Arkansas farmers express alarm about their future at hearing
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The top ag lender for Farmers and Merchants Bank warns 25%–40% of Arkansas farmers may quit the business after this year if they don't get aid, the Arkansas Advocate reported.
Why it matters: Agriculture is the state's largest industry, contributing about $20 billion to its economy each year.
Driving the news: Members of the state House Agriculture, Forestry and Economic Development Committee met with economists and farmers in Stuttgart on Tuesday to hear about the industry's financial outlook.
State of play: Surging input costs, high interest rates, oversupply and stalled trade are squeezing farmers — threatening both their livelihoods and the economies in rural areas.
The intrigue: Arkansas led southern states in the number of Chapter 12 farm bankruptcies in 2024, according to the Arkansas Advocate.
- The state accounts for roughly 25% of farm bankruptcies each year, one report found.
Flashback: U.S. Agriculture Secretary Brooke Rollins signaled last week that USDA is looking at ways it can support farmers. Sam Dubke, spokesperson for Gov. Sarah Huckabee Sanders, told Axios this week that she is in conversations with the Trump administration to "encourage additional assistance for the agriculture industry."
- Arkansas penned letters of intent with Taiwan on Friday for a commitment of at least $5.5 billion of Arkansas soybeans and corn over three years, beginning in 2026.
In the meantime, the Trump administration may provide financial assistance to Argentina, which is selling soybeans to China, a market that's not buying from Arkansas' farmers.
The bottom line: Farmers pointed out Tuesday that assistance carved out for them in the One Big Beautiful Bill Act won't be of help until fall of next year.
- It's unclear if the Trump administration will fast-track any assistance this year.
Quote du jour:
"Sometimes it's better to be awake than it is to sleep at night, because when I'm awake, I can think of what's going on today. The bad dreams happen at night. The bad dreams are going out of business. The bad dreams are the uncertainty."— Sydney Robinett, Arkansas rice farmer