Support for Arkansas Week provided by the Arkansas Democrat-Gazette, the Arkansas Times, and Little Rock Public Radio.

Hello, and welcome to Arkansas Week.

I'm Chris Cain.

Well, some crops are being harvested right now at the end of what industry leaders say has been a very bad season for growers across the state.

And a number of factors have come together some years in the making and others just unfortunate circumstances, leaving some farmers praying they'll just break even in a few minutes.

We're going to sit down with the president of the Arkansas Farm Bureau and a representative of the Arkansas Rice Federation, who want Congress to provide immediate assistance to the state's largest industry.

But first, to provide an assessment of the current season is doctor Hunter Byram.

He's an agriculture economist with the University of Arkansas Division of Agriculture, Cooperative Extension Service.

And Doctor Byram, thanks for joining us.

I know this has been something that has come up recently in the News Hour program, dedicate to it today, the overall financial health of this sector of the state's largest industry.

What is that assessment right now, based on what you've seen so far as they are and what you just said before we came to the program, the heat of harvest.

Yeah.

So we're looking at multi-year declines and prices.

That's driving multi-year decline in revenues, crop value over time.

And so you're looking at since 2023, about a billion and a half dollar decline in crop revenue compared to last year, about, about a half $1 billion decline.

And so that's on the revenue side of the equation.

On the cost side of the equation, at best, they just remain elevated since 2022.

And so with remaining with costs remaining elevated, revenues falling, you're seeing large more or less losses that are happening at the farm level.

In that introduction, we alluded to a kind of a multitude of problems and different factors all coming together.

What are those factors that have compounded to make this big of a problem?

Yeah.

So again, going back to prices, prices are going to be driving a lot of this.

And so we have depressed prices, that are largely driven by large stocks, a lot of carryover.

So a lot of storage on farm storage, a lot of bins that are full in Arkansas, in the US and really abroad.

We've had some good weather across the world, across the US for the past few years, and it's all coming to a head.

I mean, as with the economics 101, you know, if there's really essentially no change in demand, but there's this increase in supply that prices are going to fall.

All right.

Let's talk about here locally.

You mentioned good weather around the world, which is increased production around the world.

But we've had some extreme weather here in Arkansas.

Let's start earlier this year.

What did that do to impact, you know, what the current situation of our state in terms of crops and yield.

Absolutely.

So back in, I think it was the first part of April, we had about three months worth of rain in about three days.

And I know that wasn't just farmers feeling that.

I remember just driving on, on the new 57, 67 to me.

But, you know, going and going through Jack's phone cabin, there was a softball field, pretty much as it was.

The water was up over the top of that.

So you can imagine at the farm level just how much water was standing in it.

And it took a long time to get off and so wet with that, and ended up pushing back the optimal planting window actually did push back up.

And finally it just push push back planting from the optimal planting window.

And so as you push back planting, yields start to fall.

And so, the, the yield potential and the yields that what I've been hearing so far are going to be less than average.

And, that is not news that farmers need to hear right now.

Well, you mentioned falling yield prices.

But the other thing that's been falling in recent months has been the river.

That's right.

Because of the lack of rain, we I guess we got it all back in April and May, because we did not get much in the months of July and August affecting the river levels and something that you recently referred to in an article I read, basis and how it connects to the Mississippi River and how this could be affecting farmers that are currently harvesting soybeans.

How is all that connected, and what can you tell our viewers out there about why this is could be so impactful?

Yeah, so we definitely want to be concerned about the mighty Mississippi River.

For many reasons, especially in the agriculture world.

So we send out, I believe it's a third of total production goes down the river for export to the port of New Orleans for for global export.

So a lot of our soybean production across the U.S. ends up going to the port of New Orleans, but especially in Arkansas.

We're so close to the port, it's not as expensive to get that crop down river.

So a lot of our demand in Arkansas for beans, especially, is going to be driven by exports and driven by the river.

So why is the river important and why is a low river level important?

Well, more or less it.

Just as the river falls, barge drafts are reduced and all you gotta know and all that really means is you put less cargo on a ship and so it becomes more expensive to ship the same amount of grain down river.

So more freight cost passed on to the grain buyer.

So more costs on the grain buyers part.

They lower the cash price for the farmer.

And so it goes all the way from the river to the barge to the elevator, to the farmer.

And then that farmer is going to get that lower price also all connected.

