 300-day grazing program from University of Arkansas Division of Agriculture includes eight different practices to help ranchers achieve this goal. For some cattle producers in the state, the desire to lower production costs and utilize a variety of forage resources has led them to rotational grazing. Rotational grazing is the containment and rotation of livestock through pasture to reduce inputs while improving soil, animal and forage health. Only one portion of pasture is used at a time. Cattle with access 12

By Shaylee Wallace to full pastures will only consume one-third of the forage available to them, returning to the more palatable forage and leaving other nutritious plants behind. Not only does free grazing use only a third of a pasture, but it also means higher input costs through more grain or more hay needed to maximize nutrition. Rotational grazing can increase forage consumption up to two-thirds, reducing feed and hay costs and improving soil and forage health. Rotational grazing typically includes temporary electrical fencing. This fencing is used to create smaller sections within a pasture. As cattle graze a section down, they also help reduce weeds and overgrowth through trampling and recycle nutrients back into the soil from urine and manure. A heavier stocking density helps assure there is little to no forage waste and aids in weed reduction and nutrient recycling. It is important for each rancher to find the right stocking number for their land based

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on available forage, quality of the pasture and animal nutrition needs. Rotational grazing is an adjustment for many producers. It requires a small up-front investment for fencing supplies, as well as some added labor in moving cattle and resetting temporary fencing. For one Arkansas rancher, rotational grazing was an answer he didn’t realize he was looking for. Daniel Keisler from Ozark is a first-generation farmer. He says his cattle operation began with him wanting to raise livestock for his own source of quality meats. Family and friends then became interested and within two years Keisler was raising beef for everyone within his circle of influence. As an entrepreneur, Keisler saw an opportunity to raise more cattle with the same resources he was already using. After his wife battled two rounds of breast cancer, they began to look at different ways to raise their cattle. “We began looking at alternative ways,” said Keisler. “There are some management practices that we implement to try to produce a high-quality beef, while at the same time regenerate our soils and be good stewards of this creation.” Keisler uses electric wire to create proper paddock sizing, allowing his cattle to keep forage in rapid growth and utilizing all nutrients available. Keisler also includes pasture cropping in his rotational grazing. He implements annuals and works to build diversity in pasture forage. He also uses cover cropping to keep a living root in the ground year-round.

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Electric wire is the most commonly used fence in rotational grazing. Electric wire can be put up and taken down on a spool and placed using step-in posts to create proper paddock size and allow for easy movement of cattle.

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“We’re doing it for several reasons. We want to feed animals well. We want to finish beef that will marble and fatten,” said Keisler. “But the life blood of our whole operation is the soil. We’re realizing our organic matter is increasing, our topsoil is no longer clay, we’re getting minerals and vitamins back in the ground, we’re seeing it in our animal performance, in our collection of water, we’re not having erosion. We’re solving many problems.” Keisler also credits their success to their selection of cattle. Keisler raises Angus cattle, choosing specific genetics and traits to produce smaller cattle. This allows him to avoid using supplemental feed and continue his program as low input and forage based. “We can put them on forages, and they can fully sustain and reach their physiological size. They can put intermuscular fat into the marbling of the meat and do it all on forage. Of course, our business model is to produce proteins that people can purchase that are not only regenerative to creation, but also beneficial and nutritious to them.”

Keisler says the soil is the “life blood” of their operation and replenishing the soil and preventing erosion has played a role in improving their herd.

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Ten years from the start of his journey, Keisler is still using rotational grazing and pasture cropping to his advantage, like many other farmers and ranchers in Arkansas. For those interested in rotational grazing, the Cooperative Extension Service says there are five steps to truly lengthen grazing seasons: 1. Inventory the forage base to find what forages are available for grazing during each season. 2. Improve forage management practices to extend the grazing season with the existing forages (do this before adding any other forages). 3. Add complementary forages to fill in seasonal gaps if needed. Plan short-term and long-term options. 4. Plan forage and grazing practices ahead for the year and get the schedule on the calendar. 5. Monitor and adjust forages and livestock as needed by keeping records of each practice.

