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The Arkansas Times and QR FM 89.

Hello everyone and welcome to Arkansas week.

I'm Donna Terrell.

You may have noticed the shelves at the grocery store, not fully stopped or completely bare of food.

Dry goods and essentials.

It has been an ongoing issue since COVID-19 industries and consumers are feeling the crunch of the supply chain.

We discussed the impact on our state, but first we focus on the state of agriculture in this month's good roots.

Agriculture is the state's largest industry annually, contributing more than get this $19.4 billion to the economy.

As we move forward into 2022.

What are some of the opportunities and challenges that lie ahead here to give us an update and outlook?

Our Secretary of Agriculture, West Ward and Mike Freeze.

Vice president of the Arkansas Farm Bureau Board and a fish farmer.

I want to thank both of you for for for joining me for this very important segment.

Let's get right into it.

What are some of Arkansas's top commodities and how are they doing since we have we're really entering our third year of COVID.

Yeah, well, I'll I'll jump in and let my touch on it as well.

But you know, Arkansas is a unique state and that we have a a really a broad range of agricultural production that ranges from your Rd crop commodities, your livestock, your poultry, your specialty crops, your aquaculture is Mike knows the forestry industry Arkansas does that does a lot of things really, really well.

Across the board, successful in all of those top top 25 and 16 different commodities every year.

So very successful industry.

Oh, Rice certainly is one of the top commodities that we're known for producing.

About 50% of the nation's production of rice and poultry.

Of course, Turkey production were number two in the country and turkeys right now, so just a lot of things at Arkansas is really, really good at where we're very, very blessed.

Very thankful, very diversified agricultural industry in Arkansas.

It does, I mean.

We do a lot, which is why, as I mentioned before, $19.4 billion, which is substantial.

But in terms of COVID, how have we been hit?

How have some of the areas of agriculture struggled with that?

Well, yeah, sure.

Go ahead, go ahead.

Well right.

I was going to say course one, probably the biggest issues been labor.

Trying to make sure that your workers are safe, but at the same time you know agriculture is is considered an essential industry.

So during the COVID we weren't able.

Just to, you know, shut down him and we had crops to grow animals that that had to be taken care of, etc.

So keeping your employees healthy and safe.

But also you know we had to show up and do it and do the work every day.

So how are you getting employees?

Because I mean this is an area of manual labor and not everyone wants to do that.

So how are you finding workers?

Well, how Donna you and I talked a little bit about this before the show, but a lot of the farmers in Arkansas.

They they if they can find local labor, they they use local labor, but a lot of them are having to use the H2, a program which is a federal program that allows you to bring workers from other countries in the United States and they can come and work for 10 months.

And then they have to go back to their home country for two months.

It's a very successful program that a lot of Arkansas farmers are using and and you know, Mike, you're a fish farmer.

As you said, you know we we did have a brief discussion.

You're a fish farmer so.

These workers were ten months on, two months off, but fish are being produced all the time.

So what are you doing?

I mean, does that program work for you?

Well, for most of our fish farmers, it it depends on the type of fish you're raising.

If if you're like a bait fish farmer, which is more seasonal, then you have them here.

During your busy season and let them go home during the winter when you're not quite as busy.

Other industries like the dairy industry, you know the cows have to be milked every day so it works somewhat.

You know one of our biggest concerns is that when they go home is are we going to have issues trying to get them back or their embassy is going to be open?

Are they going to be able to get the correct age, 28 paperwork and stuff to come back?

But so you're kind of on some of the farmers are on pins and needles because they know their employees are actually on a plane coming back.

Yeah, it's just one more thing to worry about was let's talk about trade expansion.

How are we doing in that area of agriculture?

Especially since we have dealt with COVID?

Politically, we've you know not gotten very far with some.

Some of those issues, so it's it's trade being affected.

I would say that it is, you know, trades incredibly important for Arkansas agriculture, you know.

Generally we're going to export about about 30% about $3.6 billion worth of our agricultural production gets exported every year.

And but there there's always a lot of factors that go into that.

And you look at the larger scale tensions with with China and the impact that has on agricultural trade, you look at what's going on with Russia.

You look at just different parts of the world.

There's always these different factors that are not necessarily agricultural specific, but have an impact on on trade and commerce moving.