So you mentioned that traffic being restricted in is part of the weight, so that the barges aren't too low and run up on any sandbars or any other type of object underneath.

Exactly.

And then that's when you get into dredging and all kinds of other stuff.

So yeah, it's pretty much just to keep that barge from running aground.

You talked about the exports from the Port of New Orleans.

In the past, China has been a huge buyer of soybeans so far this year.

Zero.

How big of a deal is that?

And do you see that changing in the future?

You know, right now I do think it's already impacting the, the basis the cash price.

I didn't ask your question earlier.

So, you know, you talk about a cash price that a farmer is going to receive for their crop.

So that's the cash price.

Well, there's this thing called a futures price.

And am I going to go any further than that?

Just know that it's a global price.

Global price.

The cash price is going to be local to let let's just say Arkansas.

So Arkansas versus the globe.

And so we have these lower cash prices driven again by the river level issue.

But also I mean we just don't have that.

We have no new crop sales for the 2526 marketing year, from China.

So China normally they they buy about I think to 2.9 million or bushels from us.

Okay.

And so all that to say with that, what we've seen with basis now is that, that the current basis, the current prices are lower than when drought normally happens as well as when there isn't drought and there's just normal harvest glut that happens in the heat of harvest.

So it's like a triple whammy.

When you start thinking about soybean prices.

Well, let's talk about rice prices for just a minute.

The key crops we talked about soybean, cotton, rice also down as well.

Let's focus on rice.

How are rice farmers handling that so far in the state, especially when it's such a large part of the agricultural production for road crop farmers?

Yes.

So I think right now trying to be competitive globally on prices is going to be the name of the game.

And I think, you know, we've seen, massive declines in that rice price.

I mean, you're looking at it wasn't long.

It was about a year ago that we were sitting at 14 or $15 100.

Right now, we're lucky to get $11 100 whites.

I mean, you're talking about 25, 30% decline in the price year over year.

Again, it goes back to just trying to be as being as competitive as we can be on that global stage.

And one way to do that is to lower the price.

Unfortunately, one of the recent articles I read you were quoted in was, in a local publication talking about farm bankruptcies in the state of Arkansas.

And this has been an increase substantially, year to year.

Do you think this is a problem that is temporary because of some of these different factors that you've been mentioning, or could this be something that lasts longer, is more systemic, with some of those factors being drawn out or extended out into areas that are uncontrollable for these farmers?

Yeah.

I think it just goes back to, can a farmer repay their loan?

Can a farmer repay their loan?

And so, you know, if the government assistance comes through that's been talked about, with farm Bill as well, if those things can help folks get through, that might help more or less, soften the horrible blow that that we've already seen, which we've had across the South, a little over 100 for 12 or aggravated bankruptcies in Arkansas alone.

We account for a quarter of those.

And so, you know, the prices aren't going to help, that's for sure.

Yields also are hurting right now, too, costs of remaining elevated.

And so, it's looking like, that just net revenue alone is not going to carry folks through.

Yeah.

You mentioned the government potentially stepping in.

There was a recent meeting up in northeast Arkansas this past week.

A lot of farmers joined in on that meeting.

Do you anticipate seeing more of those calls and collectively, farmers coming together from around the state to show that they need that support as a whole instead of individuals reaching out?

I mean, I think, farmers were very inspired.

I mean, I was inspired, frankly.

I mean, for a gathering of 400 farmers to pretty much of their own accord come together.

I mean, there wasn't like this was a conference in harvest, but one of the busiest times of the year.

So I think it really highlights and emphasizes just how dire of a situation it is.

I mean, we're talking about money and dollars and everything, but we're also talking about livelihoods five, six, seven, eighth generation farms, you know, going out of business and liquidating.

And so a lot of these folks coming together, I mean, all these folks coming together and they're saying we don't we don't want that.

And we want to try to prevent that if we can.

And looking at some of the support programs they were raising, the government was raising what they're called reference prices.

Is that going to make a meaningful difference in your opinion.

Or could it it will ultimately it will as of next year, but not this year, just because of the way that the programs are set up.

So the way the programs are set up is there will be, more or less a payment or assistance that will trigger this year.

But from a cash flow perspective, like getting the actual cash to pay the banker, they're not going to get that until next year.

All right.

Let's look ahead to next year.

What are some of the biggest risks.

And I know you're out in the community.

You're visiting with farmers.

What are some of the things the feedback you're getting directly from some of the agricultural producers from around the state?

