Ark ag spring 2017

SPRING 2 0 1 7

Cultivating Success Financial tips for farmers and ranchers

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DaltonAg.com 800.342.7498 Arkansas Agriculture | 100% Employee Owned ARKANSAS FARM BUREAU • SPRING 2017

Arkansas Agriculture

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ARKANSAS FARM BUREAU • SPRING 2017

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FEATURES Cultivating Success Rob Anderson | Page 6

New Ag Hall of Fame Inductees Ken Moore | Page 12

COLUMNS

Farm Bureau Perspective Randy Veach | Page 3

Faces of Agriculture Mollie Dykes | Page 18

Policy Update Michelle Kitchens | Page 24

Rural Reflections

Page 28

ON THE COVER Not only do farmers and ranchers need expertise growing crops or raising livestock, they also need to be highly skilled in managing their finances.

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SPRING 2017

Edition 45

Farm Bureau Perspective

by Randy Veach | President, Arkansas Farm Bureau Federation

A Tipping Point

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other Nature dealt Arkansas agriculture a heavy blow the final week of April, dumping as much as a foot of rain in parts of our state. Flooding overwhelmed communities, covering hundreds of thousands of acres of farmland and pasture and claiming the lives of several Arkansans.

My personal prayers are with those who lost loved ones and property. And I extend those prayers to the farmers and ranchers of our state, who are confronted with mounting challenges from weather, low commodity prices, increased input costs and regulatory hurdles.

This flooding is reminiscent of the 2011 flood. More than 1 million acres of Arkansas farmland were underwater for an extended period of time and 63 counties were declared disaster areas.

Farm Bureau estimated $500 million in agricultural losses resulted from the 2011 floods, which didn’t begin to touch the impact to homes, farm equipment, buildings, roads, bridges and other infrastructure.

As I write this piece, our rivers are still rising with more rain expected. So we don’t know the full impact of the 2017 flooding, though in some areas it will be as damaging as 2011. We also don’t know what the weather will do the rest of the year, but we know the start to this growing season has put some of our farmers behind a massive 8-ball.

The Great Mississippi River Flood of 1927 was one of the greatest natural disasters our country ever experienced. It changed history in many ways, as numerous people left farms for less risky lives and work elsewhere.

Sadly, the floods of 2011 and 2017 will have the same impact on our farming population. Many Arkansas farmers and ranchers are reaching a tipping point. The profit margin in agriculture is razor-thin, even without the damaging floods. There are some skilled farmers – good managers of the land – who aren’t going to survive the latest flooding. The floods of 2011 took out a number of Arkansas farmers. Now 2017’s flooding will sadly bring an end to some family farms.

That’s terribly unfortunate for those individuals and for agriculture that underpins so much of Arkansas’ – and America’s – economy.

The need for agriculture’s bounty will only increase as populations rise around the globe. The need for good farmers is more acute. While there are fewer farmers, there’s not less of a need for farming. This dilemma is troubling and must be addressed either with government support or expanded access to markets for our products.

After the 1927 flood, the U.S. government launched an ambitious plan to control flooding on the mighty Mississippi, building the world’s longest system of levees and flood control structures. During the past 90 years, those decisions have no doubt saved countless lives, untold billions of dollars in damages and helped stabilize agriculture in many ways.

There has been conversation at the federal level of increasing infrastructure spending as a way to feed economic growth in our country. A good place to start would be to stabilize the waterways and farm-to-market roads that are critical to agriculture. Our rivers need dredging and flood control measures beyond their current level. Frankly, we’re going to get 12-inch rains every so often. However, we should have infrastructure in place that can help keep floodwaters from reaching catastrophic levels. The flooding we’ve seen has eroded stream banks, taken out bridges, rural roads and highways and left almost a million acres of crops in peril.

What we need is a combined federal and state effort to take a big-picture view of our waterways and define a path forward that better protects lives, infrastructure, homes and property and our state’s most valuable asset, our farmland and pastures. If we want farmers and ranchers to survive times like these, we must help them manage the inherent risks of weather and other challenges.