It does not take long for cattle to adjust to a rotational grazing protocol. Many producers find that once cattle learn moving paddocks means fresh forage, rotation becomes easy. Often cattle will begin to call out when they think they are ready to be moved. But it is recommended to wait until a paddock has been fully grazed by cattle before rotating. Many producers implement heavier stocking per paddock as they adjust and learn how many cattle it takes to clear a paddock on their land. With some time and investment, rotational grazing is a feasible option for any rancher. More information about 300-day grazing and rotational grazing protocols can be found through the University of Arkansas Division of Agriculture via their local Extension offices or online at https://bit.ly/GrazingInfo. * The selection of smaller cattle and improved genetics has allowed Keisler to reduce input costs and the use of supplemental feed. This effort has kept his operation low input and forage-based.

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Highlights from the

87th Annual ArFB Convention

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armers, ranchers and agricultural leaders from across the state came together for Arkansas Farm Bureau’s 87th annual convention Dec. 1-3 at the Statehouse Convention Center in Little Rock. The convention’s theme, “Past, Present, Future,” was reinforced with workshops that included topics such as broadband connectivity, succession planning, tax planning, marketing to consumers, new technology in timber production and brand development. Arkansas Gov. Asa Hutchinson, ArFB President Rich Hillman and Kris “Tanto” Paronto, former Army Ranger, were keynote speakers for the event. Farm Bureau’s annual business session, where voting

delegates define the organization’s policy positions on items of importance to Farm Bureau members, concluded the event. Awards were presented to county Farm Bureaus for their work in support of the organization’s agricultural advocacy and membership efforts. In addition, Young Farmers & Ranchers competition winners were recognized, as were recipients of Arkansas Farm Bureau’s statewide Ag Education awards, the Women’s Leadership Award and the Stanley E. Reed Leadership Award, given annually to an active Farm Bureau member, 36 to 45 years old, for outstanding leadership within their county Farm Bureau and community.

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The various honorees are: • Josh Cureton of Cash is the 2021 recipient of the Stanley E. Reed Leadership Award. Cureton has been on the Craighead County board for 16 years, serving as an officer for eight years and on the executive board for 12. He served as county board president from 2014-2016, and during his term, in 2015, the county received the state President’s Award. • Kristyn Sheets of Magnet Cove High School in Hot Spring County as its Outstanding Ag Educator • Harrisburg High School’s Levi Jones earned the Outstanding New Ag Educator Award • Carlisle High School earned the Outstanding Ag Education Program • Stone County received the President’s Award as the state’s top county Farm Bureau organization. Counties competing for the President’s Award must earn a Gold Star designation in each of 10 measurement categories and be a top scorer in their respective membership category. The 10 Gold Star categories are membership acquisition, organization, public relations, commodity services, governmental affairs, women’s activities, Young Farmers & Ranchers activities, member services, safety and youth. • The Women’s Leadership Committee from Scott County was the Outstanding County Women’s Program award winner for 2021. The award honors the county Women’s Leadership Committee that exhibits “exemplary support of its county organization, activities and goals.” • Debbie Moreland of Pulaski County Farm Bureau Women’s Leadership Committee received the Arkansas Farm Bureau Women’s Diamond Award, which honors a county Farm Bureau leader whose volunteer efforts are above and beyond the norm. Moreland currently serves as president of the Pulaski County Farm Bureau and is program administrator for the Arkansas Association of Conservation Districts. She lives in Natural Steps with her husband Bart.

(Top) Farm Bureau members watch the screens during one of the General Session presentations. (Below) Farm Bureau delegates gather to finalize policy for 2022 during the Business Session on the final day of Convention.

(Above, L to R) Arkansas Farm Bureau Vice President Mike Freeze, President Rich Hillman, former Army Ranger Kris “Tanto” Paronto and Arkansas Farm Bureau Executive VP Warren Carter pose at the conclusion of Paronto’s memorable keynote presentation about his combat experiences in Benghazi. (Below) Arkansas Secretary of Agriculture Wes Ward talks to attendees at the Trade Show.