Yeah, I mean, a lot of them say, you know, we we talk about trying to get better yields and produce our way out of it.

And listen, farmers need to go out there and produce as well as they can.

They need to manage their cost as well as I can, and most of them do.

But if the prices don't get any better, it's really going to be all for naught.

I mean, at best, a farmer is going to be breaking even.

And if you think about it from like an economic opportunity costs situation, they're going to be, volunteering their time.

And that's the best case scenario.

So I that's, that's the best case is break even, and they can't even pay themselves for all the time that they spent this year.

And multigenerational farmers.

We're about to talk to one here in just a few minutes.

These are farmers who this is what they've done.

Their whole life.

Their parents grandparents did it.

And they're facing these types of challenges and risks.

And this is an industry that has been historically optimistic.

But it does seem like right now we're seeing more and more calls for support.

Do you anticipate by the end of the year that those calls being answered on the national level?

I think that those, talks and conversations are going to continue to amp up and to keep our farmers farming.

I hope that, that they become, fruitful.

All right.

Well, thank you so much, doctor Hunter Byrom, an agricultural economist with the University of Arkansas Cooperative Extension Service.

Thank you so much for joining us and breaking it all down.

We appreciate your time.

All right.

We'll be right back after this.

Short.

Welcome back to Arkansas Week.

This program, we focused on the issues facing the agricultural community in our state.

But now we want to talk about possible solutions.

Several farm advocacy groups are asking Congress to step in and do so quickly.

Joining me now is Arkansas Farm Bureau President Dan Wright.

And representing the Arkansas Rice Federation is Mark Isbell, a fourth generation rice farmer from Polk County.

Gentlemen, first, thank you so much for joining us.

I know this is a heat of the harvest as we were just talking about Mark.

So thanks for taking some time.

And, Dan, I know you've been active reaching out to members of Congress, and we've done so as well.

We'll get to that in just a minute.

But you've called for a roundtable meeting as recently as last week with members of Arkansas's congressional delegation.

What are some of the things that you're wanting to bring in front of them, as this becomes more of a focal point going through harvest, what are the main things we want to bring before them?

Is the diversity and that our role crop farmers are in.

You know, we've got folks that, are multigenerational and I get calls all the time from our membership, you know, hey, this is this is worse than we've ever seen it.

We don't know if we're gonna make it to another year.

So what?

We're wanting to impress upon them and say, these folks need help.

They need help.

Now, Congress has done a lot in the in the past year.

I mean, they have they have done, so much.

And in backing up our farmers to promoting them to bring the money to them, there's been $90 billion in the last several months, you know, that they've given them.

So that's helped.

The one big, beautiful bill was a huge help.

But a lot of that's not going to kick in until November of 26.

So that's where needing something right now.

So we're talking with all of our our delegation in Washington, D.C., letting them know, hey, the folks back home or need your help, they need your help now.

And we can't wait any longer.

They just had their August recess.

They were back in the state, many of them touring us on social media.

They were in different areas.

And what has been some of the feedback as you've continue these conversations with them?

As you mentioned, they've provided some help in terms of policy that is in writing.

But like you just mentioned, if that's not coming to a later next year, how receptive are they to go back to the table and start working on other solutions to bring more immediate relief?

Okay, back in July, I'm also a member of American Farm Bureau board of directors.

And so back in July, we went to the delegation to, to Capitol Hill in DC and, and talked with some of our folks.

We talked to Senator Bozeman, and we were talking about the situation, how things were, of course, they had just come off, a pretty tough round with the one big, beautiful bill and trying to get all that passed.

And, at that point, everybody was just tired from that and nobody really want to talk about it.

But in the last, I'd say the last 3 or 4 weeks, you've heard a lot of talk.

And I think a lot of that is from the delegation coming back to the state, seeing exactly for their own eyes how bad things are.

And so I've seen through, different publications that the American Farm Bureau that there's been talk they're getting the message with American Farm Bureau, our, Midwest growers, they're the ones that you really need to get on board with some of this, because some of those senators and representatives there may not know what's going on in the South part of the, of the country, but they're getting on board now.

They're needing help.

They're needing some some funds.

And so we're seeing a lot of talk from them, from their constituents and also from their senators.

And, the Senate AG Committee and the House that committee chairs are both talking and saying, hey, we got to get something before the end of the year.

So I think, I think it's working.