Farmers and ranchers are resilient, filled with persistence and faith. Those affected will need every bit of these valuable and godly traits in 2017. God bless you and your families. God bless our farmers and ranchers. And God bless Arkansas Farm Bureau. *

“Consider it pure joy, my brothers and sisters, whenever you face trials of many kinds, because you know that the testing of your faith produces perseverance. Let perseverance finish its work so that you may be mature and complete, not lacking anything.” James, 1: 2-4

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scan of recent news headlines about continuing commodity price doldrums and potential trade disputes are enough to make even the most frugal farmer or rancher nervous. Additionally, damaging storms and troubling ag economy reports are making news just as spring planting is in full swing.

In April, the U.S. Department of Agriculture’s Economic Research Service released a report projecting that farm income would decline by almost 9 percent in 2017, the fourth straight year of such declines.

The report also forecast a decline in farm asset values, an increase in farm debt and weakening financial liquidity measures, including working capital.

There have been some positive signs: an uptick in the economy, a new Secretary of Agriculture popular with ag business and an expected increase in net cash farm income. So now might be a good time for Arkansas farmers and ranchers to take a closer look at their finances.

What should large and small producers be doing to secure their futures during turbulent times? We’ve collected some helpful tips and observations from some of the top agriculture finance experts and lenders from around the state: Wayne Beaty of 4B Ag Finance in Monticello; Scott McKennon, ag lending officer/poultry division lender with First Financial Bank in Morrilton; Hank DeSalvo, vice president/ branch manager for Farm Credit of Western Arkansas; and Charles Nicholson, senior relationship manager with Rabo AgriFinance in central Arkansas.

Know your flow “In any type of agriculture, cash flow and working capital are king,” said First Financial’s McKennon. “If you’ve got those two things, it will get you a long way down the road.”

All of the experts agree having a solid understanding of current financial status, specifically understanding cash flow, is key when planning and approaching lenders. Farm Credit of Western Arkansas’ DeSalvo notes while the most common initial questions he receives from loan applicants are about collateral or down payments, cash flow is often the determining factor in terms of credit.

“They (customers) often want me to develop a cash flow, so they can make decisions about whether a new venture or purchase will be a profitable endeavor for their family,” McKennon said. “This goes handin-hand with a down payment. The more you put down, the better your cash flow will be.”

DeSalvo suggests farmers and ranchers provide a balance sheet and income records (specifically tax returns) when approaching a lender.

These records provide answers for many of the questions lenders will ask them.

“I also recommend obtaining a copy of your credit report,” DeSalvo said. “Make sure credit accounts and bills are paid in a timely way.

Lenders put a lot of weight on credit score in the approval process. A late payment or collection on even a small credit account can cost you an approval or get you a higher interest rate because of a lower score.”

Beaty emphasizes that producers should monitor their financial status regularly.

“They need to look at their finances every 30 days,” he explained.

“Many do it about once a year when doing their taxes or talking to the bank about a loan, but it really should be a monthly process.”

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Photo by Keith Sutton

Cultivating Success

Financial tips for farmers and ranchers

by Rob Anderson

Arkansas

Agriculture

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ARKANSAS FARM BUREAU • SPRING 2017

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Photo by Keith Sutton

There are specific financial considerations to pay attention to when buying equipment or land. A purchase that seems to be smart may not be beneficial in regards to cash flow when attempting to secure a loan the following year.

Get organized (and get good help)

As Beaty points out, it’s important for farmers and ranchers to get their records in order and find the right people to help them along the way.

“Income tax expense seems to be a common worry of farmers,” DeSalvo said. “My advice is to get a good accountant and avoid making unnecessary purchases simply to minimize taxes.”

Beaty says having organized and detailed financial records is essential to establishing solid financial footing and building a plan to help ensure security for years to come. He says he asks new customers to provide the last three years of income and expenses, so he can help them build on a historical foundation. For example, Beaty says he requests poultry farmers provide the last 12 months of settlement sheets from integrators and row crop farmers provide average yield for the last three years.

Beaty also recommends farmers and ranchers find the right people to help them get these types of records in order.

“They need a really good bookkeeper or bookkeeping system, a good accountant and a lender who understands financials and understands their business,” he said.

Nicholson agrees finding the right experts is critical to helping farmers get finances in order and make the best decisions on investments and loans. He also believes it’s important to build strong relationships with these advisors.

