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 and 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 and they're 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 stuff.

Do they know their employees are actually on the 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.

Yeah, I would say that it is, you know, trades are 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 know, 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.

We 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 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 Atkins, 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.

Joining in the Rawsons have been very open about trying to expand that access, not just 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 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'm coming on now.

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 build 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 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 the segment of good routes.

Stay tuned for next month.