I think our, our letters to them that we've been sending them is working, with our group and they're talking with other people.

And through American Farm Bureau, we're able to get that message out, a unifying voice certainly feel like that, that could be heard more than just regional.

Mark, let's talk about you and your farm for just a moment.

Fourth generation farmer, as I mentioned.

So your family's seen a lot over, over the decades and generations.

But when you when you look at the current situation right now, without getting too much of a microscopic view, looking more macro and things that your family has already seen in the past versus what you're seeing right now, how do you contextualize that in a way that helps people understand the current situation as it relates to maybe previous situations where we saw some issues, with prices being down historically, how do you how do you help bring that to the forefront?

Yeah.

You know, when we look back through history at some of the challenges that agriculture's faced, the 80s or something that is thrown, thrown out there quite often.

So I was I was in grade school and focus on T-ball in the 80s.

So I can't give you any firsthand knowledge of exactly what that look like.

But the stories I hear is very scary.

And we've talked for a while that that what we see now is very similar to what we see then and now.

I think we're there.

We're to the point where we're seeing ag economy impacts, throughout the state and throughout the US that are similar to that as we see the reduction and the erosion of balance sheets, the ability of farmers to not be able to borrow, the amount of money that they need to continue and to move forward into the next crop.

And you sit on the Arkansas Rice Federation representative there, but also you sit have several national positions as well.

In terms of leadership, what are some of the things that you want to bring to light with those congressional members?

And like Dan was talking about, help them understand what the current situation is?

Yeah.

You know, I would say I also sit on the board of AG Heritage Farm credit here in the state.

So I'll get some insight into what the credit situation is.

And I'll say in 2022, 40% of farmers lost money in 2023, 50% of farmers lost money.

This is in the portfolio that I have insight into, 70% in 2024, and it's looking to be that higher, higher this year.

If we don't see a change, it's clear that farmers cannot survive in that type of situation.

But as we look at the potential source for this, what fixes there are, I would first say I want to commend, specifically Senator Bozeman in his work he's done in delivering some of the key packages that we need to help in the future, as well as some of the things that have helped farmers survive through the current downturn.

But as we look further, we also need to consider what can others do?

You know, the delegation has been very supportive as well.

I've committed all of them for the work they've been doing and supporting these needed financial, help for farmers.

But the USDA also has tools within their disposal.

It has both the blueprint and the president of what was called MFP vac with first Trump administration, where to try to deal with some of these trade issues that had caused an economic downturn and trade issues that you talked with.

Doctor Byrum on in the first segment, really helped.

And so I would lean on, not just our congressional delegation to put additional pressure on USDA and the executive branch to hopefully, use their authority and their ability through some of these types of tools.

But also on, you know, our governor and others in the state government to put pressure on the USDA to unlock some of those tools.

That's really the fastest way we could get money on the ground.

And it would help not just the farmers that are seeing struggles here in Arkansas, but those throughout the U.S, and it's very much needed.

So Arkansas PBS reached out to all six members of our congressional delegation, in the afternoon before recording this program.

And US Representative Steve Womack, I want to read you, response from him, a Republican from the third district of the state, responding by sending us this written statement.

It reads, supporting Arkansas, supporting America's farmers and producers is critical.

They are the backbone of our economy, feeding families across the country and driving global trade with agricultural exports.

That's why I am proud to have supported nearly $31 billion in economic and disaster assistance that USDA is currently distributing, as well as the positive changes made to title one reference prices included in the reconciliation bill.

I understand Arkansas farmers still face extreme economic hardship, and I look forward to working with my colleagues to find solutions to support those who need it most.

End quote.

So start with you, Dan, with statements like that made by, Representative Womack, you both reference, Senator Bozeman, is Congress doing enough, or at least on the track to start doing more, to be able to answer some of those calls?

Like we mentioned earlier, a big meeting up in Northeast Arkansas this, this past week where you've got hundreds of farmers getting together in the middle of harvest to to get their concerns out there.

I think I think Congress is doing everything they can right now.

Now, that's not to say they don't need to keep doing it.

Congressman Womack has been a champion for agriculture.

He has been right there with us every step of the way.

He's from the northeast or the Northwest district.

And so he does a lot in the in the livestock industry, but he is seeing what's happening in the crop just like everybody else.

Senator, Congressman Crawford also, you know, they both understand, they realize that farmers didn't do anything wrong to get into this mess.

This was not because they've not doing their job.

They're doing everything right.