“Know your cost of production. Keep detailed records. Visit your lender early in the cycle, and treat them like a business partner,” he said.

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“Farmers need a really good bookkeeper or bookkeeping system. They need a good accountant, and they need a lender who understands financials and their business.”

Wayne Beaty, 4B Ag Finance, Monticello.

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DeSalvo also believes building relationships with advisors is important, so choosing the right one is the best way to get the process rolling.

“Choose a lender that understands agriculture and keep an open line of communication with them,” he said. “Watching the growth and success of my farm family customers has been the most gratifying experience in my 18-year lending career.”

Grow with goals DeSalvo easily sums up perhaps the group’s most important piece of advice: “Set financial goals for your operation and put a plan in place to reach them.”

Beaty says he uses the historic data his clients provide as a building block for a larger budget plan they can then use as a tool to make management decisions. Critical to this process, he says, is setting goals. Specifically, he wants clients to aim for a 50 percent debt-to-asset ratio, maintaining 50 percent of the next year’s operating cost in cash.

“We take the established foundation of their historical data, and then we create a verified balance sheet – what they owe, how loans are secured, what payments are and when payments are due,” he explained. “Then, we project income for the next 12 months. We look at the profit margin this year, and we ask where it will be or where they want it to be in five years.”

Nicholson says planning for specific goals should be accompanied by plans for lean times.

“A lot of farmers are concerned about how to cut expenses and become profitable at current price levels. Budgeting and doing their best to stick to a budget will help,” he said. “But we know the difficult cycles of ag, and we work with clients to develop a strong risk management plan as well. A big part of that risk management plan is knowing their break-even levels.

A strong understanding of what they need to get for their crops in order to stay in business clarifies a lot of their subsequent decision making.”

“Set financial goals for your operation and put a plan in place to reach them.”

Hank DeSalvo, vice president/branch manager, Farm Credit of Western Arkansas.

Detailed financial records are critical to securing a loan. A solid bookkeeping system, a good accountant and a good relationship with a lender who understands your ag business goes a long way when trying to secure a loan for farm and ranch operations.

Photo by Keith Sutton

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“In any type of agriculture, cash flow and working capital are king. If you’ve got those two things, you can get a long way down the road.”

Set financial goals and a plan to reach them. Keep detailed records and regularly keep track of all financial transactions

Scott McKennon, poultry division lender/ loan officer, First Financial Bank.

Words of warning

The experts also offered warnings based on common agriculture industry concerns, the present state of the industry and possible changes ahead.

Without proper planning and analysis, McKennon says farmers and ranchers planning for the future or growing their operations can sometimes take on more than they should.

“A row crop farmer may think he should buy an additional 1,000 acres that adjoins his property. But if you show him a pro-forma financial statement you’ve created, it can change his mind quickly,” McKennon said. “It may show him that taking out the loan required for getting that amount would put him in a highly leveraged position that could make getting future loans difficult. He may want to consider getting 500 acres or 100 acres instead.”

Beaty notes certain costs can sneak up on even the most diligent farmers.

“Personal expenses are the sleeper. Clients almost always find they are spending more money on personal goods than they think: personal credit cards, vacations, automobiles and so forth,” he said.

Nicholson warns farmers should expect the ongoing regulatory scrutiny of banks could bring additional requirements for loans, especially considering the growth in the level of borrowing of many farmers.

“To be adequately prepared for the environment we’re in now, farmers really need to do three things: keep good records; use solid, honest projections; and cut nonproductive assets,” Nicholson said.

So regardless of the headlines, trade disputes, unpredictability of commodity prices and of course, the weather, develop a solid financial plan with your lender and follow through on it regularly and consistently. It’s a foundation block in helping ensure sustainability for farmers and ranchers. *

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Photo by James Groves

“To be adequately prepared for the environment we’re in now, farmers really need to do three things: keep good records; use solid, honest projections; and cut nonproductive assets.”

Charles Nicholson, vice president and senior relationship manager, Rabo AgriFinance.

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Agriculture | ARKANSAS FARM BUREAU • SPRING 2017

Allen Bedell, Gary Sebree, Neely Cassidy and Mark Simmons all attended their induction ceremony to the Arkansas Agriculture Hall of Fame. Bobby Wells was honored posthumously.