And you know that's certainly been one that the governor, Governor Hutchinson, has spent a lot of time on working on trade issues with the Arkansas Department of Commerce and others.

As as he's went off on these trade missions, he always talks about, you know, one advocating for the state of Arkansas, but two always including agriculture as part of that, and trying to open up.

Open up doors and your coronavirus has impacted trade for sure.

China.

The relationship with China has impacted trade as well and so I think there's a realization that we've got to look broader and look and diversify our trade outlook as much as we can to make sure we're mitigating.

Mitigating that risk, and you know, and it's interesting that we're talking about China because, you know, at the top of the show you were talking about.

You know all of the different products that come out of Arkansas.

Rice, being you know number one, if I remember correctly, the Ralston family farms and Adkins, the first US exporter to ship long grain rice to China.

How first of all how is that going?

Especially with the US relationship with China and two.

Are there any possibilities of other rice farmers being able to branch out?

Turn out I'll, I'll comment briefly and let Mike Jump in as well, but you know you're talking to the Ralston family.

You know they were very diligent on that and a lot of work went to opening up that sale.

And Rice has always been a protected commodity that's been difficult and a lot of countries to get in.

'cause it's one partly 'cause it is just stable commodity throughout the world, and they put a lot of work into that.

Opened up that access.

I know there's ongoing communications on additional shipments of Arkansas Rice going in the roster.

Have been very open about trying to expand that access, not just for for their own from their own farm but also for other Arkansas producers and US producers as well.

So we're optimistic that we'll see some increases there from the rice production side.

We have about four minutes left, so let's talk a little bit about technology and the supply chain.

I I know in terms of farming equipment, I've never lived on a farm, but what I do know is there's lots of heavy equipment, equipment breaks down the supply chain, getting parts, getting a lot of that fixed it, our farmers feeling the impact of that.

Donna, yes, very much so when when you have a tractor or tractor trailer or a piece of equipment or something breaks down.

I mean the first thing is can you find the parts to fix it and I can tell you in numerous farmers that if you can find a part somewhere, you better go get it right right now or you better pay somebody to have it shipped to you and a lot of times you're having to pay.

You know double the cost of what a part should cost just because parts are in.

They are in short supply, but if you can find it you better get it, but because.

You know you don't know if you're gonna get it through the normal supply chain.

Yeah, I can only imagine how difficult that has to be because if if if the equipment is not working, then that's going to halt production.

So so when we look at the the bigger picture and I do want to talk about federal funding.

But when we look at the bigger picture, all of these things in terms of workers in terms of the supply chain, all of that that's affecting why when we go into the grocery store, a lot of goods.

And supplies are just not there.

Yeah I I would.

I would absolutely agree with that.

You know you look at agriculture and you know it's it's the industry that provides the food, fiber, fuel and shelter that we all depend on every single day, every single day of our lives.

We depend on the agriculture industry and the industry and the producers have so many risks that are beyond their control.

Whether it's process or whether or supply chains or input.

You know all these factors that they have to deal with and that that you know certainly has an impact on the process.

I figured at the grocery store, but for the producer they're doing the best they can every year to to put food on the table.

You know, to produce those commodities for us to consume, regardless of what the price is going to be.

So they take an exorbitant amount of risk to be able to produce what we depend on every single day.

So with all the challenges that the agriculture industry is facing, are there needs now for federal funds?

Yeah, I'll comment on that.

You know that's that's certainly one, as we've as we've seen over, you know, certainly with the corona virus we've seen the Cares Act funding.

We've seen American rescue, you know.

Plan funding we've seen now.

The infrastructure bill funding, and you know, certainly, that's one of the priorities of the governor to work through that funding federal funding that's coming to the state of Arkansas to make sure that we're prioritizing that to the appropriate way, you know.

And it may not impact agriculture directly, as in the agricultural production, but several.

Factors there that we're working on.

Whether it's you know increasing meat and protein processing capacity in the state, or if its broadband, the only dealing with the coronavirus, specifically, infrastructure built on water and wastewater, funding irrigation project funding, so several things that we're going to be focused on over the next year in particular, but certainly working with Mike Friesen, Farm Bureau, and other agricultural associations to make sure that we're approaching those in the right way.

That would be a benefit for our state.