They're doing everything that they need to be doing.

The problems are that Congress didn't get their job done.

You know, with the with the farm bill.

This all started because we didn't have a farm bill in 2010, that 2023, if we'd had a farm bill, we wouldn't be talking about this right now.

And so they understand that.

They know there's a lot of ground they need to, the catch up on, our delegation in, Washington is on the farmer side.

We've talked to all of them.

We address all of them.

Our staff talks to them daily, and, they understand what needs to happen.

They understand that the plot is serious.

And you referenced the 1980s.

I just got out of high school in the 1980s.

And, I remember those days.

Those those were the days where people were taking their own lives, you know, because of what was going on, and I think we're there, the difference is interest rates are just so, so out of sight right now.

And we're seeing the input cost at such a high elevated level.

And that's, that's the biggest difference.

But we're the farmers concerned.

They're not making money.

They're not making everything pencil out.

And they're trying to figure out how to make it to the next planning.

And a lot of dire conversation here today.

But Mark, as I mentioned, is a multi-generational farmer.

And both of you living through the 80s, maybe in different time periods of your life, but making it through the 80s is the ag community.

Did, what are reasons to be optimistic, Mark, in terms of based on conversations you've had or based on things that you've seen, is there anything out there that gives reason for optimism for the ag community?

And that's such a broad term, right?

I mean, you guys come from separate sectors of the AG community with row crop and livestock, and it is a broad term that we use.

But and it's being affected differently by different, you know, policies and different prices.

What are reasons for optimism moving forward?

Mark, as a fourth generation farmer, it's a challenging question.

There there aren't a lot at the moment.

You know, farmers are optimistic by nature.

You have to be in order to take on the role of trying to do what it is the farmers do.

But when you're in an environment like we are today, when it's not just the challenges of the market, it's the challenges of the weather, which you spoke about in the first segment, two challenges of international trade that we see, weighing down on us.

You know, the the only optimism that we can, generate maybe is just the fact that, you know, some of us made it through the 80s.

There are many that didn't, some of us surely will hopefully make it through this downturn, but there are so many that won't.

So, I like to be an optimistic person.

But it's very difficult to find a, a policy point at this point that I could point to or a trade point to say that I'm optimistic because of that, I'm I'm optimistic because I have to be.

And, I can't say that I'm I'm optimistic that there are people that are listening.

I'm optimistic that are people that are willing to do something.

The question is whether that group is big enough and will act quickly enough to make a difference.

And you saw that coalition gathered together earlier this week in northeast Arkansas.

Does that when you see that kind of unification, does that give you hope that there's a coalition?

Like you said, they can absolutely join together.

And I did not I was not able to be there personally, but I heard about it and it was very moving because, as as was pointed out earlier, this is a group of 4 or 5, 600 farmers that come together in the toughest time of year to get anybody to go anywhere other than the field of harvest.

And they came together because the situation is so serious.

And, there were people there from the congressional delegation that listened to will take the story back to Washington.

As Dan introduced a nuance earlier, you ask, Has Congress done enough?

I think that the, answer is a little more nuanced than that.

Our delegation has done what they can do.

They're listening.

They're doing everything that they can, and they always pick up the phone when we call the answer.

But they're within a broader organization called Congress that doesn't always do everything that they can.

And, the issues building up from the past few years of not getting some of those things done as a broader Congress, even though our delegation was pushing very hard to make that happen, or what led us to where we are now.

So I would call upon, as many as I could to push on USDA to try to help bring about some type of program to make things better.

We certainly appreciate you guys, shedding light on what's happening in the ag community as broad as it is, as, as I mentioned, and certainly something that we'll continue to focus on, continue to report on here at Arkansas PBS and and follow throughout the rest of harvest and beyond.

So thank you again for your time.

We appreciate Dan Wright, president of Arkansas Farm Bureau, and Mark Isbell, fourth generation farmer in Lono County, also a member of the Arkansas Rice Federation, for joining us and also want to say thank you to doctor Hunter Byrum, who joined us earlier in the program as well.

So Arkansas farmers continue to face these challenges in so many fronts and will, of course, make sure we follow along on the latest here at Arkansas PBS.

That is all the time that we have on this week's edition of Arkansas Week.

I'm Chris Cain, and we'll see you next week.

Support for Arkansas Week, provided by the Arkansas Democrat-Gazette, the Arkansas Times, and Little Rock Public Radio.