New Ag Hall of Fame Inductees

Advocates of agriculture recognized

by Ken Moore

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he most recent class to enter the Arkansas Agriculture Hall of Fame included forester Allen Bedell of Hot Springs, former state Sen. Neely Cassady of Nashville, rice farmer Gary Sebree of Stuttgart, poultry company executive Mark Simmons of Siloam Springs and the late Bobby Wells, a renowned plant breeder who developed many

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varieties of rice that have positively impacted the state’s farmers.

“What a great cross-section of Arkansas agriculture to be selected for the Arkansas Agriculture Hall of Fame,” said Butch Calhoun, chairman of the Arkansas Agriculture Hall of Fame Committee. “The collective impact of these five is felt in every part of our state.”

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Photo by Keith Sutton

Allen Bedell, Hot Springs Allen Bedell has dedicated his life to advancing the forestry industry in Arkansas. He’s a mentor to many loggers and foresters in the state and has maintained a life-long commitment to leadership in environmental stewardship and putting ethical logging into practice as a small-business owner and activist for the industry.

Through his work with the Arkansas Professional Logger Training and Education Program he’s able to connect with those in each link of the timber supply chain – landowners, loggers and manufacturers. The innovative program has reached more contractors, crew members,

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landowners and forestry professionals than any other training program of its kind having won national recognition. It has always been Bedell’s desire to advance the professionalism, cost efficiency, responsible stewardship and public image of the industry nationwide.

Bedell was a longtime forester for Georgia-Pacific in Fordyce and also owned two chipping operations.

He joined the Arkansas Forestry Commission in 2001 and is in his second term, having served as chairman from 2008-2013. Bedell presently serves as the forestry representative on the Arkansas Department of Agriculture board.

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Some of his numerous accomplishments include helping start the Log a Load For Kids program. This annual campaign raises money for Arkansas Children’s Hospital patients. It has generated more than $8 million from Arkansas loggers. He also was one of the founding organizers of the Arkansas Timber Producers Association. Among his numerous honors are the American Pulpwood Association’s Logger of the Year award for the South Central Region in 1995 and Georgia-Pacific’s Logger of the Year for the West Central Region in 1994. He was twice named as the AFA’s Outstanding Logger of the Year. He was named to the American Pulpwood Association’s board of directors and became the first logger to serve on the organization’s executive committee. Bedell earned an undergraduate degree in forestry from Louisiana State University and a master’s degree in forest management from Yale.

Neely E. Cassady, Nashville Neely Cassady was a driving force in the formation of the poultry industry in southwest Arkansas, particularly in his native Howard County. His father, R.L. Cassady, founded Cassady’s Hatchery in 1937 and developed it into a thriving enterprise in the Nashville area. Neely assumed control and ownership of the hatchery when he was 18 and expanded it into a vertically integrated poultry company. He managed the family business from 1948-1960.

Neely Cassady’s vision is still felt in the vibrant poultry industry in southwest Arkansas.

He formed and sold two companies between 1956 and 1973. That vision evolved into parts of two of the largest poultry companies in the world, Pilgrim Industries and Tyson Foods.

His career path evolved during the next several decades. From 1960-1966 he worked as production manager and board member of Mountaire Poultry Company, then as owner/ manager of Cassady Broiler Company until 1972. Neely later managed the Nashville complex of Tyson Foods for

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eight years and established Cassady Investments, Inc. which he led from 1987 until 2015.

Neely Cassady saw a need for people in southwest Arkansas to have representation at the state capitol and in 1982 was elected to the Arkansas Senate. He served his rural constituents for 14 years as a staunch advocate for agricultural issues on the Senate Agriculture Committee. He also served on the Revenue and Taxation Committee.

Cassady’s service didn’t end there. He was president of the Arkansas Poultry Federation from 1973-74, and followed that with eight years on the Tyson Foods board of directors. He was elected to the Nashville School Board in 1969 and served for 10 years, then served the better part of 20 years as a member of the Central Baptist College board of trustees. He was presented the Poultry Pioneer award by the University of Arkansas, given a lifetime achievement award from the Nashville Chamber of Commerce and named a Paul Harris Fellow

by Rotary International.