For agriculture industry and Mike I, I think there was something you were getting ready to say.

Well I was just gonna say farmers are eternal optimists and they can produce the food and fiber that we need.

Most of the supply chain issues are occurring.

From the farm to the before the product gets to the grocery grocery store, you know whether it be a meat processing facility or whatever, but our farmers are are doing an exemplary job under very difficult times.

Yeah, yeah, it's it's it's tough all around, and I think many of us who go into the grocery store and, you know, we buy, produce and and a number of items we need to always remember where it came from and and recognized that you know, the agriculture industry.

Specifically, farmers are feeling the crunch just like the rest of us.

So thank you, I you know this is one of those topics I had so many questions for you that I can't even get through all of them.

And I apologize for that.

But we've run out of time, but West Ward and Mike Freeze.

I want to thank both of you for joining me.

Thank you so much.

Thank you and that concludes this segment of good routes.

Stay tuned for next month.

Major funding for good roots is provided by Arkansas Farm Bureau, Arkansas Farm Bureau advocating the interests of Arkansas's largest industry for more than 80 years.

Arkansas counts on agriculture, agriculture counts on Farm Bureau.

Since the start of the pandemic, the supply chain has been disrupted, setting off shortages of goods delays with domestic supply and increasing consumer prices, and as one would say, creating the perfect storm.

Joining us to talk about the impact on our state, our Secretary of Commerce, Mike Preston and President of the Arkansas Trucking Association.

Shannon Newton, I want to thank both of you for for joining me to talk about this.

I guess we know that COVID has caused this strain on the supply chain, but is it just COVID or other things as well?

Well, thank you for having me Donna.

It's certainly a critical time as we are facing a pandemic.

We've had a series of natural disasters complicated by workforce shortages and other factors which continue to put pressure on the freight economy in ways that we've never seen before.

And Secretary Preston so.

With that in mind, what types of industries have been affected?

Well, it's across the board on.

I mean you see it everywhere from the manufacturing to agriculture.

Anyone who goes into a grocery store right now is is seeing the effects of the supply chain and the shortage.

Or if you're ordering something online, it's gonna take you a lot longer.

Or you might find that it's not not available.

So unfortunately it's really across the board that we're seeing at.

Some are obviously more impact than others.

If you tried to buy a car recently or a used car, you know it's in the automobile industry as well, so we're seeing it.

You know, all throughout our economy right now, and.

Fortunately, it is is Arkansas feeling it worse than other states, or are we all in this together as they say?

Yeah, I'd say we're all in it together.

Arkansas is no worse than any other state.

It's it's a national issue.

It's a global issue and you know, we try to do everything we can at a state level to to mitigate and help our businesses here in Indy's supply chain and recruiting industry.

That will help shorten the supply chain, so we're not as dependent on outside sources coming in, but we are in a global economy and until this is addressed at a national and global scale, we're all going to be continued to be impacted by IT Secretary Preston is there.

One specific area that's been hit harder than any of the others.

Well, like I said before, I don't think that you know that anyone insulated from it.

And there's areas that have been significantly impacted when you look at the automobile industry or the construction industry and what's coming in through there.

So, and as Shannon can attest with the trucking and shipping industry that we've seen, the backups are so big and so prevalent across the country, there's not anyone who's been insulated.

But as far as you know who's impacted the most?

You know, we're all in it.

We're all feeling it.

Yeah, I want to get to the trucking industry in in just a minute, but you touched on something when you were talking about construction.

And especially with new homes, just new facilities that are going up lumber at one point this year, my husband and I were trying to have something built and lumber the cost of lumber.

Had I want to say it more than doubled.

It did.

I think it hit an all time high in terms of the price of lumber.

If you saw a lumber truck going down the highway, you were wondering why it wasn't, you know, surrounded by some armored cars protecting it, 'cause the value of that lumber was so high at that point.

And that's because of the shortages and we're seeing it across the board.

So that really impacted the building and construction industry we've been fortunate in Arkansas that we've been able to recruit in additional industries to kind of help.

Maybe ease some of that when you look at what we've announced.

About a week ago in Northeast Arkansas and the the steel mill that's coming in there, the more that we can, you know, reduce our dependency on some domestic sources or some international sources and source that locally here in the US or in our region and our state.