continued on page 20>>

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<<continued from page 19

On the final day of the event, Rich Hillman of Carlisle was reelected as Arkansas Farm Bureau’s president, and Mike Freeze of Little Rock will continue as the agriculture advocacy organization’s vice president. Delegates also elected six other board members during the final day of the meeting. A rice farmer, Hillman, 58, was first elected to as Farm Bureau’s president in 2019 and before that he served 11 years as the organization’s vice president. He first joined the organization’s board of directors in 2001. He is Arkansas Farm Bureau’s 11th president since its creation in 1935. He is a sixth-generation farmer whose main crops are rice, soybeans and wheat. He and his wife Tina have two grown children, Collin and Caroline, and one granddaughter. Mike Freeze, 69, begins his third term as vice president. He operates the Keo Fish Farm, the largest hybrid striped bass hatchery in the world. He is a past chairman of the Arkansas Game and Fish Commission. He and his wife Betty have two grown daughters, Rachael and Kelly. Board action later resulted in the reelection of Dan Wright of Waldron as Secretary/Treasurer. Wright, 61, raises poultry and grows hay. He and his wife, Belinda, have two grown children, Dustin and Megan. They have five grandchildren. The voting delegates reelected six board members to new two-year terms. They are Sherry Felts, Joiner; Jon Carroll, Moro; Joe Thrash, Houston; Terry Laster, Strong; Chase Groves, Garland City; and Jack Evans of Lonoke. Also elected were two new board members, Jason Henson of Mount Judea and Bob Shofner of Centerton. Both men raise livestock. *

Arkansas Farm Bureau President Rich Hillman (far left) and Vice President Mike Freeze (far right), stand on stage with Arkansas 4-H and FFA leaders. ArFB President Hillman and his wife, Tina, pose for a “selfie” with members of Arkansas FFA.

ArFB State Women’s Leadership Committee Chair Magen Allen, Huck Plyler of Hempstead County and former NBA and Arkansas Razorback basketball player Joe Klein chat during a live 103.7 The Buzz radio broadcast during the Trade Show.

(Left) ArfB President Hillman has a Zoom conversation with American Farm Bureau President Zippy Duvall and Craighead County Farm Bureau President Jeffrey Tubbs about the conference theme of “Past, Present, Future” at the opening of Convention. (Right) Hillman is joined onstage by Duvall and Tubbs after a surprise reveal that both men were in the building. 20

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Arkansas Gov. Asa Hutchinson speaks on the first day of convention. Kevin McKenzie, Executive Vice President – General Manager of Farm Bureau Mutual Insurance Company of Arkansas, Inc. Arkansas writer and Women’s Leadership Luncheon Speaker Talya Tate Boerner.

(Top Left, L to R) Hillman, Magen Allen, Women’s Diamond Award winner Debbie Moreland and Freeze. (Top Right) Hillman and Freeze with (middle) Magen Allen, Freeze and Regina Oliver of the Scott County Women’s Leadership Committee, winner of the Outstanding County Women’s Program. (Middle Row Left, L to R) Freeze, Stone County Farm Bureau President Larry Smith – holding the President’s Award for top county Farm Bureau organization – and Hillman. (Middle Row Right, L to R) Freeze, Outstanding New Ag Educator winner Levi Jones of Harrisburg High School and Hillman. (Left Corner Top, L to R) Outstanding Ag Educator Kristyn Sheets of Magnet Cove High School, Hillman and Freeze. (Left Corner Bottom, L to R) Freeze, Hillman, Stanley E. Reed Leadership Award-winner Josh Cureton of Craighead County and Charlene Reed. Arkansas Agriculture

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PolicyUPDATE Jarrod Yates is director of public affairs and government relations at the Arkansas Farm Bureau, where he leads the national affairs efforts on behalf of the state’s largest agricultural advocacy organization. An Arkansas native and former Congressional Chief of Staff, Yates works with state’s Congressional delegation to help execute the political and legislative strategies defined by Arkansas Farm Bureau members.