Gary Don Sebree, Stuttgart A third-generation rice farmer, Gary Sebree has spent his life advancing the rice industry in Arkansas and U.S. Sebree farms approximately 2,000 acres of rice and soybeans near Stuttgart. He consistently produces some of the highest yields and quality rice received by Producers Rice Mill. Because of his skill and demonstrated leadership abilities, Sebree was elected by his peers to serve on the Producers Rice Mill board of directors in 1971 at the age of 29. He would go on to spend the next 43 years on the board, the final 24 of those as chairman, from 1990 until 2014.

Under his leadership the company and Arkansas’ rice industry experienced a period of phenomenal growth. A farmerowned cooperative, Producers grew from 956 members in 1971, when Sebree first joined the board, to a high of 2,637 members in 2013. During that span, member production increased more than tenfold, from 6.2 million bushels in 1971 to 65.5 million bushels in 2011. Sales grew from $17.5 million 46 years ago to a high of $568.5 million in 2013.

When Sebree assumed his leadership role in 1971, Arkansas’ rice acreage totaled 441,000 or 24 percent of the U.S. crop. Today, acreage in the state has grown to around 1.5 million acres. The same year Sebree retired from the Producers’ board of directors in 2014, for the

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first time Arkansas produced more than 50 percent of the U.S. crop, a distinction it still holds.

Sebree was awarded the 2016 Rice Lifetime Achievement Award from USA Rice. He was on the first Arkansas Rice Research and Promotion Board (1979-86), chairman of the USA Rice Producers Group (2000-2002) and chairman of the USA Rice Federation (2002-2004). He also was named Arkansas Rice Farmer of the Year in 1998. Sebree attended Hendrix College in 1959-60, majoring in chemistry/pre-med but had to leave due to illness, leading to his life’s work on the farm.

Mark C. Simmons, Siloam Springs Under Mark Simmons’ leadership and supervision, his family company, Simmons Foods, has grown into one of the nation’s largest privately held broiler-processing companies and the largest private-label wet pet food manufacturer in North America. The enterprise has grown from a single plant with roughly $20 million in sales and 350 employees in 1974 to approximately $1.4 billion in sales and nearly 6,000 employees in more than 20 facilities across North America.

Mark Simmons has been chairman of the board for Simmons Foods since 1987. He first joined the family business as vice president in 1968 after graduating from the University of Arkansas.

He was named president in 1974 at the age of 26, following the death of his father, M.H. “Bill” Simmons, president and co-founder of Simmons Foods.

He is passionate about supporting the next generation and helping them realize a bright future.

In fact, Mark manages the M.H. “Bill” Simmons Scholarship Fund in memory of his father, which benefits furthering the education of the children of company employees and growers.

Among his numerous accomplishments, Mark was a founding member of the Northwest Arkansas Council, has served on the board of trustees at John Brown University for 30 years and is a board member of the Walton Family Foundation. He was named Man of the Year in 1990 by the Arkansas Poultry Federation, the 2009 regional Entrepreneur of the Year in the agri-business category by Ernst & Young, received the Golden Paddle Award from the Illinois River Watershed Partnership and was inducted in 2013 into the Arkansas Business Hall of Fame.

As owner and chairman of the family company Mark Simmons believes he must succeed, because his employees’

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careers and livelihoods are entrusted to a vision for which he has been charged. It’s his goal to transition the business to the third generation of family leadership to his son Todd, who is chief operating officer, and his daughter Sarah, who serves on the company’s advisory board.

Bobby R. Wells, Ph.D., Fayetteville The late Dr. Bobby Wells, former head of the University of Arkansas System Division of Agriculture Agronomy Department, was a world-renowned expert on rice production with a special emphasis on rice nutrition and soil fertility. He was active in cooperative interdisciplinary research in rice production and worked closely with others in the rice cultivar improvement program in Arkansas and adjoining states. After receiving his Ph.D. from the University of Arkansas in 1964, he worked for two years as an assistant professor at Murray State University in Kentucky. Wells then came to the UA’s Rice Research Station in Stuttgart, where he spent 16 years before moving to the Agronomy Department on the Fayetteville campus in 1982.