That's gonna help us.

But yeah, certainly in the construction industry.

Not only did you see the prices go up on on the raw materials and the lumber that was going into it, but the workforce shortages also addressed it in it in a big issue too, that there just weren't enough people to to build the.

With homes that we were looking to have, that was the demand in our economy for those new houses and so that brings me to the trucking industry and already or as we know there are shortages with getting truck drivers.

So with that compounded with supply chain issues, Shannon how is the trucking industry being affected with all of this?

Well, Donna, as you alluded to the the driver shortage is an issue that our industry has been dealing with for at least a decade.

It dates back pre pandemic pre any of the issues that we're currently dealing with.

We already had a shortage of individuals who were entering the workforce and interested and qualified to become commercial truck drivers.

And so as you overlay all of the things that have happened over the last 24 months, that has certainly been exacerbated so far from an industry standpoint.

To the question that you asked earlier, I would say Arkansas is a is a supply chain hub.

We are overrepresented in Arkansas, actually one in 10 jobs in the state is in the private sector is actually supported in the trucking industry, and so as we've experienced this supply chain crunch as we've experienced this labor shortage, the employers here have certainly been impacted by that, perhaps disproportionately to some other states who might not have as much transportation in their economy.

You know, it's interesting too.

I, I think one of the big topics in the news right now is allowing 18 year old truck drivers 1819 and 20.

I guess that would be to cross state lines because as of right now they can be a truck driver, but they have to work within the state.

It's controversy about that you right now the law say you have to be 21 years old.

How do you feel?

How does?

How does your department feel about allowing younger?

Drivers to be able to cross state lines.

Well, thank you for bringing that up.

That's actually a very important issue to our industry and something that we as an organization, have advocated for for quite some time.

I think that the federal law that states that you have to be 21 to engage in Interstate commerce is antiquated and illogical in Arkansas today, an 18 year old can move £80,000 worth of farm equipment from Crossett to Corning on rural highways.

However, that federal law prohibits the same 18 year old driver.

From moving a 53 foot trailer of packages from West Memphis to Memphis and so we we believe that there is a pathway in order for us to fully address the driver shortage that we've experienced.

As I mentioned, for years we're going to have to complete that pipeline so that if we educate young people about the opportunities, if we create jobs that are desirable and match their qualifications, that we should be able to seamlessly transition those young people from high school into the truck, driving careers absent.

That we will always be trying to recruit from other industries or attracting people after they have been unsuccessful in some other attempt.

And you know what?

And you're actually finding people who you know may have been unsuccessful in in other jobs because the the pay scale for a truck driver has gone up quite significantly.

So is that helping?

It is helping.

I think there are a lot of factors that are going into that.

Some of it is the lifestyle of the job, the predictability of the position, the respect that those individuals receive.

Certainly the profile of a commercial driver has been elevated over the last 24 months as we've talked about throughout the pandemic, as truck drivers were viewed as heroes as they continued to work and deliver PPE and vaccines and toilet paper, and so the profile of the industry is certainly.

Improved and so people are aware of the shortage and aware of the essential role that those drivers can play in providing services to their communities.

And so we have experienced an increase in interest and then also had to raise the salary in order to recruit talent in this market.

As you mentioned, construction is doing well.

Manufacturing has had a resurgence and so we're competing for that same talent pool and so in order to attract those workers we have had to increase the wages that are paid to commercial truck drivers.

But then in turn, that leads to increased cost of goods, right?

And so there is no.

There's no perfect solution.

It cost of goods.

Now we're talking about, you know you and me and everyone watching, going to the grocery store for one, and trying to, you know, get food, or get any of the the the the items that we need.

Secretary Preston, where do you see consumer prices heading are are we going to continue going up in terms of cost or are we on the downslope?

Well, unfortunately we've all seen it just continuing to rise and and right now it looks like it's going to continue to go that way.

You know we need some action at the federal level.

I think the Biden administration maybe status aside too long and kind of ignored the fact that inflation was happening, hoping that it would go away as we all have seen anyone who's bought anything in the last.

Couple of weeks gonna test it hasn't gone away.

It's only gotten worse where you know at levels that we haven't seen in some 40 years so it needs to be addressed.

Otherwise it is gonna be continued to go up.