By Jarrod Yates D.C. Comes to Arkansas Our nation’s capital continues to suffer from the effects of the COVID-19 pandemic. Many restaurants remain closed, government officials are still working from home, and meeting with members of Congress in their Washington, D.C. offices remains a challenge. Because of these challenges, our Congressional leaders have been spending a lot of time in Arkansas. In late October, Arkansas Farm Bureau’s board of directors welcomed U.S. Senator John Boozman to our Little Rock office. Sen. Boozman currently serves as ranking member on the U.S. Senate Committee on Agriculture, Nutrition, and Forestry. He provided an update on the work he and his Washington D.C. colleagues are taking on, including proposed tax changes, inflation, agriculture input costs, trade, supply chain and other issues. Senator Boozman will play a central role in the upcoming 2023 Farm Bill, either as ranking member on the ag committee or chairman, depending on which political party controls the majority after the general election in November. All members of Arkansas’s Congressional delegation have been traveling the state meeting with their constituents. Sen. Boozman and Congressman Bruce Westerman both held farm tours around the state, meeting with farmers and agriculture industry leaders to learn more about the challenges they are facing. Sen. Tom Cotton, Congressmen Steve Womack, Rick Crawford and French Hill have all been holding meetings in their districts, with a focus on important issues being discussed in our nation’s capital. These are tremendous opportunities for Farm Bureau members to work with our Congressional leaders to improve agriculture policy.

Federal Legislation Update The Build Back Better Act, also known as the Budget Reconciliation Bill, has consumed most of the oxygen in D.C. over the past few weeks and months. It was first introduced in September and contained many provisions that caused concern for farmers and ranchers. American Farm Bureau, Arkansas Farm Bureau and state Farm Bureaus around the country went to work pushing back on the bill’s attempts to eliminate the use of steppedup basis; used for calculating inheritance taxes, increases to the capital gains taxes, and other tax related sections of the bill that would adversely impact farmers and ranchers. The good news is that our work made a difference, and our messages were received. The bill was re-introduced and passed by the U.S. House of Representatives but did not include changes to stepped-up basis nor did it contain changes to the capital gains tax rates. This was important. But we must remain vigilant and prepared for future attempts to changes these critical tax policies. We will continue to monitor and weigh in, if necessary, on any tax policy changes that adversely impact farmers and ranchers. Now, that the Build Back Better Act has passed the U.S. House, it awaits consideration in the Senate. Based on statements by numerous Senators in recent days, there will need to be considerable changes made if it is to pass the upper chamber. Senate Majority Leader Chuck Schumer (D-NY) has indicated his hope for the Senate to pass the bill before Christmas. However, at the submission time of this article, the outlook is bleak.

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Arkansas Agriculture

Policy Action in Arkansas As Arkansas Farm Bureau members were gathered in Little Rock for its 87th Annual

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Convention, Gov. Asa Hutchinson and the Arkansas General Assembly were making plans to call a special session to take up state income tax cut legislation. Identical state income tax bills SB 1 and HB 1001 were voted on Dec. 9, passed by the state Senate and House, sent to Gov. Hutchinson and signed. SB 1 is now Act 2 and HB 1001 is Act 1. The bills amend the income tax tables by lowering the top tax rate for individuals from 5.9 percent to 4.9 percent over the next four years and creates a nonrefundable low-income tax credit. The bills also stipulate that the tax reductions for the years 2024 and 2025 will not take effect if a transfer is made between July 1, 2022, and Jan. 1, 2024, from the Catastrophic Reserve Fund (formerly the Long-Term Reserve Fund). Highlights of the Tax-cut Bills Individual Income Tax - Top Rate Reduction (current tax rate 5.9 percent): Tax Year 2022 – 5.5 percent Tax Year 2023 – 5.3 percent Tax Year 2024 – 5.1 percent Tax Year 2025 – 4.9 percent

Administration (DFA) to annually increase the standard deduction by the cost-of-living adjustment for the current calendar year, rounded to the nearest 10 dollars. Effective Tax Year 2022 Revenue impact as determined by the Arkansas Department of Finance & Administration: FY2022 – $135,250,000 General Revenue Reduction FY2023 – $307,400,000 General Revenue Reduction FY2024 – $383,200,000 General Revenue Reduction FY2025 – $459,000,000 General Revenue Reduction FY2026 – $497,900,000 General Revenue Reduction The House and Senate also voted to send to the governor identical bills that would change the state’s recycling tax credit law to help persuade U.S. Steel to locate a $3 billion project in Mississippi County that could potentially create 900 jobs. *

Income Tax Credit: The bill provides a nonrefundable income tax credit for individual taxpayers with net income up to $24,700 who timely file their income tax return. The credit will be effective on or after Jan. 1, 2022. Corporate Income Tax - Top Rate Reduction: Tax Year 2023 – 5.7 percent Tax Year 2024 – 5.5 percent Tax Year 2025 – 5.3 percent Standard Deduction: Amends the standard income tax deduction to require Arkansas Department of Finance and

Arkansas Agriculture

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Ag LawUPDATE Harrison M. Pittman is director of the National Agricultural Law Center, which is part of the University of Arkansas System Division of Agriculture. The Center serves as the nation’s leading source of agricultural and food law research and information and deals with legal issues around the country that impact agriculture at the state and federal levels.