Though Dr. Wells died in 1996, the quality and improvement in rice yields and production today are credited to his keen interest in designing studies to determine how rice plants react to different cultural practices and nutrient supplementation. He was a major participant in the pioneering effort by UA Division-based scientists in the development of the DD50 computer rice production program. The program assists growers with management decisions during the season based on temperature, rice cultivar and growth stage. The program, first developed in the 1970s, continues to assist growers, consultants and extension agents in making management decisions to optimize rice yield and quality.

Dr. Wells was also the principle developer of the nitrogen fertilizer application method known at the time as the Arkansas threeway split application scheme. He also served as chairman of the Rice Technical Working Group (RTWG) from 1984-1986.

Dr. Wells received the outstanding faculty award for the UA’s Department of Agronomy in 1981, the Distinguished Rice Research and Education Award from the RTWG in 1988 and the Outstanding Research Award from the Arkansas Association of Cooperative Extension Specialists in 1992.

He is remembered and honored for his contributions to the rice industry through research, teaching and service. *

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Introducing

The Arkansas Farm Bureau has officially launched the Arkansas Farm Bureau Foundation, a new 501(c)(3) nonprofit fundraising arm to support agriculture education, research, disaster preparedness and potential litigation.

Learn all about this important new initiative:

arfb.com/foundation To support the Foundation, please send your check to: Arkansas Farm Bureau Foundation P.O. Box 31 Little Rock, AR 72203

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Faces of Agriculture

Brandy Jones, Outstanding Teacher Fort Smith teacher introduces students to ag

by Mollie Dykes

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randy Jones, a fifth-grade students have access to a Photo by Mollie Dykes social studies and writing 3D printer awarded to the teacher at Woods Elementary school through a technology in Fort Smith, is Arkansas Farm grant where they can print a Bureau’s 2017 Ag in the Classroom diagram of their farm.

Outstanding Teacher. Jones Jones wants her students was recognized during a special to not just memorize facts ceremony at the school April 28. and figures but also apply Farm Bureau established the that knowledge to realaward in 2006 to recognize teachers world situations, which is who have exemplary programs that why she came up with the integrate agricultural concepts into farm development activity. their curricula.

Students are challenged to Jones earned a bachelor of use higher-level thinking science degree in early childhood skills, such as questioning, education from the University of analyzing and evaluating Arkansas in 2009 and a master’s as they develop their farms. degree in educational leadership “The unit focuses on from Arkansas Tech University student understanding in 2013. She previously taught and addresses the various second grade and fourth grade, learning styles in the class also at Woods Elementary. She has by providing a variety completed the Arkansas Teacher of learning structures,” Brandy Jones, a fifth-grade teacher at Woods Elementary Jones said. “It’s proven Leadership Academy Institute, received National Board Certification School in Ft. Smith, recently received a plaque from Farm that a student’s recall of Bureau Director of Education and Outreach Andy Guffey as a Middle Childhood Generalist information is higher when honoring her as 2017 Ag in the Classroom Outstanding and is a member of the 2017 they are able to apply new Teacher of the Year.

Leadership Fort Smith class. learning to their lives. By Jones integrates agriculture into both writing and social having students create a farm, they were encouraged to apply studies throughout the school year. To kick off the main the knowledge gained from discussions and research in order unit of study, Matt Jackson of Arkansas Farm Bureau visits to play the role of a farmer.” the class to teach a lesson on the history and importance of Having grown up in Arkansas, Jones understands Arkansas agriculture. After other research using Farm Bureau the rich agricultural history of the state and understands materials, students are then challenged to build their own the important role it plays in everyone’s lives. She hopes virtual farms. her students will leave her class with a newfound passion “The students select one of the state’s commodities to for agriculture. produce on their farm,” Jones said. “They research the history “We’re always going to need agriculture, and I want to of the commodity in our state, what it takes to produce that instill a love for agriculture in my students. I want them commodity and the cost. Students have to write about that to explore how they can fit into the Arkansas agriculture commodity and then develop presentations and small books industry one day,” Jones said. “My hope is that some of these to describe the farm to their classmates.” students will decide to pursue a career in agriculture one day The books developed by the students explain how they to continue to enrich Arkansas’ agricultural landscape.” would run their farms, with each page focusing on some Jones receives an expense-paid trip to Kansas City to different aspect farmers must consider. These considerations represent Arkansas June 20-23 at the National Ag in the include location, farm equipment, production process, daily Classroom Conference. For more information on Arkansas schedule, distributors, business goals and more. Additionally, Ag in the Classroom, visit arfb.com/pages/education. *

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ARKANSAS FARM BUREAU • SPRING 2017

EMERGENCY service, at the highest level.