You know, I was talking earlier in the segment before this one about the farming industry agriculture industry specifically and how it's more than $19 billion industry in terms of bringing money into our economy.

So that's a lot.

But now we're talking about the supply chain and we don't just rely on.

You know, agriculture or agriculture is huge in Arkansas we know this, but how have businesses been affected?

Well, Secretary Preston, what have you seen?

What are people telling you in terms of businesses and how they're managing through all this?

This has been impacted just like everyday consumer who goes out and buys a good for their family.

Businesses are impacted because they reply they depend so much on that supply chain and there's you know things that they just can't source domestically that they have to wait for, you know, coming in from somewhere else or because of the inflation, it's caused their you know their bottom line to increase because they're having to pay more for their raw materials.

And unfortunately, what that means usually is it gets passed on to the consumer because that business owner has to.

Increase their prices to account for it, so that's where we see this inflation kind of this perfect storm coming together and hitting and we really need to to address it as a country.

Otherwise we're gonna surpass those levels that we saw 40 years ago when we're getting very dangerously close at this point.

And you know, it is very interesting because you know when COVID first hit one of the the catch phrases was we're all in this together.

And as we look at supply chain issues, same thing applies.

We're all in this.

Together, it's not just an Arkansas issue, it's a nationwide issue.

And actually it's a global issue when you really take time to think about it.

When you're talking about the supply chain, you guys, I I feel like we're running out of time here unfortunately.

And and I was hoping to end this on a high note and but it it really as we navigate through COVID and deal with these issues.

Like you said, things aren't going to get better, not yet.

Anyway, we're just going to have to buckle in and deal with it.

Well, I mean, I think people have a reason to be optimistic.

We we have fought through this pandemic.

Now for nearly two years.

The good thing in Arkansas is we are down to 3.4% unemployment.

We're out of historic low.

We're seeing our work, our labor pool coming back now.

It's slower than we'd like, and there's still a lot of open jobs, but we're seeing new industry move into our state.

We're seeing new businesses open.

Businesses have the demand.

We just need to be able to find the workers to go out there to fill those jobs in the trucking industry or the manufacturing industry.

Aware of it is, I think the future is bright for Arkansas.

If we can capture on some of these new economy jobs as we go forward, all right?

Well I wanna thank both you Secretary Preston and Shannon Newton for joining me.

Thank you so much for and very interesting conversation.

Thank you, thank you and now for a follow up to last week show.

Steve Barnes performed a demonstration on how to conduct a COVID-19 self test and he ran out of time before his results could be revealed.

As promised, Steve shares his results along with a message.

Donna everyone, the test that I took on Friday's broadcast did what a test is supposed to do, even if it returned results that I had hoped it would not return.

Yeah, it came back positive.

That second line, the one under the T. It took it a few minutes, but there was a line that appeared well later that afternoon.

I took the more advanced test and it too came back as positive.

I feel fine.

No headaches, no aches, no pains, no fever, no coughing, a tiny bit of nasal drip.

That's all.

I rarely felt better and the experts say that is what makes me dangerous feeling mine as I do, had it not been for those tests, I could be out and among my fellow Arkansans infecting heaven knows how many of them and not.

All of them would be as fortunate as I am.

So what this the immediately?

What this means is yours truly is gonna have to self quarantine for several days, then probably take another test.

And if that comes back negative I can resume.

What is considered normal activities in our day and time mask?

Avoid large congregate settings and wash my hands as quickly as possible.

Now the experts also emphasize this.

The fact that I am asymptomatic and and still carrying the COVID Omicron variant is evidence sufficient that the vaccines do work, why?

Well, even though I have COVID, I quite likely will not have to go to the hospital.

I will not require ventilation and my demise hopefully is some years distant, but not everybody is going to be as lucky as I am.

Alright Steve, I'm so glad you're OK. And thank you for that important message.

People need to hear that and you can obtain a free rapid test kit at your local health unit and Public Library.

Or you can receive it by mail by signing up online@covidtest.gov and the shipping is free.

That's gonna do it for Arkansas week.

I'm Donna torrell.

Thanks for joining me.

Be safe and thanks for watching so long.

Support for Arkansas Week provided by the Arkansas Democrat Gazette.

The Arkansas Times and QR FM 89.