T

by Harrison Pittman

here are a number of things happening at the national level – from major legislation to environmental issues and court battles – that could impact Arkansas farmers and ranchers in the near future, so let’s dive into some of the details of what’s making waves in U.S. agriculture:

For more comprehensive information, see “WOTUS Update: Breaking Down the Pre-2015 Regulatory Regime” and “Waters of the United States: Timeline of Definitions,” both published by staff attorney Brigit Rollins and available on the National Agricultural Law Center website.

New Infrastructure Legislation On Nov. 15, President Joe Biden signed the bipartisan Infrastructure, Investment, and Jobs Act into law. The legislation passed the Senate by a margin of 69-30 in August 2020 but stalled in the U.S. House until it passed earlier in November by a margin of 228-206. The legislation totals $1.2 trillion over the next few years, with $550 billion in new spending that will occur over the next five years. The legislation includes numerous items important to agriculture, including $65 billion broadband internet investments, $20 billion for inland waterway infrastructure such as locks and dams, $110 billion for road and bridges, and investments in passenger rail. The legislation also included provisions such as expanding the distance that livestock haulers can travel under the hours-of-service regulations.

Foreign Investment in U.S. Agriculture The role of foreign governments and investors in American agriculture has long been an issue of debate in the U.S. In recent years, particularly the past year or so, the level of interest seems to have increased. At the federal level, different items of legislation have been introduced that speak to this issue. One of these recently introduced proposals is the Foreign Adversary Risk Management (FARM) Act. The FARM Act seeks to amend the decades-old Defense Production Act of 1950 so that agriculture is directly represented on the Committee on Foreign Investment in the United States (CFIUS). CFIUS is the multi-agency governmental body that reviews specific transactions involving foreign acquisitions and investments to determine whether the transactions poses a threat to national security. The FARM Act would require that CFIUS consider agriculture-specific criteria as part of this process. For more information, see “Who Owns the FARM: Foreign Investment in U.S. Agriculture,” by staff attorney Micah Brown and available on the National Agricultural Law Center website.

WOTUS Proposed Rule As expected, the seemingly never-ending saga of “waters of the United States,” continues. On November 18, EPA and the U.S. Army Corps of Engineers announced a new proposed rule that, if implemented, would reinstitute the pre-2015 definition of “waters of the United States” (WOTUS) with amendments to incorporate the relatively permanent and significant nexus standards identified by the Supreme Court in Rapanos v. United States. WOTUS is the standard that defines the jurisdictional scope – i.e., the authority of EPA and the Corps of Engineers – under the Clean Water Act over private lands throughout the United States. 32

Debt Relief for Socially Disadvantaged Section 1105 of the American Rescue Plan Act (ARPA), enacted as part of economic crisis triggered the COVID-19 pandemic established debt relief payments for socially disadvantaged farmers and ranchers. The provision directed that USDA provide loan forgiveness of up to 120% of an eligible person’s outstanding debt for some direct Arkansas Agriculture

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ARKANSAS FARM BUREAU • FALL 2021


and guaranteed USDA loans. Numerous lawsuits were filed in various parts of the country challenging the constitutionality of this provision. In the wake of those lawsuits, courts have ordered a halt to the payments while the cases proceed. For extensive coverage of the debt relief provisions and litigation updates, see “Legality of Minority Debt Relief Payments Called Into Question,” “Judge’s Order Halts Minority Debt Relief Payments,” and “An Intervention: Organization Seeks to Defend Minority Debt Relief Program,” all published by staff attorney Micah Brown and available on the National Agricultural Law Center website at nationalaglawcenter.org. *

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Arkansas Agriculture

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ARKANSAS FARM BUREAU • SFALL 2021



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