Air Evac Lifeteam has been serving rural America for over 30 years. An Air Evac Lifeteam membership provides prepaid protection against any out-of-pocket flight cost for our services during an emergency.

Farm Bureau Membership receives the Air Evac discount on membership.

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ARKANSAS FARM BUREAU • SPRING 2017

Year Membership*

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How To Get Rid Of Knee Pain… Without Drugs, Shots, or Surgery

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Our Taste Arkansas food blog connects those interested in food production with the farmers & ranchers who provide an abundance of Arkansas agricultural products.

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Arkansas Agriculture

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ARKANSAS FARM BUREAU • SPRING 2017

Can We Lease Your Land for Our Solar Farms?

Transmission Type Power Lines on Your Land? Lease to Us Today!

Large Power Lines on Your Property? Lease Us Your Land!

We Will Pay Up to $1,250 per Acre per Year 20 to 40 Yr. Lease We Require Large Tracts of Land currently clear clean land (Over 150 Acres) w/ 3Phase Transmission Type Power Lines on the land for Our Solar Farms Land Cannot be in Flood Zone or Have Wetlands Issues – Owner Must Retain Mineral Rights both above and below surface or have Executive Rights No underground utilities including oil and gas lines within the proposed solar site

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23

Policy Update

A Successful Session Member involvement pays off

by Michelle Kitchens

B

efore the 2017 legislative session, Arkansas Farm Bureau established several priorities based on policy positions developed by the membership. With the help of the legislature and our dedicated members, we had a successful session. Let’s recap the priority list.

Protection of agriculture exemptions While no bills removed any of agriculture’s exemptions, Act 78 lowered the state’s income tax and created a legislative task force to review the state tax code. The task force will be appointed and meet within 30 days of the session’s May 1 adjournment. The task force includes 16 members of the legislature. It will take a comprehensive look at state tax policies including agricultural exemptions, highway funding, internet sales taxes and income tax rates. Farm Bureau plans to actively engage in the work of this task force.

Additional funding for the University of Arkansas System Division of Agriculture The University of Arkansas System Division of Agriculture will again receive one-time funds of approximately $3 million.

While we had hoped for base funding for the division, one-time funds will help further the mission of the agency.

Retention of present structure of commodity research and promotion programs There were no attempts to restructure the commodity research and promotion boards. Arkansas Agriculture Department Secretary Wes Ward is on record saying that it’s not one of the objectives of the administrative branch.

Seed standardization law Act 156 by Rep. David Hillman and Sen. Ron Caldwell restricts the regulation of seed to state agencies. This mirrors the state’s law on fertilizer and chemicals. A local political subdivision shall not regulate the registration, packaging, labeling, sale, storage, distribution, cultivation, any other use or application of seeds; or adopt or continue in effect local legislation relating to the registration, packaging, labeling, sale, storage, distribution, cultivation, any other use or application of seeds.

Protection of livestock farming and ranching practices Act 606 by Rep. DeAnn Vaught and Sen. Gary Stubblefield creates a civil cause of action against a person who has gained access to a nonpublic area of another person’s property and engaged in an act that exceeds the trespasser’s authority within the nonpublic area. Act 606 prohibits employees from removing the employer’s data, paper, records or any other documents. It also prohibits recording images or sound occurring within an employer’s commercial property and using the recording in a manner that damages the employer.

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Photo by Keith Sutton

Strengthen private property protection Act 877 by Rep. Trevor Drown and Sen. Missy Irvin enhances the penalty for criminal trespass if the trespasser was in possession of a killing device, a harvesting device, a device used to locate and unearth buried artifacts or a tool designed to gain entry into a structure by breaking a lock or bolt or if the trespasser has a prior conviction of trespassing.

Exemption for Forestry Commission rehires during emergencies Act 245 by Rep. Ken Bragg and Sen. Trent Garner will allow the part-time employment of retired Arkansas Forestry Commission, State Plant Board, and Livestock and Poultry Commission personnel for emergency, disaster aftermath or extreme weather conditions. The agencies also will be allowed to rehire part-time individuals to train others for those conditions. The act should generate cost savings for the state and improve response during extreme situations like wildfire.

State government reorganization HB 1725 by Rep. Dan Douglas failed twice on the House floor. It would have changed the present administrative relationship between the Arkansas Agriculture Department and the agencies under it, including the State Plant Board, Forestry Commission, Livestock and Poultry Commission and other agricultural-related agencies and boards. All records, personnel, property, unexpended balances of appropriations, allocations or other funds, including the functions of budgeting and purchasing, would have transferred to the principal department. Farm Bureau worked against this bill per our policy.

Agriculture scored other successes, including a longawaited bill by Rep. Lanny Fite to tackle the state’s waste tire problem. A full recap of the session is available on our website at arfb.com. Next time you see your legislators, please thank them for supporting agriculture. *

Arkansas Agriculture

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ARKANSAS FARM BUREAU • SPRING 2017

CornXpress AGRICULTURAL VENDING MACHINES

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Start as a New Business or create Additional Income Stream...Our CornXpress units store and dispense FRESH agricultural products, sold on demand without an attendant. They accept cash, credit, debit, and offer a uniquely convenient way for consumers to buy corn, wheat, protein pellets, and can even rock salt for states located in the North.

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CornXpress.com • (601) 573-9784 • (601) 720-9757 ARKANSAS FARM BUREAU • SPRING 2017

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Arkansas Agriculture

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ARKANSAS FARM BUREAU • SPRING 2017

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Arkansas Agriculture

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ARKANSAS FARM BUREAU • SPRING 2017

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RuralReflections

Extensive spring flooding throughout the state covered more than 1 million acres of farmland and pastureland forcing many farmers to have to replant their crops. This photo taken May 2 shows an area just west of Jonesboro flooded by the Cache River.

Photo by Bryan Pistole

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Arkansas Agriculture

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ARKANSAS FARM BUREAU • SPRING 2017

Do your leaves look funny? Are the roots abnormal? Stems turn black?

Our new Herbicide Injury Database can help.

The new University of Arkansas System Division of Agriculture Herbicide Injury Database is an online resource that can help homeowners and producers diagnose issues to their plants. With more than 1,000 images of plants and herbicides cross-referenced, the database is one of the most comprehensive available.

The database was a collaborative effort among Division of Agriculture faculty Bob Scott, John Boyd and Cal Shumway, ASU.

plants.uaex.edu/herbicide The University of Arkansas System Division of Agriculture is an equal opportunity/equal access/affirmative action institution.

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Existing Farm Bureau Bank recreational vehicle loans are excluded from this offer. * Rates disclosed as Annual Percentage Rate (APR) and are based on excellent credit and acquiring Guaranteed Asset Protection (GAP). GAP coverage not to exceed 84 months. Rates are subject to change without notice. The advertised APR of 5.99% is effective as of 01/03/2017. Final APR may differ from the loan interest rate due to additional fees (such as a loan documentation fee, which may be applicable). For a $25,050.00 loan with a term of 36 months, a 45 day first payment date and a 5.99% APR, the monthly payment will be $792.82. To qualify for the disclosed rate, customer must be a Farm Bureau member. Rates may vary based on the amount financed, term, and first payment date. Finance charges accrue from origination date of the loan. Rates and financing are limited to new or used models 2012 and newer. Visit www.farmbureaubank.com for rates and financing on recreational vehicle models 2007 - 2011. All loans are subject to credit approval, verification, and collateral evaluation. Farm Bureau Bank does not finance totaled, reconditioned, refurbished or salvaged recreational vehicles. Non-member rates may be 4% higher than posted rates. This offer is not available in all states. Banking services provided

by Farm Bureau Bank, FSB. Farm Bureau, FB, and the FB National Logo are registered service marks owned by, and used by Farm Bureau Bank FSB under license from, the American Farm Bureau Federation.